Estimates of appropriations

Vote Defence Force - External Sector - Estimates 2016/2017

APPROPRIATION MINISTER(S): Minister of Defence (M22), Minister of Veterans' Affairs (M75)

APPROPRIATION ADMINISTRATOR: New Zealand Defence Force

RESPONSIBLE MINISTER FOR NEW ZEALAND DEFENCE FORCE: Minister of Defence

Overview of the Vote#

The Minister of Defence is responsible for Defence Force appropriations in Vote Defence Force, totalling just over $3,280 million for the 2016/17 financial year.

This includes just over $2,533 million for departmental output expenses covering the following:

  • a total of just under $2,038 million on Air ($770 million), Army ($809 million) and Navy ($459 million) capabilities prepared for joint operations to provide the Government with a range of military forces to protect and advance the security and interests of New Zealand. These are held at appropriate levels of capability and preparedness to protect New Zealand's territorial sovereignty and to contribute to regional and global security efforts. Most of these forces will also contribute to a range of services to other government departments and the New Zealand community when not committed to operations overseas, and
  • a total of just over $495 million on Multi-Category Appropriations (MCA) for Advice to the Government, Operations Contributing to New Zealand's Security, Stability and Interests, and the Protection of New Zealand and New Zealanders.

Of the total output expenses, about $14 million is expected to be funded from third-party revenue (Revenue Department and Revenue Other) in 2016/17. The remainder is funded with Revenue Crown via Treasury.

There is also a capital expenditure appropriation of up to $747 million for the purchase of assets.

The Minister of Veterans' Affairs is responsible for Veterans' Affairs appropriations in Vote Defence Force totalling just under $137 million for the 2016/17 financial year.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2015/16 2016/17
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Air Force Capabilities Prepared for Joint Operations and Other Tasks (M22)

This appropriation is limited to the generation of Air Force capabilities that achieve the levels of readiness for military operations and other tasks as directed by the Government of New Zealand.
736,934 736,934 770,296

Army Capabilities Prepared for Joint Operations and Other Tasks (M22)

This appropriation is limited to the generation of Army capabilities that achieve the levels of readiness for military operations and other tasks as directed by the Government of New Zealand.
750,784 744,441 808,833

Navy Capabilities Prepared for Joint Operations and Other Tasks (M22)

This appropriation is limited to the generation of Navy capabilities that achieve the levels of readiness for military operations and other tasks as directed by the Government of New Zealand.
459,709 453,651 458,707

Total Departmental Output Expenses

1,947,427 1,935,026 2,037,836

Departmental Capital Expenditure

     

New Zealand Defence Force - Capital Expenditure PLA (M22)

This appropriation is limited to the purchase or development of assets by and for the use of the New Zealand Defence Force, as authorised by section 24(1) of the Public Finance Act 1989.
438,980 322,600 746,954

Total Departmental Capital Expenditure

438,980 322,600 746,954

Non-Departmental Output Expenses

     

Development and Maintenance of Services Cemeteries (M75)

This appropriation is limited to the development and maintenance of Services Cemeteries.
746 746 746

Support for Veterans and Their Families (M75)

This appropriation is limited to providing for the support of veterans and their families. This includes the provision of counselling for veterans' families, the reimbursement of out of pocket expenses for veterans' children with specified conditions; additional support for veterans to facilitate them remaining in their own homes for as long as possible; additional support to facilitate veterans' rehabilitation; support for the surviving partner after the death of the veteran and for the provision of grants to Non-Government Organisations for the support of veterans and their families.
647 647 -

Total Non-Departmental Output Expenses

1,393 1,393 746

Benefits or Related Expenses

     

Assessments, Treatment & Rehabilitation (M75)

This appropriation is limited to the payment of the costs of assessments, treatment (including associated aids and appliances), and social and vocational rehabilitation provided for under the Veterans' Support Act 2014 and associated regulations.
12,114 9,714 15,125

Special Annuities (M75)

This appropriation is limited to paying annuities authorised by Cabinet to recognise a special contribution by the recipient to New Zealand society.
38 37 38

Veterans' Independence Programme (M75)

This appropriation is limited to provision of services and support to assist eligible veterans and their families.
6,265 5,665 11,763

Veterans Support Entitlement (M75)

This appropriation is limited to the payment of entitlements (in respect of the impairment or death of veterans determined to be related to qualifying operational service occurring at any time or qualifying routine service occurring prior to 1 April 1974) to veterans and their spouses, partners, children and dependants under the Veterans' Support Act 2014 and associated regulations and to the provision for grandparented loans of the differential between 3% or 5% Rehabilitation Loan rate and the current market rate as set out in the Rehabilitation Act 1941 for interest concessions on land and buildings.
109,509 107,409 97,856

Total Benefits or Related Expenses

127,926 122,825 124,782

Non-Departmental Other Expenses

     

Debt Write-Down for Benefits and Other Unrequited Expenses (M75)

This appropriation is limited to the write-down of Crown debtors administered by the New Zealand Defence Force due to the requirement to comply with Crown accounting policies and generally accepted accounting principles.
250 250 250

Ex-Gratia Payments and Comprehensive Medical Assessments for Vietnam Veterans (M75)

This appropriation is limited to the ex-gratia payments to Vietnam veterans and/or members of their family with accepted conditions and for the annual comprehensive medical assessments for Vietnam veterans.
950 950 1,100

Fair Value Write Down on Veteran Trust Loans and Thirty-Year Endowment (M75)

This appropriation is limited to providing for the fair value write down on the Veteran Trust loans and the thirty-year endowment to the Vietnam Veterans and their Families Trust.
203 203 203

Veteran Assistance to Attend Commemorations and Revisit Battlefields (M75)

This appropriation is limited to providing assistance to veterans to enable them to attend official commemorations or revisit battlefields.
- - 400

Total Non-Departmental Other Expenses

1,403 1,403 1,953

Multi-Category Expenses and Capital Expenditure

     

Advice to the Government MCA (M22)

The overarching purpose of this appropriation is to support Ministers in discharging their portfolio responsibilities.
9,125 9,065 9,605
Departmental Output Expenses
     
Policy Advice
This category is limited to the provision of advice (including second opinion advice and policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to defence and the NZDF.
3,520 3,501 3,664
Situational Awareness
This category is limited to the provision of effective military intelligence services to the Government in support of decision-making for the defence and security of New Zealand.
3,795 3,771 4,020
Supporting Ministers
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
1,810 1,793 1,921

Operations Contributing to New Zealand's Security, Stability and Interests MCA (M22)

The overarching purpose of this appropriation is the employment of New Zealand's Armed Forces overseas at the Government's direction.
49,934 49,934 40,659
Departmental Output Expenses
     
