Supplementary estimates of appropriations

Vote Foreign Affairs and Trade - Supplementary Estimates 2018/19

Vote Foreign Affairs and Trade#

APPROPRIATION MINISTER(S): Minister of Foreign Affairs (M34)

APPROPRIATION ADMINISTRATOR: Ministry of Foreign Affairs and Trade

RESPONSIBLE MINISTER FOR MINISTRY OF FOREIGN AFFAIRS AND TRADE: Minister of Foreign Affairs

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Administration of Diplomatic Privileges and Immunities (M34)

This appropriation is limited to the administration of diplomatic and consular privileges and immunities under the Diplomatic Privileges and Immunities Act 1968 and the Consular Privileges and Immunities Act 1971.
1,020 (4) 1,016

Consular Services (M34)

The purchase of consular policy advice, consular services for New Zealanders abroad and notarial services.
22,369 4,728 27,097

Pacific Security Fund (M34)

This appropriation is limited to the purchase of goods and services to support the security of Pacific Island countries.
2,672 - 2,672

Policy Advice and Representation - International Institutions (M34)

The purchase of policy advice and representation activities related to the management of New Zealand's membership of, and foreign and trade interests in, international institutions.
47,525 (433) 47,092

Policy Advice and Representation - Other Countries (M34)

This appropriation is limited to the purchase of policy advice and representation directed to the management of New Zealand's foreign relations and trade with other countries, bilaterally and in regional organisations, including using New Zealand's international connections to facilitate the flow of trade, investment, skills, and technology and improving the competitiveness of New Zealand business.
281,797 (7,562) 274,235

Policy Advice and Representation - Other Countries PLA (M34)

This appropriation is limited to meeting the costs, as set out in section 11 of the Foreign Affairs Act 1988, of superannuation for local staff employed by overseas posts to help with the management of New Zealand's foreign and trade relations with other countries.
20 - 20

Promotional Activities - Other Countries (M34)

The purchase of promoting New Zealand to other countries as an attractive market for trade and investment.
225 (115) 110

Services for Other New Zealand Agencies Overseas (M34)

The purchase of accommodation and support services by other New Zealand agencies.
8,400 523 8,923

Total Departmental Output Expenses

364,028 (2,863) 361,165

Departmental Capital Expenditure

     

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

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Foreign Affairs and Trade, as authorised by section 24(1) of the Public Finance Act 1989.
72,673 (2,939) 69,734

Total Departmental Capital Expenditure

72,673 (2,939) 69,734

Non-Departmental Output Expenses

     

Antarctic Research and Support (M34)

Provision of management and logistic support for New Zealand activities in the Antarctic. The provider is the New Zealand Antarctic Institute.
21,049 - 21,049

Pacific Broadcasting Services (M34)

This appropriation is limited to the provision of New Zealand-sourced television content and other media services and related technical support to countries in the Pacific.
941 - 941

Pacific Cooperation Foundation (M34)

The promotion of mutual understanding and constructive linkages between New Zealanders and the other countries and people of the Pacific. The provider is the Pacific Cooperation Foundation of New Zealand.
1,400 - 1,400

Promotion of Asian Skills and Relationships (M34)

This appropriation is limited to the provision of services that build and sustain New Zealanders' knowledge and understanding of and relationships with Asia.
5,000 - 5,000

Total Non-Departmental Output Expenses

28,390 - 28,390

Non-Departmental Other Expenses

     

Asia Pacific Economic Cooperation 2018 Support to Papua New Guinea (M34)

This appropriation is limited to support and assistance to Papua New Guinea for the delivery and hosting of Asia Pacific Economic Cooperation 2018.
3,000 4,138 7,138

Disbursements Made and Exemptions from Taxation PLA (M34)

Refund of New Zealand local body rates for offices and residential premises of overseas diplomatic missions and consular posts pursuant to section 21 of the Diplomatic Privileges and Immunities Act 1968.
2,000 400 2,400

Provision of ACC-equivalent cover for New Zealand employees working overseas PLA (M34)

This appropriation is limited to payments authorised by section 65ZG of the Public Finance Act 1989 under the indemnity given by the Minister of Finance under section 65ZD of that Act for the provision of ACC-equivalent cover of New Zealand employees working overseas as specified in the indemnity.
- 135 135

