Estimates of appropriations

Vote Finance - Finance and Government Administration Sector - Estimates 2018/19

Vote Finance#

APPROPRIATION MINISTER(S): Minister for Climate Change (M12), Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Research, Science and Innovation (M84), Minister for Greater Christchurch Regeneration (M85), Minister Responsible for the Earthquake Commission (M86), Minister of Housing and Urban Development (M96)

APPROPRIATION ADMINISTRATOR: The Treasury

RESPONSIBLE MINISTER FOR THE TREASURY: Minister of Finance

Overview of the Vote#

The Minister of Finance is responsible for appropriations in Vote Finance for the 2018/19 financial year which cover the following:

  • a total of nearly $31 million for the provision of financial operations services and operational advice which support the performance of the State sector
  • a total of over $10 million for the administration of Crown borrowing, securities, derivative transactions, investments and guarantees
  • a total of over $34 million for the provision of advice (including assessing and providing contributions to policy advice led by other agencies) to support decision making by Ministers
  • a total of nearly $14 million for the provision of shared services to other entities and agencies
  • a total of $25 million for Crown Infrastructure Partners Limited to invest in water and roading infrastructure to support the timely increase of housing supply
  • a total of over $12 million for departmental capital expenditure
  • a total of over $3,285 million for the payment of interest and other costs relating to the Crown's debt
  • a total of under $1,608 million for superannuation costs, primarily as contributions to the Government Superannuation Fund and the NZ Superannuation Fund
  • a total of over $27 million for the un-wind of interest expense on liabilities
  • a total of over $5 million for inquiries and research into productivity-related matters by the Productivity Commission
  • a total of nearly $6 million for unclaimed money, meeting costs associated with the Landcorp Protected Land Agreement, managing the Crown's residual liabilities, management of the Crown's agreement with Taitokerau Forests Ltd, review and reform of local infrastructure arrangements, and provisions for meeting liabilities associated with Geothermal Wells
  • a total of nearly $2 million for the Tax Working Group
  • a total of $40 million for the Crown's participation in Dividend Reinvestment Plans
  • a total of over $141 million for a loan facility and $50 million for an equity injection for Tamaki Regeneration Company
  • a total of nearly $196 million for refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt, and
  • a total of nearly $15 million for costs of administering New Zealand House, London.

The Minister of Finance is also responsible for Crown revenue and receipts which account for over $3,471 million in non-tax revenue for return on investments, including capital charge, dividends, and interest on securities and deposits.

The Minister of Finance is also responsible for a capital injection of over $6 million to the Treasury.

The Minister supporting Greater Christchurch Regeneration is responsible for annual and multi-year appropriations which total under $502 million in 2018/19 for the continuation of Anchor Projects Programme and divestment of Crown-owned land to Otakaro Limited, the transfer of Anchor Project Assets to Otakaro Limited, and the design and establishment of the Christchurch Regeneration Acceleration Facility.

The Minister of Housing and Urban Development is responsible for the appropriation in Vote Finance for the 2018/19 financial year which covers over $4 million for the Social Housing Reform Programme.

The Minister for State Owned Enterprise is responsible for the appropriation in Vote Finance for the 2018/19 financial year which covers nearly $5 million for Crown company monitoring, governance, and ownership advice.

The Minister of Research, Science and Innovation is responsible for the appropriation in Vote Finance for the 2018/19 financial year which covers over $200,000 for Crown Research Institutes governance and ownership advice.

The Minister for Climate Change is responsible for the appropriation in Vote Finance for the 2018/19 financial year which covers $4 million for the design and establishment of the Green Investment Fund.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2017/18 2018/19
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31)

This appropriation is limited to expenses incurred in connection with administering borrowing, securities, derivative transactions and investment by the Crown, as authorised by section 65ZH of the Public Finance Act 1989.
10,005 10,005 10,105

Administration of Guarantees and Indemnities Given by the Crown PLA (M31)

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.
110 110 110

Crown Company Monitoring Advice to the Minister for State Owned Enterprises and Other Responsible Ministers (M65)

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.
4,558 4,558 4,533

Crown Company Monitoring Advice to the Minister of Research, Science and Innovation and the Minister for Economic Development (M84)

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Research, Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.
129 129 236

Design and Establishment of Christchurch Regeneration Acceleration Facility (M85)

This appropriation is limited to the design and establishment of the Christchurch Regeneration Acceleration Facility.
500 500 1,000

Design and Establishment of the Green Investment Fund (M12)

This appropriation is limited to the design and establishment of the Green Investment Fund.
1,000 200 4,000

Policy Advice - Finance (M31)

This appropriation 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 Finance.
37,867 35,517 34,308

Provision of Financial Operations Services and Operational Advice (M31)

This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.
30,767 30,267 30,839

Shared Support Services (M31)

This appropriation is limited to provision of support services to other agencies.
14,069 12,569 13,871

Total Departmental Output Expenses

99,005 93,855 99,002

Departmental Capital Expenditure

     

The Treasury - Capital Expenditure PLA (M31)

This appropriation is limited to the purchase or development of assets by and for the use of the Treasury, as authorised by section 24(1) of the Public Finance Act 1989.
8,048 8,048 12,485

Total Departmental Capital Expenditure

8,048 8,048 12,485

Non-Departmental Output Expenses

     

Inquiries and Research into Productivity-Related Matters (M31)

This appropriation is limited to the undertaking of inquiries into and research on, and promoting public understanding of, productivity-related matters by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
- - 5,030

Management of Anchor Projects by Otakaro Limited (M85)

This appropriation is limited to the Crown's contribution to Otakaro Limited's operating and financing expenses.
26,409 21,419 23,300

Management of the Crown's Obligations for Geothermal Wells (M31)

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.
449 82 180

Management of the New Zealand Superannuation Fund (M31)

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.
859 686 728

Total Non-Departmental Output Expenses

27,717 22,187 29,238

Non-Departmental Borrowing Expenses

     

Debt Servicing PLA (M31)

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.
3,427,613 3,427,613 3,285,111

Total Non-Departmental Borrowing Expenses

3,427,613 3,427,613 3,285,111

Non-Departmental Other Expenses

     

Crown Residual Liabilities (M31)

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.
314 150 210

Geothermal Wells Fund (M31)

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.
500 300 500

Government Superannuation Appeals Board (M31)

This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.
50 5 50

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Fund Act 1956.
38,000 38,000 38,000

Government Superannuation Fund Unfunded Liability PLA (M31)

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Fund Act 1956.
538,597 468,597 553,060

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.
18,000 17,000 16,000

Review and Reform of Local Government Infrastructure Arrangements (M31)

This appropriation is limited to the review and reform of disaster funding for local government infrastructure, including contributions to expenses of the Local Government Risk Agency.
1,017 143 300

Unclaimed Money PLA (M31)

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.
250 100 250

Unclaimed Trust Money PLA (M31)

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.
250 - 250

Unwind of Discount Rate Used in the Present Value Calculation - Rehabilitation of Stockton Mine Acid Mine Drainage (M31)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Crown's liability under its Deed of Commitment relating to the rehabilitation of Stockton Acid Mine Drainage, as costs are incurred against the liability.
3,000 2,820 3,000

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability in respect of share subscriptions in International Financial Institutions as it nears settlement, as authorised by section 5(2) of the International Finance Agreements Act 1961.
1,403 1,533 866

Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.
7,523 6,847 3,640

Ahu Whenua Trust Ex-gratia Payment (M31)

This appropriation is limited to an ex-gratia payment to an Ahu Whenua Trust in settlement of its claims from 21 September 1992 onwards.
9,000 9,000 -

Earthquake Commission - Clean-up of Edgecumbe Properties (M86)

This appropriation is limited to reimbursing EQC for costs associated with implementing Ministerial requests in relation to property clean-up following the Edgecumbe severe flooding of April 2017.
455 77 -

Fair Value Write-down on Initial Recognition of Sale of Fairway Resolution Ltd (M31)

This appropriation is limited to the expense incurred in the write-down to fair value of the receipt of proceeds from the sale of Fairway Resolution Ltd.
150 150 -

Impairment of Investment in Southern Response Earthquake Services Ltd (M31)

This appropriation is limited to the impairment of equity investment in Southern Response Earthquake Services Ltd.
137,000 - -

Payment in Respect of Export Credit Office Guarantees and Indemnities PLA (M31)

This appropriation is limited to payments by the Crown under export credit guarantees or indemnities given under Section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.
1,710 1,312 -

Total Non-Departmental Other Expenses

757,219 546,034 616,126

Non-Departmental Capital Expenditure

     

NZ Superannuation Fund - Contributions (M31)

This appropriation is limited to capital contributions to the New Zealand Superannuation Fund, for the present and future cost of New Zealand Superannuation.
500,000 500,000 1,000,000

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M31)

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited Debt.
337,045 337,045 195,909

Tamaki Regeneration Company Limited - Equity Injection (M31)

