Vote Foreign Affairs and Trade - Supplementary Estimates 2016/17

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Diplomatic Privileges and Immunities (M34)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation decreased by $1.030 million to $970,000 for 2016/17 due to:

• a decrease of $1.023 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses, and

• a decrease of $7,000 resulting from a reduction in the capital charge rate from 8% to 6%.

Consular Services (M34)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

The appropriation increased by $1.566 million to $20.147 million for 2016/17 due to:

• an increase of $2.523 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses;

This increase is partially offset by:

• a decrease of $644,000 resulting from a reduction in the capital charge rate from 8% to 6%

• a decrease of $213,000 resulting from foreign exchange rate and overseas inflation movements, and

• an expense transfer of $100,000 from 2016/17 for the establishment of a new post in Bogota, Columbia.

Pacific Security Fund (M34)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation decreased by $127,000 to $2.632 million for 2016/17 due to a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses.

Policy Advice and Representation - International Institutions (M34)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation decreased by $13.728 million to $61.195 million for 2016/17 due to:

• a decrease of $11.593 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses

• a decrease of $685,000 resulting from a reduction in the capital charge rate from 8% to 6%

• an expense transfer of $682,000 from 2016/17 to progress the Agricultural Cooperation Fund initiative in the 2017/18 financial year

• an expense transfer of $546,000 from 2016/17 to progress Korea-New Zealand Free Trade Agreement cooperation activities in the 2017/18 financial year

• a decrease of $77,000 resulting from foreign exchange rate and overseas inflation movements

• an expense transfer of $72,000 from 2016/17 to progress the removal of asbestos from post buildings, particularly in the Pacific

• an expense transfer of $58,000 from 2016/17 to enable planning for the Dubai Expo initiative, and

• an expense transfer of $15,000 from 2016/17 for the establishment of a new post in Bogota, Colombia.

Policy Advice and Representation - Other Countries (M34)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

The appropriation decreased by $9.087 million to $235.725 million for 2016/17 due to:

• a decrease of $6.564 million resulting from a reduction in the capital charge rate from 8% to 6%
• a retention of underspends of $5.000 million to progress a number of internal initiatives in the 2017/18 financial year, including scoping requirements and planning for APEC 2021, implementing the Health and Safety initiatives work programme, and continuing the protective security programme of work
• a one-off fiscally neutral transfer of $3 million to the New Zealand Antarctic Institute for logistic support activities
• a decrease of $2.257 million resulting from foreign exchange rate and overseas inflation movements
• an expense transfer of $1.068 million from 2016/17 to progress the Agricultural Cooperation Fund initiative in the 2017/18 financial year
• an expense transfer of $1 million from 2016/17 to continue the Ministry's programme of system enhancement initiatives in the 2017/18 financial year
• a decrease of $982,000 resulting from lower capital charges deriving from unrealised losses in the 2015/16 financial year
• an expense transfer of $928,000 from 2016/17 to progress the removal of asbestos from post buildings, particularly in the Pacific
• an expense transfer of $885,000 from 2016/17 for the establishment of a new post in Bogota, Colombia
• an expense transfer of $854,000 from 2016/17 to progress Korea-New Zealand Free Trade Agreement cooperation activities in the 2017/18 financial year
• an expense transfer of $742,000 from 2016/17 to enable planning for the Dubai Expo initiative, and
• an expense transfer of $700,000 from 2016/17 to progress the China Capable Public Service programme in the 2017/18 financial year.

These decreases are partially offset by:

• an increase of $10.319 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses, and
• a retention of underspends of $4.574 million from 2015/16 to enable the implementation of a number of internal initiatives in 2016/17.

Promotional Activities - Other Countries (M34)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation decreased by $99,000 to $76,000 for 2016/17 due to a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses.

Services for Other New Zealand Agencies Overseas (M34)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation increased by $73,000 to $7.776 million for 2016/17 due to an increase in demand for services provided to New Zealand government departments and agencies co-located with the Ministry at overseas posts ($145,000), partially offset by a decrease of $72,000 resulting from foreign exchange rate and overseas inflation movements.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Foreign Affairs and Trade - Capital Expenditure PLA (M34)#

Scope of Appropriation

Capital Expenditure

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The Ministry uses a Fit for Purpose framework that rates every Chancery (office) and Official Residence property against five asset management criteria of location, building and infrastructure quality, brand, functionality, and flexibility. Weighted sub-criteria are used to reflect the criticality of each asset management criteria relative to specific locations. The current performance of each property asset in the above mentioned class is scored against pre-determined business defined target scores. The target scores reflect the relative importance of each of the five asset criteria as an enabler supporting the specific objectives and business model in each location.

Reasons for Change in Appropriation

The appropriation decreased by $15.874 million to $71.913 million for 2016/17 due to delays in commencing a number of capital projects and slower than expected progress with a number of others.

Capital Injections and Movements in Departmental Net Assets

Ministry of Foreign Affairs and Trade

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Antarctic Research and Support (M34)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased by $2.504 million to $20.819 million for 2016/17 due to a one-off fiscally neutral transfer of $3 million from the Ministry for logistic support activities, partially offset by a decrease of $656,000 resulting from a reduction in the capital charge rate from 8% to 6%.

3.4 - Non-Departmental Other Expenses#

Disbursements Made and Exemptions from Taxation PLA (M34)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased by $200,000 to $1.800 million reflecting the higher costs of reimbursing New Zealand local body rates for offices and residential premises of diplomatic missions and consular posts in New Zealand.

Subscriptions to International Organisations (M34)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation decreased by $200,000 to $57.033 million due to a change in foreign exchange and volumes in Subscriptions to International Organisations.