Subscriptions to International Organisations (M34)

This appropriation is limited to non-discretionary payments required as formal obligations arising from New Zealand's membership of international organisations, and as a signatory to international treaties and conventions.
55,129 - 55,129

Total Non-Departmental Other Expenses

60,129 4,673 64,802

Non-Departmental Capital Expenditure

     

New Zealand Antarctic Institute (M34)

To enable NZAI to maintain the Scott Base buildings and services infrastructure.
2,800 - 2,800

Total Non-Departmental Capital Expenditure

2,800 - 2,800

Total Annual Appropriations and Forecast Permanent Appropriations

528,020 (1,129) 526,891

Multi-Year Appropriations#

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

Departmental Output Expenses

   

Hosting APEC 2021 (M34)

This appropriation is limited to enabling the planning and delivery of the year-long Asia-Pacific Economic Cooperation 2021.

Commences: 01 July 2018

Expires: 30 June 2022
Original Appropriation 99,560
Adjustments to 2017/18 -
Adjustments for 2018/19 84,580
Adjusted Appropriation 184,140
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 8,778
Estimate for 2019/20 38,922
Estimated Appropriation Remaining 136,440

Non-Departmental Output Expenses

   

Expo 2020 Dubai (M34)

This appropriation is limited to New Zealand's participation at Expo 2020 Dubai.

Commences: 01 July 2017

Expires: 30 June 2021
Original Appropriation 53,240
Adjustments to 2017/18 -
Adjustments for 2018/19 711
Adjusted Appropriation 53,951
Actual to 2017/18 Year End 2,290
Estimated Actual for 2018/19 17,126
Estimate for 2019/20 18,216
Estimated Appropriation Remaining 16,319

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

  2018/19
  Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 528,020 (1,129) 526,891
Total Forecast MYA Departmental Output Expenses 13,778 (5,000) 8,778
Total Forecast MYA Non-Departmental Output Expenses 7,790 9,336 17,126

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

549,588 3,207 552,795

Capital Injection Authorisations#

  2018/19
  Estimates Budget
$000
Supplementary
Estimates Budget
$000
Total Budget
$000
Ministry of Foreign Affairs and Trade - Capital Injection (M34) 29,815 - 29,815

Supporting Information#

Part 1 - Vote as a Whole#

Summary of Financial Activity
  2018/19
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 413,986 (7,863) 9,336 1,473 415,459
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 60,129 - 4,673 4,673 64,802
Capital Expenditure 75,473 (2,939) - (2,939) 72,534
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

549,588 (10,802) 14,009 3,207 552,795

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue - N/A - - -
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

- N/A - - -

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Diplomatic Privileges and Immunities (M34)
Scope of Appropriation
This appropriation is limited to the administration of diplomatic and consular privileges and immunities under the Diplomatic Privileges and Immunities Act 1968 and the Consular Privileges and Immunities Act 1971.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 1,020 (4) 1,016
Revenue from the Crown 1,020 (4) 1,016
Revenue from Others - - -
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Percentage of cases warranting prosecution where waiver of immunity sought

100% Expired Expired

Number of Ministerial letters prepared

1,000-1,200 See Note 2 See Note 2

Number of Parliamentary Question responses provided

200-250 See Note 2 See Note 2

Number of Official Information Act request (OIA) responses provided

300-350 See Note 2 See Note 2

Percentage of Ministry OIA requests responded to within statutory timeframes (see Note 1)

90% See Note 2 See Note 2

Percentage of Ministerial OIA request replies completed five days prior to the statutory time limit, unless otherwise agreed (see Note 1)

90% See Note 2 See Note 2

Percentage of Ministerial correspondence completed within 15 working days

90% See Note 2 See Note 2

Percentage of Ministerial OIA request responses that are factually accurate, meet any legislative requirements, and contain no avoidable errors, measured by rejection rates by the office of each Minister

95% See Note 2 See Note 2

Average number of days to send final OIA request response to a requestor (for Ministry OIAs) (see Note 1)

25 days See Note 2 See Note 2

Average Ministerial satisfaction score

4 or above on a 5 point scale See Note 2 See Note 2

Note 1 - Ministerial OIAs are requests of the Minister responsible for the Foreign Affairs and Trade and Export Growth portfolios. Ministry OIAs are requests of the Chief Executive of the Ministry of Foreign Affairs and Trade.

