Time-limited Funding
Time-limited funding does not meet the definition of a “risk” under the PFA, but is further information that is prepared to increase transparency about initiatives with funding profiles that cease or decrease during the forecast period.
The following table outlines those areas where initiatives have time-limited funding that decreases or ceases at some point and may potentially be extended, using a $5 million materiality threshold. Time-limited funding often relates to pilot programmes, and in some cases Multi Year Appropriations (MYAs) if they are likely to require further funding in the future.
Vote | Description of Initiative | Operating Impact ($million) |
|---|---|---|
| Community and Voluntary Sector | Digital Strategy – Community Partnerships Fund | 17 from 2005/06 to 2008/09 (MYA) |
| Communications | Digital Strategy – High-speed Connectivity for Growth | 20 from 2005/06 to 2008/09 (MYA) |
| Economic, Industry and Regional Development | Regional Partnerships and Facilitation for Sustainable Economic Growth | 57 from 2004/05 to 2006/07 (MYA) |
| Energy | Acquisition of Petroleum Exploration Data | 21 from 2004 to 2007 (MYA) |
| Energy | Electricity Efficiency Programme | 8 in 2005/06 and 10 in 2006/07 |
| Housing | Rural Housing Programme | 9 in each of 2005/06 and 2006/07, 7 in 2007/08 |
| Internal Affairs | Significant Community-based Projects Fund | 40 from 2005/06 to 2008/09 (MYA) |
| Lands | Land Tenure Reform | 40 from 2005/06 to 2007/08 (MYA) |
| Police | Regional Assistance Mission Solomon Islands and Solomon Island executive support | 7 in each of 2005/06 and 2006/07 |
| Sport & Recreation | Children’s and Young People’s Lifestyles | 8 in 2006/07, 10 in 2007/08, 6 in each of 2008/09 and 2009/10 |
| Tourism | Tourism Demand Subsidy Scheme | 7 in 2006/07 |
The following table shows the impact on the operating balance if funding were to be appropriated to maintain funding levels for these initiatives (ie, extend the initiatives beyond their current scheduled completion dates). These amounts would need to be managed within the forecast operating spending.
| Operating Impact ($million) | 2006/07 | 2007/08 | 2008/09 | 2009/10 | 2010/11 and Outyears |
|---|---|---|---|---|---|
| Funding to extend initiatives | - | 50 | 77 | 88 | 94 |
Quantified Risks
The risks outlined in these tables would, if they eventuated, impact on the Government’s forecast new operating and/or capital spending amounts.
The Minister of Finance has yet to fully consider the quantum of these risks.
| Quantified Risks as at 8 December 2006 | Operating Balance | Gross Debt | Value of Risk ($million) | Funding Received in or since Budget 2006 ($million) |
|---|---|---|---|---|
| New Risks | ||||
| Education – Early Childhood Education Ratio Changes | Decrease | - | 90 per annum | - |
| Social Development – New Zealand Superannuation – Rate Adjustment | Decrease | - | 23 in 2006/07, 90 in 2007/08, 68 in 2008/09 and 28 in 2009/10 only | - |
| Changed Risks | ||||
| Culture and Heritage – Broadcasting Initiatives | Decrease | - | 27 per annum | 6 per annum |
| Education – School Property | Decrease | Increase | 180 capital in each of next 4 years, and operating of 10 per annum from 2007/08 | 158 capital and 27 operating from 2006/07 to 2010/11 |
| Education (Tertiary) – Centres of Research Excellence | Decrease | Increase | 20 capital in 2007/08 and 10 per annum operating | - |
| Health – Indicative Funding for Budgets 2007 and 2008 | Decrease | - | 691 in 2007/08 and 1,441 per annum from 2008/09 | - |
| Justice – New Supreme Court – Cost Escalation | Decrease | Increase | Up to 45 capital and 4 per annum operating | - |
| New Zealand Defence Force – Defence – Capital Injections | - | Increase | 257 capital from 2007/08 to 2010/11 | 297 capital in 2006/07 |
| Police – Increases to Police Staff | Decrease | Increase | Operating of 63 in 2007/08, 105 in 2008/09, 116 in 2009/10 and 117 per annum from 2010/11 and capital of 122 from 2007/08 to 2010/11 | 32 per annum operating and 49 capital from 2006/07 to 2010/11 |
| Unchanged Risks | ||||
| Economic Development – Venture Investment Fund | - | Increase | 40 capital in 2009/10 and 2010/11 | 60 capital from 2006/07 to 2008/09 |
| Education (Tertiary) – Vocational Training | Decrease | - | 8 in 2007/08, 23 in 2008/09 and 30 per annum from 2009/10 | 16 from 2006/07 to 2010/11 |
| Finance – National Rail Network – Obligations of Rail Agreement | - | Increase | 60-70 per annum capital from 2007/08 | 50 capital in 2006/07 |
| Finance – National Rail Network – Reconfiguration of Land | - | Increase | 30 capital in 2007/08, unclear thereafter | 53 capital in 2006/07 |
| New Zealand Defence Force – Sale of Skyhawks and Aermacchi Trainers | - | Decrease | 120 capital | - |
| Research, Science and Technology – Multi-year Funding Profile | Decrease | - | 30 in 2007/08, 60 in 2008/09 and 90 per annum from 2009/10 | 25 per annum operating and 5 capital in 2006/07 |
Unquantified Risks
The risks outlined in these tables would, if they eventuated, impact on the Government’s forecast new operating and/or capital spending amounts.
