Estimates of appropriations

Vote Building and Housing - Social Services and Community Sector - Estimates 2018/19

Publication type:
Estimates of appropriations
Status:
Current
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
ISBN:
978-1-98-855627-7 (print) 978-1-98-855628-4 (online)
Fiscal year:
2018/19
Budget year:
2018
Budget vote:
Building and Housing
Last updated:

Formats and related files

Vote Building and Housing#

APPROPRIATION MINISTER(S): Minister for Building and Construction (M9), Minister of Housing and Urban Development (M96)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

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

Overview of the Vote#

Two Ministers are responsible for appropriations in Vote Building and Housing.

The Minister for Building and Construction is responsible for appropriations of:

  • just over $51 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, supporting the Canterbury earthquakes residential rebuild and administration of the Weathertight Financial Assistance Package, and
  • over $3 million for payment to banks under the Weathertight Services Financial Assistance Package.

The Minister of Housing and Urban Development is responsible for appropriations of:

  • over $39 million for providing services relating to performance and monitoring, administering the Legal Social Housing Fund and the Community Housing Regulatory Authority, Residential Tenancies and Unit Titles Service, facilitation of Crown land development and providing information to increase health and safety in residential rental properties
  • Just under $493 million for the KiwiBuild programme, to purchase land for housing development, provide capital for the proposed housing commission and deliver 1,000 affordable KiwiBuild homes to first home buyers
  • just under $13 million for the purchase of housing related services from Housing New Zealand Corporation (HNZC)
  • just over $106 million to provide HomeStart grants for people who meet the required eligibility criteria
  • $4 million to support providers of social and/or affordable housing
  • just over $1 million for the effective and efficient administration and management of properties held under the Housing Act 1955
  • just under $17 million for policy advice and other support to Ministers relating to building and housing including social housing
  • just under $2 million to coordinate and provide temporary accommodation to people displaced by a civil emergency, and
  • $3 million for providing resource consenting processes in Special Housing Areas where an area is declared outside of a Housing Accord.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2017/18 2018/19
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000		 Estimated
Actual
$000		 Budget
$000

Departmental Output Expenses

     

Administering the Legacy Social Housing Fund (M96)

This appropriation is limited to the administration costs of the Legacy Social Housing Fund.		 - - 600

Building Regulation and Control (M9)

This appropriation 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.		 28,954 25,356 28,954

Community Housing Regulatory Authority (M96)

This appropriation is limited to the administration of the Community Housing Regulatory Authority.		 850 850 700

Greater Christchurch Recovery (M9)

This appropriation is limited to the provision of services to residents of the greater Christchurch area affected by the Canterbury earthquakes to support the residential rebuild.		 1,120 520 3,640

KiwiBuild Unit (M96)

This appropriation is limited to activities associated with the facilitation and implementation of the KiwiBuild Programme.		 3,350 3,350 7,697

Occupational Licensing (M9)

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.		 9,546 9,546 9,546

Redevelopment of Surplus Crown Land (M96)

This appropriation is limited to activities associated with the facilitation of Crown land redevelopment.		 2,503 2,503 2,503

Residential Tenancy and Unit Title Services (M96)

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; provision of administrative support to the State Housing Appeals Authority.		 29,551 29,551 35,095

Special Housing Areas (M96)

This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside of a Housing Accord.		 3,000 - 3,000

Weathertight Services (M9)

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.		 11,428 9,170 9,350

Professional Engineering Input Toward the Resolution of Canterbury Residential Rebuild Design Uncertainty (M9)

This appropriation is limited to the provision of professional engineering advice and support for either third parties or the general public to support the Canterbury residential rebuild.		 560 560 -

Residential Advisory Services (M9)

This appropriation is limited to the provision of insurance-related broker and advisory services to homeowners affected by a civil emergency to support their residential rebuild.		 1,900 1,900 -

Total Departmental Output Expenses

92,762 83,306 101,085

Non-Departmental Output Expenses

     

HNZC Housing Support Services (M96)

This appropriation is limited to housing related services from Housing New Zealand Corporation including home ownership initiatives and Healthy Housing.		 11,698 11,698 11,698