Military Operations in Support of a Rules-Based International Order
This category is limited to the costs of generating operational military capabilities and the employment of the New Zealand Armed Forces for the conduct of operations, as directed by the Government.
41,434 41,434 40,156
Military Operations that Contribute to Regional Security
This category is limited to the costs of providing specialised support to all-of-government efforts to maintain security and stability in New Zealand's immediate neighbourhood including responses to events that impact on the safety and wellbeing of regional populations, as directed by the Government.
8,500 8,500 503

Policy Advice And Other Services For Veterans MCA (M75)

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, and the provision of services and payments to veterans.
10,411 10,411 9,181
Departmental Output Expenses
     
Administration Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities, the coordination of commemorations, the provision of administration services to relevant boards and committees and the administration of contracts for service for maintenance and development work carried out in Service Cemeteries.
3,104 3,104 2,812
Policy Advice
This category is limited to the provision of policy 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 Veterans' Affairs.
221 221 222
Services and Payments to Veterans
This category is limited to the assessment, review and payment of entitlements and benefits (War Disablement Pensions and related concessions, and allowances and Surviving Spouse Pensions), the assessment and review of entitlement for burial in Service Cemeteries, the installation of ex-service memorials for eligible veterans, and the provision of case management for veterans and their families.
7,086 7,086 6,147

Protection of New Zealand and New Zealanders MCA (M22)

The overarching purpose of this appropriation is to protect New Zealand's sovereignty and provide security and other services for New Zealanders.
430,412 428,873 444,963
Departmental Output Expenses
     
Assistance to the Civil Power and Provision of a Public Service in Emergency Situations
This category is limited to the costs of specialist military capabilities and Defence Force resources provided to the civil power in an emergency and for urgent work of national importance.
69,424 69,165 71,400
Defence International Engagement
This category is limited to the provision of services and utility of the Defence Force to support foreign policy objectives that strengthen security and avert conflict.
96,899 96,778 100,529
Defence Support to the Community
This category is limited to the costs of providing Defence Force resources for the betterment of the community at large and to inform the public's awareness of the proficiency and practice of the Armed Forces.
46,203 45,489 49,383
Military Assistance to Civil Authorities in Non-Emergency Situations
This category is limited to the costs of Defence Force resources, services and non-emergency assistance periodically provided to the Government and civil authorities.
34,549 34,487 34,453
Resource and Border Protection Operations
This category is limited to the sharing of information and provision of resources to support all-of-government efforts to protect New Zealand's borders and offshore maritime interests.
183,337 182,954 189,198

Total Multi-Category Expenses and Capital Expenditure

499,882 498,283 504,408

Total Annual and Permanent Appropriations

3,017,011 2,881,530 3,416,679

Capital Injection Authorisations#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
New Zealand Defence Force - Capital Injection (M22) 1,000 1,000 6,000

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Share of costs for Budget 2015 whole-of-government initiative Air Force Capabilities Prepared for Joint Operations and Other Tasks (842) (807) (581) (438) (438)
  Army Capabilities Prepared for Joint Operations and Other Tasks (1,466) (1,406) (1,013) (763) (763)
  Navy Capabilities Prepared for Joint Operations and Other Tasks (878) (841) (606) (459) (459)
  Advice to Government (16) (15) (12) (8) (8)
  Protection of New Zealand and New Zealanders (915) (878) (631) (475) (475)
  Total (4,117) (3,947) (2,843) (2,143) (2,143)
Rationalising the Delivery of Defence Force Logistics Army Capabilities Prepared for Joint Operations and Other Tasks 3,600 800 - - -
Defence Mid-Point Rebalancing Review Initiative Air Force Capabilities Prepared for Joint Operations and Other Tasks - 10,637 29,987 29,987 29,987
  Army Capabilities Prepared for Joint Operations and Other Tasks - 12,786 36,045 36,045 36,045
  Navy Capabilities Prepared for Joint Operations and Other Tasks - 5,136 14,476 14,476 14,476
  Advice to Government - 59 166 166 166
  Operations Contributing to New Zealand's Security, Stability and Interests - 250 704 704 704
  Policy Advice and Other Services for Veterans - 56 159 159 159
  Protection of New Zealand and New Zealanders - 2,895 8,163 8,163 8,163
  Total - 31,819 89,700 89,700 89,700
Manufacture and Installation of Veteran Headstones and Plaques Veterans' Support Entitlement - 420 397 375 355
  Policy Advice and Other Services for Veterans - (477) (477) (477) (477)
  Total - (57) (80) (102) (122)
Contributions to Veterans' Commemorative Activities Policy Advice and Other Services for Veterans 200 (50) (50) (50) (50)
  Veteran Assistance to Attend Commemorations and Revisit Battlefields - 400 340 200 200
  Total 200 350 290 150 150
Multinational Force and Observer Mandate Extension Protection of New Zealand and New Zealanders 187 218 - - -
Total Initiatives   (130) 29,183 87,067 87,605 87,585

Summary of Financial Activity#

  2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
  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 2,154,512 2,205,162 2,234,438 1,890,079 1,948,820 1,936,419 2,037,836 746 2,038,582 2,065,960 2,072,191 2,072,191
Benefits or Related Expenses 148,504 140,510 135,489 128,975 127,926 122,825 N/A 124,782 124,782 118,329 113,779 109,824
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 2,459 735 2,709 2,966 1,403 1,403 - 1,953 1,953 1,893 1,753 1,753
Capital Expenditure 268,041 232,535 428,987 532,588 438,980 322,600 746,954 - 746,954 345,831 396,774 478,879
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses - - - 428,445 499,882 498,283 504,408 - 504,408 495,590 497,599 497,599
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

2,573,516 2,578,942 2,801,623 2,983,053 3,017,011 2,881,530 3,289,198 127,481 3,416,679 3,027,603 3,082,096 3,160,246

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - - - - - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- - - - - - N/A - - - - -

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

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

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

Departmental Output Expenses#

The major movements in annual Output Expense appropriations between 2011/12 and 2019/20 have arisen due to:

  • new funding as a result of the Defence Mid-Point Rebalancing Review
  • expense transfers and transfers of underspends between years
  • technical budget changes such as changes in capital charge and third party revenue adjustments, and
  • changes to activity levels for Operationally Deployed Forces.

In 2014/15, a significant portion of Departmental Output Expenses were transferred to Multi-Category Expenses and Capital Expenditure.

Other Expenses#

The trend in Other Expenses appropriations shown in the trends table between 2011/12 and 2019/20 reflects generally smooth activity impacted by occasional write down of Veterans' loans.

Capital Expenditure#

The Capital Expenditure appropriation shown in the trends table between 2011/12 and 2019/20 reflects the agreed level of investment in the NZDF as a result of the Defence Mid-Point Rebalancing Review.

The major movements in annual Benefits or Related Expenses appropriations between 2011/12 and 2019/20 are primarily due to a decline in the number of veterans receiving a War Disablement Pension.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Air Force Capabilities Prepared for Joint Operations and Other Tasks (M22)

Scope of Appropriation

This appropriation is limited to the generation of Air Force capabilities that achieve the levels of readiness for military operations and other tasks as directed by the Government of New Zealand.

