Vote Treaty Negotiations - Māori Affairs Sector - Estimates 2019/20

Vote Treaty Negotiations#

APPROPRIATION MINISTER(S): Minister for Treaty of Waitangi Negotiations (M74)

APPROPRIATION ADMINISTRATOR: Ministry of Justice

RESPONSIBLE MINISTER FOR MINISTRY OF JUSTICE: Minister of Justice

Overview of the Vote#

The Minister for Treaty of Waitangi Negotiations is responsible for appropriations in Vote Treaty Negotiations for the 2019/20 financial year covering the following:

a multi-year appropriation of $1,400 million for the four-year period 2019 to 2023. This appropriation is for the settlement of historical Treaty of Waitangi settlements and provides for the payment of redress through the transfer of assets (cash and property) from the Crown to claimant groups, and for the payment of interest on settlement redress
a total of over $37 million for the negotiation and implementation of historical Treaty claims, and administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011
a total of over $10 million for contributions toward determining customary interests in the Marine and Coastal Area
a total of just over $8 million for claimant funding to support the settlement of historical Treaty claims, and
a total of over $2 million as the Crown's contribution to facilitate the transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki Nui-a-Rua.

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

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Final Budgeted $000	Estimated Actual $000	Budget $000
	2018/19		2019/20
Non-Departmental Other Expenses
*Claimant Funding (M74)* This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.	12,402	7,402	8,102
*Contribution Toward Determining Customary Interests in the Marine and Coastal Area (M74)* This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.	12,741	2,741	10,450
*Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua (M74)* This appropriation is limited to part payment by the Crown for Landcorp assets being transferred to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua.	-	-	2,425
*Contribution to Parihaka community engagement with the Crown support package (M74)* This appropriation is limited to providing financial support to the Parihaka community to engage in the development and implementation of the Crown support package.	150	150	-
Total Non-Departmental Other Expenses	25,293	10,293	20,977
Non-Departmental Capital Expenditure
*Crown Share in Patunamu Forest Limited (M74)* This appropriation is limited to the Crown's acquisition of its portion of shares in Patunamu Forest Limited.	2,466	2,466	-
Total Non-Departmental Capital Expenditure	2,466	2,466	-
Multi-Category Expenses and Capital Expenditure
*Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA (M74)* The single overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.	38,836	38,836	37,128
Departmental Output Expenses
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.	1,143	1,143	1,136
Representation - Waitangi Tribunal and Courts This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.	3,237	3,237	3,099
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.	34,456	34,456	32,893
Total Multi-Category Expenses and Capital Expenditure	38,836	38,836	37,128
Total Annual Appropriations and Forecast Permanent Appropriations	66,595	51,595	58,105

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Non-Departmental Other Expenses
*Historical Treaty of Waitangi Settlements 2018 - 2022 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2018 Expires: 30 June 2022	Original Appropriation	1,400,000
	Estimated Actual for 2018/19	350,000
*Historical Treaty of Waitangi Settlements 2019 - 2023 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2019 Expires: 30 June 2023	Original Appropriation	1,400,000
	Estimated Actual for 2018/19	-

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

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Annual Appropriations and Forecast Permanent Appropriations	66,595	51,595	58,105
Total Forecast MYA Non-Departmental Other Expenses	350,000	350,000	350,000
Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations	416,595	401,595	408,105

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative	Appropriation	2018/19 Final Budgeted $000	2019/20 Budget $000	2020/21 Estimated $000	2021/22 Estimated $000	2022/23 Estimated $000
Progressing Historical Treaty of Waitangi Settlement Negotiations	Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (MCA)
	Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	-	4,000	-	-	-
	Departmental Output Expenses
Relativity Mechanism Dispute Resolution	Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (MCA)
	Treaty negotiations and Marine and Coastal Area (Takutai Moana) Act	-	2,500	-	-	-
	Departmental Output Expenses
Improving Base Pay of Ministry of Justice Employees	Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (MCA)
	Treaty negotiations and Marine and Coastal Area (Takutai Moana) Act	375	1,175	1,175	1,175	1,175
	Departmental Output Expenses
Total Initiations		375	7,675	1,175	1,175	1,175