Note 2 - Ministerial Services measures transferred to appropriations on Policy Advice and Representation - International Institutions and Policy Advice and Representation - Other Countries.

Reasons for Change in Appropriation

The appropriation decreased by $4,000 to $1.016 million for 2018/19 due to a retention of underspend in 2018/19 to meet the operating costs of the investigation and design phases of capital projects to be advanced in the 2019/20 financial year.

Consular Services (M34)
Scope of Appropriation
The purchase of consular policy advice, consular services for New Zealanders abroad and notarial services.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 22,369 4,728 27,097
Revenue from the Crown 21,854 4,600 26,454
Revenue from Others 515 128 643
Reasons for Change in Appropriation

The appropriation increased by $4.728 million to $27.097 million for 2018/19 due to:

  • an increase of $4.683 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses
  • an increase of $128,000 reflecting additional demand for authentication and notarial services
  • a net increase of $46,000 resulting from changes in capital charge and depreciation arising from property revaluations, and
  • an increase of $8,000 resulting from foreign exchange rate and overseas inflation movements.

These increases are partially offset by:

  • a retention of underspend of $72,000 in 2018/19 to meet the operating costs of the investigation and design phases of capital projects to be advanced in the 2019/20 financial year, and
  • a decrease of $65,000 resulting from the Budget 2019 initiative Reprioritisation of Funding - Forecast Departmental Underspends.
Hosting APEC 2021 (M34)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Hosting APEC 2021 (M34)

This appropriation is limited to enabling the planning and delivery of the year-long Asia-Pacific Economic Cooperation 2021.

Commences: 01 July 2018

Expires: 30 June 2022
Original Appropriation 99,560
Adjustments to 2017/18 -
Adjustments for 2018/19 84,580
Adjusted Appropriation 184,140
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 8,778
Estimate for 2019/20 38,922
Estimated Appropriation Remaining 136,440
Revenue
  Budget
$000
Revenue from the Crown to end of 2019/20 47,700
Revenue from Others to end of 2019/20 -
Total Revenue 47,700
Reasons for Change in Appropriation

The appropriation increased by $84.580 million to $184.140 million due to increases of $18.215 million in 2019/20, $24.062 million in 2020/21 and $42.303 million in 2021/22 from the new initiatives package approved in Budget 2019 for "APEC21 Programme - Enabling New Zealand to Fulfil its Asia Pacific Economic Cooperation (APEC) Hosting Responsibilities".

Policy Advice and Representation - International Institutions (M34)
Scope of Appropriation
The purchase of policy advice and representation activities related to the management of New Zealand's membership of, and foreign and trade interests in, international institutions.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 47,525 (433) 47,092
Revenue from the Crown 47,525 (433) 47,092
Revenue from Others - - -
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Number of Ministerial letters prepared

1,000-1,200 100-150 100-150

Number of Parliamentary Question responses provided

200-250 20-50 20-50

Number of Official Information Act request (OIA) responses provided

300-350 50-70 50-70

Percentage of Ministry OIA requests responded to within statutory timeframes (see Note 1)

90% 90% 90%

Percentage of Ministerial OIA request replies completed five days prior to the statutory time limit, unless otherwise agreed (see Note 1)

90% 90% 90%

Percentage of Ministerial correspondence completed within 15 working days

90% 90% 90%

Percentage of Ministerial OIA request responses that are factually accurate, meet any legislative requirements, and contain no avoidable errors, measured by rejection rates by the office of each Minister

95% 95% 95%

Average number of days to send final OIA request response to a requestor (for Ministry OIAs) (see Note 1)

25 days 25 days 25 days

Average Ministerial satisfaction score

4 or above on a 5 point scale 4 or above on a 5 point scale 4 or above on a 5 point scale

Note 1 - Ministerial OIAs are requests of the Ministers responsible for the Foreign Affairs and Trade and Export Growth portfolios. Ministry OIAs are requests of the Chief Executive of the Ministry of Foreign Affairs and Trade.

