Vote Agriculture and Forestry - Supplementary Estimates and supporting information 2010/11

Details of Projected Movements in Departmental Net Assets#

Ministry of Agriculture and Forestry

Information Supporting the Supplementary Estimates Vote Agriculture and Forestry#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Agriculture (M2), Minister of Forestry (M35)

ADMINISTERING DEPARTMENT: Ministry of Agriculture and Forestry

MINISTER RESPONSIBLE FOR MINISTRY OF AGRICULTURE AND FORESTRY: Minister of Agriculture

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Administration and Management of Crown Forestry Assets (M35)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation will decrease by $85,000 to $1.714 million in 2010/11. This is due to a reallocation of revenue Crown funded resources between output expenses ($88,000) and reduced services to other public sector agencies ($2,000). These changes are offset by an increase in third party funded activity ($5,000).

Administration of Grants and Programmes (M2)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will increase by $1.498 million to $8.264 million in 2010/11. This is due to: a reallocation of revenue Crown funded resources between output expenses ($2.256 million); increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($7,000); an expense transfer from 2009/10 for Primary Growth Partnership (PGP) initiative ($265,000); and increase in services to other public sector agencies ($27,000). These changes are offset by an expense transfer to 2011/12 for PGP initiative ($1.045 million) and a decrease in third party funded activity ($12,000).

Output Performance Measures and Standards#

Note 1 - An incorrect Estimates Standard was used because of a drafting error - the Estimates Standard should have been $2,000.

Note 2 - An incorrect Estimates Standard was used because of a drafting error - the Estimates Standard should have been 50.

Note 3 - An incorrect Estimates Standard was used because of a drafting error - the Estimates Standard should have been 1,600 ha.

Note 4 - An incorrect Estimates Standard was used because of a drafting error - the Estimates Standard should have been 900 ha.

Animal Welfare Education and Enforcement (M2)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will increase by $492,000 to $4.288 million in 2010/11. This is due to: a reallocation of revenue Crown funded resources between output expenses ($484,000); increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($1,000); increase in services to other public sector agencies ($2,000); and increase in third party funded activity ($5,000).

Output Performance Measures and Standards#

Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will decrease by $4.291 million to $11.629 million in 2010/11. This is due to: a reprioritisation of resources across financial years ($5.241 million); an expense transfer to 2011/12 for the Field Measurement Approach ($142,000); and decrease in third party funded activity ($19,000). These changes are offset by: a reallocation of revenue Crown funded resources between output expenses ($304,000); an increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($14,000); an expense transfer from 2009/10 ($700,000); and increase in services to other public sector agencies ($93,000).

Output Performance Measures and Standards#

Policy Advice MCOA (M2)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

This multi-class output expense appropriation contains output classes that contribute to the sustainable development of New Zealand's biological resources.

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will decrease by $393,000 to $36.401 million in 2010/11. This is due to: a reallocation of revenue Crown funded resources between output expenses ($510,000); an expense transfer to 2011/12 for the Heads of Agreement Mitigation Partnership ($2.078 million); an expense transfer to 2011/12 for negotiation of free trade or closer economic partnership agreements (FTA/CEP negotiations) ($300,000); transfer of funding to non-departmental other expense Adverse Climatic Events to 'top up' the Adverse Events Contingency fund ($200,000); an expense transfer to 2011/12 for Global Research Alliance initiative ($100,000); and a decrease in third party funded activity ($242,000). These changes are offset by: an increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($62,000); an expense transfer from 2009/10 to meet cost of amalgamation of New Zealand Food Safety Authority ($250,000); an expense transfer from 2009/10 for Forestry Sector Strategy (NZ Wood) ($600,000); an expense transfer from 2009/10 for FTA/CEP negotiations ($300,000); funding from Vote Foreign Affairs for FTA/CEP negotiations ($210,000); funding from Vote Treaty Negotiations for research on erosion in the Waiapu River catchment ($75,000); a transfer of funding from the non-departmental other expense Global Research Alliance on Agricultural Green House Gases to operate the Global Research Alliance ie, provide the Secretariat function and coordinate New Zealand's input as a member country across agencies and the science sector ($800,000); an expense transfer from 2009/10 to implement a range of initiatives in the Sustainable Land Management and Climate Change: A Preferred Plan of Action ($700,000); and increase in services to other public sector agencies ($40,000).

Output Performance Measures and Standards#

Support Services and Infrastructure to Other Agencies RDA (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $10.180 million to $1.350 million in 2010/11 due to the amalgamation of New Zealand Food Safety Authority with Ministry of Agriculture and Forestry.