1.2 - Trends in the Vote

Summary of Financial Activity

	2014/15	2015/16	2016/17	2017/18	2018/19		2019/20			2020/21	2021/22	2022/23
	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	9,466	9,122	-	-	-	-	-	-	-	-	-	-
Benefits or Related Expenses	-	-	-	-	-	-	N/A	-	-	-	-	-
Borrowing Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Other Expenses	108,412	424,846	143,150	265,145	375,293	360,293	-	370,977	370,977	363,552	363,552	363,552
Capital Expenditure	16,830	11,818	-	6,111	2,466	2,466	-	-	-	-	-	-
Intelligence and Security Department Expenses and Capital Expenditure	-	-	-	-	-	-	-	N/A	-	-	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	31,007	29,040	32,922	33,782	38,836	38,836	37,128	-	37,128	26,852	26,603	26,603
Other Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Capital Expenditure	-	-	-	-	-	-	N/A	-	-	-	-	-
Total Appropriations	165,715	474,826	176,072	305,038	416,595	401,595	37,128	370,977	408,105	390,404	390,155	390,155
Crown Revenue and Capital Receipts
Tax Revenue	-	-	-	-	-	-	N/A	-	-	-	-	-
Non-Tax Revenue	14,396	9,777	1,024	734	708	708	N/A	708	708	708	708	708
Capital Receipts	-	-	-	-	-	-	N/A	-	-	-	-	-
Total Crown Revenue and Capital Receipts	14,396	9,777	1,024	734	708	708	N/A	708	708	708	708	708

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

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

There have been no restructuring adjustments to prior year information in the Summary of Financial Activity table.

1.3 - Analysis of Significant Trends

Total Vote: All Appropriations

Output Expenses

Output expenses remain fairly consistent over the trend period. Time-limited funding has been approved for 2018/19 and 2019/20 to support the higher than anticipated demand for determining customary interests under the Marine and Coastal Area (Takutai Moana) Act 2011.

Other Expenses

The fluctuation in Other Expenses primarily reflects the size and timing of Treaty Settlements under Historical Treaty of Waitangi Settlements multi-year appropriation, which varies as each negotiation progresses through key milestones over the full course of the negotiation.

Non-Tax Revenue and Capital Expenditure

Prior to 2016/17 the Ministry administered the Landbank purchases, and maintenance of properties and received rental income. This activity was transferred to Land Information New Zealand from 1 July 2016. The remaining non-tax revenue relates to interest received from lending to implement the Ngati Whatua Orakei Deed of Settlement.

Figure 1 - Vote trends in actual expense and capital expenditure by appropriation type

Figure 1 - Vote trends in actual expenses and capital expenditure by appropriation type

Source: Ministry of Justice

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses

Claimant Funding (M74)

Scope of Appropriation

This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.

Expenses

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	12,402	7,402	8,102

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an effective process for providing financial assistance for claimant groups, to achieve durable historical Treaty of Waitangi settlements.

How Performance will be Assessed and End of Year Reporting Requirements

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2018/19		2019/20
Number of claimant groups funded (see Note 1)	40	40	40
Percentage of payments made to groups within 10 working days of approval of claim	95%	80%	95%

Note 1 - Claimant groups can lodge an application for funding at any stage of the negotiation and settlement process. The amount of funding they may receive depends on the size of the claimant group and the complexity of the claim.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Treaty of Waitangi Negotiations in a report appended to the Ministry of Justice's Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2019/20 is due to a one-off expense transfer from 2017/18 to 2018/19 of $4.300 million of unused claimant funding.

Contribution Toward Determining Customary Interests in the Marine and Coastal Area (M74)

Scope of Appropriation

This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.

Expenses

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	12,741	2,741	10,450

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an effective process for providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.