| Unquantified Risks as at 8 December 2006 | Operating Balance | Gross Debt | Funding Received in or since Budget 2006 ($million) |
|---|---|---|---|
| New Risks | |||
| Economic Development – Increasing Stadium Capacity for the Rugby World Cup | - | Increase | - |
| Economic Development – Radio Spectrum Rights | Increase | - | - |
| Revenue – Extending the Specified Superannuation Contribution | Decrease | - | - |
| Revenue – International Financial Reporting Standards | Unclear | - | - |
| Revenue – Life Insurance | Unclear | - | - |
| Revenue – Tax Incentives for Giving to Charities and Other Non-Profit Organisations | Unclear | - | - |
| Transport – Extending the State Highway Construction and Revenue Guarantee | - | Increase | - |
| Changed Risks | |||
| Corrections – Capital Projects | Decrease | Increase | 121 operating |
| Education (Tertiary) – Tertiary Education Expenditure Review | Unclear | Unclear | - |
| Education (Tertiary) – Tertiary Education Institutions – Capital Injections | - | Increase | - |
| Education (Tertiary) – Wananga Capital Injections | - | Increase | - |
| Environment – Climate Change Policies | Unclear | - | 16 in 2006/07 |
| Health – District Health Board Deficits | Decrease | Increase | - |
| Revenue – Business Tax Review | Unclear | - | - |
| Social Development – Working New Zealand – Work Focused Support | Decrease | - | - |
| State Services Commission – State Sector Retirement Savings Scheme | Decrease | - | - |
| Unchanged Risks | |||
| Conservation – Lease of Taupo Property Rights from Tuwharetoa | Decrease | - | - |
| Education – Schools ICT Network Infrastructure Upgrade | Decrease | Increase | 4 capital |
| Education – Year One Class Sizes | Decrease | Increase | - |
| Education (Tertiary) – Partnerships for Excellence | - | Increase | - |
| Education (Tertiary) – Tertiary Student Support Changes | Decrease | Unclear | Operating expenditure of 1 in 2006/07, 2 in 2007/08, 3 in 2008/09 and 4 per annum from 2009/10; capital savings of 13 in 2006/07, 22 in 2007/08 and 25 in 2008/09 and 2009/10 |
| Finance – Crown Overseas Properties | - | Increase | - |
| Finance – National Rail Access Agreement Amendments | Unclear | Unclear | - |
| Finance – SOE Long-term Hold Reviews | - | Decrease | - |
| Fisheries – Civilian Maritime Aerial Surveillance | Decrease | Increase | - |
| Fisheries – Māori Interest in Marine Farming | Decrease | - | - |
| Housing – State Housing Project at Hobsonville | - | Increase | - |
| Immigration – New Immigration Service Delivery Strategy | Unclear | - | - |
| Justice – Strengthening the National Court Infrastructure | Decrease | Increase | - |
| National Library – National Library Building Extension | - | Increase | - |
| Revenue – Family Assistance Indexation and Review of Rates | Decrease | - | - |
| Revenue – Rebuild of the Student Loan IT System | Decrease | Increase | - |
| Revenue – Taxation of Partnerships Review | Unclear | - | - |
| Social Development – Child, Youth and Family Services – Reviewing Levels of Funding and Service Delivery | Unclear | Unclear | - |
| Social Development / Housing – Accommodation Supplement Review | Decrease | Increase | - |
| Social Development – New Zealand Superannuation – International Mobility Issues | Unclear | - | - |
Risks Removed Since the 2006 Budget Update
The following risks have been removed since the 2006 Budget Economic and Fiscal Update.
| Expired Risks | Reason | Funding Received ($million) |
|---|---|---|
| Conservation – Foreshore and Seabed Compensation | No longer meets criteria for disclosure | - |
| Corrections – Collective Employment Contract Negotiations | In forecasts | - |
| Education – Expansion of NZ Diploma in Specialist Subjects | In forecasts | 11 in 2006/07 and 10 in 2007/08 only |
| Energy – Oil Security – Meeting International Energy Agency Obligations | In forecasts | - |
| Justice Sector Agencies – Potential Flow-on Impact of Extra Police | In forecasts | 96 from 2006/07 to 20010/11 |
| Labour – Department of Labour Strategic Baseline Review | Expired | - |
| New Zealand Defence Force – Environmental Clean-up of Devonport Seabed Contamination | No longer meets criteria for disclosure | - |
| Police – Wage Negotiations | In forecasts | 40 in 2006/07, 83 in 2007/08, 90 in 2008/09 and 91 per annum thereafter |
| Reserve Bank of New Zealand – Liquidity Management Policy | In forecasts | - |
| Revenue – Fringe Benefit Tax Review | Expired | - |
| Revenue – Tax and Depreciation | Now part of Business Tax Package | - |
| State Services Commission – All-of-Government Authentication | In forecasts | 11 in 2006/07, 7 in 2007/08 and 4 in each of 2008/09 and 2009/10 |
