Estimates of appropriations

Vote Building and Construction - Economic Development and Infrastructure Sector - Estimates 2021/22

Vote Building and Construction#

APPROPRIATION MINISTER(S): Minister for Building and Construction (M9), Minister of Housing (M37), Minister for COVID-19 Response (M103)

DEPARTMENT ADMINISTERING THE VOTE: Ministry of Business, Innovation and Employment (A17)

RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic and Regional Development

Overview of the Vote#

Three Ministers are responsible for appropriations in Vote Building and Construction.

The Minister for Building and Construction is responsible for appropriations in the 2021/22 financial year of:

  • just over $66 million for delivering regulatory and control services for the building industry under the Building Act 2004, including related consumer information, maintaining registration and licensing regimes for building practitioners and electrical workers and administration of the Weathertight Financial Assistance Package
  • just under $11 million to make assistance available to owner-occupiers or investors in, or facing, hardship that own units in multi-unit, multi-storey residential earthquake-prone buildings in high seismic risk areas
  • just under $7 million for policy advice relating to building and construction, and other support to Ministers relating to building and construction, and housing
  • just under $2 million for payment to banks under the Weathertight Services Financial Assistance Package, and
  • just under $2 million relating to the unwind of the discount rate used in Weathertight Homes Financial Assistance Package.

The Minister of Housing is responsible for appropriations in the 2021/22 financial year of:

  • just under $44 million for providing services relating to performance and monitoring, and Residential Tenancies and Unit Titles Service
  • just over $6 million for Insurance Claims Resolution, and
  • just under $2 million to coordinate and provide temporary accommodation to people displaced by a civil emergency.

The Minister of COVID-19 Response is responsible for appropriations in the 2021/22 financial year of just over $951 million for services and support relating to managed isolation and quarantine arrangements within New Zealand in response to COVID-19.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2020/21 2021/22
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Insurance Claims Resolution (M37) (A17)

This appropriation is limited to the provision of residential insurance advisory, mediation and support services for homeowners affected by a disaster, natural or otherwise.
9,202 9,202 6,166

Occupational Licensing (M9) (A17)

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.
11,690 9,791 11,687

Residential Tenancy and Unit Title Services (M37) (A17)

This appropriation is limited to residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies.
39,266 39,266 43,958

Weathertight Services (M9) (A17)

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.
7,654 7,654 7,652

Total Departmental Output Expenses

67,812 65,913 69,463

Non-Departmental Other Expenses

     

Payments in Respect of the Weathertight Services Loan Guarantees PLA (M9) (A17)

This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.
1,600 1,600 1,500

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Delivery and Administration of the Loan Scheme for Earthquake Prone Buildings (M9) (A17)

This appropriation is limited to the delivery and administration of the loan scheme for Earthquake-Prone Buildings.
958 958 1,125

Unwind of Discount Rate Used in the Present Value Calculation of Direct Payments Under the Weathertight Homes Financial Assistance Package (M9) (A17)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.
1,659 1,659 1,659

Total Non-Departmental Other Expenses

4,217 4,217 4,284

Multi-Category Expenses and Capital Expenditure

     

Building Policy, Regulation and Advice MCA (M9) (A17)

The single overarching purpose of this appropriation is effective stewardship and regulation of the building system.
51,272 51,272 53,713

Departmental Output Expenses

     

Building Regulation and Control

This category is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.
46,904 46,904 46,904

Executive functions and building system support

This category is limited to services (including research, evaluation, data analysis, dissemination, regulatory stewardship and enforcement) required to exercise executive functions, and to support the effective performance of statutory bodies under legislation assigned to the appropriation Minister (other than the Building Act 2004).
100 100 100

Policy Advice and Related Services to Ministers - Building and Construction

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) and services (including research, evaluation, data analysis and dissemination) to support decision-making by Ministers on government policy matters relating to building and construction.
4,268 4,268 6,709

Isolation and Quarantine Management MCA (M103) (A17)

The single overarching purpose of this appropriation is to support and deliver managed quarantine and managed isolation arrangements within New Zealand
789,674 789,674 951,312

