Supplementary estimates of appropriations

Vote Finance - Supplementary Estimates 2017/18

Publication type:
Supplementary estimates of appropriations
Status:
Current
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
ISBN:
978-1-98-855607-9 (print) 978-1-98-855608-6 (online)
Fiscal year:
2017/18
Budget year:
2018
Budget vote:
Finance
Last updated:

Formats and related files

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2017/18
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
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.		 9,249 756 10,005

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

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.		 4,458 100 4,558

Crown Company Monitoring Advice to the Minister of 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 Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.		 229 (100) 129

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

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 1,000

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.		 34,982 2,885 37,867

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.		 30,848 (81) 30,767

Shared Support Services (M31)

This appropriation is limited to provision of support services to other agencies.		 14,069 - 14,069

Total Departmental Output Expenses

93,945 5,060 99,005

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.		 5,548 2,500 8,048

Total Departmental Capital Expenditure

5,548 2,500 8,048

Non-Departmental Output Expenses

     

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.		 23,200 3,209 26,409

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.		 180 269 449

Management of the New Zealand Superannuation Fund (M31)

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.		 728 131 859

Total Non-Departmental Output Expenses

24,108 3,609 27,717

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.		 3,395,785 31,828 3,427,613

Total Non-Departmental Borrowing Expenses

3,395,785 31,828 3,427,613

Non-Departmental Other Expenses

     

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

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.		 60 254 314

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.		 - 455 455

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

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 - 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 - 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

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 - 538,597

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.		 - 137,000 137,000

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 - 18,000

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 1,710

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 1,017

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 - 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 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 - 1,403

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.		 3,313 4,210 7,523

Total Non-Departmental Other Expenses

600,423 156,796 757,219

Non-Departmental Capital Expenditure

     

Canterbury Earthquake National Memorial (M31)

This appropriation is limited to Crown Acquisition of the Canterbury Earthquake National Memorial from Otakaro Limited.		 - 8,500 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 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 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.		 20,000 (12,450) 7,550

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

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.		 337,002 43 337,045

Southern Response Earthquake Services Ltd: Equity Investment (M31)

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

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

Total Non-Departmental Capital Expenditure

357,002 722,093 1,079,095

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.		 254,060 (20,176) 233,884

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.		 - 100 100

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.		 38,441 7,128 45,569

Christchurch Convention Centre - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.		 1,000 2,000 3,000

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.		 - 100 100

Christchurch Stadium - Operating

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

Financial Impact of Valuations

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

Leasing Anchor Project Land

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

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.		 - 100 100

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 21,409

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.		 8,000 (322) 7,678

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.		 23,000 371 23,371

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.		 - 100 100

Public Space - Operating

This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.		 52,286 (7,796) 44,490

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.		 500 1,184 1,684

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.		 - 100 100

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.		 2,000 85 2,085

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.		 114,900 (51,600) 63,300

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.		 683 (615) 68

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.		 5,000 4,336 9,336

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.		 500 500 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.		 5,750 2,324 8,074

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

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.		 4,250 4,794 9,044

Non-Departmental Other Expenses

     

Operating Costs

This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.		 2,250 3,043 5,293

Non-Departmental Capital Expenditure

     

Capital Investments

This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.		 2,000 1,751 3,751

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.		 14,750 10,244 24,994

Non-Departmental Output Expenses

     

Property Management

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

Non-Departmental Other Expenses

     

Operational Costs

This category is limited to the operational costs of New Zealand House, London.		 13,000 3,751 16,751

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 1,993

Non-Departmental Capital Expenditure

     

Capital Expenditure

This category is limited to capital expenditure in relation to New Zealand House, London.		 750 3,000 3,750

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 4,745

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.		 - 415 415

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 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.		 - 300 300

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.		 8,495 4,272 12,767

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.		 4,495 999 5,494

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.		 4,000 3,273 7,273

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 2,400

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 1,920

Non-Departmental Output Expenses

     

Tax Working Group - Direct Costs

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

Total Multi-Category Expenses and Capital Expenditure

286,585 6,279 292,864

Total Annual and Permanent Appropriations

4,763,396 928,165 5,691,561

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
  Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$000
Total Annual and Permanent Appropriations 4,763,396 928,165 5,691,561
Total MYA Non-Departmental Capital Expenditure Forecasts 307,440 (187,670) 119,770