KiwiBuild Operations (M96)

This appropriation is limited to the operating expenses incurred in relation to the acquisition and development of KiwiBuild dwellings.		 5,000 5,000 5,000

Management of Crown Properties Held Under the Housing Act 1955 (M96)

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.		 1,395 1,395 1,395

Total Non-Departmental Output Expenses

18,093 18,093 18,093

Benefits or Related Expenses

     

KiwiSaver HomeStart grant (M96)

This appropriation is limited to KiwiSaver HomeStart grants for people who meet the required eligibility criteria.		 90,451 90,451 106,120

Total Benefits or Related Expenses

90,451 90,451 106,120

Non-Departmental Other Expenses

     

Housing Assistance (M96)

This appropriation is limited to payments made to Housing New Zealand Corporation and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans.		 1,159 1,159 1,159

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

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.		 1,800 1,800 1,700

Social Housing Provider Development (M96)

This appropriation is limited to providing support to third party providers of social and/or affordable housing services.		 - - 4,000

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

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

Christchurch City Council Home Ownership Initiative (M96)

This appropriation is limited to supporting the Christchurch City Council to provide home ownership services to people in Christchurch.		 3,071 3,071 -

Impairment of Crown Assets (M96)

This appropriation is limited to expenses arising from the recognition of impaired value of Crown assets, including write down and write offs.		 20 20 -

Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas (M9)

This appropriation is limited to the partial remediation of street-facing facades and parapets of unreinforced masonry buildings in at risk areas.		 3,000 - -

Total Non-Departmental Other Expenses

10,709 7,709 8,518

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M96)

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.		 17,123 16,423 16,725

Departmental Output Expenses

     

Policy Advice - Building and Housing

This category is limited to advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and housing including social housing.		 16,863 16,163 16,465

Related Services to Ministers - Building and Housing

This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including social housing.		 260 260 260

Temporary Accommodation Services MCA (M96)

The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.		 6,616 6,616 1,775

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.		 1,804 1,804 1,000

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.		 3,575 3,575 500

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

This category is limited to depreciation expenses associated with temporary accommodation supply.		 137 137 275

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

This category is limited to procuring and purchasing temporary accommodation.		 1,100 1,100 -

Total Multi-Category Expenses and Capital Expenditure

23,739 23,039 18,500

Total Annual and Permanent Appropriations

235,754 222,598 252,316

Multi-Year Appropriations#

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

Departmental Output Expenses

   

Tenant Health and Safety Information (M96)

This appropriation is limited to providing information to increase tenant health and safety in residential rental properties.

Commences: 01 July 2015

Expires: 30 June 2020		 Original Appropriation 2,740
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 2,740
Actual to 2016/17 Year End 1,209
Estimated Actual for 2017/18 917
Estimated Actual for 2018/19 614
Estimated Appropriation Remaining -

Non-Departmental Output Expenses

   

KiwiBuild Housing (M96)

This appropriation is limited to the acquisition, construction and provision of KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 210,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 210,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 -
Estimated Actual for 2018/19 210,000
Estimated Appropriation Remaining -

Non-Departmental Capital Expenditure

   

KiwiBuild Capital (M96)

This appropriation is limited to capital for KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 1,865,755
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 1,865,755
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 50,000
Estimated Actual for 2018/19 270,000
Estimated Appropriation Remaining 1,545,755

Vacant or Underutilised Crown Land Programme (M96)

This appropriation is limited to the Crown's contribution to the development of housing in selected locations.

