Formats and related files
APPROPRIATION MINISTER(S): Minister for Communications and Information Technology (M88)
APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment
RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development
Summary of the Vote#
Overview#
Part 1 - Summary of the Vote#
The Minister for Communications and Information Technology is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:
- a total of $13.885 million for the management of New Zealand's radio spectrum, policy advice on New Zealand's communications sector, services to support the Minister and monitoring the performance and compliance of Crown entities
- a total of $12.049 million for non-departmental output expenditure
- a total of $56.003 million for non-departmental other expenditure, and
- a total of $200.200 million for non-departmental capital expenditure.
The Ministry expects to collect $56.015 million in 2014/15 through the Telecommunications Development Levy, Chatham Islands Rural Broadband investment project contributions, and the Telecommunications Levy, to be used for the purchase of Deaf Relay Services, upgrades to the emergency services calling system, Rural Broadband investments and funding for the Commerce Commission.
Details of these appropriations are set out in Parts 2-4.
Estimates of Appropriations#
Details of Appropriations and Capital Injections#
Annual and Permanent Appropriations
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Budgeted $000 | Estimated Actual $000 | Budget $000 |
Departmental Output Expenses | |||
Communications and ICT Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M88)This appropriation is limited to the development of operational policies in relation to information technology, New Zealand's digital capability, telecommunications markets and regulation, broadband investment, postal services, and international for a related to New Zealand's ICT interests, services to support the Minister, and monitoring the performance and compliance of Crown Entities. | 599 | 599 | 586 |
Management and Enforcement of the Radiocommunications Act 1989 (M88)Management of the radio spectrum, including technical arrangements for the allocation of spectrum, representation of New Zealand's international radio spectrum interests, and management of spectrum sales including costs associated with financial assistance for transition of radio licences when a management right is created or spectrum is allocated to a different use. | 10,264 | 10,264 | 9,641 |
Policy Advice - Communications (M88)This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters. | 4,104 | 4,104 | 3,658 |
Total Departmental Output Expenses | 14,967 | 14,967 | 13,885 |
Non-Departmental Output Expenses | |||
Administrative Support for Telecommunications Relay Equipment and Services (M88)This appropriation is limited to funding expenditure for administering contracts procuring the supply of telecommunications relay services textphones and other equipment for user access to relay service platforms (including video) and the cost for administering rental of relay user equipment and depreciating this equipment, together with sponsoring New Zealand Sign Language interpreter scholarships and the purchase of ancillary services to support the availability and uptake of relay services. | 1,743 | 1,154 | 1,519 |
Enforcement of Telecommunications Sector Regulation (M88)The regulation and monitoring of telecommunication services in accordance with the Telecommunications Act 2001. | 6,000 | 6,000 | 6,000 |
Fibre Drop Costs (M88)This appropriation is limited to the cost of fibre connections between schools and UFB and RBI providers' cable in the roadway or network operators' digital microwave radio towers. | 11,884 | 4,884 | 4,530 |
Total Non-Departmental Output Expenses | 19,627 | 12,038 | 12,049 |
Non-Departmental Other Expenses | |||
Broadband Investment (Rural Supply) (M88)This appropriation is limited to the provision of funding for grants or consumer subsidies relating to the deployment of broadband infrastructure in rural regions of New Zealand. | 21,460 | 6,460 | 10,533 |
Contributions to International Telecommunications Organisations (M88)The Crown's annual membership of the Asia Pacific Telecommunity and subscription to the International Telecommunications Union. | 970 | 970 | 970 |
Telecommunications Development Levy Funded Procurement - Deaf Relay Service TSO (M88)This appropriation is limited to the purchase of deaf relay services which is offset by the Telecommunications Development Levy. | 3,120 | 3,120 | 2,500 |
Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure (M88)This appropriation is limited to the payment of grants and investment for non-urban infrastructure offset by the Telecommunications Development Levy. | 90,180 | 90,180 | 42,000 |
International Connectivity (M88)This appropriation is limited to the purchase of an anchor tenancy on a new trans-Tasman and trans-Pacific submarine cable. | 15,000 | - | - |
Total Non-Departmental Other Expenses | 130,730 | 100,730 | 56,003 |
Non-Departmental Capital Expenditure | |||
Acquisition of Textphone Equipment (M88)To purchase textphones after the establishment of a textphone pool for deaf, hearing impaired and speech impaired people. | 293 | 250 | 200 |
Total Non-Departmental Capital Expenditure | 293 | 250 | 200 |
Total Annual and Permanent Appropriations |
165,617 | 127,985 | 82,137 |
Multi-Year Appropriations
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Non-Departmental Capital Expenditure | ||
Broadband Investment (Crown Fibre Holdings Capital Costs) (M88)This appropriation is limited to the provision of ongoing investment funding for Crown Fibre Holdings to implement the Government's broadband investment commitment Commences: 22 August 2011 Expires: 30 June 2016 | Original Appropriation | 408,000 |
| Adjustments for 2012/13 | 774,500 | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 1,182,500 | |
| Actual to 2012/13 Year End | 165,000 | |
| Estimated Actual for 2013/14 | 200,000 | |
| Estimated Actual for 2014/15 | 200,000 | |
| Estimated Appropriation Remaining | 617,500 |
Supporting Information#
Part 1 - Vote as a Whole#
1.1 - New Policy Initiatives
| Policy Initiative | Appropriation | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | Communications and ICT Operational Policy, Ministerial Servicing and Crown Entity Monitoring | - | (13) | (13) | (13) | (13) |
| Management and Enforcement of the Radiocommunications Act 1989 | - | (156) | (156) | (156) | (156) | |
| Policy Advice - Communications | - | (65) | (65) | (65) | (65) | |
| Total Policy Initiatives | - | (234) | (234) | (234) | (234) |
1.2 - Trends in the Vote#
Summary of Financial Activity#
| 2009/10 | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual $000 | Actual $000 | Actual $000 | Actual $000 | 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 | 22,409 | 20,597 | 20,592 | 28,084 | 34,594 | 27,005 | 13,885 | 12,049 | 25,934 | 21,404 | 21,404 | 21,404 |
| Benefits or Related Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
| Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Expenses | 887 | 906 | 22,659 | 105,599 | 130,730 | 100,730 | - | 56,003 | 56,003 | 21,103 | 20,570 | 20,570 |
| Capital Expenditure | 25,432 | 10,104 | 127,500 | 165,107 | 200,293 | 200,250 | - | 200,200 | 200,200 | 617,700 | 200 | 200 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | ||||||||||||
Output Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Appropriations | 48,728 | 31,607 | 170,751 | 298,790 | 365,617 | 327,985 | 13,885 | 268,252 | 282,137 | 660,207 | 42,174 | 42,174 |
Crown Revenue and Capital Receipts | ||||||||||||
| Tax Revenue | - | - | - | - | - | - | N/A | - | - | - | - | - |
| Non-Tax Revenue | 6,911 | 8,896 | 59,842 | 57,597 | 56,032 | 55,000 | N/A | 56,015 | 56,015 | 56,015 | 56,001 | 56,001 |
| Capital Receipts | 11,667 | 12,441 | 19,727 | 20,818 | 28,578 | 28,000 | N/A | 26,978 | 26,978 | 26,928 | 26,928 | 26,928 |
Total Crown Revenue and Capital Receipts | 18,578 | 21,337 | 79,569 | 78,415 | 84,610 | 83,000 | N/A | 82,993 | 82,993 | 82,943 | 82,929 | 82,929 |
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.
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.
1.3 - Analysis of Significant Trends#
Output Expenses
The key initiative that impacts this trend is the funding profile for the fibre drop which impacts from 2012/13 to 2014/15. Previous under-spends in 2012/13 were transferred into 2013/14 to fund additional work. This funding is no longer available for 2014/15 thereby decreasing the relevant appropriations.
The following are the key initiatives that impact the trends:
- the funding profile for investments in non-urban infrastructure (as part of the Rural Broadband Initiative contracts) which started in 2011/12 at $57 million, $141 million in 2012/13, $90 million in 2013/14, $42 million in 2014/15 and stabilises at $17 million in 2015/16 and outyears, and
- the funding profile of the Broadband Investment (Rural Supply) also used to fund investments for the Rural Broadband Initiative, which was approved in 2009/10 with the majority of the expenditure occurring in 2013/14 due to expense transfers from prior year.