This appropriation is limited to the provision of an equity injection to Tamaki Regeneration Company Limited.
87,000 87,000 50,000

Canterbury Earthquake National Memorial (M31)

This appropriation is limited to Crown Acquisition of the Canterbury Earthquake National Memorial from Otakaro Limited.
8,500 - -

Crown Asset Management Limited - Acquisition of Residual Assets (M31)

This appropriation is limited to the acquisition of residual assets from Crown Asset Management Limited.
1,000 - -

Deferred Receipt of Proceeds from Sale of Fairway Resolution Limited (M31)

This appropriation is limited to the recognition of the deferred receipt of sale proceeds from the sale of Fairway Resolution Ltd.
1,000 - -

International Financial Institutions PLA (M31)

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.
7,550 7,550 -

Southern Response Earthquake Services Ltd: Equity Investment (M31)

This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.
137,000 - -

Total Non-Departmental Capital Expenditure

1,079,095 931,595 1,245,909

Multi-Category Expenses and Capital Expenditure

     

Greater Christchurch Anchor Projects MCA (M85)

The single overarching purpose of this appropriation is to support the recovery of Christchurch by contributing operating and capital funding for anchor projects covered by the Christchurch Central Recovery Plan.
233,884 123,590 250,000

Non-Departmental Other Expenses

     

Christchurch Bus Interchange and Associated Transport Infrastructure - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure.
45,569 22,732 2,700

Christchurch Convention Centre - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.
3,000 2,961 4,200

Christchurch Stadium - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.
989 - 2,000

Financial Impact of Valuations

This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.
331 - 1,500

Leasing Anchor Project Land

This category is limited to the financial impact of granting concessionary leases over anchor project land.
1,000 - 2,000

Metro Sports Facility - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.
21,409 17,474 10,000

Pre-Development Holding Costs - Operating

This category is limited to the Crown's contribution to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.
7,678 1,535 2,000

Procurement of Land and Assets - Operating

This category is limited to the Crown's contribution to the purchase, acquisition and clearance of land and assets for anchor project development.
23,371 10,020 21,700

Public Space - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.
44,490 32,327 11,100

Sale of Land

This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.
1,684 - 1,000

Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties

This category is limited to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure funded by contributions from parties other than the Crown.
100 - -

Christchurch Stadium - contributions from third parties

This category is limited to the development, operations and divestment of the Christchurch Stadium funded by contributions from parties other than the Crown.
100 - -

Metro Sports Facility - contributions from third parties

This category is limited to the development, operations and divestment of the Metro Sports Facility funded by contributions from parties other than the Crown.
100 - -

Public Space - contributions from third parties

This category is limited to the development, operations and divestment of the Crown owned public space funded by contributions from parties other than the Crown.
100 - -

The Square - contributions from third parties

This category is limited to the development, operations and divestment of the Square funded by contributions from parties other than the Crown.
100 - -

Non-Departmental Capital Expenditure

     

Christchurch Convention Centre - Capital

This category is limited to the Crown's contribution to the capital development of the Christchurch Convention Centre and to providing equity or loan capital to Otakaro Limited for that purpose.
63,300 29,031 181,800

Land and Asset Acquisition - Capital

This category is limited to the Crown's contribution to the cost of land and assets to be acquired for anchor project development and to providing equity or loan capital to Otakaro Limited for that purpose.
9,336 - 10,000

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital

This category is limited to the Crown's contribution to the capital development of the Christchurch Bus Interchange and associated transport infrastructure and to providing equity or loan capital to Otakaro Limited for that purpose.
2,085 - -

Earthquake Memorial - Capital

This category is limited to the Crown's contribution to the capital development of the Canterbury Earthquake Memorial and to providing equity or loan capital to Otakaro Limited for that purpose.
68 - -

Metro Sports Facility - Capital

This category is limited to the Crown's contribution to the capital development of Metro Sports Facility and to providing equity or loan capital to Otakaro Limited for that purpose.
1,000 - -

Public Space - Capital

This category is limited to the capital development of the Crown owned public space and to providing equity or loan capital to Otakaro Limited for that purpose.
8,074 7,510 -

Management of Landcorp Protected Land Agreement MCA (M31)

The overarching purpose of this appropriation is meeting the Crown's responsibilities under the Landcorp Protected Land Agreement.
9,044 2,000 4,000

Non-Departmental Other Expenses

     

Operating Costs

This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.
5,293 2,000 2,500

Non-Departmental Capital Expenditure

     

Capital Investments

This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.
3,751 - 1,500

Management of New Zealand House, London MCA (M31)

The overarching purpose of this appropriation is to ensure that New Zealand House, London is well managed.
24,994 16,300 14,750

Non-Departmental Output Expenses

     

Property Management

This category is limited to the property management services in respect of New Zealand House, London.
2,500 1,000 1,000

Non-Departmental Other Expenses

     

Operational Costs

This category is limited to the operational costs of New Zealand House, London.
16,751 14,300 13,000

Renegotiation of Lease Arrangements

This category is limited to activities to re-gear the lease on New Zealand House, London (including The Royal Opera Arcade and Her Majesty's Theatre).
1,993 1,000 -

Non-Departmental Capital Expenditure

     

Capital Expenditure

This category is limited to capital expenditure in relation to New Zealand House, London.
3,750 - 750

Management of the Crown's Agreement with Taitokerau Forests Limited MCA (M31)

The overarching purpose of this appropriation is meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.
4,745 400 200

Non-Departmental Other Expenses

     

Grants

This category is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
415 400 200

Impairment of Loans

This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.
4,030 - -

Non-Departmental Capital Expenditure

     

Loans

This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.
300 - -

Social Housing Reform MCA (M96)

The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making Housing New Zealand Corporation stock available to social housing providers.
12,767 5,592 4,201

Departmental Output Expenses

     

Implementation of the Social Housing Reform Programme

This category is limited to the policy, operational, and transactional work to implement the Government's reform of social housing.
5,494 4,494 2,101

Non-Departmental Output Expenses

     

Direct Sale Costs for Implementing the Social Housing Reform Programme

This category is limited to direct sales costs of implementing the Government's reform of social housing.
7,273 1,098 2,100

Tax Working Group MCA (M31)

The single overarching purpose of this appropriation is to enable the Tax Working Group to consider and recommend improvements in the structure, fairness and balance of the tax system.
2,400 1,400 1,600

Departmental Output Expenses

     

Tax Working Group - Provision of Support and Advice

This category is limited to providing support and advice to the Tax Working Group.
1,920 920 1,280

Non-Departmental Output Expenses

     

Tax Working Group - Direct Costs

This category is limited to the direct costs of the Tax Working Group.
480 480 320

Inquiries and Research into Productivity-Related Matters MCA (M31)

The overarching purpose of this appropriation is to provide for inquiries into, and research and promotion of, productivity-related matters.
5,030 5,030 -

Non-Departmental Output Expenses

     

Inquiries into Productivity-Related Matters

This category is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
4,401 4,401 -

Research into and Promotion of Productivity-Related Matters

This category is limited to the New Zealand Productivity Commission undertaking research into and promoting public understanding of productivity-related matters in accordance with the New Zealand Productivity Commission Act 2010.
629 629 -

Total Multi-Category Expenses and Capital Expenditure

292,864 154,312 274,751

Total Annual and Permanent Appropriations

5,691,561 5,183,644 5,562,622

Multi-Year Appropriations#

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

Non-Departmental Capital Expenditure

   

Crown Infrastructure Partners Limited - Equity Injection (M31)

This appropriation is limited to investment in Crown Infrastructure Partners Limited.

Commences: 09 April 2018

Expires: 30 June 2022
Original Appropriation 600,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 600,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 20,000
Estimated Actual for 2018/19 25,000
Estimated Appropriation Remaining 555,000

Loan Facility for Tamaki Redevelopment Company (M31)

This appropriation is limited to provision of a loan to Tamaki Redevelopment Company Limited.

Commences: 31 March 2015

Expires: 30 June 2019
Original Appropriation 200,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 200,000
Actual to 2016/17 Year End 11,500
Estimated Actual for 2017/18 47,000
Estimated Actual for 2018/19 141,500
Estimated Appropriation Remaining -

Participation in Dividend Reinvestment Plans by the Mixed Ownership Model Companies (M31)

This appropriation is limited to the Crown acquiring new shares in Air New Zealand Limited, Genesis Energy Limited, Mercury NZ Limited and Meridian Energy Limited as a result of the Crown's participation in any dividend reinvestment plans carried out by the companies.

Commences: 14 February 2018

Expires: 30 June 2022
Original Appropriation 80,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 80,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 20,000
Estimated Actual for 2018/19 40,000
Estimated Appropriation Remaining 20,000

Transfer of Anchor Project Assets to Otakaro Limited (M85)

This appropriation is limited to the transfer of Christchurch anchor project assets to Otakaro Limited.