How Performance will be Assessed and End of Year Reporting Requirements

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2018/19		2019/20
Percentage of funding payments made to groups within 10 days of approval of claim	95%	60%	95%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Treaty of Waitangi Negotiations in a report appended to the Ministry of Justice's Annual Report.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2018/19 Final Budgeted $000	2019/20 Budget $000	2020/21 Estimated $000	2021/22 Estimated $000	2022/23 Estimated $000
Current Government
Marine and Coastal Area (Takutai Moana) Act 2011: Determination of Interests and Implementation	2019/20	-	5,000	-	-	-

Reasons for Change in Appropriation

The decrease in this appropriation for 2019/20 is due to a one-off transfer of $7.291 million from 2017/18 to 2018/19 to support additional demand for contributions to determining customary interests.

This is partially offset by additional funding of $5 million in 2019/20 to provide for increased numbers of applications for customary rights.

Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua (M74)

Scope of Appropriation

This appropriation is limited to part payment by the Crown for Landcorp assets being transferred to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua.

Expenses

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	-	-	2,425

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve part payment by the Crown for Landcorp assets being transferred to Ngati Kahungungu ki Wairarapa Tamaki nui-a-Rua.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2018/19 Final Budgeted $000	2019/20 Budget $000	2020/21 Estimated $000	2021/22 Estimated $000	2022/23 Estimated $000
*Current Government*
Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki Nui-a-Rua	2018/19	2,425	-	-	-	-

Reasons for Change in Appropriation

The increase in this appropriation for 2019/20 is due to a transfer of $2.425 million arising from a delay in the agreement with Landcorp for the transfer of assets.

Historical Treaty of Waitangi Settlements 2018 - 2022 (M74)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*Historical Treaty of Waitangi Settlements 2018 - 2022 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2018 Expires: 30 June 2022	Original Appropriation	1,400,000
	Estimated Actual for 2018/19	350,000

A multi-year appropriation for historical Treaty of Waitangi settlements is established each year in the Appropriation (Supplementary Estimates) Act, and the previous multi-year appropriation is revoked. The reason for this change is to ensure there is sufficient legal authority to finalise deeds of settlements negotiated in earlier years and to continue the momentum of settling Treaty of Waitangi claims.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve durable settlement of historical Treaty of Waitangi claims.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the settlement of claims, including redress. Performance information relating to what is intended to be achieved with this expenditure is provided under the Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act multi-category appropriation.

Historical Treaty of Waitangi Settlements 2019 - 2023 (M74)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*Historical Treaty of Waitangi Settlements 2019 - 2023 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2019 Expires: 30 June 2023	Original Appropriation	1,400,000
	Estimated Actual for 2018/19	-

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve durable settlement of historical Treaty of Waitangi claims.

How Performance will be Assessed and End of Year Reporting Requirements

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

Multi-Category Expenses and Capital Expenditure

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (M74)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.

Scope of Appropriation

Departmental Output Expenses

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.

Representation - Waitangi Tribunal and Courts
This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.

Expenses, Revenue and Capital Expenditure

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	38,836	38,836	37,128
*Departmental Output Expenses*
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	1,143	1,143	1,136
Representation - Waitangi Tribunal and Courts	3,237	3,237	3,099
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	34,456	34,456	32,893
Funding for Departmental Output Expenses
*Revenue from the Crown*	38,482	38,482	36,569
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	1,116	1,116	1,116
Representation - Waitangi Tribunal and Courts	3,232	3,232	3,094
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	34,134	34,134	32,359
*Revenue from Others*	354	354	559
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	27	27	20
Representation - Waitangi Tribunal and Courts	5	5	5
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	322	322	534

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the negotiation, administration and implementation of historical Treaty of Waitangi claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.

