Administration of Guarantees and Indemnities given by the Crown PLA
Scope of Appropriation
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.
Output Class Description
This appropriation covers the expenses incurred in managing the Crown's interests in default events covered by the Crown Deposit Guarantee Scheme, the Crown Wholesale Guarantee Facility and NZECO.
Administering this appropriation involves the timely, effective and efficient management of any claims under the relevant schemes, consistent with policy objectives. This appropriation requires the active management of the Crown's interests in relation to defaults of specific institutions. The Treasury will also seek to achieve recovery of Crown interests in default and receivership processes to minimise long-run loss to the taxpayer.
Significant Work Completed During 2008/09
- Development of payout processes.
- Management of the payout process for the two entities whose defaults triggered the Retail Deposits Guarantee.
| Performance Dimensions | Performance |
|---|---|
| All policy outputs comply with the Treasury's Quality Standards for Policy Advice as assessed by the Minister three times a year. Target: Rated as meeting or frequently exceeding expectations. |
Not assessed during 2008/09. Three performance reports were provided to the Minister outlining progress against the 2008/09 objectives. Invitations were extended to the Minister on each of these occasions to assess his satisfaction with the Treasury's performance. While no formal feedback was received through this mechanism, the Minister has instigated monthly meetings and reporting systems to enable more regular and timely feedback on the Treasury's work. The Quality Standards for Policy Advice were implemented across the Treasury's work portfolio, and given this was the first year in which these have been used, an external review was conducted to provide a performance benchmark for future reference and to identify areas for focus for future service performance. |
| The Treasury actively manages the Crown's interests in the event of a specific default. Target: Achieved. | Achieved. |
| No unnecessary delays in processing depositors' claims. Target: Achieved. |
Achieved. A process to pay out depositors' claims was established in response to specific defaults. The Treasury intends to streamline this process in 2009/10. |
| Cost | ||||
|---|---|---|---|---|
| 2008/09 Actual $000 |
Supp. Estimates - Voted $000 |
Main Estimates $000 |
2007/08 Actual $000 |
|
| Expenses | 866 | 730 | - | - |
| Funded by: | ||||
| Revenue Crown | 845 | 730 | - | - |
| Other Revenue | 21 | - | - | - |
This appropriation is incurred under permanent legislative authority.
Actual 2008/09 output class expenditure was $136,000 or 19% over Supplementary Estimates budgets owing to the unpredictable nature of these costs. The appropriation for this output class was increased by $730,000 in the Supplementary Estimates owing to establishment of the Deposit Guarantee Scheme in October 2008.