Commences: 01 April 2016

Expires: 30 June 2020
Original Appropriation 500,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 500,000
Actual to 2016/17 Year End 239,560
Estimated Actual for 2017/18 32,770
Estimated Actual for 2018/19 227,670
Estimated Appropriation Remaining -

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

  2017/18 2018/19
  Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual and Permanent Appropriations 5,691,561 5,183,644 5,562,622
Total MYA Non-Departmental Capital Expenditure Forecasts 119,770 119,770 434,170

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

5,811,331 5,303,414 5,996,792

Capital Injection Authorisations#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
The Treasury - Capital Injection (M31) 3,000 3,000 6,388

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Funding for Tamaki Regeneration Company for the construction of public and private houses in the Tamaki region

Tamaki Regeneration Company Limited - Equity Injection

Non-Departmental Capital Expenditure
87,000 50,000 - 138,000 25,000
Design and Establishment of the Christchurch Acceleration Facility which will enable the Crown to contribute up to $298.5 million towards development initiatives for the Residential Red Zone and/or a Multi-Use Arena (stadium)

Design and Establishment of the Christchurch Acceleration Facility

Departmental Output Expense
500 1,000 - - -
Design and establishment of the Green Investment Fund which will be funded with up to $100 million to invest in assets that reduce carbon emissions

Design and Establishment of the Green Investment Fund

Departmental Output Expense
1,000 4,000 - - -
Re-establishment of contributions to the NZ Superannuation Fund

NZ Superannuation Fund - Contributions

Non-Departmental Capital Expenditure
500,000 1,000,000 1,500,000 2,200,000 2,500,000
Dividend Reinvestment Plans

Participation in Dividend Reinvestment Plans by Mixed Ownership Model Companies

Non-Departmental Capital Expenditure (Multi-Year Appropriation)
20,000 40,000 20,000 - -
Provision of independent advice on NZ's tax systems by the Tax Working Group

Tax Working Group

Multi-Category Appropriation
2,400 1,600 - - -
Funding for Crown Infrastructure Partners Limited to invest in water and roading infrastructure to support the timely increase of housing supply

Crown Infrastructure Investments Limited - Equity Injection

Non-Departmental Capital Expenditure
20,000 25,000 88,000 187,000 280,000
             

Previous Government

           
Creating Economic Opportunity: A Treasury Presence Offshore (Singapore)

Policy Advice - Finance

Departmental Output Expense
854 854 854 854 854
The Stockton Acid Mine Drainage Rehabilitation Project

Policy Advice - Finance

Departmental Output Expense
2,400 1,100 1,000 300 -
Deferred receipt of sales proceeds from the sale of Fairway Resolution Ltd

Deferred Receipt of Proceeds from Sale of Fairway Resolution Limited

Non-Departmental Capital Expenditure
1,000 - - - -
Provision of funding to EQC for the clean-up of properties in Edgecumbe following floods

Earthquake Commission - Clean-up of Edgecumbe Properties

Non-Departmental Other Expense
455 - - - -
Incremental Funding to Maintain the Governance of the Board of the Guardians of New Zealand Superannuation

Management of the New Zealand Superannuation Fund

Non-Departmental Output Expense
200 200 200 200 200

Total Initiatives

 

635,809

1,123,754

1,610,054

2,526,354

2,806,054

Summary of Financial Activity#

  2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
  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 98,101 87,672 95,490 112,298 126,722 116,042 99,002 29,238 128,240 122,206 99,869 99,569
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses 3,549,500 3,619,582 3,409,180 3,410,543 3,427,613 3,427,613 - 3,285,111 3,285,111 3,187,077 3,323,088 3,063,728
Other Expenses 794,050 1,220,709 951,850 968,041 757,219 546,034 - 616,126 616,126 625,975 625,621 625,621
Capital Expenditure 273,886 373,715 2,554,386 634,279 1,206,913 1,039,433 12,485 1,680,079 1,692,564 1,865,231 2,672,443 3,028,372
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 5,231 6,945 17,676 16,369 22,697 13,022 3,381 3,420 6,801 4,600 1,000 1,000
Other Expenses 13,071 - 49,615 132,060 178,503 104,749 - 73,900 73,900 26,500 19,500 19,500
Capital Expenditure 2,822 - 19,182 34,109 91,664 36,541 N/A 194,050 194,050 56,050 2,250 2,250

Total Appropriations

4,736,661 5,308,623 7,097,379 5,307,699 5,811,331 5,283,434 114,868 5,881,924 5,996,792 5,887,639 6,743,771 6,840,040

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 3,174,365 3,069,945 3,673,883 3,305,607 3,140,673 3,140,673 N/A 3,360,718 3,360,718 3,228,985 3,398,168 3,335,814
Capital Receipts 78,597 67,797 627,990 286,137 369,218 369,218 N/A 206,474 206,474 287,878 167,779 219,988

Total Crown Revenue and Capital Receipts

3,252,962 3,137,742 4,301,873 3,591,744 3,509,891 3,509,891 N/A 3,567,192 3,567,192 3,516,863 3,565,947 3,555,802

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 Appropriations in the Details of Appropriations and Capital Injections.

Total Vote: All Appropriations

The movements in appropriations in Vote Finance, as detailed in the Summary of Financial Activity table above, are largely due to movements in capital expenditure, debt servicing costs and other Non-Departmental expenses.

Significant movements within each appropriation category are shown below.

Departmental Output Expenses

Total Departmental output expenses will remain constant at $99 million in 2018/19. An increase in funding for the design and establishment of the Green Investment Fund of $3 million will be offset by reduction in other appropriations - primarily as a result of non-recurring expense transfers from 2016/17 to 2017/18.

Material changes in previous years included:

  • Policy Advice - Finance increased by about $2 million in 2017/18 which was largely the result of new funding provided in Budget 2017 of $3 million for the two initiatives Creating Economic Opportunity: A Treasury Presence Offshore (Singapore) and the Stockton Acid Mine Drainage Rehabilitation Project, and
  • Shared Support Services to the Department of the Prime Minister and Cabinet (DPMC) increased in 2016/17 following the transfer of Canterbury Earthquake Recovery Authority activities from March 2016 ($3 million), and had previously increased in 2015/16 following transfer of Emergency Management activities from the Department of Internal Affairs from April 2014 ($4 million).

Non-Departmental Output Expenses

No material changes are forecast in Non-Departmental output expenses in 2018/19. Material changes in previous years included:

  • in 2015/16, a new appropriation, Management of Anchor Projects by Otakaro Limited, was established for the provision of operating costs to Otakaro Limited for managing the continuation of Anchor Projects and divestment of Crown-owned land in Christchurch. Funding of over $7 million was appropriated for 2015/16 and $23 million for 2016/17. Funding is forecast to continue at $23 million each year until 2020/21 when it expires, and
  • Tamaki Regeneration appropriation was transferred into Vote Finance from Vote Building and Housing in 2015/16, with costs of just over $3 million being incurred in 2016/17.

Non-Departmental Borrowing Expenses

Debt servicing costs have fluctuated over the period and are expected to continue to do so in the future, as a result of movements in forecast interest rates and the amount of debt outstanding.

Non-Departmental Other Expenses

For 2018/19, Non-Departmental other expenses are forecast to decrease, mainly due to the non-recurrence of a $137 million impairment of the Crown's investment in Southern Response Earthquake Services Limited in 2017/18.

Material changes in previous years included:

  • the Crown's impairment of its investment in Southern Response Earthquake Services Limited being $308 million in 2016/17, compared to the forecast expense of $137 million in 2017/18
  • a one-off write-off in 2015/16 of the Crown's historical investment in Solid Energy New Zealand Limited of nearly $61 million and the impairment of its investment in Southern Response Earthquake Services Limited of $222 million, and
  • one-off costs of nearly $108 million being incurred in 2014/15 in respect of the indemnity provided to Solid Energy New Zealand Limited for the reimbursement of the rehabilitation costs associated with mining operations. There was also $684 million incurred for the Crown's unfunded liability under the Government Superannuation Scheme and $333 million for the impairment of the investment in Southern Response Earthquake Services Limited.

Departmental Capital Expenditure

The Departmental capital expenditure appropriation is forecast to increase by $4 million in 2018/19 as a result of the planned refurbishment of the Treasury's new premises from 2019, 1-3 The Terrace.

Non-Departmental Capital Expenditure

This appropriation category comprises purchases of debt and equity by the Crown in various Crown entities, and capital additions to the Crown's physical assets.

Forecast changes in Non-Departmental capital expenditure in 2018/19 are principally owing to:

  • an increase in contributions to the NZ Superannuation Fund of $500 million
  • an increase in the loan advanced to Tamaki Regeneration Company Ltd of $94.500 million
  • a reduction in the refinancing of loans to Housing New Zealand Corporation of $210 million
  • an increase in the forecast transfer of assets to Otakaro Limited of $195 million, and
  • a reduction in the equity investment in Tamaki Regeneration Company Limited of $37 million.