Expenses and Revenue

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 736,934 736,934 770,296
Revenue from the Crown 734,960 734,960 768,322
Revenue from Others 1,974 1,974 1,974

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the following:

  • a surveillance and response capability prepared to be employed on sea control operations
  • a surveillance capability prepared for deployment on surveillance and response tasks for maritime interdiction operations
  • a naval air combat capability for embarkation in surface ships
  • a surveillance and response capability prepared to support special operations forces in the land and maritime environments
  • a strategic airlift capability prepared to deploy, sustain and recover deployed forces
  • a tactical airlift capability prepared for personnel movement and cargo operations within a designated area of operations, and
  • a tactical air mobility capability prepared to support land operations, special operations forces, aeromedical evacuation and combat search and recovery operations.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Government directed readiness levels achieved and maintained to provide naval operations capabilities prepared for naval air operations.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide air surveillance and response capabilities prepared for sea control and surveillance operations.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide security and stability capabilities prepared for tactical airlift.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide security and stability capabilities prepared for tactical air mobility.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide projection and sustainment capabilities prepared for strategic airlift.

100% 100% 100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 10,637 29,987 29,987 29,987
Share of costs for Budget 2015 whole-of-government initiative 2015/16  (842) (807) (581) (438) (438) 
Defence Mid-Point Rebalancing Review - Funding Track 2015/16 311 16,206 21,814 21,814 21,814
New Digital Radios and Associated Equipment 2015/16 2,295 3,519 4,366 4,366 4,366
Defence Mid-Point Rebalancing Review - Funding Track 2014/15 46,840 91,376 91,376 91,376 91,376

Reasons for Change in Appropriation

The appropriation increased by $33.362 million to $770.296 million for 2016/17. This increase between 2015/16 and 2016/17 relates to:

  • funding of $22.325 million as a result of the Defence Mid-Point Rebalancing Review
  • a carry forward of $7.165 million from prior years
  • a fiscally neutral transfer of $3.837 million from other appropriations to align the resource requirements with demand and activities, and
  • a reduction of $35,000 in the contribution towards the share of costs for Budget 2015 whole-of-government initiative.

Army Capabilities Prepared for Joint Operations and Other Tasks (M22)#

Scope of Appropriation#

This appropriation is limited to the generation of Army capabilities that achieve the levels of readiness for military operations and other tasks as directed by the Government of New Zealand.

Expenses and Revenue#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 750,784 744,441 808,833
Revenue from the Crown 749,901 749,901 807,950
Revenue from Others 883 883 883

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the following:

  • Special Operations Forces prepared for theatre-level special operations to prevent terrorism and asymmetric threats reaching New Zealand's sovereign territory and those territories for which New Zealand has a strategic interest
  • a designated high-readiness land combat capability prepared to respond to regional crises
  • a combined arms land combat capability prepared to conduct stabilisation operations and support a host nation to protect the population, assist with the restoration of law and order and attend to the immediate humanitarian needs of the people, and
  • a combined arms land combat capability prepared for global employment in complex warfighting in urban and open terrain either independently or within a coalition to conduct counter-insurgency operations and deter an aggressor from engaging in hostile activities against another state.

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Government directed readiness levels achieved and maintained to provide land combat capabilities prepared for special operations.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide land combat capabilities prepared for combined arms operations.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide land combat capabilities prepared for regional stabilisation operations.

100% 100% 100%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 12,786 36,045 36,045 36,045
Share of costs for Budget 2015 whole-of-government initiative 2015/16 (1,466) (1,406) (1,013) (763) (763)
Defence Mid-Point Rebalancing Review - Funding Track 2015/16 306 15,764 21,272 21,272 21,272
New Digital Radios and Associated Equipment 2015/16 2,242 3,422 4,257 4,257 4,257
Defence Mid-Point Rebalancing Review - Funding Track 2014/15 17,952 27,868 27,868 27,868 27,868

Reasons for Change in Appropriation#

The appropriation increased by $58.049 million to $808.833 million for 2016/17. This increase between 2015/16 and 2016/17 relates to:

  • a fiscally neutral transfer of $27.430 million from other appropriations to align the resource requirements with demand and activities
  • funding of $22.103 million as a result of the Defence Mid-Point Rebalancing Review funding decisions
  • a carry forward of $11.256 million from prior years, and
  • a reduction of $60,000 in the contribution towards the share of the costs for Budget 2015 whole-of-government initiative.

The increase is partly offset by:

  • reduced funding of $2.800 million for rationalising the delivery of Defence Force Logistics.

Scope of Appropriation#

This appropriation is limited to the generation of Navy capabilities that achieve the levels of readiness for military operations and other tasks as directed by the Government of New Zealand.

Expenses and Revenue#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 459,709 453,651 458,707
Revenue from the Crown 458,386 458,386 457,384
Revenue from Others 1,323 1,323 1,323

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the following:

  • a naval combat capability with ships and organic aircraft prepared to conduct sea-control operations within a coalition naval task group, protect military and commercial shipping and related operations to enforce international law and prohibit the movement of specified items, people or vessels
  • amphibious sealift capabilities prepared to project forces from sea and sustain deployed forces
  • strategic replenishment capability prepared to project and sustain deployed maritime, land and air forces
  • a deployable maritime capability prepared to conduct operations that safeguards access to and the use of harbours, inshore waters and littoral zones in New Zealand and wherever NZDF forces are required to operate
  • maritime capabilities, available for employment as a single ship or multi-ship international deployment in support of scheduled defence international engagement initiatives, and
  • a shore-based capability able to implement naval cooperation and guidance for shipping and provide for the naval supervision of shipping in a crisis.

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Government directed readiness levels achieved and maintained to provide naval combat capabilities prepared for sea control operations.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide naval combat capabilities prepared for maritime interdiction operations.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide projection and sustainment capabilities prepared for amphibious sealift.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide projection and sustainment capabilities prepared for replenishment.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide projection and sustainment capabilities prepared for littoral warfare support.

100% 100% 100%

Percentage of Government directed readiness levels achieved and maintained to provide maritime trade operations capabilities prepared for naval guidance and supervision of shipping.

100% 100% 100%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 5,136 14,476 14,476 14,476
Share of costs for Budget 2015 whole-of-government initiative 2015/16 (878) (841) (606) (459) (459) 
Defence Mid-Point Rebalancing Review - Funding Track 2015/16 203 10,620 13,875 13,875 13,875
New Digital Radios and Associated Equipment 2015/16 1,486 2,305 2,777 2,777 2,777
Defence Mid-Point Rebalancing Review - Funding Track 2014/15 6,693 23,507 23,507 23,507 23,507

Reasons for Change in Appropriation#

The appropriation decreased by $1.002 million to $458.707 million for the 2016/17. This decrease between 2015/16 and 2016/17 relates to:

  • a fiscally neutral transfer of $33.007 million to other appropriations to align the resource requirements with demand and activities, and
  • an increase in the operating to capital swap by $5 million.