Departmental Output Expenses

     

Operational Support

This category is limited to supporting quarantine and isolation arrangements that are being used in response to COVID-19.
169,152 169,152 170,118

Non-Departmental Output Expenses

     

Delivery of Services

This category is limited to the delivery of quarantine and managed isolation arrangements within New Zealand.
522,119 522,119 649,447

Non-Departmental Other Expenses

     

Managed Isolation and Quarantine loans - Impairment of debt

This category is limited to expenses arising from the recognition of the impaired value of managed isolation and quarantine loan debts including write downs and write offs.
2,400 2,400 2,400

Managed Isolation and Quarantine Loans - Fair Value Write-down

This category is limited to the fair value write-down of loans provided to persons undergoing managed isolation and quarantine arrangements.
24,211 24,211 32,620

Non-Departmental Capital Expenditure

     

Managed Isolation and Quarantine Loans

This category is limited to loans provided to persons undergoing managed isolation and quarantine arrangements.
71,792 71,792 96,727

Temporary Accommodation Services MCA (M37) (A17)

The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.
6,963 6,963 1,826

Departmental Output Expenses

     

Readiness, Response and Recovery

This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
1,393 1,393 993

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
3,875 3,875 495

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

This category is limited to depreciation expenses associated with temporary accommodation supply.
475 475 338

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

This category is limited to procuring and purchasing temporary accommodation.
1,220 1,220 -

Total Multi-Category Expenses and Capital Expenditure

847,909 847,909 1,006,851

Total Annual Appropriations and Forecast Permanent Appropriations

919,938 918,039 1,080,598

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Other Expenses

   

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Fair value write down (M9) (A17)

This appropriation is limited to any fair value write downs (including impairments, bad debts, write-offs and expected credit losses) or other expenses incurred in unwinding the discount rate used in the present value calculation of the loans within the Residential Earthquake-Prone Building Financial Assistance Scheme.

Commences: 01 November 2020

Expires: 30 June 2025
Original Appropriation 4,800
Adjustments to 2019/20 -
Adjustments for 2020/21 -
Adjusted Appropriation 4,800
Actual to 2019/20 Year End -
Estimated Actual for 2020/21 2,400
Estimate for 2021/22 2,400
Estimated Appropriation Remaining -

Non-Departmental Capital Expenditure

   

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings (M9) (A17)

This appropriation is limited to loans for Earthquake-Prone Buildings seismic retrofit.

Commences: 01 March 2020

Expires: 30 June 2024
Original Appropriation 10,000
Adjustments to 2019/20 -
Adjustments for 2020/21 -
Adjusted Appropriation 10,000
Actual to 2019/20 Year End -
Estimated Actual for 2020/21 1,000
Estimate for 2021/22 7,000
Estimated Appropriation Remaining 2,000

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

  2020/21 2021/22
  Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 919,938 918,039 1,080,598
Total Forecast MYA Non-Departmental Other Expenses 2,400 2,400 2,400
Total Forecast MYA Non-Departmental Capital Expenditure 1,000 1,000 7,000

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

923,338 921,439 1,089,998

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Canterbury Earthquakes and other disasters, natural or otherwise - Continuing Support for Affected Homeowners

Insurance Claims Resolution

Departmental Output Expense
- 2,766 - - -
Healthy Homes Standards - Ensuring Compliance Residential Tenancy and Unit Title Services
Departmental Output Expense
- 3,172 4,216 4,260 4,340
Reprioritisation of Funding - Residential Tenancy and Unit Title Services Residential Tenancy and Unit Title Services
Departmental Output Expense
(1,950) (726) - - -
Residential Tenancies and Unit Titles Services - Addressing a Revenue Shortfall and Continuing Service Levels

Residential Tenancy and Unit Title Services

- 6,182 6,182 6,182 6,182
Departmental Output Expense          

Residential Tenancy and Unit Title Services

- (6,182) (6,182) (6,182) (6,182)
Departmental Output Expense          
Support and Deliver Managed Quarantine and Managed Isolation Arrangements within New Zealand