Material movements in previous years included:

  • transfer of Housing New Zealand Corporation stock to the Tamaki Redevelopment Company in 2015/16 as part of the Social Housing Reform Programme - valued at $1,631 million
  • additional investment in Southern Response Earthquake Services Limited of $222 million in 2015/16 for Christchurch earthquake claims settlement
  • $142 million of refinancing associated with Housing New Zealand Corporation and Housing New Zealand Limited debt in 2015/16
  • non-recurring investments to Financial Institutions of $198.900 million to the International Monetary Fund, and $135.8 million to the Asian Infrastructure Bank in 2015/16, and
  • $333 million provided to Support Southern Response Earthquake Services Limited in 2014/15.

Multi-Category Expenses and Capital Expenditure

Changes in the Multi-Category expenses and capital expenditure in 2018/19 are mainly due to:

  • an increase in the Greater Christchurch Anchor Projects MCA of $17 million, a reduction in the Management of New Zealand House MCA of $10 million, a reduction in the Management of Landcorp Protected Land of $5 million, a reduction in the Management of the Crown's agreement with Taitokerau Forests Ltd of $4 million - all due to the timing of forecast expenditure
  • an $8 million reduction in the Social Housing Reform Programme MCA due to the winding-down of this programme, and
  • the transfer of the Productivity Commission funding of $5 million from an MCA to a new annual appropriation.

Material movements in previous years included:

  • the transfer of funding from Vote Canterbury Earthquake Recovery for the operating and capital expenditure in respect of Anchor Projects programme and divestment of Crown-owned land of over $65 million in 2015/16, nearly $253 million in 2016/17, and over $254 million in 2017/18.

Crown Revenue

Non-tax Crown Revenue largely comprises capital charge, interest from securities and deposits, and dividends from State-Owned Enterprises, Crown Entities, and partly owned listed companies.

Crown Capital Receipts

Variances in Crown Capital Receipts are largely due to International Monetary Fund capital returns, repayment of loans, and capital withdrawals from Crown companies. In 2018/19, capital receipts are forecast to be lower due to a reduction in the repayment of loans from Housing New Zealand Corporation of $210 million due to the timing of the maturity of its loans. In 2015/16, capital receipts were higher as a result of a $445 million repayment of advances from the International Monetary Fund.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31)

Scope of Appropriation
This appropriation is limited to expenses incurred in connection with administering borrowing, securities, derivative transactions and investment by the Crown, as authorised by section 65ZH of the Public Finance Act 1989.
Expenses and Revenue
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,005 10,005 10,105
Revenue from the Crown 10,000 10,000 10,100
Revenue from Others 5 5 5
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the administration of the Crown's financing requirements so as to raise sufficient funds to finance the Crown's cash deficit while minimising the cost to the Crown of such borrowing.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Crown liquidity and funding risk and NZDMO market and credit risk are well managed within the Crown's risk appetite: As evidenced by compliance with the following NZDMO policies: Market Risk Policy, Credit Risk Policy, Liquidity Risk Policy and Funding Risk Policy.

No more than four breaches One breach No more than four breaches

NZDMO operational risk is well managed within the Crown's risk appetite: As evidenced by the number of settlement errors and financial loss arising from settlement errors.

No more than six errors or $10,000 cost No more than six errors or $10,000 cost No more than six errors or $10,000 cost
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Previous Government

           
Business Information Hub operating costs 2015/16 330 330 330 330 330
Conditions on Use of Appropriation
Reference Conditions
Section 65ZH of the PFA Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section:
(a) negotiating the borrowing of money by the Crown
(b) undertaking, managing, servicing, converting, or repaying borrowing described in paragraph (a)
(c) issuing a public security in respect of the Crown
(d) executing, redeeming, or varying a public security described in paragraph (c)
(e) negotiating a derivative transaction of the Crown
(f) managing, servicing, or making payments under a derivative transaction described in paragraph (e)
(g) negotiating an investment referred to in section 65I, and
(h) placing, managing, servicing, or converting an investment referred to in section 65I.

Administration of Guarantees and Indemnities Given by the Crown PLA (M31)#

Scope of Appropriation#

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 110 110 110
Revenue from the Crown 109 109 109
Revenue from Others 1 1 1

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve efficient and effective administration of the Crown's Guarantees and Indemnities, including the Wholesale and Retail Deposit Guarantee Schemes.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The agreed arrangements implemented to minimise the Crown's residual liability beyond the amount held in ESCROW are carried out.

New Measure in 2018/19 Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Conditions on Use of Appropriation#

Reference Conditions
Section 65ZG of the Public Finance Act Any money paid by the Crown under a guarantee or indemnity given under Section 65ZD and any expenses incurred by the Crown in relation to the guarantee or indemnity may be incurred without further appropriation, and must be paid without further authority than this section.

Crown Company Monitoring Advice to the Minister for State Owned Enterprises and Other Responsible Ministers (M65)#

Scope of Appropriation#

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,558 4,558 4,533
Revenue from the Crown 4,556 4,556 4,531
Revenue from Others 2 2 2

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to ensure appropriate financial and social returns, and long-term value is achieved from the State Owned Enterprises (SOEs), Crown entity companies (CECs) and Crown entities monitored under this appropriation.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Appointments completed for Directors of SOEs.

30-40 35-40 30-40

Appointments completed for Board members for CECs and Crown Entities that are monitored under this appropriation.

35-45 35-45 35-45

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Crown Company Monitoring Advice to the Minister of Research, Science and Innovation and the Minister for Economic Development (M84)#

Scope of Appropriation#

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Research, Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 129 129 236
Revenue from the Crown 128 128 235
Revenue from Others 1 1 1

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to ensure appropriate financial and social returns, and long-term value is achieved from Crown research institutes and Crown entities monitored under this appropriation.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Appointments completed for Directors of Crown Research Institutes and other entities.

20-30 20-45 20-30

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is due to a fiscally neutral adjustment of $100,000 which was required to align appropriations with the reallocation of resources and corresponding overhead costs required to support the Government's highest priorities.

Design and Establishment of Christchurch Regeneration Acceleration Facility (M85)#

Scope of Appropriation#

This appropriation is limited to the design and establishment of the Christchurch Regeneration Acceleration Facility.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 1,000
Revenue from the Crown 500 500 1,000
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable the establishment and operation of the Christchurch Regeneration Acceleration Facility, including the design and management of decision-making processes and associated arrangements for investments.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The Christchurch Regeneration Acceleration Facility is established in a timely manner.

N/A New measure in 2018/19 Achieved

Payments made in respect of the Christchurch Regeneration Acceleration Facility are made in accordance with the terms and conditions of the relevant agreements.

N/A New measure in 2018/19 Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Design and Establishment of the Christchurch Regeneration Acceleration Facility 2017/18 500 1,000 - - -

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is due to further work on the design and establishment of the Christchurch Regeneration Acceleration Facility following its commencement in 2017/18.

Design and Establishment of the Green Investment Fund (M12)#

Scope of Appropriation#

This appropriation is limited to the design and establishment of the Green Investment Fund.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 200 4,000
Revenue from the Crown 1,000 200 4,000
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the design and establishment of the Green Investment Fund.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The Green Investment Fund is established in a timely manner.

New measure in 2018/19 N/A Achieved

The Green Investment Fund's initial investment mandate is specified.

New measure in 2018/19 N/A Achieved

Green Investment Fund board appointments are completed.

New measure in 2018/19 N/A Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Design and establishment of the Green Investment Fund which will be funded with up to $100 million to invest in assets that reduce carbon emissions. 2017/18 1,000 4,000 - - -

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is due to further work on the design and establishment of the Green Investment Fund being undertaken following its commencement in 2017/18.

Policy Advice - Finance (M31)#

Scope of Appropriation#

This appropriation 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 Finance.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 37,867 35,517 34,308
Revenue from the Crown 37,819 35,469 34,260
Revenue from Others 48 48 48

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable and facilitate Ministerial decision-making that achieves for New Zealand improved economic performance, a high-performing State sector, and a stable and sustainable macroeconomic environment.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Assessment of the technical quality of policy advice papers through a review process that has a methodological robustness of at least 80% (see Note 1).

75% 58% 75%

The satisfaction of the Minister of Finance with the policy advice service, as per the common satisfaction survey.

75% 75% 75%

The total cost per hour of producing outputs.

$203 $200 $203

Budget decisions are in line with short-term fiscal intentions in the Budget Policy Statement (BPS).

Achieved Achieved Achieved

Staff in agencies proposing new regulations surveyed rate their level of satisfaction as "satisfied" or better with Treasury's guidance about how to fulfil Regulatory Impact Analysis Requirements.

N/A New measure in 2018/19 80%

Technical quality of advice regarding procurement of the Stockton acid mine drainage solution as assessed through the general Treasury policy advice quality assessment process.

75% 75% 75%

Major fiscal models are externally quality assured (periodically) and, where appropriate, assumptions are tested with suitably qualified external experts.