This decrease was offset by:

  • funding of $20.346 million as a result of the Defence Force Mid-Point Rebalancing Review
  • a carry forward of $16.622 million from prior years, and
  • a reduction of $37,000 in the contribution towards the share of the costs for Budget 2015 whole-of-government initiative.

2.3 - Departmental Capital Expenditure and Capital Injections#

New Zealand Defence Force - Capital Expenditure PLA (M22)#

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the New Zealand Defence Force, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 437,980 321,600 745,954
Intangibles 1,000 1,000 1,000
Other - - -

Total Appropriation

438,980 322,600 746,954

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve maintained and upgraded capabilities of NZDF equipment and infrastructure in support of the delivery of NZDF's services.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Expenditure supports the delivery of the department's output performance measures in accordance with the Defence Mid-Point Rebalancing Review for 2016/17

Achieved Achieved Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Reasons for Change in Appropriation

This appropriation increased by $196.974 million to $635.954 million for 2016/17 to reflect the spending profile on major projects agreed in the Defence Force Mid-Point Rebalancing Review.

Capital Injections and Movements in Departmental Net Assets

New Zealand Defence Force

Details of Net Asset Schedule 2015/16
Estimated Actual
$000
2016/17
Projected
$000
Explanation of Projected Movements in 2016/17
Opening Balance 5,473,091 5,467,613  
Capital Injections 1,000 6,000 Operating to Capital swap for NZDF personnel component of the Frigate Systems Upgrade.
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements (6,478) -  

Closing Balance

5,467,613 5,473,613  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Development and Maintenance of Services Cemeteries (M75)

Scope of Appropriation

This appropriation is limited to the development and maintenance of Services Cemeteries.

Expenses

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 746 746 746

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the development and maintenance of Services Cemeteries.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The annual maintenance and development works plan outcomes are achieved

95% 95% 95%

Services Cemeteries will be maintained to the satisfaction of Local Authorities, the RSA and veterans' representative organisations

Meet Met Meet

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Veterans' Affairs in a report to be appended to the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Service Providers

There are approximately 185 annual maintenance grant payments made to local councils across New Zealand for each Services Cemetery. Works grants are also made to contractors around New Zealand for maintenance works.

Assessments, Treatment & Rehabilitation (M75)#

Scope of Appropriation

This appropriation is limited to the payment of the costs of assessments, treatment (including associated aids and appliances), and social and vocational rehabilitation provided for under the Veterans' Support Act 2014 and associated regulations.

Expenses

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,114 9,714 15,125

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the on-going payment of veteran assessments, treatment and rehabilitation with a strong focus on social and vocational rehabilitation to help younger veterans remain in or return to employment if they are able to do so.

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 performance information is unlikely to be informative.

Reasons for Change in Appropriation

This appropriation increased by $3.011 million to $15.125 million for 2016/17. This increase relates to an aging client base with increased cost for specialist services.

Special Annuities (M75)#

Scope of Appropriation#

This appropriation is limited to paying annuities authorised by Cabinet to recognise a special contribution by the recipient to New Zealand society.

Expenses#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 38 37 38

What is Intended to be Achieved with this Appropriation#

This appropriation currently recognises a special contribution by two recipients to New Zealand society.

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 performance information is unlikely to be informative.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Granting of Special Annuity to W.T.M Framhein 2012/13 15 15 15 15 15
Small increase to Special Annuity appropriation 2012/13 3 3 3 3 3

Conditions on Use of Appropriation#

Reference Conditions
Special Annuities payments are made under the authority of Cabinet Special Annuities are awards made by government and are not covered by legislation. Annual government approval is needed for their continued payment. Special Annuities are non-taxable.

Veterans' Independence Programme (M75)#

Scope of Appropriation#

This appropriation is limited to provision of services and support to assist eligible veterans and their families.

Expenses#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,265 5,665 11,763

What is Intended to be Achieved with this Appropriation#

This appropriation currently supports over 2,000 veterans to allow them to live independently in their home.

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Services and support provided will be to the satisfaction of the veteran and/or the veterans' family

100% 100% 100%

Contracted services and support complies with agreed contract standards

100% 100% 100%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Veterans' Affairs in a report appended to the NZDF Annual Report to be tabled in the House.

Reasons for Change in Appropriation#

The appropriation increased by $5.498 million to $11.763 in 2016/17. This increase relates to the establishment of this appropriation as from 7 December 2015 with full year funding in 2016/17.

Conditions on Use of Appropriation#

Reference Conditions
Cabinet Decision Reimbursement of out-of-pocket health expenses for children of Vietnam and Operation Grapple veterans with spina bifida manifesto, cleft lip/palate, adrenal gland cancer and acute myeloid cancer.
  Travel assistance for children of Vietnam and Operation Grapple veterans when referred genetic counselling.
  Provision of family/psychological counselling for families of Vietnam and Operation Grapple veterans.
Veterans' Support Act 2014 Provision of Attendant Allowance, Travel Concessions and Allowance, and home help services and support to assist eligible veterans and their families in accordance with the Veterans' Support Act 2014.

Veterans Support Entitlement (M75)#

Scope of Appropriation#

This appropriation is limited to the payment of entitlements (in respect of the impairment or death of veterans determined to be related to qualifying operational service occurring at any time or qualifying routine service occurring prior to 1 April 1974) to veterans and their spouses, partners, children and dependants under the Veterans' Support Act 2014 and associated regulations and to the provision for grandparented loans of the differential between 3% or 5% Rehabilitation Loan rate and the current market rate as set out in the Rehabilitation Act 1941 for interest concessions on land and buildings.

Expenses#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 109,509 107,409 97,856

What is Intended to be Achieved with this Appropriation#

This appropriation currently supports over 13,000 veterans, surviving spouses, partners and children through the ongoing payment of entitlements under the Veterans' Support Act 2014 and associated regulations.

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 performance information is unlikely to be informative.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Manufacture and Installation of Headstones and Plaques 2016/17 - 420 397 375 355

Reasons for Change in Appropriation#

The appropriation decreased by $11.653 million to $97.856 million for 2016/17. This decrease between 2015/16 and 2016/17 relates to:

  • $7.629 million due to forecast reductions in the number of recipients of this service, and
  • $4.444 million less funding in 2016/17 due to the transfer of activities to Veterans' Independence Programme as from 7 December 2015.

This reduction is partly offset by:

  • new funding of $420,000 to fund the manufacture and installation of Veteran Headstones and Plaques.

3.4 - Non-Departmental Other Expenses#

Debt Write-Down for Benefits and Other Unrequited Expenses (M75)#

Scope of Appropriation

This appropriation is limited to the write-down of Crown debtors administered by the New Zealand Defence Force due to the requirement to comply with Crown accounting policies and generally accepted accounting principles.