Other Expenses
The increase from 2014/15 to 2015/16 reflects the capital plan for the Crown entity, Crown Fibre Holdings, to fund the Ultra-Fast Broadband initiative.
Part 2 - Details of Departmental Appropriations#
2.1 - Departmental Output Expenses#
Communications and ICT Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M88)
Scope of Appropriation
Expenses and Revenue
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 599 | 599 | 586 |
| Revenue from the Crown | 599 | 599 | 586 |
| Revenue from Others | - | - | - |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to provide effective and efficient ministerial services; and to monitor the performance and compliance of Crown entities.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Responses to Parliamentary Questions, Ministerial Correspondence and Ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes. | 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 | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | 2014/15 | - | (13) | (13) | (13) | (13) |
| Efficiency Dividend | 2012/13 | (30) | (30) | (30) | (30) | (30) |
Management and Enforcement of the Radiocommunications Act 1989 (M88)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 10,264 | 10,264 | 9,641 |
| Revenue from the Crown | 787 | 787 | 320 |
| Revenue from Others | 7,041 | 7,041 | 6,885 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide for the effective and efficient allocation and licensing of the radio spectrum. This includes spectrum sales and enforcement activities.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Submitted applications are correctly registered or granted, and documented interference complaints are actioned within the work programme time frame. | Updated measure | Updated measure | 95% |
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 | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | 2014/15 | - | (156) | (156) | (156) | (156) |
| Efficiency Dividend | 2012/13 | (115) | (115) | (115) | (115) | (115) |
Reasons for Change in Appropriation#
The decrease in this appropriation for 2014/15 is a result of a one-off transfer from 2012/13 to 2013/14 to accommodate delay in the 700MHz spectrum auction, and savings returned to the Crown as a result of the formation of MBIE.
Memorandum Account#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
Management and Enforcement of Radiocommunications Act 1989 | |||
| Opening Balance at 1 July | 7,106 | 7,106 | 8,989 |
| Revenue | 7,041 | 8,300 | 6,885 |
| Expenses | (9,477) | (6,417) | (9,477) |
| Transfers and Adjustments | - | - | - |
Closing Balance at 30 June | 4,670 | 8,989 | 6,397 |
Policy Advice - Communications (M88)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 4,104 | 4,104 | 3,658 |
| Revenue from the Crown | 4,093 | 4,093 | 3,658 |
| Revenue from Others | 11 | 11 | - |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide high quality policy advice to Ministers.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| The satisfaction of the Minister for Communications and Information Technology with the policy advice service, as per the common satisfaction survey. | At least 70% | At least 70% | At least 70% |
| 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% |
| The total cost per hour of producing outputs | At most $155 | At most $155 | At most $155 |
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 | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | 2014/15 | - | (65) | (65) | (65) | (65) |
| Efficiency Dividend | 2012/13 | (189) | (189) | (189) | (189) | (189) |
| Broadband and Cyber Security Fiscal Pressures | 2011/12 | (848) | (848) | (848) | (848) | (848) |
Reasons for Change in Appropriation#
The decrease in this appropriation for 2014/15 is mainly due to one-off transfers from 2012/13 to 2013/14 only for retention in underspends, and savings returned to the Crown as a result of the formation of MBIE.
Part 3 - Details of Non-Departmental Appropriations#
3.1 - Non-Departmental Output Expenses#
Administrative Support for Telecommunications Relay Equipment and Services (M88)
Scope of Appropriation
Expenses
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 1,743 | 1,154 | 1,519 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to fund procurement of telecommunications relay services, administration of relay user equipment rental and sponsorship of New Zealand Sign Language interpreter scholarships.
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 as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.
Service Providers
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Consultel Associates Ltd | 90 | 90 | 78 | Monthly Status Update | Ongoing |
| CSD - Communication Service for the Deaf | 248 | 248 | 216 | Monthly Status Update | Ongoing |
| Sprint International Ltd | 1,405 | 816 | 1,225 | Monthly Status Update | Ongoing |
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Video Remote Interpreting Service | 2013/14 | 250 | 250 | 250 | 250 | 250 |
Reasons for Change in Appropriation
The decrease in this appropriation for 2014/15 is a result of a one-off transfer from 2012/13 to 2013/14 to reflect the timing of the Caption Telephone Service.
