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Infrastructure Advice and Coordination

Scope of Appropriation

This appropriation is limited to the provision of advice to the Government and to government agencies on infrastructure, ensuring coordination and implementation of the Government's infrastructure activities, the formulation and implementation of the National Infrastructure Plan, monitoring of infrastructure investment and frameworks and operation of the National Infrastructure Advisory Board.

Significant Work Completed During 2010/11

National Infrastructure Plan

  • The National Infrastructure Plan was completed and ready for publication during the financial year, and formally launched in early July. The Plan has been well received by Ministers and stakeholders. The Treasury will now focus on working with other government and non-government agencies to implement the Plan over the next three years.

Public Private Partnerships

  • The Treasury continued to invest in the development of the PPP market as part of its core business in order to build a pipeline of viable projects, thereby giving assurance to both the public and private sectors of the Government's commitment to this new form of procurement where it provides value for money for taxpayers.
  • In relation to potential PPP transactions, the Treasury:
    • advanced two projects into procurement phase - the Wiri Prison project and the Hobsonville Schools project
    • advanced two projects into strategic assessment/business case phase - the Whole of Government Radio Network project and the Defence Base Consolidation project, and
    • continued to assess sectoral opportunities for PPPs in relation to social housing, transport and health.
  • The Treasury continued to work on the PPP Toolkit, which is intended to be a repository of guidance material available for use by the public sector in relation to PPPs. The draft PPP Standard Contract is the lynchpin of the PPP Toolkit. The development of the Toolkit, and the draft Contract in particular, is intended to streamline and improve the consistency of PPP procurement processes across the public sector, and provide the market with some transparency and comfort around the practice implemented and messages issued during the procurement process. This is critical to ensuring the integrity of the PPP market in New Zealand.

Capital asset management  (CAM)

  • The Treasury continued its work on improving the effective management of the Crown's physical assets, in line with government policy. A notable feature was the rollout in July 2010 of a new set of Cabinet expectations for capital investment proposals supported by the Better Business Cases guidance for departments and Crown entities. The guidance is based on material used in the UK and in state of Victoria, Australia. A significant effort was put into raising awareness of these new expectations and in training officials from Central Agencies and capital-intensive agencies in the use of the guidance materials.
  • During the year, the Treasury completed its third survey of capital intentions of 15 capital-intensive agencies. It reported to Ministers on the potential scale and affordability of agency capital investment requirements over the next 10 years, under current policy settings. This work resulted in the Cabinet Expenditure Control Committee inviting six agencies to report back on the drivers of their capital intentions and options for managing pressures within baselines.

Utilities code

  • The Treasury administers the Utilities Access Act 2010, which came into force on 5 August 2010. The Treasury is working with an industry group to facilitate the development of a Utilities Access Code. Following extended industry consultation, the Code is expected to be submitted later in 2011 for Ministers' approval under the Act.

Ultra-fast broadband

  • The Treasury worked with MED and Crown Fibre Holdings Ltd to implement the Government's Ultra-fast Broadband policy. By the end of May 2011, Crown Fibre Holdings had signed contracts with Telecom, Enable, Northpower and WEL Networks which together meet the Government's policy objective of giving 75% of New Zealanders access to ultra-fast broadband. This involved complex commercial and regulatory policy issues, and was achieved within the funding the Government has provided. As fibre is progressively deployed, the Treasury will continue to be involved to oversee the Government's commercial relationships and ensure successful completion.
Statement of Service Performance for Output Class - Infrastructure Advice and Coordination
Performance Dimensions for 2010/11 Target Performance for 2010/11
Publication of a revised National Infrastructure Plan by June 2011.  Achieved. Achieved. The Plan was completed by year end. It was formally launched on 4 July 2011. 
Successful completion of First Tranche of Fibre to the Home.  Achieved. Achieved. 
Completion and implementation of standardised business case requirements for capital-intensive government agencies.  Achieved. Achieved. 
Two PPPs in market by 30 June 2011.  Achieved. Achieved. 
Introduction of Utilities Access Code Bill by 30 June 2011.  Achieved. Achieved. The Utilities Access Act 2010 came into force on 5 August 2010. This Act is enabling legislation for the Utilities Access Code which the industry is now developing. The Treasury expects the Code will be completed within the first half of the 2011/12 year, following an extended period of consultation. 
Cost - Infrastructure Advice and Coordination
2010
Actual
$000
Infrastructure Advice and Coordination 2011
Actual
$000
2011
Main Estimates
$000
2011
Supp. Estimates
$000
4,675 Expenses 4,577 4,799 4,824
 

Funded by:

     
4,587 Revenue Crown 4,477 4,720 4,747
88 Other revenue 100 79 77

Expenditure was $247,000 (5%) under Supplementary estimates owing to delays in completion of projects for CAM and the development of the PPP Toolkit. This under-expenditure will be transferred into 2011/12.

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