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

5,070,836 740,495 5,811,331

Capital Injection Authorisations#

  2017/18
  Estimates Budget
$000		 Supplementary
Estimates Budget
$000		 Total Budget
$000
The Treasury - Capital Injection (M31) - 3,000 3,000

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity
  2017/18
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

         
Output Expenses 118,053 5,060 3,609 8,669 126,722
Benefits or Related Expenses - N/A - - -
Borrowing Expenses 3,395,785 - 31,828 31,828 3,427,613
Other Expenses 600,423 - 156,796 156,796 757,219
Capital Expenditure 669,990 2,500 534,423 536,923 1,206,913
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 14,525 2,919 5,253 8,172 22,697
Other Expenses 140,477 - 38,026 38,026 178,503
Capital Expenditure 131,583 N/A (39,919) (39,919) 91,664

Total Appropriations

5,070,836 10,479 730,016 740,495 5,811,331

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 3,400,283 N/A (265,818) (265,818) 3,134,465
Capital Receipts 338,463 N/A 55,329 55,329 393,792

Total Crown Revenue and Capital Receipts

3,738,746 N/A (210,489) (210,489) 3,528,257

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.
Reasons for Change in Appropriation

This appropriation increased by $756,000 to $10.005 million for 2017/18 due to:

  • $376,000 for establishing the Debt Management Office in Auckland
  • $230,000 for additional risks on significant contract renegotiations, and
  • $150,000 for increased custodians fees.

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.

Reasons for Change in Appropriation#

This appropriation increased by $100,000 to $4.558 million for 2017/18 due to transfers from 2016/17 relating to delays in projects and uncertainties around timing of expenditure.

Crown Company Monitoring Advice to the Minister of 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 Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.

Reasons for Change in Appropriation#

This appropriation decreased by $100,000 to $129,000 for 2017/18 due to a transfer of $100,000 to the Policy Advice - Finance appropriation to align 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
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation - 500 500
Revenue from the Crown - 500 500
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 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
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Initial proposal on establishing the Christchurch Regeneration Acceleration Facility is finalised and submitted to the Minister for Greater Christchurch Regeneration in a timely manner.

 N/A Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the design and establishment of the Christchurch Regeneration Acceleration Facility.

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
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation - 1,000 1,000
Revenue from the Crown - 1,000 1,000
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, with the Fund having the aim of stimulating new investment in low carbon industries.

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

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

A multi-disciplinary team is established to provide advice on the key design criteria for the Green Investment Fund.

 N/A Achieved Achieved

The development of the evidence base to support the establishment of the Green Investment Fund is well advanced.

 N/A Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for commencement of the design and establishment of the Green Investment Fund.

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.

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

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

The welfare system operates further in line with the investment approach based on the external valuation.

 Achieved Measure withdrawn Expired measure

Reasons for Change in Appropriation#

This appropriation increased by $2.885 million to $37.867 million for 2017/18 due to:

  • $1.241 million for transfers from the Social Housing Reform MCA in order to fund Treasury's advice on public housing, the Tamaki Regeneration Company, and Housing New Zealand Corporation
  • $1.100 million for transfers from the Provision of Financial Operations Services and Operational Advice and Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development appropriations to support government priorities
  • $507,000 for transfers from 2016/17 due to delays in projects and uncertainties around timing of expenditure, and
  • $37,000 for increased capital charge and depreciation costs relating to the Treasury's pending move to 1-3 the Terrace in 2019.

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.

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

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

All investment intensive agencies have baseline asset performance measures defined and reported.

 100% Measure withdrawn Expired measure

All investment intensive agencies have long term investment plans (LTIPs) covering a minimum of 10 years.

 100% Measure withdrawn Expired measure

All investment intensive agencies have baseline measures for benefits realisation on projects and programmes.

 90% Measure withdrawn Expired measure

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.*

 Achieved Achieved Achieved

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

 100% 75% 75%

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

* Minor wording changes made to these measures for 2017/18.