Expenses

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the write-down of Crown debtors by the NZDF.

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 performance information is unlikely to be informative.

Ex-Gratia Payments and Comprehensive Medical Assessments for Vietnam Veterans (M75)#

Scope of Appropriation#

This appropriation is limited to the ex-gratia payments to Vietnam veterans and/or members of their family with accepted conditions and for the annual comprehensive medical assessments for Vietnam veterans.

Expenses#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 950 950 1,100

What is Intended to be Achieved with this Appropriation#

As well as achieving the payment of ex-gratia payments and annual comprehensive medical assessments to eligible Vietnam veterans, it is intended that this appropriation will also allow for the monitoring of trends in the health and wellbeing of up to 3,000 Vietnam veterans and their families with the associated provision of this information to veterans.

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 for this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation#

The appropriation increased by $150,000 to $1.100 million in 2016/17. This increase reflects a one-off reduction in the 2015/16 year.

Conditions on Use of Appropriation#

Reference Conditions
Accepted Conditions A condition of the Institute of Medicine of the United States National Academy of Sciences 'Sufficient Evidence of Association' list, or one of the five conditions accepted as being related to parental dioxin exposure.
Comprehensive Medical Assessments An assessment of the impact of service and exposure to a toxic environment on Vietnam veterans.

Fair Value Write Down on Veteran Trust Loans and Thirty-Year Endowment (M75)#

Scope of Appropriation#

This appropriation is limited to providing for the fair value write down on the Veteran Trust loans and the thirty-year endowment to the Vietnam Veterans and their Families Trust.

Expenses#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 203 203 203

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the fair value write-down on the Veteran Trusts' Loans and the thirty-year endowment to the Vietnam Veterans and their Families Trust.

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 performance information is unlikely to be informative.

Veteran Assistance to Attend Commemorations and Revisit Battlefields (M75)#

Scope of Appropriation#

This appropriation is limited to providing assistance to veterans to enable them to attend official commemorations or revisit battlefields.

Expenses#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 400

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve increased support for veterans to attend commemorations and revisit battlefields over the Vietnam 50th anniversary commemoration period and beyond.

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 for this annual appropriation for a non-departmental other expense is less than $5 million.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Increased support for Contributions to Veterans' Commemorative Activities 2016/17 - 400 340 200 200

Reasons for Change in Appropriation#

This is the first year for this appropriation.

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

Multi-Category Expenses and Capital Expenditure#

Advice to the Government (M22)

Overarching Purpose Statement

The overarching purpose of this appropriation is to support Ministers in discharging their portfolio responsibilities.

Scope of Appropriation

Departmental Output Expenses
Policy Advice
This category is limited to the provision of advice (including second opinion advice and policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to defence and the NZDF.
Situational Awareness
This category is limited to the provision of effective military intelligence services to the Government in support of decision-making for the defence and security of New Zealand.
Supporting Ministers
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.

Expenses, Revenue and Capital Expenditure

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

9,125 9,065 9,605

Departmental Output Expenses

     
Policy Advice 3,520 3,501 3,664
Situational Awareness 3,795 3,771 4,020
Supporting Ministers 1,810 1,793 1,921

Funding for Departmental Output Expenses

     

Revenue from the Crown

9,125 9,125 9,605
Policy Advice 3,520 3,520 3,664
Situational Awareness 3,795 3,795 4,020
Supporting Ministers 1,810 1,810 1,921

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of policy advice, situational awareness and support to Ministers in discharging their portfolio responsibilities.

How Performance will be Assessed for this Appropriation

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The supply of high quality individual products, as shown in the tables below

Meet Met Meet

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Policy Advice

     

This category is intended to achieve the provision of accurate, timely and responsive policy advice.

     

The provision of policy advice to the Government and contribution to policy advice led by other agencies that is accurate, timely and offers practical and cost-effective approaches to fulfil the Government's defence priorities.

Meet Met Meet

The satisfaction of the Minister of Defence with the policy advice service, as per the common satisfaction survey.

At least 90% At least 90% At least 90%

Technical quality of policy advice papers assessed by a survey with a methodical robustness of 90%. (The higher the robustness score, the stronger the methodical quality of the completed assessment).

At least an average of 70% At least an average of 70% At least an average of 70%

The total cost per hour of producing policy advice outputs.

At most $150 At most $150 At most $150

Situational Awareness

     

This category is intended to achieve the provision of timely, accurate and high-quality intelligence support.

     

The percentage of timely and high-quality reports that meet expectations to inform the Government of matters of foreign defence interest and support the Government's decision-making processes.

Not less than 90% Not less than 90% Not less than 90%

Supporting Ministers

     

This category is intended to achieve the provision of quality and timely support to Ministers.

     

The percentage of timely, accurate and high-quality advice that meets expectations to support Ministers of Defence and Veterans' Affairs portfolios and meets legislative obligations.

Not less than 90% Not less than 90% Not less than 90%

End of Year Performance Reporting

Performance will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 59 166 166 166
Share of costs for Budget 2015 whole-of-government initiative 2015/16 (16) (15) (12) (8) (8)

Reasons for Change in Appropriation

This appropriation increased by $480,000 to $9.605 million in 2016/17. This increase between 2015/16 and 2016/17 relates to:

  • a fiscally neutral transfer of $464,000 from other appropriations to align the resource requirements with demand and activities, and
  • funding of $303,000 as a result of the Defence Mid-Point Rebalancing Review.

This increase was partly offset by:

  • less carry forward funding of $287,000 from prior years than was received in 2015/16.

Operations Contributing to New Zealand's Security, Stability and Interests (M22)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is the employment of New Zealand's Armed Forces overseas at the Government's direction.

Scope of Appropriation#

Departmental Output Expenses

Military Operations in Support of a Rules-Based International Order
This category is limited to the costs of generating operational military capabilities and the employment of the New Zealand Armed Forces for the conduct of operations, as directed by the Government.
Military Operations that Contribute to Regional Security
This category is limited to the costs of providing specialised support to all-of-government efforts to maintain security and stability in New Zealand's immediate neighbourhood including responses to events that impact on the safety and wellbeing of regional populations, as directed by the Government.

Expenses, Revenue and Capital Expenditure#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

49,934 49,934 40,659

Departmental Output Expenses

     
Military Operations in Support of a Rules-Based International Order 41,434 41,434 40,156
Military Operations that Contribute to Regional Security 8,500 8,500 503

Funding for Departmental Output Expenses

     

Revenue from the Crown

49,438 49,438 40,132
Military Operations in Support of a Rules-Based International Order 40,983 40,983 39,674
Military Operations that Contribute to Regional Security 8,455 8,455 458

Revenue from Others

496 496 527
Military Operations in Support of a Rules-Based International Order 451 451 482
Military Operations that Contribute to Regional Security 45 45 45

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enhance all-of-government capacity to respond to regional crises and contribute to military operations in support of a rules-based international order.