Isolation and Quarantine Management MCA - Operational Support

169,152 170,118 - - -
Departmental Output Expense          

Isolation and Quarantine Management MCA - Delivery of Services

522,119 649,447 - - -
Non-Departmental Output Expense          

Isolation and Quarantine Management MCA - Managed Isolation and Quarantine Loans - Impairment of Debt

24,211 32,620      
Non-Departmental Other Expense          

Isolation and Quarantine Management MCA - Managed Isolation and Quarantine Loans - Fair Value Write-down

2,400 2,400      
Non-Departmental Other Expense          

Isolation and Quarantine Management MCA - Managed Isolation and Quarantine Loans

71,792 96,727      
Non-Departmental Capital Expenditure          
Tenancy Bond ICT System Replacement

Residential Tenancy and Unit Title Services

- 2,100 2,975 5,042 7,866
Departmental Output Expense          
Total Initiatives   787,724 958,624 7,191 9,302 12,206

Summary of Financial Activity

  2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 61,504 60,966 66,654 65,946 67,812 65,913 69,463 - 69,463 65,552 67,641 70,545
Benefits or Related Expenses 74,919 80,574 22,421 - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 14,283 5,219 156,802 992 6,617 6,617 - 6,684 6,684 3,984 4,359 4,359
Capital Expenditure 3,950 162,800 176 - 1,000 1,000 - 7,000 7,000 2,000 - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 52,612 49,716 39,355 44,695 747,811 747,811 224,824 649,942 874,766 46,480 45,470 45,470
Other Expenses 4,104 - - 291 27,086 27,086 - 35,358 35,358 288 288 288
Capital Expenditure 105,414 1,096 - 671 73,012 73,012 N/A 96,727 96,727 - - -

Total Appropriations

316,786 360,371 285,408 112,595 923,338 921,439 294,287 795,711 1,089,998 118,304 117,758 120,662

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 792 7,734 3,280 28 - - N/A - - - - -
Capital Receipts 7,114 15,807 3,928 - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

7,906 23,541 7,208 28 - - N/A - - - - -

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

There have been no restructuring adjustments to prior year information in the Summary of Financial Activity table.

Output Expenses

The fluctuating trend for the Output Expense is due to

  • increased costs in 2018/19 related to the KiwiBuild programme and the establishment of the Ministry of Housing and Urban Development, these costs were transferred to the new Ministry from 2018/19, and
  • additional funding for Insurance Claims Resolution from 2019/20.
Benefits or Related Expenses

The decreasing trend in Benefit or Related Expenses is due to the KiwiSaver HomeStart grant scheme which was transferred to the Ministry of Housing and Urban Development in 2018/19.

Other Expenses

The fluctuating trend for Other Expenses is due to:

  • a one-off concession expense recorded for Housing Infrastructure loans in 2018/19
  • creation of the Weathertight Services Loan Guarantees PLA in 2020/21, and
  • the establishment of the Residential Earthquake-Prone Buildings Financial Assistance Scheme: Fair value write down Multi-Year Appropriation in 2020/21.
Capital

The fluctuating trend for Capital Expenditure is due to:

  • the establishment of the Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings Multi-Year Appropriation in 2021/22, and
  • the implementation KiwiBuild Programme in 2017/18, which was transferred to the Ministry of Housing and Urban Development in 2018/19.
Multi-Category Output Expenses, Other Expenses and Capital Expenditure

The fluctuating trend for the Multi-Category Output Expenses, Other Expenses and Capital Expenditure is mainly due to the establishment of the Isolation and Quarantine Management multi-category appropriation in 2020/21 as part of the Government's response to COVID-19.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Insurance Claims Resolution (M37) (A17)

Scope of Appropriation
This appropriation is limited to the provision of residential insurance advisory, mediation and support services for homeowners affected by a disaster, natural or otherwise.
Expenses and Revenue
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,202 9,202 6,166
Revenue from the Crown 9,202 9,202 6,166
Revenue from Others - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve faster and cheaper resolution of residential insurance claims resulting from disasters, natural or otherwise.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of users of the Greater Christchurch Claims Resolution Service (GCCRS) that would recommend GCCRS to others