Part 2.2 - Non-Departmental Output Expenses#

Climate Change Research (M2)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will increase by $500,000 to $8.600 million in 2010/11 due to an expense transfer from 2009/10 to meet contractual commitments for research programmes that span financial years.

Management of Crown Forestry Assets (M35)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $8.622 million to $98.715 million in 2010/11. This increase is due to changes in forest management plans and harvesting strategies during the year ($9.001 million) offset by transfer of Wairakei Forest operations to Land Information New Zealand (Vote Lands) ($219,000) and operating to capital swap to fund the construction of a bridge over the Oponae Stream for harvesting in Oponae forest in the Eastern Bay of Plenty ($160,000).

Support for Walking Access (M2)#

Scope of Appropriation#

Output Performance Measures and Standards#

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

Rural Veterinarians Bonding Scheme (M2)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will decrease by $500,000 to $600,000 in 2010/11 due to lower than expected uptake of the voluntary bonding scheme.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Adverse Climatic Events (M2)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will increase by $325,000 to $851,000 in 2010/11. This increase is due to a transfer of funding from departmental output expense Policy Advice MCOA to 'top up' the Adverse Events Contingency fund ($200,000) and an expense transfer from 2009/10 for grants to rural support trusts ($125,000).

Afforestation Grant Scheme (M35)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $1.895 million to $5.759 million in 2010/11. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of approved work programmes. Expense transfers of $125,000 from 2009/10 and $2.020 million to 2011/12 were required.

Community Irrigation Fund and Schemes (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $469,000 to $2.095 million in 2010/11. The increase is due to the decision to widen the eligibility and assessment criteria of the Community Irrigation Fund and redistribute funding between financial years.

Expected Results#

East Coast Afforestation Grants (M35)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $786,000 to $3.714 million in 2010/11. The decrease is due to: transfer of funding to 2011/12 to meet the cost of a planting programme by Ngati Porou Forests Ltd deferred until the winter of 2011; a forecast increase in demand for grants following the decision by the Gisborne District Council to bring in a land use rule that requires treatment of severely eroding country; and increasing interest in growing forests for carbon credits.

Global Research Alliance on Agricultural Greenhouse Gases (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $906,000 to $4.094 million in 2010/11. This is due to: a transfer of funding to departmental output expense Policy Advice MCOA for MAF to operate the Global Research Alliance ie, provide the Secretariat function and coordinate New Zealand's input as a member country across agencies and the science sector ($800,000); and an expense transfer to 2011/12 for delays in implementation of this initiative in its first year ($500,000). These changes are offset by the carry forward of funding reprioritised in 2009/10 for the establishment of the Alliance ($360,000) and a funding contribution from the USA ($34,000).

Expected Results#

Hill Country Erosion Fund (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $200,000 to $3.300 million in 2010/11 due to an expense transfer from 2009/10. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of approved work programmes.

Primary Growth Partnership (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $32.204 million to $24.221 million in 2010/11. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable against approved work programmes and ensure all funding is available for allocation by the Investment Advisory Panel. Expense transfers of $4.100 million from 2009/10 and $36.304 million to 2011/12 were required.

Subscriptions to International Organisations (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $403,000 to $1.925 million in 2010/11 due to an improvement in exchange rates upon payment of annual contribution to the Food and Agriculture Organisation of United Nations payable in US$ and Euro.

Expected Results#

Sustainable Farming Fund (M2)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $224,000 to $8.976 million in 2010/11. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of project milestones. Expense transfers of $626,000 from 2009/10 and $850,000 to 2011/12 were required.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Ministry of Agriculture and Forestry - Capital Expenditure PLA (M2)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

Departmental capital expenditure is projected to fall in 2010/11 by $16.249 million to $20 million mainly due to delays in the design and development of: the National Animal Identification Traceability (NAIT) system ($7.020 million); a wine electronic certification system ($950,000); the Joint Border Management System (JBMS) with New Zealand Customs ($4.477 million); and a system for trans-Tasman transfer of x-ray images of checked-in baggage ($2 million). Capital injections for these projects have been transferred from 2010/11 to 2011/12.

Part 6.2 - Non-Departmental Capital Expenditure#

Crown Forestry Asset Management (M35)#

Scope of Appropriation

Reasons for Change in Appropriation

This $340,000 appropriation is for the construction of a bridge over the Oponae Stream for harvesting in Oponae forest in the Eastern Bay of Plenty. This was financed from the carry forward of capital funding from 2009/10 ($180,000) and transfer from non-departmental output expense Management of Crown Forestry Assets ($160,000).