How Performance will be Assessed for this Appropriation#

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Operations Contributing to New Zealand's Security, Stability and Interests MCA

     

Achieve the conduct of military operations and other tasks that support the Government's strategic interests

Meet Met Meet

Enhance all-of-government capacity to respond to regional crises

Meet Met Meet

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Military Operations in Support of a Rules-Based International Order

     

This category is intended to achieve the provision of operations that contribute to New Zealand's security, stability and interests.

     
Performance will be assessed on the maintenance of the Government's military commitments to the missions shown below (as at 1 April 2016):
     

Contribute to United Nations Mission UNTSO (Middle East) [Operation Scoria]

Meet Met Meet

Contribute to United Nations Mission UNMISS (South Sudan) [Operation Sudden]

Meet Met Meet

Contribute to United Nations Mission UNCMAC (Republic of Korea) [Operation Monitor]

Meet Met Meet
Lead and contribute to regional contingency military operations, as listed (No mandated operations)
     

Contribute military forces to MFO Sinai (Operation Farad)

Meet Met Meet

Contribute military forces to Operation Ariki (Afghanistan) [Operation Rua II]

Meet Met Meet

Contribute liaison officers to CENTCOM (Tampa, Florida, USA)

Meet Met Expired Measure (incl in International Engagement)

Contribute military forces to Operation Troy (Middle East)

Meet Met Meet

Contribute military forces to Operation Takapu (Air Component - Gulf of Aden) with effect from December 2014

Meet Met Expired Measure. (Operation completed Dec 2015)

Contribute military forces to Operation Pukeko (NZDF officers in Headquarters and Support Staff, Middle East)

Meet Met Meet

Contribute military forces to Operation Haku (Gulf of Aden) with effect May 2015

Meet Met Expired Measure. (Operation completed Aug 2015)

Contribute to Operation Mohua (Middle East)

Meet Met Meet

Contribute to Operation Manawa (Iraq)

Meet Met Meet

Contribute to Operation Teal (Middle East)

New Measure New Measure Meet

Military Operations that Contribute to Regional Security

     

This category is intended to achieve the provision of operations that contribute to New Zealand's security, stability and interests.

     

Percentage of the agreed notice to move met for a Joint Task Force comprising relevant force elements and military capabilities to assist with regional humanitarian assistance and disaster relief missions when directed.

100% 100% 100%

Percentage of the agreed notice to move met for strategic airlift and sealift capabilities to assist with regional non-combatant evacuation operations when not deployed on military operations elsewhere.

100% 100% 100%

Percentage of the agreed notice to move met for a specialised, high-readiness task group, with integral airlift and/or sealift capabilities available to act independently or with regional security partners to assist regional nations restore law and order and provide immediate aid to the population.

100% 100% 100%

End of Year Performance Reporting#

Performance will be reported by the Chief of Defence in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 205 704 704 704

Reasons for Change in Appropriation#

The appropriation decreased by $9.275 million to $40.659 million for 2016/17. This decrease between 2015/16 and 2016/17 relates to:

  • funding for Building Partner Capabilities operation winding down in 2016/17 and being $5.679 less than for 2015/16
  • a fiscally neutral transfer of $5 million funding 2015/16 only for the extension of NZDF's response to Cyclone Winston in Fiji, and
  • a carry forward of $127,000 less to 2016/17 than was applied to 2015/16.

This decrease is partly offset by:

  • funding of $1.500 million as a result of the Defence Mid-Point Rebalancing Review, and
  • increased funding of $31,000 in 2016/17 due to the extension of the Multinational Force and Observer operations.

Policy Advice And Other Services For Veterans (M75)#

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, and the provision of services and payments to veterans.

Scope of Appropriation#

Departmental Output Expenses

Administration Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities, the coordination of commemorations, the provision of administration services to relevant boards and committees and the administration of contracts for service for maintenance and development work carried out in Service Cemeteries.
Policy Advice
This category is limited to the provision of policy 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 Veterans' Affairs.
Services and Payments to Veterans
This category is limited to the assessment, review and payment of entitlements and benefits (War Disablement Pensions and related concessions, and allowances and Surviving Spouse Pensions), the assessment and review of entitlement for burial in Service Cemeteries, the installation of ex-service memorials for eligible veterans, and the provision of case management for veterans and their families.

Expenses, Revenue and Capital Expenditure#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

10,411 10,411 9,181

Departmental Output Expenses

     
Administration Services 3,104 3,104 2,812
Policy Advice 221 221 222
Services and Payments to Veterans 7,086 7,086 6,147

Funding for Departmental Output Expenses

     

Revenue from the Crown

9,934 9,934 9,181
Administration Services 3,104 3,104 2,812
Policy Advice 221 221 222
Services and Payments to Veterans 6,609 6,609 6,147

Revenue from Others

477 477 -
Services and Payments to Veterans 477 477 -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the provision of policy advice, other support to Ministers in discharging their policy decision making and other portfolio responsibilities, and the provision of services and payments to veterans.

How Performance will be Assessed for this Appropriation#

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Policy Advice and Other Services for Veterans MCA

     

The degree of satisfaction expressed by veterans requesting assistance

Meet Met Meet

Regular evaluation of significant issues, the capacity to react to requests for assistance and the provision of adequate support from the resources available

Meet Met Meet

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Administration Services

     

This category is intended to achieve the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision making) responsibilities, assisting with the coordination of commemorations and the provision of administration services to relevant boards and panels and contracts for work carried out in Services Cemeteries.

     
Provide Ministerial Servicing and Support:
     

Replies to requests within 20 working days, if not otherwise agreed

95% 95% 95%

Responses accepted without substantive amendment

95% 95% 95%
Provide Administration to Boards and Panels as set out in the Veterans' Support Act 2014
     

Arrangements and actions meet Board/Panel requirements

100% 100% 100%
Administration of maintenance and development agreements and contracts for service for Services Cemeteries
     

Contracts to be current, legally correct and clearly specify maintenance and development requirements

100% 100% 100%

Services cemeteries will have maintenance agreements specifying the maintenance standards in place

100% 100% 100%
Assist with the coordination of New Zealand's participation in the commemoration of significant military anniversaries:
     

Participation will be delivered in accordance with agreed parameters and budget

Meet Met Meet

Policy Advice

     

This category is intended to achieve the provision of policy advice to the Minister to support decision making by the Minister on Government policy matters relating to Veterans' Affairs.

     

Replies to requests within 20 working days, if not otherwise specified

95% 95% 95%

The first drafts of all policy products presented to the Minister will be accepted

95% 95% 95%

The satisfaction of the Minister of Veterans' Affairs with the policy advice service, as per the common satisfaction survey

80% 80% 80%

Services and Payments to Veterans

     

This category is intended to achieve the assessment, determination, review and appeal of entitlements and services to veterans and their spouses, children and dependants, provided for under the Veterans' Support Act 2014 (including grand-parented entitlements and services under the repealed War Pensions Act 1954 where claims were lodged before 7 December 2014), the assessment and review of eligibility for burial in Services Cemeteries, the installation of ex-service memorials for eligible veterans, and the provision of case management services for veterans and their families.

