Administration of Guarantees and Indemnities Given by the Crown PLA
Scope of Appropriation
This appropriation is limited to expenses incurred in connection with administering the guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.
The appropriation was required to administer the guarantee provided to entities under the Crown Deposit Guarantee Scheme, including the management of Crown risk and administration expenses incurred in processing claims under the guarantee.
Significant Work Completed During 2009/10
- Successfully completed payouts of all claims following defaults by Mascot Finance Limited and Strata Finance Limited, where creditors made a claim.
- Initiated payouts for Vision Securities Limited, Rockforte Finance Limited and Viaduct Capital Limited.
| Performance Dimensions | Target | Performance for 2009/10 | ||||
|---|---|---|---|---|---|---|
| The Treasury actively manages the Crown's interests in the event of a specific default. | Achieved |
Achieved. Delivered an outsourced claims payment solution via CIS to provide a robust scalable solution capable of dealing with high volume (depositor numbers) and/or multiple defaults. |
||||
| No unnecessary delays in processing depositors claims. | Achieved |
Achieved. In practice, once the claims process commences the timeliness of payout is primarily determined by the speed with which creditors submit their claims. The process is deemed to have commenced from the time the Treasury sends the initial letter out seeking creditor details. |
||||
| 2009/10 Actual $000 |
Supp. Estimates - Voted $000 |
Main Estimates $000 |
2008/09 Actual $000 |
|
|---|---|---|---|---|
| Expenses | 2,475 | 2,798 | - | 866 |
| Funded by: | ||||
| Revenue Crown | 2,455 | 2,776 | - | 845 |
| Other Revenue | 20 | 22 | - | 21 |