N/A New measure in 2018/19 Achieved

Note 1 - The higher the robustness score, the stronger the methodological quality of the completed assessment. This is calculated using a standardised formula common to agencies and departments that participate in the policy measurement exercise.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
Previous Government            
Creating Economic Opportunity: A Treasury Presence Offshore (Singapore) 2017/18 854 854 854 854 854
The Stockton Acid Mine Drainage (AMD) Rehabilitation 2017/18 2,400 1,100 1,000 300 -
Transfer of Work and Income External Monitoring Costs from Vote Social Development 2015/16 750 750 750 750 750

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is mainly due to:

  • a reduction in funding for the Stockton Acid Mine Drainage Rehabilitation project of $1.300 million
  • a one-off expense transfer of $507,000 of unspent funding from 2016/17 to 2017/18, and
  • a one-off transfer of funding from the Social Housing Reform Programme MCA of $1.241 million in 2017/18.

Provision of Financial Operations Services and Operational Advice (M31)#

Scope of Appropriation#

This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 30,767 30,267 30,839
Revenue from the Crown 27,142 26,642 27,214
Revenue from Others 3,625 3,625 3,625

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to improve economic performance and financial stewardship across the State Sector and export and financial markets, through provision of relevant and timely operational support, services and advice.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

All submitted Budget initiatives were accompanied by a cost benefit analysis (see Note 1), where required.

Achieved Achieved Achieved

Audit opinion issued by the Controller and Auditor-General on the Financial Statements of Government.

Unqualified Unqualified Unqualified

Required Economic and Fiscal Updates efficiently produced with key judgements and uncertainties clearly articulated and key assumptions have been appropriately tested.

Achieved Achieved Achieved

Monthly Financial Statements of Government produced in accordance with the PFA requirements and free from material errors.

Achieved Achieved Achieved

Management of residual liabilities and investigation of mechanisms to discharge the Crown's obligations in a timely manner ensuring any costs from the materialisation of liabilities are contained (see Note 1).

Achieved Achieved Achieved

Compliance with risk management policies and parameters for management of Crown lending and Crown bank accounts.

No breaches No breaches No breaches

Investment Management and Asset Performance#

     

All investment-intensive agencies lift their investment performance over the Investor Confidence Rating (ICR) cycle.

5-10% increase in ICR score 5-10% increase in ICR score 5-10% increase in ICR score

Investment Ministers rate their level of satisfaction with investment advice as "satisfied" or better.

100% 75% 75%

Senior Responsible Owners of major projects rate their level of satisfaction with investment advice as "satisfied" or better.

85% 85% 85%

New Zealand Export Credit Office#

     

Value of export transactions supported.

$250-$320 million $215 million $250-$320 million

Value of new exposure of export credit policies.

$100-$120 million $110 million $100-$120 million

Number of exporters supported.

30-40 36 30-40

Number of education seminars delivered.

30 30 30

Compliance with International Guidelines (OECD and WTO) and Delegated Mandate.

100% 100% 100%

Five-year Expense Ratio (Operating Expenses / Premium Earned).

Lower than 60% 110% Lower than 60%

Five-year Loss Ratio (Claims Paid and Reserved / Premium Earned).

40% 90% Lower than 40%

Note 1 - This cost benefit analysis should cover: problem definition, intervention logic, options analysis, evaluation of the initiative's contribution to the agency's / sector's outcomes and result areas, how the new initiative will be implemented and evaluated, and options for scaling the initiative.

Note 2 - This output class covers the management and resolution of contingent or actual liabilities associated with various Crown commitments and assets - for instance, gas and geothermal reserves, Treaty settlements and New Zealand House. In some cases, the Treasury is a provider of second-opinion advice rather than a lead agency on these matters.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Previous Government

           
Share of costs for Budget 2015 whole-of-government initiatives 2015/16 (391) (304) (314) (314) (314)
Transfer to Vote Foreign Affairs for a Contribution to Global Infrastructure Hub 2014/15 (125) (125) (125) (125) (125)
Improving Investment Management System Performance and Capital Asset Management 2014/15 300 300 300 300 300

Shared Support Services (M31)#

Scope of Appropriation#

This appropriation is limited to provision of support services to other agencies.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,069 12,569 13,871
Revenue from the Crown - - -
Revenue from Others 14,069 12,569 13,871

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve quality, efficient support services for other agencies.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Services meet the standards and timeframes agreed with other agencies.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

2.3 - Departmental Capital Expenditure and Capital Injections#

The Treasury - Capital Expenditure PLA (M31)#

Scope of Appropriation

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

Capital Expenditure

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 3,930 3,930 8,930
Intangibles 4,118 4,118 3,555
Other - - -

Total Appropriation

8,048 8,048 12,485

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal and replacement of life-expired assets in support of the delivery of Treasury services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure is in accordance with the Treasury capital asset management plan.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Reasons for Change in Appropriation

The increase in this appropriation for 2018/19 is due to refurbishment of the Treasury's new premises from 2019, 1-3 The Terrace.

Capital Injections and Movements in Departmental Net Assets

The Treasury

Details of Net Asset Schedule 2017/18
Estimated Actual
$000
2018/19
Projected
$000
Explanation of Projected Movements in 2018/19
Opening Balance 19,417 22,417  
Capital Injections 3,000 6,388 Capital Injection for the refurbishment of the Treasury's new premises from 2019, 1-3 The Terrace.
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

22,417 28,805  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Inquiries and Research into Productivity-Related Matters (M31)

Scope of Appropriation
This appropriation is limited to the undertaking of inquiries into and research on, and promoting public understanding of, productivity-related matters by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
Expenses
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 5,030
Comparators for Restructured Appropriation
  2017/18 2018/19
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Inquiries and Research into Productivity-Related Matters MCA

     

Non-Departmental Output Expenses

     
Inquiries into Productivity-Related Matters 4,401 4,401 -
Research into and Promotion of Productivity-Related Matters 629 629 -

Total

5,030

5,030

-

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve inquiries and research in accordance with the New Zealand Productivity Commission Act 2010.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Inquiry participants' feedback (via survey) on whether the inquiry helped set or lift the standard in New Zealand for high quality analysis and advice on the topic.

New measure in 2018/19 N/A Maintained or Improved

Inquiry participants' feedback (via survey) on whether the inquiry has increased their understanding of the topic.

New measure in 2018/19 N/A Maintained or Improved

Productivity Hub participants' feedback (via survey) on whether the Commission's facilitation of the Hub was a positive contribution toward improved levels of coordination and collaboration in productivity research.

New measure in 2018/19 N/A Maintained or Improved

Productivity Hub participants feedback (via survey) on whether research outputs promote understanding of productivity-related matters.

New measure in 2018/19 N/A Maintained or Improved
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Productivity Commission in its 2018/19 Annual Report.

Service Providers

Services will be delivered by New Zealand Productivity Commission.

Reasons for Change in Appropriation

The appropriation replaces the Inquiries and Research into Productivity-Related Matters MCA with the amount unchanged.

Management of Anchor Projects by Otakaro Limited (M85)#

Scope of Appropriation#

This appropriation is limited to the Crown's contribution to Otakaro Limited's operating and financing expenses.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26,409 21,419 23,300

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve continuation of Christchurch earthquake recovery of the Anchor Projects Programme and divestment of Crown-owned land in Christchurch.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Otakaro Limited will manage and administer the Anchor Projects Programme and divestment of Crown-owned land in Christchurch in accordance with the company's purpose as set out in its Constitution and its Statement of Intent.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Otakaro Limited in its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Previous Government

           
Establishment of Otakaro Limited 2015/16 26,409 23,300 21,600 - -

Management of the Crown's Obligations for Geothermal Wells (M31)#

Scope of Appropriation#

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 449 82 180

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for Non-Departmental output expense is less than $5 million.

Service Providers#

Services will be provided by Aurecon Limited, MB Century and other providers if and when required.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to a one-off expense transfer of unused funding from 2016/17 to 2017/18 for remedial work on redundant geothermal wells.

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation#

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 859 686 728

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the management and administration of the Guardians of New Zealand Superannuation Fund.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for Non-Departmental output expense is less than $5 million.

Service Providers#

Services will be provided by Guardians of New Zealand Superannuation Fund.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to a one-off expense transfer of unused funding from 2016/17 to 2017/18 to fulfil the Board's revised strategy.

3.3 - Non-Departmental Borrowing Expenses#

Debt Servicing PLA (M31)#

Scope of Appropriation

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.

Expenses

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,427,613 3,427,613 3,285,111

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)(b) of the PFA.

End of Year Performance Reporting

This borrowing expense appropriation is exempt from end of year performance reporting under section 15A(4)(b) of the PFA.

Reasons for Change in Appropriation

The decrease in this appropriation for 2018/19 is due to movements in forecast interest rates and the amount of debt outstanding.