     
Assessments and Reviews:
     

Where all information is provided, Veterans' Affairs will make a decision on the claim within 30 working days of it being received

100% 100% 100%

All amendments to and replacements of, Statements of Principles (SOPs), are reported to the Veterans' Health Advisory Panel for consideration and decisions by the Minister of Veterans' Affairs regarding adoption

100% 100% 100%

Reviews will be completed within three months of receipt

100% 100% 100%
Provide Ex-Service Memorial Plaques and Headstones for Eligible Veterans:
     

Ex-Service memorials will be factually correct, meet technical specifications as contracted and be correctly installed

99.5% 99.5% 99%

Where correct documentation has been supplied with the application, an ex-service memorial will be manufactured and installed within four months of receipt of the order

90% 90% 90%
Provide Case Management:
     

Within five working days of accepting a veteran's claim for entitlements Veterans' Affairs must appoint a Case Manager

95% 95% 95%

Combined annual Veteran Survey rating of Case Management interaction either excellent, very good or good is at least 95%

95% 95% 70%

Within 13 weeks after Veterans' Affairs accepts a veteran's claim for entitlements under Scheme One or Two, Veterans' Affairs in association with the Rehabilitation Advisor must determine whether the veteran is likely to need social or vocational rehabilitation and if so prepare a rehabilitation plan in consultation with the veteran

100% 100% 100%
Deal with Enquiries:
     

Calls will be resolved on first contact

90% 90% 80%

Calls will be resolved within five working days

100% 100% 100%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented to the House.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 56 159 159 159
Support for Veterans' Commemorative Activities 2015/16 200 - - - -
Government Response to Law Commission's Report on War Pensions Act 1954 2012/13 570 487 - - -

Reasons for Change in Appropriation#

The appropriation decreased by $1.230 million to $9.181 million for 2016/17. This decrease between 2015/16 and 2016/17 relates to:

  • a transfer of departmental funding of $477,000 for the manufacture and installation of headstones and plaques to the non-departmental appropriation Veterans Support Entitlement
  • a fiscally neutral transfer of $384,000 to other appropriations to align the resource requirements with demand and activities
  • $200,000 less in 2016/17 for a one off funding support for commemorative activities in 2015/16
  • $92,000 less carry forward funding from prior years
  • $50,000 reduction in departmental funding due to a transfer to a new Veteran Assistance to Attend Commemorations and Revisit Battlefields appropriation, and
  • $27,000 less funding in 2016/17 from the Defence Mid-Point Rebalancing Review.

Conditions on Use of Appropriation#

Reference Conditions
Extant Policy Policy complies with the War Pensions Act 1954 and Veterans' Support Act 2014
Technical specifications for ex-service memorials Ex- service memorials must meet specified size, material composition and finish as per the relevant contract specifications.
Eligibility of ex-service memorials Decision on eligibility for ex-service memorials will be made on the basis of Section 15 of the Burial and Cremation Act 1964.

Protection of New Zealand and New Zealanders (M22)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to protect New Zealand's sovereignty and provide security and other services for New Zealanders.

Scope of Appropriation#

Departmental Output Expenses

Assistance to the Civil Power and Provision of a Public Service in Emergency Situations
This category is limited to the costs of specialist military capabilities and Defence Force resources provided to the civil power in an emergency and for urgent work of national importance.
Defence International Engagement
This category is limited to the provision of services and utility of the Defence Force to support foreign policy objectives that strengthen security and avert conflict.
Defence Support to the Community
This category is limited to the costs of providing Defence Force resources for the betterment of the community at large and to inform the public's awareness of the proficiency and practice of the Armed Forces.
Military Assistance to Civil Authorities in Non-Emergency Situations
This category is limited to the costs of Defence Force resources, services and non-emergency assistance periodically provided to the Government and civil authorities.
Resource and Border Protection Operations
This category is limited to the sharing of information and provision of resources to support all-of-government efforts to protect New Zealand's borders and offshore maritime interests.

Expenses, Revenue and Capital Expenditure#

  2015/16 2016/17
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

430,412 428,873 444,963

Departmental Output Expenses

     
Assistance to the Civil Power and Provision of a Public Service in Emergency Situations 69,424 69,165 71,400
Defence International Engagement 96,899 96,778 100,529
Defence Support to the Community 46,203 45,489 49,383
Military Assistance to Civil Authorities in Non-Emergency Situations 34,549 34,487 34,453
Resource and Border Protection Operations 183,337 182,954 189,198

Funding for Departmental Output Expenses

     

Revenue from the Crown

420,826 420,826 435,377
Assistance to the Civil Power and Provision of a Public Service in Emergency Situations 69,362 69,362 71,338
Defence International Engagement 94,256 94,256 97,886
Defence Support to the Community 39,869 39,869 43,049
Military Assistance to Civil Authorities in Non-Emergency Situations 34,549 34,549 34,453
Resource and Border Protection Operations 182,790 182,790 188,651

Revenue from Others

9,586 9,586 9,586
Assistance to the Civil Power and Provision of a Public Service in Emergency Situations 62 62 62
Defence International Engagement 2,643 2,643 2,643
Defence Support to the Community 6,334 6,334 6,334
Resource and Border Protection Operations 547 547 547

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to contribute to the protection of New Zealand's sovereignty and the provision of security for New Zealanders.

How Performance will be Assessed for this Appropriation#

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The degree of satisfaction expressed by authorities requesting assistance in accordance with their annual programmes

100% 100% 100%

Regular evaluation of significant issues, the capacity to react to requests for assistance and the provision of adequate support from the limited resources available

Meet Met Meet

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

  2015/16 2016/17
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Assistance to the Civil Power and Provision of a Public Service in Emergency Situations

     

This category is intended to achieve the contribution to all-of-government efforts that provide for public safety, protection of national infrastructure, emergency response and recovery operations in order to satisfy critical humanitarian needs.

     

Percentage of the levels of operational capability and readiness as directed met to maintain the national counter-terrorist capability.

100% 100% 100%

Percentage of the levels of operational capability and readiness as directed met to generate the necessary capabilities to deal with complex chemical, biological, radiological, explosives and improvised explosive devices and maintain the readiness of the national response capability in support of the New Zealand Police.

100% 100% 100%

Percentage of agreed notice to move met for the specialised Counter-Terrorist Group to respond to New Zealand Police requests for assistance.

100% 100% 100%

Percentage of agreed notice to move met for the specialised Explosive Ordnance Disposal Squadron to respond to requests to assist New Zealand Police operations.

