Crown Wholesale Guarantee Facility
Scope of Appropriation
This appropriation is limited to the implementation and operation of the Crown Wholesale Guarantee Facility.
Output Class Description
This class of outputs involves the provision of policy advice to Ministers and the establishment of guarantees to facilitate the access of investment grade financial institutions to international financial markets. The central objective is to ensure a stable and liquid financial system that supports economic growth.
This work requires ongoing monitoring of the state of the economy and reporting to Ministers to ensure that they are well-appraised of developments in credit conditions and financial stability. It also includes monitoring of eligible financial institutions to minimise Crown exposure, developing options for responding to systemic financial risk and developing contingency measures should credit/liquidity conditions worsen.
Significant Work Completed During 2008/09
- Established processes for the Crown Wholesale Guarantee Facility.
- Set up the required risk assessment processes to be applied before any wholesale issuance is guaranteed.
- Established a fee management process for wholesale facility fees.
| 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. |
| No unnecessary delays in processing applications. Target: Achieved. | Achieved. |
| Development and implementation of an overall plan for managing the Crown's interests including default events. Target: Achieved. | Achieved. |
| Active monitoring of guaranteed institutions is undertaken to minimise Crown exposure. Target: Achieved. |
Achieved. A monitoring process was implemented. |
| The Treasury actively manages the Crown's interests in the event of a specific default. Target: Within 7 days of default. |
Not applicable. There were no default events of guaranteed wholesale facilities during 2008/09. |
| Cost | ||||
|---|---|---|---|---|
| 2008/09 Actual $000 |
Supp. Estimates - Voted $000 |
Main Estimates $000 |
2007/08 Actual $000 |
|
| Expenses | 849 | 1,878 | - | - |
| Funded by: | ||||
| Revenue Crown | 827 | 1,849 | - | - |
| Other Revenue | 22 | 29 | - | - |
This output class belongs to a multi-output class appropriation.
Actual 2008/09 output class expenditure was $1,029,000 or 55% under Supplementary Estimates budgets owing to part-year vacancies during the establishment of the facility and some cost savings identified.
The appropriation for this output class was increased by $1,878,000 in the Supplementary Estimates owing to establishment of the facility in November 2008.