Commences: 01 July 2017

Expires: 30 June 2022		 Original Appropriation 167,104
Adjustments to 2016/17 -
Adjustments for 2017/18 51,050
Adjusted Appropriation 218,154
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 218,154
Estimated Actual for 2018/19 -
Estimated Appropriation Remaining -

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

  2017/18 2018/19
  Final
Budgeted
$000		 Estimated
Actual
$000		 Budget
$000
Total Annual and Permanent Appropriations 235,754 222,598 252,316
Total MYA Departmental Output Expenses Forecasts 917 917 614
Total MYA Non-Departmental Output Expenses Forecasts - - 210,000
Total MYA Non-Departmental Capital Expenditure Forecasts 268,154 268,154 270,000

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

504,825 491,669 732,930

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000
KiwiBuild Programme

KiwiBuild Unit

Departmental Output Expense		 3.350 7,697 - - -
 

Policy Advice and Related Outputs MCA - Policy Advice - Building and Housing

Multi-Category Expenses and Capital Expenditure
Departmental Output Expense		 800 2,399 - - -
 

KiwiBuild Operations

Non-Departmental Output Expense		 5,000 5,000 - - -
 

KiwiBuild Housing MYA

Non-Departmental Output Expense		 - 210,000 - - -
 

KiwiBuild Capital MYA

Non-Departmental Capital Expenditure		 - 100,000 510,000 1,035,755 -
Healthy Homes Guarantee Act Implementation

Residential Tenancy and Unit Title Services

Departmental Output Expense		 - 2,650 3,697 4,147 4,147
Canterbury Earthquakes Insurance Tribunal

Greater Christchurch Recovery

Departmental Output Expense		 - 3.640 - - -
Building and Construction Policy Advice Savings Initiative

Policy Advice and Related Outputs MCA - Policy Advice - Building and Housing

Multi-Category Expenses and Capital Expenditure
Departmental Output Expense		 - (250) (250) (250) (250)
Compliance with the Holidays Act 2003

Policy Advice and Related Outputs MCA - Policy Advice - Building and Housing

Multi-Category Expenses and Capital Expenditure
Departmental Output Expense		 75 - - - -
Tenancy Services - Additional support

Residential Tenancy and Unit Title Services

Departmental Output Expense		 - 4,434 4,296 5,009 5,009

Summary of Financial Activity#

  2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
  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 88,484 71,943 82,159 90,078 111,772 102,316 101,699 228,093 329,792 102,560 103,343 100,343
Benefits or Related Expenses 23,281 31,904 65,949 74,919 90,451 90,451 N/A 106,120 106,120 106,120 106,120 106,120
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 32,937 73,774 48,697 14,283 10,709 7,709 - 8,518 8,518 4,518 4,418 4,318
Capital Expenditure 47,998 13,880 30,096 3,950 268,154 268,154 - 270,000 270,000 510,000 1,035,755 -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 14,498 10,112 11,896 24,038 22,502 21,802 17,725 500 18,225 14,409 14,260 14,260
Other Expenses - - - 4,104 137 137 - 275 275 275 275 138
Capital Expenditure - - - 105,414 1,100 1,100 N/A - - - - -

Total Appropriations

207,198 201,613 238,797 316,786 504,825 491,669 119,424 613,506 732,930 737,882 1,264,171 225,179

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 91,523 111,042 64,036 792 6,130 6,130 N/A 214,300 214,300 3,500 3,000 3,000
Capital Receipts 25,081 59,886 2,262 7,114 21,025 21,025 N/A 13,330 13,330 30,000 22,000 8,700

Total Crown Revenue and Capital Receipts

116,604 170,928 66,298 7,906 27,155 27,155 N/A 227,630 227,630 33,500 25,000 11,700

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 Appropriations in the Details of Appropriations and Capital Injections.

Output Expenses

The fluctuating trend for the Output Expense is due to:

  • the impact of the Canterbury earthquake costs, and
  • the implementation of the KiwiBuild Programme from 2017/18.

Benefits or Related Expenses

The increasing trend for Benefit or Related Expenses is due to:

  • the uptake of the KiwiSaver First Home Deposit Subsidy scheme, and
  • from 2014/15 funding was increased to take effect of the KiwiSaver HomeStart grant policy proposals.

Other Expenses

The decreasing trend for Other Expenses is due to:

  • the introduction of the Weathertight Direct Payment Unwind Discount Rate in 2011/12 at $27 million decreasing to around $2 million in out years
  • the funding profile for the Wellington City Council Housing Package from 2008/09 to 2015/16
  • the transfer of unspent funds in the Social Housing Fund multi-year appropriation in 2013/14 and 2014/15, and
  • the Social Housing Fund multi-year appropriation expires in 2016/17.