At least 75% 75% At least 75%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Canterbury Earthquakes and other disasters, natural or otherwise - Continuing Support for Affected Homeowners 2021/22 - 2,766 - - -
Insurance Claims Resolution - Continuing to Help Resolve Homeowners' Insurance Claims following Disasters 2019/20 9,185 1,383 815 815 815
Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is due to the time-limited funding for support to homeowners from Greater Christchurch Claims Resolution Service. The volume and timing of the claims has been spread over a longer time period.

Occupational Licensing (M9) (A17)

Scope of Appropriation
This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.
Expenses and Revenue
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,690 9,791 11,687
Revenue from the Crown 777 777 774
Revenue from Others 10,491 11,917 10,491
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve certainty and confidence for the industry and the public that licensed practitioners and workers in the building, construction and electrical sectors are competent and contribute to safe, healthy and affordable homes and buildings.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

An internal audit and assurance rating received on the quality and timeliness of administration of licensed building practitioners and electrical workers regimes

Rating of acceptable or better Rating of acceptable or better Rating of acceptable or better
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Finance Management Information System Renewal 2020/21 11 8 3 - -
Payroll System for the Ministry of Business, Innovation,
and Employment
2018/19 116 116 116 116 116
Funding for the Licensed Building Practitioners scheme 2018/19 1,235 1,235 1,235 1,235 1,235
Funding for the Electrical Workers scheme 2018/19 823 823 823 823 823
Memorandum Account
  2020/21 2021/22
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Building Practitioners

     
Opening Balance at 1 July 1,384 1,384 3,485
Revenue 6,365 6,479 6,365
Expenses (5,758) (4,378) (5,758)
Transfers and Adjustments - - -

Closing Balance at 30 June

1,991 3,485 4,092
  2020/21 2021/22
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Electrical Workers

     
Opening Balance at 1 July 2,133 2,133 2,935
Revenue 4,126 5,438 4,126
Expenses (5,155) (4,636) (5,155)
Transfers and Adjustments - - -

Closing Balance at 30 June

1,104 2,935 1,906

Residential Tenancy and Unit Title Services (M37) (A17)

Scope of Appropriation
This appropriation is limited to residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies.
Expenses and Revenue
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 39,266 39,266 43,958
Revenue from the Crown 18,364 18,364 29,238
Revenue from Others 20,902 20,902 14,720
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an environment in which residential tenancy and unit title consumers and businesses are well informed, understand their rights, and meet their regulatory obligations through the provision of information, education, advice, compliance, bond processing and mediation services.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Increase of users to tenancy.govt.nz website accessing relevant information on NZ tenancy/landlord requirements

- New measure Baseline to be established

Number of interventions undertaken dealing with the breaches of the Residential Tenancies Act 1986

2,000 2,000 2,000

Percentage of dispute resolution mediations settled

- New measure 85%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Residential Tenancies and Unit Titles Services - Addressing a Revenue Shortfall and Continuing Service Levels 2021/22 - 6,182 10,454 12,318 12,470
Ensuring compliance with the Healthy Homes Standards 2021/22 - 3,172 4,216 4,260 4,340
Replacement of the Tenancy Bond ICT System 2021/22 - 2,100 2,975 5,042 7,866
Reprioritisation of Funding - Residential Tenancy and Unit Title Services 2020/21 (1,950) (726) - - -
Finance Management Information System Renewal 2020/21 62 48 16 - -
New Tenancy Bond System - Designing a More
Resilient Bond System with Better Housing Outcomes
for Landlords and Tenants
2019/20 500 - - - -
Reprioritisation of funding - Housing and Tenancy
Services
2019/20 (145) (145) (145) (145) (145)
Payroll System for the Ministry of Business, Innovation,
and Employment
2018/19 71 71 71 71 71
Healthy Homes Guarantee Act Implementation 2018/19 4,147 4,147 4,147 4,147 4,147
Tenancy Services - Additional Support 2018/19 5,009 5,009 5,009 5,009 5,009
Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is mainly due to funding for continuing service levels for residential tenancies and unit titles services, ensuring compliance with the Healthy Homes Standards, and the replacement of the Tenancy Bond ICT system.