Note 2 - Ministerial Services measures transferred from the appropriation on "Administration of Diplomatic Privileges and Immunities".

Reasons for Change in Appropriation

The appropriation decreased by $433,000 to $47.092 million for 2018/19 due to:

  • an expense transfer of $252,000 to progress the Eurasian Economic Union Free Trade Agreement in the 2021/22 financial year
  • a retention of underspend of $121,000 to meet the operating costs of the investigation and design phases of capital projects to be advanced in the 2019/20 financial year
  • a decrease of $118,000 resulting from the Budget 2019 initiative Reprioritisation of Funding - Forecast Departmental Underspends, and
  • a fiscally neutral transfer of $50,000 to Vote Internal Affairs for the Disarmament Education United Nations Implementation Fund.

These decreases are partially offset by:

  • a net increase of $107,000 resulting from changes in capital charge and depreciation arising from property revaluations, and
  • an increase of $1,000 resulting from foreign exchange rate and overseas inflation movements.
Policy Advice and Representation - Other Countries (M34)
Scope of Appropriation
This appropriation is limited to the purchase of policy advice and representation directed to the management of New Zealand's foreign relations and trade with other countries, bilaterally and in regional organisations, including using New Zealand's international connections to facilitate the flow of trade, investment, skills, and technology and improving the competitiveness of New Zealand business.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 281,797 (7,562) 274,235
Revenue from the Crown 281,647 (8,163) 273,484
Revenue from Others 150 601 751
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Number of Ministerial letters prepared

1,000-1,200 900-1,000 900-1,000

Number of Parliamentary Question responses provided

200-250 150-200 150-200

Number of Official Information Act request (OIA) responses provided

300-350 200-250 200-250

Percentage of Ministry OIA requests responded to within statutory timeframes (see Note 1)

90% 90% 90%

Percentage of Ministerial OIA request replies completed five days prior to the statutory time limit, unless otherwise agreed (see Note 1)

90% 90% 90%

Percentage of Ministerial correspondence completed within 15 working days

90% 90% 90%

Percentage of Ministerial OIA request responses that are factually accurate, meet any legislative requirements, and contain no avoidable errors, measured by rejection rates by the office of each Minister

95% 95% 95%

Average number of days to send final OIA request response to a requestor (for Ministry OIAs) (see Note 1)

25 days 25 days 25 days

Average Ministerial satisfaction score

4 or above on a 5 point scale 4 or above on a 5 point scale 4 or above on a 5 point scale

Note 1 - Ministerial OIAs are requests of the Ministers responsible for the Foreign Affairs and Trade and Export Growth portfolios. Ministry OIAs are requests of the Chief Executive of the Ministry of Foreign Affairs and Trade.

Note 2 - Ministerial Services measures transferred from the appropriation on "Administration of Diplomatic Privileges and Immunities".

Reasons for Change in Appropriation

The appropriation decreased by $7.562 million to $274.235 million for 2018/19 due to:

  • a decrease of $5.642 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses
  • an expense transfer of $1.415 million from 2018/19 to progress the Eurasian Economic Union Free Trade Agreement in the 2021/22 financial year
  • an expense transfer of $1 million from 2018/19 to progress Comprehensive and Progressive Agreement for Trans-Pacific Partnership and European Union Free Trade Agreement activities in the 2019/20 financial year, and
  • a retention of underspend from 2018/19 of $750,000 to meet the operating costs of the investigation and design phases of capital projects to be advanced in the 2019/20 financial year, and
  • a decrease of $663,000 resulting from the Budget 2019 initiative Reprioritisation of Funding - Forecast Departmental Underspends.