How Performance will be Assessed for this Appropriation

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2018/19		2019/20
The satisfaction of the Minister for Treaty of Waitangi Negotiations with progress towards negotiation milestones	At least 8.5/10	8.5/10	At least 8.5/10

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2018/19		2019/20
Departmental Output Expenses
*Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act*
This category is intended to achieve efficient and effective services to support decision-making by Ministers on government policy matters relating to historical Treaty of Waitangi claims and the Marine and Coastal Area (Takutai Moana) Act 2011.
Technical quality of policy advice papers assessed by a survey with a methodological robustness of 90% (see Note 1)	At least an average of 8.5/10	8.5/10	To be confirmed (see Note 2)
The satisfaction of the Minister for Treaty of Waitangi Negotiations with the policy advice service, as per the common satisfaction survey	At least 8.5/10	8.5/10	To be confirmed (see Note 3)
*Representation - Waitangi Tribunal and Courts*
This category is intended to achieve efficient and effective crown representation in the Waitangi Tribunal and in the courts on matters concerning Treaty claims, and support the High Court's consideration of Marine and Coastal Area (Takutai Moana) Act 2011 applications.
The Crown is represented at 100% of current District enquiries	100%	100%	100%
Number of High Court cases at which the Crown is represented	5	5	5
*Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act*
This category is intended to achieve efficient and effective services to support the negotiation, administration and implementation of historical Treaty of Waitangi claims and to support the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.
Percentage of settlement date obligations met	100%	100%	100%
Agreements in Principle signed (see Notes 4 and 5)	4	6	6
Deeds of Settlement initialled (see Notes 4 and 6)	8	8	6
Engagement decisions made under section 95(3) of the Marine and Coastal Area (Takutai Moana) Act (see Note 7)	20	18	10

Note 1 - This indicator provides a standardised score for technical quality reviews of policy advice, which are undertaken by a third-party assessor. The review may include an assessment of clarity, accuracy, analytical rigour, fitness for purpose, and relevance.

Note 2 - The Standard will be identified based on the refreshed Policy Quality Framework and updated in the Supplementary Estimates. All agencies are required to use the refreshed Policy Quality Framework from 2019/20 to assess the quality of their policy advice papers. The Policy Quality Framework is currently being refreshed. The refreshed Framework will be released before 30 June 2019.

Note 3 - The Standard will be identified based on the revised Ministerial Satisfaction Survey and updated in the Supplementary Estimates. All agencies are required to use the refined Ministerial Satisfaction Survey from 2019/20 to assess ministerial satisfaction with the policy service. The survey is currently under review and the refined survey and guidance will be released before 30 June 2019.

Note 4 - The Ministry does not have full control over the achievement of these measures as it is partially reliant on claimant groups undertaking the work required by them to achieve a mandate to negotiate, broadly agree to the Crown's offer and move steadily towards the conclusion of negotiations.

Note 5 - An Agreement in Principle is agreed between the Crown and a claimant group. The document describes the broad outline of a settlement package and is signed by the claimant group and the Minister for Treaty of Waitangi Negotiations.

Note 6 - A Deed of Settlement is the complete, detailed and formal settlement agreement between the Crown and the claimant group.

Note 7 - Engagement under the MACA Act means a decision made by the Minister for Treaty of Waitangi Negotiations to investigate an application more fully to see whether it meets the criteria under the Act to grant customary marine title or protected customary rights. It is part of the formal process for determining these rights.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2018/19 Final Budgeted $000	2019/20 Budget $000	2020/21 Estimated $000	2021/22 Estimated $000	2022/23 Estimated $000
*Current Government*
Progressing Historical Treaty of Waitangi Settlement Negotiations	2019/20	-	4,000	-	-	-
Relativity Mechanism Dispute Resolution	2019/20	-	2,500	-	-	-
Improving Base Pay of Ministry of Justice Employees	2018/19	375	1,175	1,175	1,175	1,175
Marine and Coastal Area (Takutai Moana) Act 2011: Determination of Interests and Implementation	2018/19	2,865	3,640	-	-	-
Relativity Mechanism Dispute Resolution	2018/19	2,300	-	-	-	-
*Previous Government*
Broadening the Reach of Historical Treaty of Waitangi Settlements	2017/18	6,244	-	-	-	-

Vote Treaty Negotiations - Māori Affairs Sector - Estimates 2019/20

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