Memorandum Account
  2020/21 2021/22
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Unit Titles Act 2010

     
Opening Balance at 1 July (173) (173) (173)
Revenue 180 180 180
Expenses (180) (180) (180)
Transfers and Adjustments - - -

Closing Balance at 30 June

(173) (173) (173)

Weathertight Services (M9) (A17)

Scope of Appropriation
This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.
Expenses and Revenue
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,654 7,654 7,652
Revenue from the Crown 7,654 7,654 7,652
Revenue from Others 113 113 113
What is Intended to be Achieved with this Appropriation

This appropriation is intended to assist resolution of weathertight homes claims in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of short assessments (Eligibility) completed within 60 working days of being allocated to an assessor

80% 80% 80%

The percentage of long assessments (full, follow-up full, addendum, concise, cost update and supplemental) completed within 120 working days of being allocated to an assessor

80% 80% 80%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Finance Management Information System Renewal 2020/21 10 8 3 - -
Payroll System for the Ministry of Business, Innovation,
and Employment
2019/20 7 7 7 7 7
Reprioritisation of funding - Weathertight Service 2019/20 (100) (100) (100) (100) (100)

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Payments in Respect of the Weathertight Services Loan Guarantees PLA (M9) (A17)

Scope of Appropriation
This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.
Expenses
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,600 1,600 1,500
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve certainty and confidence for banks; through the provision of a loss share contribution if a loan claimant defaults on a mortgage associated with the repair of a home under the Weathertight Financial Assistance Package.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Delivery and Administration of the Loan Scheme for Earthquake Prone Buildings (M9) (A17)

Scope of Appropriation
This appropriation is limited to the delivery and administration of the loan scheme for Earthquake-Prone Buildings.
Expenses
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 958 958 1,125
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of support for eligible homeowners to access funding to strengthen their homes.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of the annual appropriation is less than $5 million.

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Fair value write down (M9) (A17)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Fair value write down (M9) (A17)

This appropriation is limited to any fair value write downs (including impairments, bad debts, write-offs and expected credit losses) or other expenses incurred in unwinding the discount rate used in the present value calculation of the loans within the Residential Earthquake-Prone Building Financial Assistance Scheme.

Commences: 01 November 2020

Expires: 30 June 2025
Original Appropriation 4,800
Adjustments to 2019/20 -
Adjustments for 2020/21 -
Adjusted Appropriation 4,800
Actual to 2019/20 Year End -
Estimated Actual for 2020/21 2,400
Estimate for 2021/22 2,400
Estimated Appropriation Remaining -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of support for eligible homeowners to access funding to strengthen their homes.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of the annual appropriation is less than $5 million.

Unwind of Discount Rate Used in the Present Value Calculation of Direct Payments Under the Weathertight Homes Financial Assistance Package (M9) (A17)

Scope of Appropriation
This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.
Expenses
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,659 1,659 1,659
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the unwinding of the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the unwinding of the discount rate used in the present value calculation of direct payments under the Weathertight Homes Financial Assistance Package.

3.5 - Non-Departmental Capital Expenditure#

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings (M9) (A17)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings (M9) (A17)

This appropriation is limited to loans for Earthquake-Prone Buildings seismic retrofit.

Commences: 01 March 2020

Expires: 30 June 2024
Original Appropriation 10,000
Adjustments to 2019/20 -
Adjustments for 2020/21 -
Adjusted Appropriation 10,000
Actual to 2019/20 Year End -
Estimated Actual for 2020/21 1,000
Estimate for 2021/22 7,000
Estimated Appropriation Remaining 2,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of support for eligible homeowners to access funding to strengthen their homes.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Applications for loans assessed within 10 working days of being received by Kainga Ora

- New measure Baseline to be established

Loans are only granted for the purposes of seismic remediation work to unit owners who cannot obtain finance covering the full seismic remediation costs from a registered bank

- New measure 100%

Percentage of applicants that provide positive feedback on the quality of the service and the effectiveness of the loan to enable the owner-occupier to remain in their home as opposed to being forced to sell.