3.4 - Non-Departmental Other Expenses#

Crown Residual Liabilities (M31)#

Scope of Appropriation

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

Expenses

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 314 150 210

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the administration of residual obligations arising from the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for Non-Departmental other expense is less than $5 million.

Geothermal Wells Fund (M31)#

Scope of Appropriation#

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 300 500

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for Non-Departmental other expense is less than $5 million.

Government Superannuation Appeals Board (M31)#

Scope of Appropriation#

This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 50 5 50

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the on-going operations of the Government Superannuation Appeals Board.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for payments of board fees, disbursements and allowances. Performance information relating to the administration of the payment is provided under the Provision of Financial Operations Services and Operational Advice appropriation.

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Fund Act 1956.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 38,000 38,000 38,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the management and administration of the Government Superannuation Fund and the schemes, authorised by s15E and s95 of the Government Superannuation Act 1956, through payment of the Crown's share of the expenses of the Government Superannuation Fund Authority.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for payments of the Crown's share of expenses relating to the management and administration of the Government Superannuation Fund and the schemes authorised by s15E and s95 of the Government Superannuation Fund Act 1956.

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Fund Act 1956.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 538,597 468,597 553,060

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to recognise the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown as authorised by s95AA of the Government Superannuation Fund Act 1956 in accordance with generally accepted accounting practice.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment of the Crown's liability.

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is due to an actuarial revaluation of the outstanding liability as at 30 September 2017.

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 18,000 17,000 16,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the recognition of the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in s60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by s66 of the National Provident Fund Restructuring Act 1990.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for costs payable to the National Provident Fund Scheme. Further information about the performance of the Scheme can be found in the National Provident Fund's Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 reflects a revised forecast for the expected interest cost movements in relation to the National Provident Fund liability.

Review and Reform of Local Government Infrastructure Arrangements (M31)#

Scope of Appropriation#

This appropriation is limited to the review and reform of disaster funding for local government infrastructure, including contributions to expenses of the Local Government Risk Agency.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,017 143 300

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a review of, and develop reform options for the Crown's natural disaster funding arrangements for, local government infrastructure. This appropriation will also contribute to assessing the financial viability of the Local Government Risk Agency.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15(2)(b)(iii) of the PFA as the amount of this annual appropriation for Non-Departmental other expense is less than $5 million.

Service Providers#

Services will be provided by the Local Government Risk Agency.

Reasons for Change in Appropriation#

The decrease in this appropriation is due to the winding-down of this activity.

Unclaimed Money PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 100 250

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the repayment of unclaimed money authorised by s74(5) of the PFA.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the repayment of unclaimed money to claimants and repayments are made in accordance with s74(5) of the PFA.

Unclaimed Trust Money PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 - 250

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the repayment of money authorised by s70(2) of the PFA.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the repayment of unclaimed money to claimants and repayments are made in accordance with s70(2) of the PFA.

Unwind of Discount Rate Used in the Present Value Calculation - Rehabilitation of Stockton Mine Acid Mine Drainage (M31)#

Scope of Appropriation#

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Crown's liability under its Deed of Commitment relating to the rehabilitation of Stockton Acid Mine Drainage, as costs are incurred against the liability.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,000 2,820 3,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to cover the unwind of discount rate used in the present value calculation of rehabilitation of Stockton Acid Mine Drainage.

End of Year Performance Reporting#

An exemption was granted under s15(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for a non-cash technical accounting transaction.

 

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability in respect of share subscriptions in International Financial Institutions as it nears settlement, as authorised by section 5(2) of the International Finance Agreements Act 1961.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,403 1,533 866

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the recognition of interest unwind for Crown's liability to International Financial Institutions.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the interest unwind in respect of Crown's liability with International Financial Institutions.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to changes in forecast interest rates and cash flows in relation to the Crown's investments in International Financial Institutions.

Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31)#

Scope of Appropriation#

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,523 6,847 3,640

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the recognition of the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment under the Crown Deed of Support with Southern Response Earthquake Services Limited.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to a revised forecast for the expected unwind of the discount rate in relation to the Crown Support Deed and the Uncalled Capital facility as the liability nears settlement.

3.5 - Non-Departmental Capital Expenditure#

Crown Infrastructure Partners Limited - Equity Injection (M31)#

Scope of Appropriation and Expenses

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

Crown Infrastructure Partners Limited - Equity Injection (M31)

This appropriation is limited to investment in Crown Infrastructure Partners Limited.

Commences: 09 April 2018

Expires: 30 June 2022
Original Appropriation 600,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 600,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 20,000
Estimated Actual for 2018/19 25,000
Estimated Appropriation Remaining 555,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable Crown Infrastructure Partners Limited to invest in water and roading infrastructure to support the timely increase of housing supply.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for an investment in in Crown Infrastructure Partners Limited.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
Investment in Crown Infrastructure Partners Limited to enable it to invest in water and roading infrastructure to support the timely increase of housing supply. 2017/18 20,000 25,000 88,000 187,000 280,000

Loan Facility for Tamaki Redevelopment Company (M31)#

Scope of Appropriation and Expenses#

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

Loan Facility for Tamaki Redevelopment Company (M31)

This appropriation is limited to provision of a loan to Tamaki Redevelopment Company Limited.

Commences: 31 March 2015

Expires: 30 June 2019
Original Appropriation 200,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 200,000
Actual to 2016/17 Year End 11,500
Estimated Actual for 2017/18 47,000
Estimated Actual for 2018/19 141,500
Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable Tamaki Redevelopment Company Limited to accelerate regeneration action.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Payments are made consistent with the terms and conditions of the loan facility.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Tamaki Redevelopment Company Limited in its 2018/19 Annual Report.

NZ Superannuation Fund - Contributions (M31)#

Scope of Appropriation#

This appropriation is limited to capital contributions to the New Zealand Superannuation Fund, for the present and future cost of New Zealand Superannuation.

Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500,000 500,000 1,000,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to provide capital contributions to the New Zealand Superannuation Fund.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Payments are made in accordance with decisions taken by the Minister of Finance.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by New Zealand Superannuation Fund in its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
New funding approved in 2017/18 2017/18 500,000 1,000,000 1,500,000 2,200,000 2,500,000

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is due to the Government increasing its contributions to the New Zealand Superannuation Fund over time.

Participation in Dividend Reinvestment Plans by the Mixed Ownership Model Companies (M31)#

Scope of Appropriation and Expenses#

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

Participation in Dividend Reinvestment Plans by the Mixed Ownership Model Companies (M31)

This appropriation is limited to the Crown acquiring new shares in Air New Zealand Limited, Genesis Energy Limited, Mercury NZ Limited and Meridian Energy Limited as a result of the Crown's participation in any dividend reinvestment plans carried out by the companies.

Commences: 14 February 2018

Expires: 30 June 2022
Original Appropriation 80,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 80,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 20,000
Estimated Actual for 2018/19 40,000
Estimated Appropriation Remaining 20,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve participation in any Dividend Reinvestment Plans by the four mixed ownership companies, Genesis Energy Limited, Mercury NZ Limited, Meridian Energy Limited, and Air New Zealand Limited.

End of Year Performance Reporting#

An exemption was granted under s15(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative because this appropriation is solely for the issuing of new shares to the Crown by either Air New Zealand Limited, Genesis Energy Limited, Mercury NZ Limited, or Meridian Energy Limited as a result of the Crown's participation in any dividend reinvestment plans carried out by the company.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Funding for Crown's participation in Dividend Reinvestment Plan 2017/18 20,000 40,000 20,000 - -

Reasons for Change in Appropriation#

This was a new appropriation for 2017/18.

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M31)#

Scope of Appropriation#

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited Debt.

Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 337,045 337,045 195,909

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable Housing New Zealand Corporation and Housing New Zealand Limited to refinance their loans.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Refinancing will be undertaken in accordance with the agreed appropriation limits.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's Annual Report for 2018/19.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Previous Government

           
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt. 2015/16 337,045 126,909 251,246 141,458 217,387

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to the alignment of the amount of the appropriation with Housing New Zealand Corporation and Housing New Zealand Limited debt refinancing requirements.

Tamaki Regeneration Company Limited - Equity Injection (M31)#

Scope of Appropriation#

This appropriation is limited to the provision of an equity injection to Tamaki Regeneration Company Limited.

Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 87,000 87,000 50,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support the Tamaki regeneration programme and deliver new fit for purpose social housing and new open market housing.

End of Year Performance Reporting#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for an equity injection. Further information will be available in Tamaki Regeneration Company Limited's 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Equity injection to Tamaki Regeneration Company Limited 2017/18 87,000 50,000 - 138,000 25,000

Reasons for Change in Appropriation#

The decrease in this appropriation is due to the forecast cash flow requirements of the company in relation to its housing construction programme.

Transfer of Anchor Project Assets to Otakaro Limited (M85)#

Scope of Appropriation and Expenses#

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

Transfer of Anchor Project Assets to Otakaro Limited (M85)

This appropriation is limited to the transfer of Christchurch anchor project assets to Otakaro Limited.