These decreases are partially offset by:

  • an increase of $668,000 resulting from foreign exchange rate and overseas inflation movements
  • a net increase of $639,000 resulting from changes in capital charge and depreciation arising from property revaluations, and
  • an increase of $601,000 reflecting third-party funding for the provision of departmental services, including the China Capable Public Service programme and the Small Advanced Economies Initiative - Secretariat function.
Promotional Activities - Other Countries (M34)
Scope of Appropriation
The purchase of promoting New Zealand to other countries as an attractive market for trade and investment.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 225 (115) 110
Revenue from the Crown 225 (115) 110
Revenue from Others - - -
Reasons for Change in Appropriation

The appropriation decreased by $115,000 to $110,000 for 2018/19 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
The purchase of accommodation and support services by other New Zealand agencies.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 8,400 523 8,923
Revenue from the Crown - - -
Revenue from Others 8,400 523 8,923
Reasons for Change in Appropriation

The appropriation increased by $523,000 to $8.923 million for 2018/19 due to an increase in demand for staffing, accommodation and other services from other agencies co-located with the Ministry at overseas posts.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Foreign Affairs and Trade - Capital Expenditure PLA (M34)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Foreign Affairs and Trade, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 62,705 (4,945) 57,760
Intangibles 9,968 2,006 11,974
Other - - -

Total Appropriation

72,673 (2,939) 69,734
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Percentage of time our networks are available

99.8% 99.7% 99.7%

Percentage of time our critical services are available

99.8% 99.7% 99.7%
Reasons for Change in Appropriation

The appropriation decreased by $2.939 million to $69.734 million for 2018/19 due to the rescheduling of building construction and refurbishment work within the Ministry's capital programme.

Capital Injections and Movements in Departmental Net Assets
Ministry of Foreign Affairs and Trade
Details of Net Asset Schedule 2018/19
Main Estimates Projections
$000
2018/19
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2018/19
Opening Balance 582,649 619,219 Supplementary Estimates opening balance reflects the audited results as at 30 June 2018.
Capital Injections 29,815 29,815  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

612,464 649,034  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Expo 2020 Dubai (M34)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Expo 2020 Dubai (M34)

This appropriation is limited to New Zealand's participation at Expo 2020 Dubai.

Commences: 01 July 2017

Expires: 30 June 2021
Original Appropriation 53,240
Adjustments to 2017/18 -
Adjustments for 2018/19 711
Adjusted Appropriation 53,951
Actual to 2017/18 Year End 2,290
Estimated Actual for 2018/19 17,126
Estimate for 2019/20 18,216
Estimated Appropriation Remaining 16,319
Reasons for Change in Appropriation

The appropriation increased by $711,000 to $53.951 million due to foreign exchange rate movements reflecting the difference between the contracted exchange rates and the exchange rates set out in the detailed Business Case.

3.4 - Non-Departmental Other Expenses#

Asia Pacific Economic Cooperation 2018 Support to Papua New Guinea (M34)
Scope of Appropriation
This appropriation is limited to support and assistance to Papua New Guinea for the delivery and hosting of Asia Pacific Economic Cooperation 2018.
Reasons for Change in Appropriation

The appropriation increased by $4.138 million to $7.138 million for 2018/19 due to an expense transfer from 2017/18 to support the hosting of Asia Pacific Economic Cooperation 2018 in Papua New Guinea.

Disbursements Made and Exemptions from Taxation PLA (M34)
Scope of Appropriation
Refund of New Zealand local body rates for offices and residential premises of overseas diplomatic missions and consular posts pursuant to section 21 of the Diplomatic Privileges and Immunities Act 1968.
Reasons for Change in Appropriation

The appropriation increased by $400,000 to $2.400 million for 2018/19 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.

Provision of ACC-equivalent cover for New Zealand employees working overseas PLA (M34)
Scope of Appropriation
This appropriation is limited to payments authorised by section 65ZG of the Public Finance Act 1989 under the indemnity given by the Minister of Finance under section 65ZD of that Act for the provision of ACC-equivalent cover of New Zealand employees working overseas as specified in the indemnity.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 135 135
How Performance will be Assessed and End of Year Reporting Requirements

An exemption from reporting performance measures for this appropriation has been granted under s.15D(2)(b)(ii) of the Public Finance Act.

Reasons for Change in Appropriation

Established in 2018/19, this is a new appropriation that provides an uncapped indemnity under the Public Finance Act 1989, which ensures that dependents of NZ Inc staff posted offshore for periods beyond six months are provided ACC-equivalent cover for personal injury costs once they return to New Zealand.