- New measure Baseline to be established
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Building and Construction in the Vote Building and Construction Non-Departmental Appropriations Report.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

4 - Multi-Category Expenses and Capital Expenditure#

Building Policy, Regulation and Advice (M9) (A17)

Overarching Purpose Statement
The single overarching purpose of this appropriation is effective stewardship and regulation of the building system.
Scope of Appropriation
Departmental Output Expenses
Building Regulation and Control
This category is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.

Executive functions and building system support
This category is limited to services (including research, evaluation, data analysis, dissemination, regulatory stewardship and enforcement) required to exercise executive functions, and to support the effective performance of statutory bodies under legislation assigned to the appropriation Minister (other than the Building Act 2004).

Policy Advice and Related Services to Ministers - Building and Construction
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) and services (including research, evaluation, data analysis and dissemination) to support decision-making by Ministers on government policy matters relating to building and construction.
Expenses, Revenue and Capital Expenditure
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

51,272 51,272 53,713

Departmental Output Expenses

     
Building Regulation and Control 46,904 46,904 46,904
Executive functions and building system support 100 100 100
Policy Advice and Related Services to Ministers - Building and Construction 4,268 4,268 6,709

Funding for Departmental Output Expenses

     

Revenue from the Crown

3,118 3,118 6,809
Executive functions and building system support 100 100 100
Policy Advice and Related Services to Ministers - Building and Construction 3,018 3,018 6,709

Revenue from Others

50,704 50,704 49,454
Building Regulation and Control 49,454 49,454 49,454
Policy Advice and Related Services to Ministers - Building and Construction 1,250 1,250 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a regulatory system that ensures safe and healthy building practice in the construction sector, and effective policy advice and support to Ministers.

How Performance will be Assessed for this Appropriation
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Average satisfaction of Ministers annually

Average score of 4 out of 5 or better Average score of 4 out of 5 or better Average score of 4 out of 5 or better
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Building Regulation and Control

     

This appropriation is intended to achieve a regulatory system that ensures safe and healthy building practice in the construction sector.

     

Percentage of determinations subject to clarification due to inadequate coverage of issues

Less than 3% Less than 3% Less than 3%

Percentage of determinations successfully appealed

Less than 2% Less than 2% Less than 2%

Percentage of users satisfied that information provided on matters relating to Building Control has met their needs

At least 72% of users surveyed At least 72% of users surveyed At least 72% of users surveyed

Executive functions and building system support

     

This category is intended to achieve effective stewardship and regulation of the building system through the performance of executive functions, and provision of external support to statutory bodies where necessary to ensure they perform their functions effectively.

     

External support provided to ensure the effective performance of statutory bodies meets timeframes and standards agreed with the Minister for Building and Construction

Achieved Achieved Achieved

Investigation and enforcement activities are undertaken and completed according to agreed timeframes and standards

Achieved Achieved Achieved

Policy Advice and Related Services to Ministers - Building and Construction

     

This category is intended to achieve the provision of high quality policy advice and support to Ministers.

     

Building and Construction sector data and research are undertaken to inform policy and regulatory work

Achieved Achieved Achieved

Percentage of requests completed within either specified or statutory timeframes:

     
  • Ministerial correspondence
95% or above 95% or above 95% or above
  • Ministerial Official Information Act 1982 requests
95% or above 95% or above 95% or above
  • Parliamentary Questions
95% or above 95% or above 95% or above

Technical quality of policy advice papers assessed by a survey with a methodological robustness of 80%

At least an average of 73% At least an average of 73% At least an average of 73%
End of Year Performance Reporting