Reasons for Change in Appropriation#

This appropriation decreased by $81,000 to $30.767 million for 2017/18 due to a $1 million fiscally neutral adjustment from this appropriation to the Policy Advice - Finance appropriation to ensure the Treasury's resources were aligned to the Government's highest priorities. This decrease was partially offset by the following increases:

  • $759,000 for transfers from 2016/17 due to delays in projects and uncertainties around timing of expenditure
  • $124,000 for the transfer of an underspend from 2016/17 relating to the efficient completion of Gateway reviews, and
  • $36,000 for increased capital charge and depreciation costs relating to the Treasury's pending move to 1-3 The Terrace in 2019.

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.

Reasons for Change in Appropriation

This appropriation increased by $2.500 million to $8.048 million for 2017/18 due to additional costs in relation to the fit-out of 1-3 The Terrace which will be the Treasury's new premises from 2019.

Capital Injections and Movements in Departmental Net Assets

The Treasury

Details of Net Asset Schedule 2017/18
Main Estimates Projections
$000		 2017/18
Supplementary Estimates Projections
$000		 Explanation of Projected Movements in 2017/18
Opening Balance 19,417 19,417 Supplementary Estimates opening balance reflects the audited results as at 30 June 2017.
Capital Injections - 3,000 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

19,417 22,417  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

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.
Reasons for Change in Appropriation

This appropriation increased by $3.209 million to $26.409 million for 2017/18 due to the transfer of unused funding from 2016/17 in order for Otakaro to fulfil its mandate for the continuation of the Anchor projects programme and the divestment of Crown-owned land.

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.

Reasons for Change in Appropriation#

This appropriation increased by $269,000 to $449,000 for 2017/18 due to the transfer of unused funding of $269,000 from 2016/17.

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.

Reasons for Change in Appropriation#

This appropriation increased by $131,000 to $859,000 for 2017/18 due to the transfer of unused funding of $131,000 from 2016/17 in order 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.

Reasons for Change in Appropriation

This appropriation increased by $31.828 million to $3,427.613 million for 2017/18 due to movements in forecast interest rates on the Crown's borrowings.

3.4 - Non-Departmental Other Expenses#

Ahu Whenua Trust Ex-gratia Payment (M31)#

Scope of Appropriation

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

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve settlement of claims in negotiations which are being led by the Treasury.

How Performance will be Assessed and End of Year Reporting Requirements

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Settlement is in accordance with the terms and conditions of the agreement.

 N/A Achieved Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2017/18 Annual Report.

Reasons for Change in Appropriation

This appropriation increased by $9 million to $9 million for 2017/18 due to the transfer of unused funding from 2016/17.

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.

Reasons for Change in Appropriation#

This appropriation increased in by $254,000 to $314,000 for 2017/18 due to a transfer of unused funding of $404,000 from 2016/17. This was partly offset by a decrease of $150,000 due to the transfer of funding to 2018/19 to better align with the expected future forecast spend.

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

Scope of Appropriation#

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.

Expenses#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 455 455

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable EQC to be reimbursed for costs associated with implementing Ministerial requests in relation to property clean-up work following the Edgecumbe severe flooding of April 2017.

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

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Payments are made in a timely manner following the receipt of invoices from EQC.

 N/A Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the reimbursement to EQC for costs associated with implementing Ministerial requests in relation to property clean-up following the Edgecumbe severe flooding of April 2017.

Fair value write down on initial recognition of Sale of Fairway Resolution Ltd (M31)#

Scope of Appropriation#

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.

Expenses#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 150 150

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the Crown's responsibilities under section 65P of the Public Finance Act 1989.

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 a technical non-cash accounting transaction.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the sale of the Crown's shares in Fairway Resolution Limited to an employee buyer group.

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

Scope of Appropriation#

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

Expenses#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 137,000 137,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the impairment of additional financial support for Southern Response Earthquake Services Ltd.

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 the technical accounting treatment for impairment of investment.

Reasons for Change in Appropriation#

This appropriation increased by $137 million to $137 million for 2017/18 due to the transfer of unused funding of $137 million from 2016/17 to allow for the write off of equity injections into Southern Response Earthquake Services Ltd that are deemed irrecoverable.

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

Scope of Appropriation#

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.

Expenses#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 1,710 1,710

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to meet any payments that may be required under guarantees and indemnities provided for New Zealand exporters.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This appropriation increased by $1.710 million to $1.710 million for 2017/18 due to the revised forecast payments for 2017/18 against export credit guarantees and indemnities.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 1,017 1,017

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 proposed Local Government Risk Agency (LGRA).