Capital

The fluctuating trend for Capital Expenditure is due to:

  • the purchase of New Zealand Defence Force land by the Hobsonville Land Company in 2013/14
  • funding to facilitate housing development in Christchurch and Auckland from 2014/15, and
  • the implementation of the KiwiBuild Programme from 2017/18.

Multi-Category Output Expenses

The fluctuating trend for the Multi-Category Output Expenses is due to:

  • funding being reprioritised in 2015/16 from Weathertight Services to provide primary and secondary advice in the fields of building and housing policy.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administering the Legacy Social Housing Fund (M96)

Scope of Appropriation
This appropriation is limited to the administration costs of the Legacy Social Housing Fund.
Expenses and Revenue
  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation - - 600
Revenue from the Crown - - 600
Revenue from Others - - -
Comparators for Restructured Appropriation
  2017/18 2018/19
Vote, Type and Title of Appropriation Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Vote Social Housing: Departmental Output Expense Administering the Legacy Social Housing Fund 600 600 -
Total 600 600 600
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes through the effective and efficient administration of the Legacy Social Housing Fund.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Effective and efficient administration of the Legacy Social Housing Fund

 Achieved Achieved Achieved
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.

Reasons for Change in Appropriation

The Administering the Legacy Social Housing Fund departmental output expense appropriation has been transferred from Vote Social Housing back into Vote Building and Housing. This allows the appropriation to sit within a Vote that best aligns with departmental roles and responsibilities.

Building Regulation and Control (M9)#

Scope of Appropriation#

This appropriation 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.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 28,954 25,356 28,954
Revenue from the Crown 150 150 150
Revenue from Others 33,154 33,154 32,654

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.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

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

Percentage of determinations successfully appealed

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

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

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

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (334) (334) (334) (334) (334)

Memorandum Account#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

Building Controls

     
Opening Balance at 1 July 32,010 32,010 39,924
Revenue 33,104 33,104 32,604
Expenses (28,788) (25,190) (28,788)
Transfers and Adjustments - - -

Closing Balance at 30 June

36,326 39,924 43,740
  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

National Multi Use Approvals

     
Opening Balance at 1 July (1,301) (1,301) (1,417)
Revenue 50 50 50
Expenses (166) (166) (166)
Transfers and Adjustments - - -

Closing Balance at 30 June

(1,417) (1,417) (1,533)

Community Housing Regulatory Authority (M96)#

Scope of Appropriation#

This appropriation is limited to the administration of the Community Housing Regulatory Authority.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 850 850 700
Revenue from the Crown 850 850 700
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve efficient registration and regulation of Community Housing providers in order to ensure that their tenants are appropriately housed, and support the growth of a fair, efficient, and transparent community housing sector.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Applications for registration of Community Housing providers are processed within 60 working days

 90% 90% 90%

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Social Housing Reform Programme 2015/16 700 700 700 700 700

Greater Christchurch Recovery (M9)#

Scope of Appropriation#

This appropriation is limited to the provision of services to residents of the greater Christchurch area affected by the Canterbury earthquakes to support the residential rebuild.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 1,120 520 3,640
Revenue from the Crown 1,120 1,120 3,640
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve information and advice that supports the recovery of greater Christchurch to progress in a timely and efficient way.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Ministers and DPMC are satisfied with the advice and quarterly reports showing progress in residential rebuild, repair and insurance issues

 Satisfied or very satisfied Satisfied or very satisfied Satisfied or very satisfied

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           
Canterbury Earthquakes Insurance Tribunal 2018/19 - 3,640 - - -

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is entirely due to a new initiative for the Canterbury Earthquakes Insurance Tribunal.

KiwiBuild Unit (M96)#

Scope of Appropriation#

This appropriation is limited to activities associated with the facilitation and implementation of the KiwiBuild Programme.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 3,350 3,350 7,697
Revenue from the Crown 3,350 3,350 7,697
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a new KiwiBuild Unit to develop a sustainable approach for delivering 100,000 affordable dwellings to first-home buyers over the next ten years. Initially the Unit will expand existing government-led opportunities, work to free up underutilised land and purchase or underwrite affordable homes in current developments.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Number of greenfield and urban regeneration projects investigated or due diligence completed

 - - 5

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           
KiwiBuild Programme 2017/18 3,350 7,697 - - -

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is due to funding for KiwiBuild being approved part way through the 2017/18 financial year.

