Supplementary estimates of appropriations

Vote Forestry - Supplementary Estimates 2019/20

Formats and related files

Vote Forestry#

APPROPRIATION MINISTER(S): Minister of Forestry (M35)

APPROPRIATION ADMINISTRATOR: Ministry for Primary Industries

RESPONSIBLE MINISTER FOR MINISTRY FOR PRIMARY INDUSTRIES: Minister of Agriculture

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type 2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Multi-Category Expenses and Capital Expenditure

     

Growth and Development of the Forestry Sector MCA (M35)

The single overarching purpose of this appropriation is to support the growth and development of the forestry sector.
267,909 (70,955) 196,954

Departmental Output Expenses

     

Forestry: Administration of Grants and Programmes

This category is limited to the administration of government approved schemes, grants and assistance to the forestry sector.
15,342 (4,401) 10,941

Forestry: Implementation of Policy Advice and ministerial servicing

This category is limited to implementing policy decisions, operational policy, and administering legislation relating to forestry and ministerial servicing.
17,266 2,699 19,965

Forestry: Management of the Crown's Forestry Assets

This category is limited to the management of the Crown's interest in forests and forestry-related assets.
2,712 (118) 2,594

Forestry: Policy Advice

This category is limited to the provision of advice (including second opinion advice and contributing to policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to forestry.
8,117 2,952 11,069

Non-Departmental Output Expenses

     

Forestry: Operational management of the Crown's Forests

This category is limited to the purchase of forestry operation and management services.
92,379 (2,704) 89,675

Non-Departmental Other Expenses

     

Forestry: Grants and partnerships programmes

This category is limited to the use of initiatives and grants, and programmes to establish trees or build skills, capability and capacity in the forestry sector.
90,582 (59,681) 30,901

Forestry: Hill Country Erosion Fund

This category is limited to projects that protect erosion-prone hill country.
6,111 - 6,111

Non-Departmental Capital Expenditure

     

Forestry: Capital investment in the Crown's Forestry Assets

This category is limited to the purchase or planting of the Crown's Forestry assets.
35,400 (9,702) 25,698

Total Multi-Category Expenses and Capital Expenditure

267,909 (70,955) 196,954

Total Annual Appropriations and Forecast Permanent Appropriations

267,909 (70,955) 196,954

Multi-Year Appropriations#

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

Non-Departmental Other Expenses

   

Afforestation Grant Scheme (M35)

This appropriation is limited to grants to private landowners for afforestation purposes.

Commences: 01 July 2018

Expires: 30 June 2021
Original Appropriation 10,363
Adjustments to 2018/19 3,249
Adjustments for 2019/20 -
Adjusted Appropriation 13,612
Actual to 2018/19 Year End 2,765
Estimated Actual for 2019/20 7,912
Estimate for 2020/21 2,935
Estimated Appropriation Remaining -

Forestry and Other Economic Development, and Erosion Control (M35)

This appropriation is limited to forestry and other economic development and erosion control in the Tairawhiti region.

Commences: 01 July 2018

Expires: 30 June 2021
Original Appropriation 26,950
Adjustments to 2018/19 1,150
Adjustments for 2019/20 -
Adjusted Appropriation 28,100
Actual to 2018/19 Year End 2,139
Estimated Actual for 2019/20 9,449
Estimate for 2020/21 16,512
Estimated Appropriation Remaining -

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

  2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 267,909 (70,955) 196,954
Total Forecast MYA Non-Departmental Other Expenses 9,190 8,171 17,361

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

277,099 (62,784) 214,315

Supporting Information#

Part 1 - Vote as a Whole#

Summary of Financial Activity

  2019/20
Estimates
$000
Supplementary Estimates Total
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000

Appropriations

         
Output Expenses - - - - -
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 9,190 - 8,171 8,171 17,361
Capital Expenditure - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 135,816 1,132 (2,704) (1,572) 134,244
Other Expenses 96,693 - (59,681) (59,681) 37,012
Capital Expenditure 35,400 N/A (9,702) (9,702) 25,698

Total Appropriations

277,099 1,132 (63,916) (62,784) 214,315

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 114,926 N/A (11,404) (11,404) 103,522
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

114,926 N/A (11,404) (11,404) 103,522

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Forestry and Other Economic Development, and Erosion Control (M35)

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

Forestry and Other Economic Development, and Erosion Control (M35)

This appropriation is limited to forestry and other economic development and erosion control in the Tairawhiti region.

Commences: 01 July 2018

Expires: 30 June 2021
Original Appropriation 26,950
Adjustments to 2018/19 1,150
Adjustments for 2019/20 -
Adjusted Appropriation 28,100
Actual to 2018/19 Year End 2,139
Estimated Actual for 2019/20 9,449
Estimate for 2020/21 16,512
Estimated Appropriation Remaining -
How Performance will be Assessed and End of Year Reporting Requirements
2019/20 >
Assessment of Performance
Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Total area afforested since initial implementation of the scheme (ha)

43,000 Measure removed -

Number of hectares approved for planting/treatment under the Erosion Control Funding Programme

1,000 Updated wording 1,000ha

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

Multi-Category Expenses and Capital Expenditure#

Growth and Development of the Forestry Sector (M35)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to support the growth and development of the forestry sector.
Scope of Appropriation
Departmental Output Expenses

Forestry: Administration of Grants and Programmes
This category is limited to the administration of government approved schemes, grants and assistance to the forestry sector.

Forestry: Implementation of Policy Advice and ministerial servicing
This category is limited to implementing policy decisions, operational policy, and administering legislation relating to forestry and ministerial servicing.

Forestry: Management of the Crown's Forestry Assets
This category is limited to the management of the Crown's interest in forests and forestry-related assets.