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.

Service Providers#

Services will be provided by the Local Government Risk Agency.

Reasons for Change in Appropriation#

This appropriation increased by $1.017 million to $1.017 million for 2017/18 due to the transfer of unused funding of $1.317 million from 2016/17. This was partly offset by an expense transfer of $300,000 to 2018/19 for the continuation of the Review and Reform of Local Government Infrastructure arrangements.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 3,000 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 because this appropriation is solely for a technical non-cash accounting transaction.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the unwind of discount rate used in the present value calculation of rehabilitation of Stockton Acid Mine Drainage.

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.

Reasons for Change in Appropriation#

This appropriation increased by $4.210 million to $7.523 million for 2017/18 due to changes in the discount rates and expected timing of cash flows.

3.5 - Non-Departmental Capital Expenditure#

Canterbury Earthquake National Memorial (M31)#

Scope of Appropriation

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

Capital Expenditure

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 8,500 8,500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the Crown acquisition of the Canterbury Earthquake National Memorial from Otakaro Limited.

End of Year Performance Reporting

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 the purchase of the Canterbury Earthquake National Memorial from Otakaro Limited. The future management of the assets rests with the Ministry for Culture and Heritage.

Reasons for Change in Appropriation

This appropriation increased by $8.500 million to $8.500 million for 2017/18 due to the transfer of unused funding of $8.500 million from 2016/17. The expected acquisition by the Crown and the transfer of ownership and management of the Canterbury Earthquake Memorial to the Ministry for Culture and Heritage is expected to take place in 2017/18.

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

Scope of Appropriation#

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

Capital Expenditure#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 1,000 1,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the transfer of residual assets from Crown Asset Management Limited.

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 capital expenditure is less than $15 million.

Reasons for Change in Appropriation#

This appropriation increased by $1 million to $1 million for 2017/18 due to the transfer of unused funding of $1 million from 2016/17 in order to provide for potential acquisitions.

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.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to enable Crown Infrastructure Partners Limited to invest in water and roading infrastructure to support the timely increase of housing supply.

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

Scope of Appropriation#

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

Capital Expenditure#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 1,000 1,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the Crown's responsibilities under section 65P of the Public Finance Act 1989.

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

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Payment is received in accordance with the terms stipulated in the Sale and Purchase Agreement.

 N/A Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the sale of the Crown's shares in Fairway Resolution Ltd to an employee buyer group.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 500,000 500,000

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
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

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

 N/A Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the New Zealand Superannuation Fund in its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to restart contributions to the New Zealand Superannuation Fund.

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, and Meridian Energy Limited as a result of the Crown's participation in any dividend reinvestment plans carried out by the company.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the Crown's participation in any dividend reinvestment plans by the four mixed ownership companies.

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.

Reasons for Change in Appropriation#

This appropriation increased by $43,000 to $337.045 million for 2017/18 due to the alignment of the appropriation with Housing New Zealand Corporation and Housing New Zealand Limited debt financing requirements.

Southern Response Earthquake Services Ltd: Equity Investment (M31)#

Scope of Appropriation#

This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.

Capital Expenditure#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 137,000 137,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve additional financial support for Southern Response Earthquake Services Ltd in accordance with the Crown Support Deed signed in 2012.

End of Year Performance Reporting#

An exemption was granted under s15(D)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely to invest in Southern Response Earthquake Services Ltd in accordance with the Crown Support Deed signed in 2012.

Reasons for Change in Appropriation#

This appropriation increased by $137 million to $137 million for 2017/18 due to the transfer of unused funding from 2016/17 to allow for further equity injections into Southern Response Earthquake Services Ltd.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 87,000 87,000

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 on what has been achieved with this funding will be available in Tamaki Regeneration Company Limited's 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for Tamaki Regeneration Company Limited to develop social and open market housing in the Tamaki region.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