Occupational Licensing (M9)#

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#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 9,546 9,546 9,546
Revenue from the Crown 691 691 691
Revenue from Others 8,433 7,055 8,433

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#

  2017/18 2018/19
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

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (114) (114) (114) (114) (114)

Memorandum Account#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

Occupational Licensing - Building Practitioners

     
Opening Balance at 1 July (152) (152) 515
Revenue 5,130 5,130 5,130
Expenses (4,463) (4,463) (4,463)
Transfers and Adjustments - - -

Closing Balance at 30 June

515 515 1,182
  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

Occupational Licensing - Electrical Workers

     
Opening Balance at 1 July 3,360 3,360 811
Revenue 3,303 1,925 3,303
Expenses (4,474) (4,474) (4,474)
Transfers and Adjustments - - -

Closing Balance at 30 June

2,189 811 (360)

Redevelopment of Surplus Crown Land (M96)#

Scope of Appropriation#

This appropriation is limited to activities associated with the facilitation of Crown land redevelopment.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 2,503 2,503 2,503
Revenue from the Crown 2,503 2,503 2,503
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve safe, healthy and affordable homes by the effective and efficient redevelopment of surplus Crown land.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Compliance with relevant legislation, Government policy and Treaty settlement provisions in relation to acquisition, development and disposal of land

 100% 100% 100%

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Vacant or Underutilised Crown Land Programme - Land Acquisition 2017/18 500 500 500 500 500
Redevelopment of Surplus Crown Land 2015/16 2,003 2,003 2,003 2,003 2,003

Residential Tenancy and Unit Title Services (M96)#

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; provision of administrative support to the State Housing Appeals Authority.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 29,551 29,551 35,095
Revenue from the Crown 3,742 3,742 14,493
Revenue from Others 20,602 20,602 20,602

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#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Percentage of customers who are satisfied or very satisfied with overall quality and timeliness of mediation services

 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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           
Healthy Homes Guarantee Act Implementation 2018/19 - 2,650 3,697 4,147 4,147
Tenancy Services - Additional Support 2018/19 - 4,434 4,296 5,009 5,009

Previous Government

           
Implementation Funding for Changes to the Residential Tenancies Act 2016/17 460 420 380 - -
Funding profile for compliance and enforcement functions 2016/17 3,282 3,282 3,282 3,282 3,282
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (559) (559) (559) (559) (559)

Reasons for Change in Appropriation#

The increase in this appropriation for 2018/19 is mainly due to a new initiative for the Healthy Homes Guarantee Act implementation and the implementation of a more effective and stable funding model for Residential Tenancy and Unit Title Services.

Memorandum Account#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

Unit titles Act

     
Opening Balance at 1 July 74 74 21
Revenue 147 147 147
Expenses (200) (200) (200)
Transfers and Adjustments - - -

Closing Balance at 30 June

21 21 (32)

Special Housing Areas (M96)#

Scope of Appropriation#

This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside of a Housing Accord.

Expenses and Revenue#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 3,000 - 3,000
Revenue from the Crown - - -
Revenue from Others 3,000 - 3,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve certainty and assurance to the public that resource consenting will be carried out for Special Housing Areas.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Resource consents issued according to statutory timeframes

 Achieved Achieved Achieved

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.

Tenant Health and Safety Information (M96)#

Scope of Appropriation and Expenses#

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

Tenant Health and Safety Information (M96)

This appropriation is limited to providing information to increase tenant health and safety in residential rental properties.