Commences: 01 April 2016

Expires: 30 June 2020
Original Appropriation 500,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 500,000
Actual to 2016/17 Year End 239,560
Estimated Actual for 2017/18 32,770
Estimated Actual for 2018/19 227,670
Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a transfer of Christchurch anchor project assets to Otakaro Limited.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely to give effect to the technical transfer of Christchurch anchor project assets to Otakaro Limited.

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

Multi-Category Expenses and Capital Expenditure#

Greater Christchurch Anchor Projects (M85)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to support the recovery of Christchurch by contributing operating and capital funding for anchor projects covered by the Christchurch Central Recovery Plan.
Scope of Appropriation

Non-Departmental Other Expenses

Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure funded by contributions from parties other than the Crown.
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure.
Christchurch Convention Centre - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.
Christchurch Stadium - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Stadium funded by contributions from parties other than the Crown.
Christchurch Stadium - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.
Financial Impact of Valuations
This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.
Leasing Anchor Project Land
This category is limited to the financial impact of granting concessionary leases over anchor project land.
Metro Sports Facility - contributions from third parties
This category is limited to the development, operations and divestment of the Metro Sports Facility funded by contributions from parties other than the Crown.
Metro Sports Facility - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.
Pre-Development Holding Costs - Operating
This category is limited to the Crown's contribution to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.
Procurement of Land and Assets - Operating
This category is limited to the Crown's contribution to the purchase, acquisition and clearance of land and assets for anchor project development.
Public Space - contributions from third parties
This category is limited to the development, operations and divestment of the Crown owned public space funded by contributions from parties other than the Crown.
Public Space - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.
Sale of Land
This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.
The Square - contributions from third parties
This category is limited to the development, operations and divestment of the Square funded by contributions from parties other than the Crown.

Non-Departmental Capital Expenditure

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Bus Interchange and associated transport infrastructure and to providing equity or loan capital to Otakaro Limited for that purpose.
Christchurch Convention Centre - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Convention Centre and to providing equity or loan capital to Otakaro Limited for that purpose.
Earthquake Memorial - Capital
This category is limited to the Crown's contribution to the capital development of the Canterbury Earthquake Memorial and to providing equity or loan capital to Otakaro Limited for that purpose.
Land and Asset Acquisition - Capital
This category is limited to the Crown's contribution to the cost of land and assets to be acquired for anchor project development and to providing equity or loan capital to Otakaro Limited for that purpose.
Metro Sports Facility - Capital
This category is limited to the Crown's contribution to the capital development of Metro Sports Facility and to providing equity or loan capital to Otakaro Limited for that purpose.
Public Space - Capital
This category is limited to the capital development of the Crown owned public space and to providing equity or loan capital to Otakaro Limited for that purpose.
Expenses, Revenue and Capital Expenditure
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

233,884 123,590 250,000

Non-Departmental Other Expenses

     
Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties 100 - -
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating 45,569 22,732 2,700
Christchurch Convention Centre - Operating 3,000 2,961 4,200
Christchurch Stadium - contributions from third parties 100 - -
Christchurch Stadium - Operating 989 - 2,000
Financial Impact of Valuations 331 - 1,500
Leasing Anchor Project Land 1,000 - 2,000
Metro Sports Facility - contributions from third parties 100 - -
Metro Sports Facility - Operating 21,409 17,474 10,000
Pre-Development Holding Costs - Operating 7,678 1,535 2,000
Procurement of Land and Assets - Operating 23,371 10,020 21,700
Public Space - contributions from third parties 100 - -
Public Space - Operating 44,490 32,327 11,100
Sale of Land 1,684 - 1,000
The Square - contributions from third parties 100 - -

Non-Departmental Capital Expenditure

     
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital 2,085 - -
Christchurch Convention Centre - Capital 63,300 29,031 181,800
Earthquake Memorial - Capital 68 - -
Land and Asset Acquisition - Capital 9,336 - 10,000
Metro Sports Facility - Capital 1,000 - -
Public Space - Capital 8,074 7,510 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of Anchor Projects and divestment of Crown owned land in Christchurch.

How Performance will be Assessed for this Appropriation
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Payments made in respect of Greater Christchurch Anchor Projects are made in accordance with the terms and conditions of the relevant funding agreements and agreed timelines.

Achieved Achieved Achieved
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Other Expenses

     

Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Christchurch Bus Interchange.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

Exempt Exempt Exempt

Christchurch Bus Interchange and Associated Transport Infrastructure - Operating

     

This category is intended to ensure the ongoing operation and eventual divestment of the Christchurch Bus Interchange.

     

Payments are made in line with the terms and conditions of the funding agreement.

Achieved Achieved Achieved

Christchurch Convention Centre - Operating

     

This category is intended to advance the Convention Centre project in line with Government decisions.

     

The project will be progressed in line with Government decisions and agreed project timelines.

Achieved Achieved Achieved

Christchurch Stadium - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Christchurch Stadium.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

Exempt Exempt Exempt

Christchurch Stadium - Operating

     

This category is intended to take forward the Crown's position on the Stadium project.

     

The project will be progressed in line with Government decisions and agreed project timelines.

Achieved Achieved Achieved

Financial Impact of Valuations

     

This category is intended to record expenses resulting from valuation movements.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to record expenses resulting from valuation movements.

Exempt Exempt Exempt

Leasing Anchor Project Land

     

This category is intended to record expenses resulting from the granting of concessionary leases.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to record expenses resulting from the granting of concessionary leases.

Exempt Exempt Exempt

Metro Sports Facility - contributions from third parties

     

This category is intended to support the construction of Metro Sports Facility.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

Exempt Exempt Exempt

Metro Sports Facility - Operating

     

This category is intended to support the construction and divestment of Metro Sports Facility.

     

The project will be progressed in line with the agreed project timelines.

Achieved Achieved Achieved

Pre-Development Holding Costs - Operating

     

This category is intended to achieve the efficient management of Anchor project land prior to construction.

     

Land is managed in accordance with Crown's commercial and regeneration interests.

Achieved Achieved Achieved

Procurement of Land and Assets - Operating

     

This category is intended to support the acquisition and clearance of land for the Anchor projects.

     

Land and assets are acquired and made ready in accordance with project outcomes and timelines.

Achieved Achieved Achieved

Public Space - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Crown owned public space.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

Exempt Exempt Exempt

Public Space - Operating

     

This category is intended to support the construction and divestment of Crown-owned public space in Christchurch.

     

Projects are progressed in line with the agreed project timelines.

Achieved Achieved Achieved

Sale of Land

     

This category is intended to record the financial impact of land sales.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for recording the financial impact of land sales.

Exempt Exempt Exempt

The Square - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Square.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

Exempt Exempt Exempt

Non-Departmental Capital Expenditure

     

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital

     

This category is intended to ensure the ongoing operation and eventual divestment of the Christchurch Bus Interchange.

     

Expenditure is in line with the agreed project timelines.

Achieved Achieved Achieved

Christchurch Convention Centre - Capital

     

This category is intended to advance the Convention Centre project in line with Government decisions.

     

Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.

Achieved Achieved Achieved

Earthquake Memorial - Capital

     

This category is intended to support the construction and divestment of the Canterbury Earthquake Memorial.

     

Expenditure is in line with the agreed project timelines.

Achieved Achieved Achieved

Land and Asset Acquisition - Capital

     

This category is intended to support the acquisition of land for the Anchor projects.

     

Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.

Achieved Achieved Achieved

Metro Sports Facility - Capital

     

This category is intended to support the construction of Metro Sports Facility.

     

Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.

Achieved Achieved Achieved

Public Space - Capital

     

This category is intended to support the construction and divestment of Crown-owned public space in Christchurch.

     

Expenditure is in line with the agreed project timelines.

Achieved Achieved Achieved
Service Providers for the Multi-Category Appropriation

Delivery of Greater Christchurch Anchor Projects will be undertaken by Otakaro Limited.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2018/19 Annual Report.

Current and Past Policy Initiatives

Estimated expenditure for 2018/19 to 2020/21 is withheld as publication is likely to unreasonably prejudice the commercial position of the Crown.

Reasons for Change in Appropriation

The increase in this appropriation for 2018/19 is due to the forecast timing of expenditure in relation to the construction of Anchor Projects.

Management of Landcorp Protected Land Agreement (M31)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is meeting the Crown's responsibilities under the Landcorp Protected Land Agreement.

Scope of Appropriation#

Non-Departmental Other Expenses

Operating Costs
This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.

Non-Departmental Capital Expenditure

Capital Investments
This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.

Expenses, Revenue and Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

9,044 2,000 4,000

Non-Departmental Other Expenses

     
Operating Costs 5,293 2,000 2,500

Non-Departmental Capital Expenditure

     
Capital Investments 3,751 - 1,500

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the Crown's responsibilities under the Landcorp Protected Land Agreement.