Forestry: Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributing to policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to forestry.

Forestry: Policy Advice and Ministerial Servicing
This category is limited to supporting Ministers on Government policy matters through the provision of advice (including second opinion advice and contributing to policy advice led by other agencies), implementation of policy decisions, operational policy, administering legislation, and ministerial servicing relating to forestry.

Non-Departmental Output Expenses
Forestry: Operational management of the Crown's Forests
This category is limited to the purchase of forestry operation and management services.
Non-Departmental Other Expenses

Forestry: Grants and partnerships programmes
This category is limited to the use of initiatives and grants, and programmes to establish trees or build skills, capability and capacity in the forestry sector.

Forestry: Hill Country Erosion Fund
This category is limited to projects that protect erosion-prone hill country.

Non-Departmental Capital Expenditure
Forestry: Capital investment in the Crown's Forestry Assets
This category is limited to the purchase or planting of the Crown's Forestry assets.
Expenses, Revenue and Capital Expenditure
  2019/20
Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

267,909 (70,955) 196,954

Departmental Output Expenses

     
Forestry: Administration of Grants and Programmes 15,342 (4,401) 10,941
Forestry: Implementation of Policy Advice and ministerial servicing 17,266 2,699 19,965
Forestry: Management of the Crown's Forestry Assets 2,712 (118) 2,594
Forestry: Policy Advice 8,117 2,952 11,069

Non-Departmental Output Expenses

     
Forestry: Operational management of the Crown's Forests 92,379 (2,704) 89,675

Non-Departmental Other Expenses

     
Forestry: Grants and partnerships programmes 90,582 (59,681) 30,901
Forestry: Hill Country Erosion Fund 6,111 - 6,111

Non-Departmental Capital Expenditure

     
Forestry: Capital investment in the Crown's Forestry Assets 35,400 (9,702) 25,698

Funding for Departmental Output Expenses

     

Revenue from the Crown

43,166 890 44,056
Forestry: Administration of Grants and Programmes 15,238 (4,401) 10,837
Forestry: Implementation of Policy Advice and ministerial servicing 17,234 2,655 19,889
Forestry: Management of the Crown's Forestry Assets 2,596 (118) 2,478
Forestry: Policy Advice 8,098 2,754 10,852

Revenue from Others

271 242 513
Forestry: Administration of Grants and Programmes 104 - 104
Forestry: Implementation of Policy Advice and ministerial servicing 32 44 76
Forestry: Management of the Crown's Forestry Assets 116 - 116
Forestry: Policy Advice 19 198 217
What is Intended to be Achieved with each Category and How Performance will be Assessed
Assessment of Performance 2019/20
Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Departmental Output Expenses

     

Forestry: Administration of Grants and Programmes

     

Percentage of One Billion Trees funding applications processed within timelines

100% Updated wording 100%

Forestry: Management of the Crown's Forestry Assets

     

The number of hectares of the Crown's forestry assets divested via a surrender or sale process

Equal to or greater than 1,300 Updated wording 1,300ha

Number of hectares contracted under commercial forest leases or forest joint ventures as part of the One Billion Trees programme

11,500 (3,000ha) 8,500ha

Forestry: Policy Advice

     

The technical quality assessment level for MPI policy advice papers, on a scale of 1 to 10, will be equal to or greater than

7 Updated wording 7

The satisfaction of the Minister of Forestry with the policy advice service, on a scale of 1 to 10, will be equal to or greater than

8 Updated wording 8

Total cost per output hour ($)

$158 Measure removed -

Non-Departmental Output Expenses

     

Forestry: Operational management of the Crown's Forests

     

Cubic metres (m3) of logs harvested and sold, on behalf of the Crown, from the Crown Forestry Estate, to within +/- 10% in 2019/20

852,000 Updated wording 852,000m3

Non-Departmental Other Expenses

     

Forestry: Grants and partnerships programmes

     

The number of hectares of trees contracted for planting through One Billion Trees grants

20,000ha Updated wording 14,000ha

Forestry: Hill Country Erosion Fund

     

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

Exempt Measure removed -

The number of hectares treated through Hill Country Erosion Funding in 2019/20

New measure 4,700ha 4,700ha

Non-Departmental Capital Expenditure

     

Forestry: Capital investment in the Crown's Forestry Assets

     

Hectares of Crown Forestry contracted for planting over the 2020 planting season (see Note 1)

8,000 Updated wording 4,000ha

Note 1 - The 2020 planting season runs approximately from June to August 2020; therefore, this measure has been designed to include all hectares that have been contracted for planting during the 2019/20 part of the 2020 planting season.

Reasons for Change in Appropriation

This appropriation has decreased by $70.955 million to $196.954 million for 2019/20 due to:

  • $70.133 million in expense and capital transfers of:
    • $59.681 million across 2021/22 and 2022/23 for the Forestry Grants and Programmes to better reflect current contractual commitments of the Fund and forecast expenditure
    • $9.702 million to 2020/21 for capital investments in Crown Forestry to cover contractual commitments for forest development occurring in outyears now the joint venture agreements have been confirmed
    • $500,000 to 2020/21 for rework of legislative instruments with regards to the Climate Change Response Amendment Bill, and the Climate Change Regulations
    • $250,000 to 2020/21 for sector investment research to now be undertaken in 2020/21 due to recruiting constraints.
  • $2.704 million to reflect changes in the forecast expenditure profile for Crown Forestry.

The decrease was partially offset by an increase of $1.882 million through fiscally neutral transfers of:

  • $1.410 million for overhead expenditure, including property lease costs
  • $242,000 for employees seconded to other departments
  • $230,000 for development of the Customer Relationship Management System.