Management of Liabilities, Claims Against the Crown and Crown Properties
Scope of Appropriation
Management of contractual or Treaty of Waitangi-related claims against the Crown and the management of New Zealand House, London.
Output Class Description
This class of outputs involves managing a range of commercial, contractual, legal and Treaty of Waitangi-related claims against the Crown. In practice, these are often relatively small, ongoing issues of a commercial nature, and the result we are seeking in relation to each usually relates to ensuring the appropriate protection of Crown interests in an efficient manner within the context of broader government objectives. In many cases, the Treasury contracts with third parties for the delivery of specific outputs.
Specific outputs include:
- Protect the Crown's cash flows and minimise the Crown's exposure to any litigation related to the 1973 Maui Gas Contract.
- Achieve efficient management of the Crown's liability arising from holding its geothermal assets, and transfer or disposal of these assets in Treaty settlements or by sale as appropriate.
- Discharge the Crown's obligations under the SOE Act 1986 to transfer legal land titles to SOEs as efficiently as possible.
- Achieve durable Treaty settlements at the lowest long-run fiscal and economic cost.
- Efficient and effective defence of building weather-tightness claims against the Crown, related to the Building Industry Association's regulation of the building industry.
Significant Work Completed During 2008/09
- Undertook ongoing management of the transfer of legal titles to SOEs and of the Crown's day-to-day contractual obligations.
- Provided advice on the following Treaty settlement proposals: Tūranganui-a-Kiwa (Gisborne), Ngāti Apa, Ngāti Kahu, Ngāti Porou, Te Tau Ihu, Te Hiku (Far North), Ngāti Pahauwera, Waikato-Tainui River, Ngāti Manawa, Ngāti Makino, Waitaha, Central North Island Forest, Te Roroa, Taranaki Whānui ki te Upoko o te Ika, Ngāi Tūhoe, Ngāti Whare. Progressed arrangements regarding the CNI collective settlement (including commercial discovery process, establishment of Central North Island (CNI) Holdings Ltd and iwi governance entities) for transfer of forest assets on 1 July 2009.
- Provided advice to Ministers on the implications of financial and commercial redress proposals and undertook analysis of overall fiscal trends and implications for settling remaining Treaty claims by 31 December 2014.
- Provided advice on various aspects of Rugby New Zealand 2011 Limited (RNZ 2011), including advice on Eden Park funding issues, variations to the Shareholders Agreement, the tournament budget for the 2011 Rugby World Cup.
- Undertook ongoing management of day-to-day contractual obligations regarding the 1973 Maui Gas Contract. Specific work this year included management of allocation disputes.
- Provided ongoing advice on debt restructuring options for Taitokerau Forests Limited.
| 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. |
| Settlement of liabilities within parameters set by Ministers. Target: Achieved. | Achieved. |
| Cost | ||||
|---|---|---|---|---|
| 2008/09 Actual $000 |
Supp. Estimates - Voted $000 |
Main Estimates $000 |
2007/08 Actual $000 |
|
| Expenses | 2,971 | 2,740 | 5,786 | 2,901 |
| Funded by: | ||||
| Revenue Crown | 2,917 | 2,670 | 5,697 | 2,842 |
| Other Revenue | 54 | 70 | 89 | 59 |
This output class belongs to a multi-output class appropriation.
Actual 2008/09 output class expenditure was $231,000 or 8% over Supplementary Estimates budgets owing to increased work in this area such as Maui Gas margin disputes and Terralink as well as increased external costs in relation to the transfer of legal land titles to SOEs and Treaty settlements.
The appropriation for this output class was decreased by $3,046,000 in the Supplementary Estimates largely owing to the return to the Crown of $3 million for the management of litigation against the former Building Industry Authority, relating to the weather-tightness of homes.