How Performance will be Assessed for this Appropriation#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Management of Protected Land Agreement#

     

Land and infrastructure is managed to the standards as set out in the terms and conditions of the Protected Land Agreement.

Achieved Achieved Achieved

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Other Expenses

     

Operating Costs

     

This category is intended to achieve the provision for operating costs incurred under the Landcorp Protected Land Agreement.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as annual expenditure under this category for Non-Departmental other expenses is less than $5 million.

Exempt Exempt Exempt

Non-Departmental Capital Expenditure

     

Capital Investments

     

This category is intended to achieve the provision of capital investments incurred under the Landcorp Protected Land Agreement.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as annual expenditure under this category for Non-Departmental capital expenditure is less than $15 million.

Exempt Exempt Exempt

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2018/19 Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to a non-recurring expense transfer from 2016/17 to 2017/18 of unused funding relating to the costs of managing protected land.

Management of New Zealand House, London (M31)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to ensure that New Zealand House, London is well managed.

Scope of Appropriation#

Non-Departmental Output Expenses

Property Management
This category is limited to the property management services in respect of New Zealand House, London.

Non-Departmental Other Expenses

Operational Costs
This category is limited to the operational costs of New Zealand House, London.
Renegotiation of Lease Arrangements
This category is limited to activities to re-gear the lease on New Zealand House, London (including The Royal Opera Arcade and Her Majesty's Theatre).

Non-Departmental Capital Expenditure

Capital Expenditure
This category is limited to capital expenditure in relation to New Zealand House, London.

Expenses, Revenue and Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

24,994 16,300 14,750

Non-Departmental Output Expenses

     
Property Management 2,500 1,000 1,000

Non-Departmental Other Expenses

     
Operational Costs 16,751 14,300 13,000
Renegotiation of Lease Arrangements 1,993 1,000 -

Non-Departmental Capital Expenditure

     
Capital Expenditure 3,750 - 750

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to ensure that New Zealand House, London is well managed.

How Performance will be Assessed for this Appropriation#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Management of New Zealand House, London#

     

New Zealand House, London is well managed.

Achieved Achieved Achieved

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

     

Property Management

     

This category is intended to achieve the provision of management of New Zealand House property in London.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category for Non-Departmental output expenses is less than $5 million.

Exempt Exempt Exempt

Non-Departmental Other Expenses

     

Operational Costs

     

This category is intended to achieve the provision of operational costs of New Zealand House in London.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA as this category is solely for costs payable to the New Zealand Government Property Corporation to fund the operations of New Zealand House in London.

Exempt Exempt Exempt

Renegotiation of Lease Arrangements

     

This category is intended to achieve the renegotiation of the lease arrangements for New Zealand House, London.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category for Non-Departmental other expenses is less than $5 million.

Exempt Exempt Exempt

Non-Departmental Capital Expenditure

     

Capital Expenditure

     

This category is intended to achieve the provision of capital expenditure on New Zealand House property in London.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category for Non-Departmental capital expenditure is less than $15 million.

Exempt Exempt Exempt

Service Providers#

Services are provided through Jones Lang LaSalle International Property Consultants, London.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2018/19 Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to a one-off expense transfer from 2016/17 to 2017/18 to provide for reactive maintenance on the property.

Management of the Crown's Agreement with Taitokerau Forests Limited (M31)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.

Scope of Appropriation#

Non-Departmental Other Expenses

Grants
This category is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
Impairment of Loans
This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.

Non-Departmental Capital Expenditure

Loans
This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.

Expenses, Revenue and Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

4,745 400 200

Non-Departmental Other Expenses

     
Grants 415 400 200
Impairment of Loans 4,030 - -

Non-Departmental Capital Expenditure

     
Loans 300 - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve meeting the Crown's responsibilities under its agreement with Taitokerau Forest Limited.

How Performance will be Assessed for this Appropriation#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Management of the Crown's Agreement with Taitokerau Forests Limited#

     

The agreement with Taitokerau Forests Limited will be managed ensuring delivery of the Crown's responsibilities.

Exempt Exempt Exempt

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Other Expenses

     

Grants

     

This category is intended to achieve the provision of a grant to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of annual expenditure under this category for Non-Departmental other expenses is less than $5 million.

Exempt Exempt Exempt

Impairment of Loans

     

This category is intended to achieve the provision for expenses incurred on the impairment and write-down of loans to Taitokerau Forests Limited.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA as performance information is unlikely to be informative as this category is solely for the technical accounting treatment under the loan agreement with Taitokerau Forests Limited.

Exempt Exempt Exempt

Non-Departmental Capital Expenditure

     

Loans

     

This category is intended to achieve provision of loans to Taitokerau Forests Limited for forest management and development.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of annual expenditure under this category for Non-Departmental capital expenditure is less than $15 million.

Exempt Exempt Exempt

Reasons for Change in Appropriation#

The decrease in this appropriation is due to the alignment of funding with the expected timing of future costs.

Social Housing Reform (M96)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making Housing New Zealand Corporation stock available to social housing providers.

Scope of Appropriation#

Departmental Output Expenses

Implementation of the Social Housing Reform Programme
This category is limited to the policy, operational, and transactional work to implement the Government's reform of social housing.

Non-Departmental Output Expenses

Direct Sale Costs for Implementing the Social Housing Reform Programme
This category is limited to direct sales costs of implementing the Government's reform of social housing.

Expenses, Revenue and Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

12,767 5,592 4,201

Departmental Output Expenses

     
Implementation of the Social Housing Reform Programme 5,494 4,494 2,101

Non-Departmental Output Expenses

     
Direct Sale Costs for Implementing the Social Housing Reform Programme 7,273 1,098 2,100

Funding for Departmental Output Expenses

     

Revenue from the Crown

5,493 4,493 2,100
Implementation of the Social Housing Reform Programme 5,493 4,493 2,100

Revenue from Others

1 1 1
Implementation of the Social Housing Reform Programme 1 1 1

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the development of a variety of social housing in New Zealand and grow the community housing sector by making the Housing New Zealand Corporation stock available to social providers.

How Performance will be Assessed for this Appropriation#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Social Housing Reform#

     

Social housing regeneration projects are progressed as per Government direction.

Achieved Achieved Achieved

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Implementation of the Social Housing Reform Programme

     

This category is intended to achieve policy development and operational support for the Government's reform of social housing.

     

Development of business case for regeneration projects that include potential partnership arrangements with iwi and/or community housing providers.

New measure in 2018/19 N/A Achieved

Development of policies, commercial structures and standard form contractual documentation to support potential partnership arrangements with iwi and/or community housing providers.

New measure in 2018/19 N/A Achieved

Non-Departmental Output Expenses

     

Direct Sale Costs for Implementing the Social Housing Reform Programme

     

This category is intended to achieve the Cabinet-mandated transactions under the Government's reform of social housing.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category is less than $5 million.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2018/19 Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is due to this programme winding down.

Tax Working Group (M31)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to enable the Tax Working Group to consider and recommend improvements in the structure, fairness and balance of the tax system.

Scope of Appropriation#

Departmental Output Expenses

Tax Working Group - Provision of Support and Advice
This category is limited to providing support and advice to the Tax Working Group.

Non-Departmental Output Expenses

Tax Working Group - Direct Costs
This category is limited to the direct costs of the Tax Working Group.

Expenses, Revenue and Capital Expenditure#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

2,400 1,400 1,600

Departmental Output Expenses

     
Tax Working Group - Provision of Support and Advice 1,920 920 1,280

Non-Departmental Output Expenses

     
Tax Working Group - Direct Costs 480 480 320

Funding for Departmental Output Expenses

     

Revenue from the Crown

1,920 920 1,280
Tax Working Group - Provision of Support and Advice 1,920 920 1,280

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve policy development and support in order for the Tax Working Group to develop recommendations on improvements to the structure and balance of the tax system.

How Performance will be Assessed for this Appropriation#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Tax Working Group#

     

Goals of the Tax Working Group are progressed in alignment with their Terms of Reference.

Achieved Achieved Achieved

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Tax Working Group - Provision of Support and Advice

     

This category is intended to achieve policy development and operational support for the Tax Working Group.

     

The Tax Working Group's satisfaction with the policy advice service rated as 'satisfied' or better.

75% 75% 75%

Non-Departmental Output Expenses

     

Tax Working Group - Direct Costs

     

This category is intended to achieve the Tax Working Group's development of recommendations on improvements to the structure and balance of the tax system.

     

Ministerial satisfaction with the Tax Working Group's provision of its recommendations as per the Group's Terms of Reference.

New measure in 2018/19 N/A 75%

Service Providers for the Multi-Category Appropriation#

Services will be delivered by the Tax Working Group.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2018/19 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Establishment of the Tax Working Group 2017/18 2,400 1,600 - - -

Reasons for Change in Appropriation#

This appropriation was established in 2017/18 to enable the Tax Working Group to consider and recommend improvements in the structure, fairness and balance of the tax system.