254,060 (20,176) 233,884

Non-Departmental Other Expenses

     
Christchurch Bus Interchange and associated transport infrastructure - contributions from third parties - 100 100
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating 38,441 7,128 45,569
Christchurch Convention Centre - Operating 1,000 2,000 3,000
Christchurch Stadium - contributions from third parties - 100 100
Christchurch Stadium - Operating - 989 989
Financial Impact of Valuations - 331 331
Leasing Anchor Project Land 2,000 (1,000) 1,000
Metro Sports Facility - contributions from third parties - 100 100
Metro Sports Facility - Operating - 21,409 21,409
Pre-Development Holding Costs - Operating 8,000 (322) 7,678
Procurement of Land and Assets - Operating 23,000 371 23,371
Public Space - contributions from third parties - 100 100
Public Space - Operating 52,286 (7,796) 44,490
Sale of Land 500 1,184 1,684
The Square - contributions from third parties - 100 100

Non-Departmental Capital Expenditure

     
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital 2,000 85 2,085
Christchurch Convention Centre - Capital 114,900 (51,600) 63,300
Earthquake Memorial - Capital 683 (615) 68
Land and Asset Acquisition - Capital 5,000 4,336 9,336
Metro Sports Facility - Capital 500 500 1,000
Public Space - Capital 5,750 2,324 8,074
Reasons for Change in Appropriation

This appropriation decreased by $20.176 million to $233.884 million for 2017/18 due to:

  • transfers of funding totalling $119.500 million from 2017/18 to 2018/19 due to delays in projects, and
  • a fiscally neutral transfer of $1.400 million to Vote Lands to provide for additional operational costs relating to the acquisition of land and improvements.

This decrease was partly offset by the transfer of $100.724 million of unused funding from 2016/17 across multiple categories of this MCA to better align with the forecast expenditure.

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.

How Performance will be Assessed for this Appropriation#

  2017/18
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

How performance will be assessed for the MCA as a whole#

      

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

 Achieved Measure withdrawn Expired measure

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

 N/A Achieved Achieved

Reasons for Change in Appropriation#

This appropriation increased by $4.794 million to $9.044 million for 2017/18 due to the transfer of unused funding from 2016/17.

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.

Reasons for Change in Appropriation#

This appropriation increased by $10.244 million to $24.994 million for 2017/18 due to the transfer of unused funding from 2016/17.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

- 4,745 4,745

Non-Departmental Other Expenses

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

Non-Departmental Capital Expenditure

     
Loans - 300 300

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 Forests Limited.

How Performance will be Assessed for this Appropriation#

  2017/18
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
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
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
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 this annual 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 the 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 this category is less than $15 million.

 Exempt Exempt Exempt

Reasons for Change in Appropriation#

This appropriation increased by $4.745 million to $4.745 million for 2017/18 due to the transfer of unused funding from 2016/17.

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.

How Performance will be Assessed for this Appropriation#

  2017/18
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

Non-Departmental Output Expenses

     

Direct Sale Costs for Implementing the Social Housing Reform Programme

     

Progress Cabinet mandated transactions as scheduled.

 Achieved Measure withdrawn Expired measure

Reach contractual close of the transaction in Christchurch.

 Achieved Measure withdrawn Expired measure

Reasons for Change in Appropriation#

This appropriation increased by $4.272 million to $12.767 million for 2017/18 due to the transfer of $5.513 million of unused funding from 2016/17.

This increase was partly offset by a fiscally neutral transfer of $1.241 million to the Policy Advice - Finance appropriation in 2017/18.

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
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

- 2,400 2,400

Departmental Output Expenses

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

Non-Departmental Output Expenses

     
Tax Working Group - Direct Costs - 480 480

Funding for Departmental Output Expenses

     

Revenue from the Crown

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

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
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

Tax Working Group#

      

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

 N/A Achieved Achieved

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

  2017/18
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

Departmental Output Expenses

     

Tax Working Group - Provision of Support and Advice

     

This category is intended to achieve support and advice for the Tax Working Group.

      

Satisfaction of the Tax Working Group with the policy advice service rated as 'satisfied' or better.

 N/A 75% 75%

Non-Departmental Output Expenses

     

Tax Working Group - Direct Costs

     

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

      

The Tax Working Group is established in a timely manner.

 N/A Achieved Achieved

The Tax Working Group's agenda is progressed in accordance with its terms of reference.

 N/A Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2017/18 Annual Report.

Reasons for Change in Appropriation#

This is a new appropriation for 2017/18 to provide for the operations and support of the Tax Working Group.