Commences: 01 July 2015

Expires: 30 June 2020		 Original Appropriation 2,740
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 2,740
Actual to 2016/17 Year End 1,209
Estimated Actual for 2017/18 917
Estimated Actual for 2018/19 614
Estimated Appropriation Remaining -

Revenue#

  Budget
$000
Revenue from the Crown to end of 2018/19 3,080
Revenue from Others to end of 2018/19 -
Total Revenue 3,080

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an environment in which tenants and landlords are aware of their rights and regulatory obligations to ensure residential rental homes are warm, dry and safe through the provision of information, education, advice, and compliance.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Deliver annual information campaigns to promote warm, dry and safe residential rental homes by 30 June

 Achieved Achieved Achieved

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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Implementation funding for changes to the Residential Tenancies Act 2016/17 200 310 200 - -
Insulation Smoke Alarms and Other Residency Tenancy Approvals 2015/16 200 200 400 - -

Weathertight Services (M9)#

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#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 11,428 9,170 9,350
Revenue from the Crown 11,428 11,428 9,350
Revenue from Others 113 113 113

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a reduction in the number of weathertight issues in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

The number of homeowners who have repaired or have started repairing with the Financial Assistance Package since the beginning of the scheme

 At least 1,500 At least 1,500 At least 3,400

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

 80% 80% 80%

The number 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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Building and Housing Priorities 2015/16 (2,337) (2,270) (2,270) (2,270) (2,270)
Increase in Resources to Support the new HomeStart Policy Programme 2015/16 (916) (916) (916) )916) (916)
KiwiSaver Administration Increased Costs 2014/15 (466) (466) (466) (466) (466)
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (154) (154) (154) (154) (154)

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is mainly due to transfer of funding to the Temporary Accommodation Services MCA to support temporary accommodation services response for future natural disasters, and to Vote Business, Science and Innovation Policy Advice and Related Outputs MCA to ensure that policy advice is adequately resourced to deliver on communications priorities - including the digital work programme and to maintain New Zealand's core commercial regulatory systems.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

HNZC Housing Support Services (M96)

Scope of Appropriation
This appropriation is limited to housing related services from Housing New Zealand Corporation including home ownership initiatives and Healthy Housing.
Expenses
  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 11,698 11,698 11,698
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved access to home ownership.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Maximum number of new loans underwritten through the Welcome Home Loan programme

 2,500 2,500 2,500
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Housing New Zealand Corporation in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
Establish a multi-category appropriation for Community Group Housing 2015/16 (2,400) (2,400) (2,400) (2,400) (2,400)
Increase for Resourcing to Support the new HomeStart Policy Programme 2015/16 916 916 916 916 916
KiwiSaver Administration Increased Costs 2014/15 466 466 466 466 466
Conditions on Use of Appropriation
Reference Conditions
Cabinet decision updated by briefing notes to the Minister Welcome Home Loans are only available to applicants that meet income and credit criteria set by participating tenders and Housing New Zealand Corporation.

KiwiBuild Housing (M96)#

Scope of Appropriation and Expenses#

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

KiwiBuild Housing (M96)

This appropriation is limited to the acquisition, construction and provision of KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 210,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 210,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 -
Estimated Actual for 2018/19 210,000
Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to facilitate the development of KiwiBuild affordable homes for first home buyers.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Number of KiwiBuild affordable homes for first home buyers completed

 - - 1,000

End of Year Performance Reporting#

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

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           
KiwiBuild Programme 2018/19 - 210,000 - - -

KiwiBuild Operations (M96)#

Scope of Appropriation#

This appropriation is limited to the operating expenses incurred in relation to the acquisition and development of KiwiBuild dwellings.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 5,000 5,000 5,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the removal of financial barriers to enable the achievement of the KiwiBuild Programme outcomes.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Number of contracted houses

 - - 1,500

End of Year Performance Reporting#

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

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           
KiwiBuild Programme 2017/18 5,000 5,000 - - -

Management of Crown Properties Held Under the Housing Act 1955 (M96)#

Scope of Appropriation#

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 1,395 1,395 1,395

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the effective and efficient administration and management of properties held under the Housing Act 1955.

End of Year Performance Reporting#

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 output expense is less than $5 million.

Conditions on Use of Appropriation#

Reference Conditions
Housing Act 1955 (section 32) Any money required to carry out works authorised under Part 1 of the Housing Act 1955 may be paid out of money appropriated by Parliament for the purpose.