Enforcement of Telecommunications Sector Regulation (M88)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 6,000 | 6,000 | 6,000 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to ensure competition in the telecommunications market for the long-term benefit of end-users.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
Determinations | |||
| Number of determinations (includes determinations, clarifications, reviews and amendments). | 2-4 | 4 | 2-4 |
| Average time to complete telecommunications determinations.(See Note 1) | 10 months | 10.5 months | 6 months |
| Completion date for the Unbundled Bitstream Access (UBA) and Unbundled Copper Local Loop (UCLL) Final Pricing Principle (FPP) determinations. | New measure | New measure | 30 April 2015 |
| Percentage of stakeholders who find the Commerce Commission's determinations and supporting reasons clear. | 75% | 75% | 80% |
Public Reports and Advice to Officials | |||
| Number of reports completed (monitoring reports, summary and analysis reports, information disclosure reports, ministerial reports). | 3-8 | 5 | 3-8 |
| Number of substantial pieces of advice provided to officials to inform policy design. | 2-4 | 2 | 2-4 |
| Percentage of stakeholders who rate our reports good or above. | 75% | 75% | 80% |
| Percentage of reports completed by the set date. | 100% | 100% | 100% |
Compliance and Enforcement | |||
| Number of compliance assessments completed. | 0-4 | 2 | 0-4 |
| Number of enforcement cases taken. | 0-1 | 0-1 | 0-1 |
| Percentage of compliance assessments completed by the set date. | 100% | 100% | 100% |
Note 1 - The average time to complete telecommunications determinations above excluding the UBA and UCLL FPP determination.
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Commerce Commission in its annual report.
Fibre Drop Costs (M88)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 11,884 | 4,884 | 4,530 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to fund fibre connections between schools and Ultra-Fast Broadband and Rural Broadband Initiative providers' cable.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| UFB and RBI providers comply with the contractual deliverables for supply of fibre connections from the school boundary to the school building. | Meet contractual obligations as specified in contract | Meet contractual obligations as specified in contract | Meet contractual obligations as specified in contract |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Minister in an appendix to the Ministry of Business, Innovation and Employment's annual report.
Service Providers#
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Ultra-Fast Broadband and Rural Broadband Initiative Providers | 11,884 | 4,484 | 4,530 | - | Ongoing |
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Fibre Drop for Schools | 2011/12 | 5,290 | 4,530 | - | - | - |
Reasons for Change in Appropriation#
The decrease in this appropriation for 2014/15 is a result of one-off transfers from 2012/13 to 2013/14.
3.4 - Non-Departmental Other Expenses#
Broadband Investment (Rural Supply) (M88)#
Scope of Appropriation
Expenses
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 21,460 | 6,460 | 10,533 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to fund grants or consumer subsidies relating to the deployment of broadband infrastructure in rural regions of New Zealand.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Rural broadband (capable of peak speeds of at least 5 megabits per second) is available to 86% of rural homes and businesses by the end of 2016. | Rollout targets are met | Rollout targets are met | Rollout targets are met |
| Vendors comply with contractual arrangements for the supply of telecommunications services associated with RBI. | Meet contractual obligations as specified in the contract | Meet contractual obligations as specified in the contract | Meet contractual obligations as specified in the contract |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Minister in an appendix to the Ministry of Business, Innovation and Employment's annual report.
Reasons for Change in Appropriation
The decrease in this appropriation for 2014/15 is a result of a one-off transfer of $30.926 million from 2012/13 to 2013/14 to accommodate the timing of the staged implementation of the RBI. This is partially offset by a transfer of $10 million from 2013/14 to 2014/15 to accommodate lower cost parts of the programme being completed in 2013/14.
Contributions to International Telecommunications Organisations (M88)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 970 | 970 | 970 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide annual membership subscriptions to the Asia Pacific Telecommunity and the International Telecommunications Union.
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 as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.
Telecommunications Development Levy Funded Procurement - Deaf Relay Service TSO (M88)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 3,120 | 3,120 | 2,500 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to fund the purchase of deaf relay services from the service 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 as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.