This performance information will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Finance Management Information System Renewal 2020/21 40 31 10 - -
Payroll System for the Ministry of Business, Innovation,
and Employment
2019/20 59 59 59 59 59
Building and Construction Policy Advice Savings
Initiative
2018/19 (250) (250) (250) (250) (250)

Previous National-led Government

           
Housing Infrastructure Fund 2017/18 500 500 500 500 500
Implementation of the National Policy Statement on Urban Development Capacity 2017/18 90 90 90 90 90
Memorandum Account
  2020/21 2021/22
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Building Controls

     
Opening Balance at 1 July 56,327 56,327 46,989
Revenue 49,218 34,302 49,218
Expenses (46,560) (43,640) (46,560)
Transfers and Adjustments - - -

Closing Balance at 30 June

58,985 46,989 49,647

The reduction in the levy rate took affect from 1 July 2020 and is the primary measure for reducing the memorandum account. The continued focus on expanded workstreams within the scope of the levy is also expected to reduce the balance going forward.

  2020/21 2021/22
  Budgeted
$000
Estimated Actual
$000
Budget
$000

National Multi Use Approvals

     
Opening Balance at 1 July (1,649) (1,649) (1,757)
Revenue 236 236 236
Expenses (344) (344) (344)
Transfers and Adjustments - - -

Closing Balance at 30 June

(1,757) (1,757) (1,865)

Isolation and Quarantine Management (M103) (A17)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to support and deliver managed quarantine and managed isolation arrangements within New Zealand
Scope of Appropriation
Departmental Output Expenses
Operational Support
This category is limited to supporting quarantine and isolation arrangements that are being used in response to COVID-19.
 
Non-Departmental Output Expenses
Delivery of Services
This category is limited to the delivery of quarantine and managed isolation arrangements within New Zealand.
 
Non-Departmental Other Expenses
Managed Isolation and Quarantine loans - Impairment of debt
This category is limited to expenses arising from the recognition of the impaired value of managed isolation and quarantine loan debts including write downs and write offs.

Managed Isolation and Quarantine Loans - Fair Value Write-down
This category is limited to the fair value write-down of loans provided to persons undergoing managed isolation and quarantine arrangements.
 
Non-Departmental Capital Expenditure
Managed Isolation and Quarantine Loans
This category is limited to loans provided to persons undergoing managed isolation and quarantine arrangements.
Expenses, Revenue and Capital Expenditure
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

789,674 789,674 951,312

Departmental Output Expenses

     
Operational Support 169,152 169,152 170,118

Non-Departmental Output Expenses

     
Delivery of Services 522,119 522,119 649,447

Non-Departmental Other Expenses

     
Managed Isolation and Quarantine loans - Impairment of debt 2,400 2,400 2,400
Managed Isolation and Quarantine Loans - Fair Value Write-down 24,211 24,211 32,620

Non-Departmental Capital Expenditure

     
Managed Isolation and Quarantine Loans 71,792 71,792 96,727

Funding for Departmental Output Expenses

     

Revenue from the Crown

169,152 169,152 170,118
Operational Support 169,152 169,152 170,118
Components of the Appropriation
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Delivery of Services

     
Isolation and Quarantine Facilities 490,753 490,753 606,073
Transportation 31,366 31,366 43,374
Total 522,119 522,119 649,447
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve entry of people into New Zealand, while minimising the risk of community transmission of imported cases of COVID-19.

How Performance will be Assessed for this Appropriation
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Ratio of transmissions of COVID-19 to the community from MIQ facilities per 10,000 returnees

<1 case of transmission per 10,000 returnees <1 case of transmission per 10,000 returnees <1 case of transmission per 10,000 returnees
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Operational Support

     

This category is intended to achieve operational leadership and departmental support necessary for the efficient, effective and safe delivery of MIQ services.

     

Debt recovery: Percentage of debt recovered against invoices raised

60% 60% 90%

Non-Departmental Output Expenses

     

Delivery of Services

     

This category is intended to achieve accommodation and necessary related services, including pastoral care, for people entering New Zealand for the duration of their mandatory isolation and/or quarantine.