KiwiSaver HomeStart grant (M96)#

Scope of Appropriation

This appropriation is limited to KiwiSaver HomeStart grants for people who meet the required eligibility criteria.

Expenses

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 90,451 90,451 106,120

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved access to home ownership.

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 payments of the KiwiSaver HomeStart grant under the KiwiSaver Act 2006. Performance information relating to the administration of the payment is provided under the HNZC Housing Support Services appropriation.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Previous Government

           
HomeStart Greater Assistance for First Home Buyers 2014/15 56,662 60,200 60,200 60,200 60,200

Reasons for Change in Appropriation

The increase in this appropriation for 2018/19 is mainly due to a one-off forecast adjustment in 2017/18.

Conditions on Use of Appropriation

Reference Conditions
KiwiSaver Act 2006 First home withdrawal is provided for in the KiwiSaver Act 2006. It is administered by KiwiSaver scheme providers and allows KiwiSaver members to withdraw part or all of their savings (excluding the Government's contribution of tax credits) to put towards the purchase of a first home.
Cabinet decisions In April 2015, Cabinet agreed that home ownership assistance for first home buyers participating in KiwiSaver would include a deposit subsidy and first home withdrawal where savers can withdraw part or all of their savings and accumulated interest.
Cabinet decisions The Deposit subsidy is not provided for in legislation. Cabinet approved the deposit subsidy and high level design details outside the KiwiSaver Act 2006, because the Corporation is already authorised to administer suspensory loans under the Housing Corporation Act 1974.
  Cabinet also delegated authority to the Corporation to apply Schedule 1 (Part 8) of the KiwiSaver Act 2006, where possible, to the deposit subsidy design. Schedule 1 provides, for example, a definition of what constitutes a first home buyer and the type of home that can be purchased.
  The deposit subsidy design details were agreed by the Minister of Finance and Minister for Building and Housing through three reports submitted in June 2008, December 2008 and June 2009.

3.4 - Non-Departmental Other Expenses#

Housing Assistance (M96)#

Scope of Appropriation

This appropriation is limited to payments made to Housing New Zealand Corporation and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans.

Expenses

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 1,159 1,159 1,159

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by providing financial assistance to Housing New Zealand Corporation and other mortgage providers.

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.

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

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#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation 1,800 1,800 1,700

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.

Social Housing Provider Development (M96)#

Scope of Appropriation#

This appropriation is limited to providing support to third party providers of social and/or affordable housing services.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Total Appropriation - - 4,000

Comparators for Restructured Appropriation#

  2017/18 2018/19
Vote, Type and Title of Appropriation Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000
Vote Social Housing: Non-Departmental Other Expenses Social Housing Provider Development 7,172 7,172 -
Total 7,172 7,172 4,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve safe, healthy and affordable homes by supporting third party providers of social and/or affordable housing services.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Allocation of any remaining funding from the 2012-2015 Social Housing Fund

 - - All funding allocated

End of Year Performance Reporting#

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

Reasons for Change in Appropriation#

The Social Housing Provider Development non-departmental other expense appropriation has been transferred from Vote Social Housing back into Vote Building and Housing. This allows the appropriation to sit within a Vote that best aligns with departmental roles and responsibilities.

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

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#

  2017/18 2018/19
  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#

KiwiBuild Capital (M96)#

Scope of Appropriation and Expenses

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

KiwiBuild Capital (M96)

This appropriation is limited to capital for KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 1,865,755
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 1,865,755
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 50,000
Estimated Actual for 2018/19 270,000
Estimated Appropriation Remaining 1,545,755

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide capital for the development of KiwiBuild affordable homes for first home buyers.

How Performance will be Assessed and End of Year Reporting Requirements

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Purchase development sites with sufficient capacity for 1,200 KiwiBuild affordable homes

 - - Sites for 1,200 KiwiBuild homes purchased

Provide capital to the proposed housing commission

 - - Capital provided to housing commission

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           
KiwiBuild Programme 2018/19 - 100,000 510,000 1,035,755 -

Reasons for Change in Appropriation

This multi-year appropriation was established from new funding for KiwiBuild housing.