Service Providers#
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
Consultel Associates LtdAdministrative Support for Telecommunications Relay Equipment and Services | 78 | 92 | 92 | - | Ongoing |
CSDAdministrative Support for Telecommunications Relay Equipment and Services | 216 | 160 | 216 | - | Ongoing |
Sprint InternationalAdministrative Support for Telecommunications Relay Equipment and Services | 1,225 | 1,025 | 1,225 | - | Ongoing |
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Telecommunications Industry Levies | 2011/12 | 2,500 | 2,500 | 2,600 | 2,600 | 2,600 |
Reasons for Change in Appropriation#
The decrease in this appropriation for 2014/15 is a result of a one-off transfer from 2012/13 to 2013/14 to reflect the timing of the Commerce Commission providing a cost determination for the levy.
Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure (M88)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 90,180 | 90,180 | 42,000 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide payment of grants and investment for non-urban infrastructure associated with the Rural Broadband Initiatives.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Rural Broadband (capable of peak speeds of at least 5 megabits per second) is available to 86% of rural homes and businesses by the end of 2016. | Rollout targets are met | Rollout targets are met | Rollout targets are met |
| Vendors comply with contractual arrangements for the supply of telecommunications services associated with RBI. | Meet contractual obligations as specified in contract | Meet contractual obligations as specified in contract | Meet contractual obligations as specified in contract |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Minister in an appendix to the Ministry of Business, Innovation and Employment's annual report.
Service Providers#
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Vodafone | 18.500 | 18,500 | 8,400 | MBIE Annual Report | 30 June 2016 |
| Chorus | 72.030 | 72,030 | 33,600 | MBIE Annual Report | 30 June 2016 |
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Telecommunications Industry Levies | 2011/12 | 42,000 | 42,000 | 17,000 | 17,000 | 17,000 |
Reasons for Change in Appropriation#
The decrease in this appropriation for 2014/15 is a result of one-off transfers from 2012/13 to 2013/14 to reflect the timing in the roll-out of deployment of the RBI.
3.5 - Non-Departmental Capital Expenditure#
Acquisition of Textphone Equipment (M88)#
Scope of Appropriation
Capital Expenditure
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 293 | 250 | 200 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to fund the purchase textphones for deaf, hearing impaired and speech impaired people.
How Performance will be Assessed and End of Year Reporting Requirements
An exemption was granted under s15D(2)(b)(iii) of Public Finance Act as the amount of this annual appropriation for a non-departmental capital expenditure is less than $15 million.
Reasons for Change in Appropriation
The decrease in this appropriation for 2014/15 is a result of a one-off transfer from 2012/13 to 2013/14 to reflect the demand for this service.
Broadband Investment (Crown Fibre Holdings Capital Costs) (M88)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriations, Adjustments and Use | $000 |
|---|---|---|
Broadband Investment (Crown Fibre Holdings Capital Costs) (M88)This appropriation is limited to the provision of ongoing investment funding for Crown Fibre Holdings to implement the Government's broadband investment commitmentCommences: 22 August 2011 Expires: 30 June 2016 | Original Appropriation | 408,000 |
| Adjustments to 2012/13 | 774,500 | |
| Adjustments for 2013/14 | - | |
| Adjusted Appropriation | 1,182,500 | |
| Actual to 2012/13 Year End | 165,000 | |
| Estimated Actual for 2013/14 | 200,000 | |
| Estimated Actual for 2014/15 | 200,000 | |
| Estimated Appropriation Remaining | 617,500 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide ongoing investment funding for Crown Fibre Holdings as part of the Government's UFB commitment.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Ultra-fast broadband (capable of peak speed of 100 megabits per second) is available to businesses, schools and health service providers in ultra-fast broadband candidates areas by the end of 2015 and 75% of New Zealanders by the end of 2019. | Roll out targets are met | Roll out targets are met | Roll out targets are met |
End of Year Performance Reporting#
Performance information for this appropriation is will be reported by the Crown Fibre Holding Ltd in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Multi-Year Appropriation for Ultra-Fast Broadband | 2011/12 | 100,000 | 100,000 | 8,000 | - | - |