     

Breaches of safety protocols: ratio of breaches per 10,000 returnees

<100 breaches per 10,000 returnees <100 breaches per 10,000 returnees <100 breaches per 10,000 returnees

Returnee experience: Percentage of returnees/groups agreeing that their needs in relation to safety, pastoral support, fair treatment and respect were met most of the time or better

- New measure 90%

Non-Departmental Other Expenses

     

Managed Isolation and Quarantine loans - Impairment of debt

     

This category is intended to achieve the recognition of write-off and impairment of debts owed to the Crown that are deemed uncollectable.

     

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative.

Exempt Exempt Exempt

Managed Isolation and Quarantine Loans - Fair Value Write-down

     

This category is intended to achieve accounting for fair value write downs on loans provided to persons undergoing managed isolation and quarantine arrangements.

     

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this category is solely for the initial fair value write-down of Managed Isolation and Quarantine loans.

Exempt Exempt Exempt

Non-Departmental Capital Expenditure

     

Managed Isolation and Quarantine Loans

     

This category is intended to achieve the capture of the technical treatment of the fee scheme as lending under the Public Finance Act 1989 where payment terms are over 90 days.

     

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative because this category is solely for technical treatment of deferring payment for the invoicing over 90 days under the Public Finance Act 1989.

Exempt Exempt Exempt
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Support and Deliver Managed Quarantine and Managed Isolation Arrangements within New Zealand 2020/21 789,674 951,312 - - -
Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is mainly due to increased funding to operate the Managed Isolation and Quarantine facilities, with continued demand due to COVID-19 related border regulations.

Temporary Accommodation Services (M37) (A17)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.
Scope of Appropriation
Departmental Output Expenses
Readiness, Response and Recovery
This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
 
Non-Departmental Output Expenses
Temporary Accommodation Housing Initiatives - Operations
This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
 
Non-Departmental Other Expenses
Temporary Accommodation Housing Initiatives - Depreciation
This category is limited to depreciation expenses associated with temporary accommodation supply.
 
Non-Departmental Capital Expenditure
Temporary Accommodation Housing Initiatives - Capital
This category is limited to procuring and purchasing temporary accommodation.
Expenses, Revenue and Capital Expenditure
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

6,963 6,963 1,826

Departmental Output Expenses

     
Readiness, Response and Recovery 1,393 1,393 993

Non-Departmental Output Expenses

     
Temporary Accommodation Housing Initiatives - Operations 3,875 3,875 495

Non-Departmental Other Expenses

     
Temporary Accommodation Housing Initiatives - Depreciation 475 475 338

Non-Departmental Capital Expenditure

     
Temporary Accommodation Housing Initiatives - Capital 1,220 1,220 -

Funding for Departmental Output Expenses

     

Revenue from the Crown

1,393 1,393 993
Readiness, Response and Recovery 1,393 1,393 993
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve coordination and provision of temporary accommodation to people displaced by a civil emergency.

How Performance will be Assessed for this Appropriation
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of users of the service who are satisfied or very satisfied

At least 75% 75% At least 75%
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Readiness, Response and Recovery

     

This category is intended to achieve fulfilment of MBIE's fundamental temporary accommodation responsibilities and roles.

     

Percentage of users of the service who are satisfied or very satisfied

At least 75% At least 75% At least 75%

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

     

This category is intended to provide a broad range of flexible temporary accommodation options.

     

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual category for a non-departmental output expense is less than $5 million

Exempt Exempt Exempt

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

     

This category is intended to provide a broad range of flexible temporary accommodation options.

     

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this category for a non-departmental other expense is less than $5 million

Exempt Exempt Exempt
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000

Temporary Accommodation Housing Initiatives - Operations

           
Reprioritisation of funding - Temporary Accommodation Operations 2019/20 (5) ((5) (5) (5) (5

Readiness, Response and Recovery

           
Reprioritisation of funding - Temporary Accommodation Services 2019/20 (10) (10) (10) (10) (10)
Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is mainly due to one-off funding in 2020/21 for the Government's response in dealing with the impacts of COVID-19.