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M96)

Overarching Purpose Statement
The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation

Departmental Output Expenses

Policy Advice - Building and Housing
This category is limited to advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and housing including social housing.
Related Services to Ministers - Building and Housing
This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including social housing.
Expenses, Revenue and Capital Expenditure
  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

Total Appropriation

17,123 16,423 16,725

Departmental Output Expenses

     
Policy Advice - Building and Housing 16,863 16,163 16,465
Related Services to Ministers - Building and Housing 260 260 260

Funding for Departmental Output Expenses

     

Revenue from the Crown

16,831 16,831 16,725
Policy Advice - Building and Housing 16,571 16,571 16,465
Related Services to Ministers - Building and Housing 260 260 260

Revenue from Others

292 292 -
Policy Advice - Building and Housing 292 292 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective policy advice and support to Ministers.

How Performance will be Assessed for this Appropriation
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Average satisfaction of Ministers annually

 Reaching, or exceeding 70 per cent Reaching, or exceeding 70 per cent Reaching, or exceeding 70 per cent

Total cost of producing policy outputs per hour

 No more than $155 No more than $155 No more than $155
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Departmental Output Expenses

     

Policy Advice - Building and Housing

     

This category is intended to achieve the provision of high quality policy advice to support Ministerial decision-making on government policy matters relating to building and housing.

      

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%

Related Services to Ministers - Building and Housing

     

This category is intended to achieve the provision of effective and efficient ministerial services to enable Ministers to discharge their building and housing portfolio responsibilities.

      

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
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		 2017/18
Final Budgeted
$000		 2018/19
Budget
$000		 2019/20
Estimated
$000		 2020/21
Estimated
$000		 2021/22
Estimated
$000

Current Government

           

Policy Advice - Building and Housing

           
Building and Construction Policy Advice Savings Initiative 2018/19 (250) (250) (250) (250) (250)
KiwiBuild Programme 2017/18 800 2,399 - - -
Compliance with the Holidays Act 2003 2017/18 75 - - - -

Previous Government

           

Policy Advice - Building and Housing

           
Housing Infrastructure Fund 2017/18 1,500 1,000 500 500 500
National Policy Statement on Urban Development Capacity - Implementation  2017/18 568 356 239 90 90
Building and Housing Priorities  2015/16 2,337 2,270 2,270 2,270 2,270
Social Housing Reform Programme 2015/16 1,121 1,143 1,143 1,143 1,143
Redevelopment of Surplus Crown Land 2015/16 2,003 2,003 2,003 2,003 2,003

Building and Construction Ministerial Service

           
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (10) (10) (10) (10) (10)

Building and Construction Policy

           
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (91) (91) (91) (91) (91)

Housing Policy Advice

           
Efficiency Savings from the Formation of Ministry of Business, Innovation and Employment 2014/15 (342) (342) (342) (342) (342)

Temporary Accommodation Services (M96)#

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#

  2017/18 2018/19
  Final Budgeted
$000		 Estimated Actual
$000		 Budget
$000

Total Appropriation

6,616 6,616 1,775

Departmental Output Expenses

     
Readiness, Response and Recovery 1,804 1,804 1,000

Non-Departmental Output Expenses

     
Temporary Accommodation Housing Initiatives - Operations 3,575 3,575 500

Non-Departmental Other Expenses

     
Temporary Accommodation Housing Initiatives - Depreciation 137 137 275

Non-Departmental Capital Expenditure

     
Temporary Accommodation Housing Initiatives - Capital 1,100 1,100 -

Funding for Departmental Output Expenses

     

Revenue from the Crown

1,804 1,804 1,000
Readiness, Response and Recovery 1,804 1,804 1,000

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#

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard		 Estimated
Actual		 Budget
Standard

Percentage of service activations approved within 14 days of a civil emergency

 90% 90% 90%

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18 2018/19
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

 75% 75% 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

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

     

This category is intended to increase housing supply levels in emergency affected areas.

      

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 capital expenditure is less than $15 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.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2018/19 is mainly due to one-off funding ceasing in 2017/18.