100% 100% 100%

Subject to the availability of resources, the percentage of requests met to assist New Zealand Police law enforcement operations.

100% 100% 100%

Percentage of contingency forces and specialised military capabilities available to assist the civil power deal with major disasters when not deployed on operations.

100% 100% 100%

Percentage of agreed notice to move met for specialised military capabilities to assist the civil power to conduct search and rescue and recovery operations within New Zealand and the maritime search and rescue and regional rescue coordination centre areas.

100% 100% 100%

Percentage of contingency plans in place to assist the civil power evacuate persons from high-risk environments in New Zealand.

100% 100% 100%

Percentage of requests met to augment the capacity of the New Zealand Fire Service and Rural Fire Authority to deal with a wide range of incidents involving safety of life, protection of property and related actions to mitigate the effects of fire.

100% 100% 100%

Percentage of contingency plans in place to assist the civil power mitigate the effects of a maritime disaster and degradation of the marine environment.

100% 100% 100%

Percentage of contingency plans in place to assist the civil power within the agreed notice to move to conduct aeromedical evacuation and medical rescue at sea at the Government's direction.

100% 100% 100%

Subject to availability of resources, the percentage of requests met for specialised military capabilities to assist New Zealand Police operations to maintain law and order and public safety.

100% 100% 100%

Percentage of contingency plans in place to mobilise the Armed Forces to assist the Department of Corrections to maintain the integrity of prisons when normal custodial arrangements fail.

100% 100% 100%

Percentage of NZDF participation in central and local governments' planning and multi-agency training exercises to enhance the all-of-government preparedness for responses to community-scale crises.

100% 100% 100%

Defence International Engagement

     

This category is intended to support foreign policy objectives that strengthen security and avert conflict.

     

Ensure the programme of military engagement through a network of multilateral and bilateral military relationships provides for a range of interactions that informs Defence of emerging advances in military operations, provides for professional development, fosters interoperability and enhances the reputation of New Zealand and the NZDF.

Meet Met Meet

Percentage of exercises and related activities participated in that support the Government's foreign policy objectives through recognised alliance and other arrangements that foster peace and security.

100% 100% 100%

Percentage of approved Senior Officer visit programme completed that maintains a strong network of professional relationships and complements the Government's broader foreign policy objectives.

100% 100% 100%

Percentage of maritime deployments, exercises with security partners and ship visits to selected nations completed that are cognisant of the Government's foreign policy and defence engagement priorities and satisfies all-of-government efforts to enhance New Zealand's reputation.

100% 100% 100%

Percentage of regional activities participated in that contribute to the Government's foreign policy objectives to improve the resilience, economic and social wellbeing of Pacific Island nations.

100% 100% 100%

Percentage of multilateral and bilateral confidence and security building activities participated in that contribute to initiatives that prevent the proliferation of weapons of mass destruction and further New Zealand's foreign policy objectives, as directed by the Government.

100% 100% 100%

Percentage of resident and non-resident Defence representation maintained through the assignment of Defence Attaches and Advisers in host nations and in accordance with the Government's direction.

100% 100% 100%

The NZDF remains well-informed about defence doctrine and advances in defence-related technology through: 1. maintaining active participation in specific military fora to enable the NZDF to remain well-informed about military doctrine, current military operations and future changes and exchanges of information related to the profession-of-arms; and 2. maintaining a network of relationships with external scientific and technology organisations that contribute to the development of solutions for the Government, the Defence Force, and New Zealand's national security agencies and supports the provision of military capability and promotion of security.

Meet Met Meet

Defence Support to the Community

     

This category is intended to provide Defence Force resources for the betterment of the community at large and to inform the public's awareness of the proficiency and practice of the Armed Forces.

     

Percentage of satisfaction with the NZDF's provision of leadership and skills training for the New Zealand Cadet Forces to develop confident, responsible young citizens who are valued in their community by providing them with safe, enjoyable and challenging opportunities.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of the Ministry of Social Development requirements for trainees selected for Limited Service Volunteer courses to gain life skills, develop core values, teamwork and trust, which boost self-esteem and confidence.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of the Ministry of Education Youth Life Skills programme requirements for Service Academies and the provision of leadership development and outdoors adventure-based training opportunities within high schools.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of the Justice sector (Child, Youth and Family) to deliver the physical aspects of Military-Style Activity Camps and the development of discipline, routine and a sense of self-respect amongst the participants.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of the New Zealand Police Blue Light Trust with NZDF services to enhance the Trust's youth development programmes nationwide.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of Service Museum Trust Boards with NZDF support to Service Museums and the development, management and display of New Zealand's military history collections for the preservation of New Zealand's military history and culture for the enjoyment of future generations.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction to support significant national and local events that benefit the community through the provision of services at hui of significance and national and local events, including ceremonial and military displays that contribute to the success of the occasion and enhances the identity and professional reputation of the NZDF.

Not less than 90% Not less than 90% Not less than 90%

Military Assistance to Civil Authorities in Non-Emergency Situations

     

This category is intended to provide periodic Defence Force resources, services and non-emergency assistance to the Government and civil authorities.

     

Percentage of requests met to provide military guards, suitably tailored for the occasion, military bands and associated support to support State ceremonial activities that represent the nation and meet the Government's direction.

100% 100% 100%

Percentage of requests met to provide military guards, suitably tailored for the occasion, military bands and associated support to support significant military anniversaries, nationally recognised commemorative events and significant commemorative events overseas.

100% 100% 100%

Percentage of requests met to provide representational staff for the Viceregal House, military guards, suitably tailored for the occasion, military bands, air, land and sea transport and associated support for viceregal activities.

100% 100% 100%

Percentage of requests met to provide air, land and sea transport for members of the Government and guests of the State to support the Government's internal and external transportation requirements.

100% 100% 100%

Resource and Border Protection Operations

     

This category is intended to provide the sharing of information and provision of resources to support all-of-government efforts to protect New Zealand's borders and offshore maritime interests.

     

Percentage of information on maritime traffic, suitably adapted for civil needs, that is passed to the National Maritime Coordination Centre in an actionable timeframe so that government agencies are informed of activities going-on in the maritime zones of national interest to New Zealand.

100% 100% 100%

Percentage of the total agreed pre-planned air surveillance tasks requested by the National Maritime Coordination Centre met.

Not less than 90% Not less than 90% Not less than 90%

Percentage of the total air surveillance response tasks requested by the National Maritime Coordination Centre within the agreed notice to move to meet the Centre's requirement to investigate vessels of interest and respond to actual or potential non-compliance with New Zealand and international legislation met.

Not less than 90% Not less than 90% Not less than 90%

Percentage of the total agreed pre-planned maritime tasks requested by the National Maritime Coordination Centre met.

Not less than 90% Not less than 90% Not less than 90%

Percentage of the total response tasks requested by the National Maritime Coordination Centre within the agreed notice to move to meet the Centre's requirement to investigate vessels of interest and respond to actual or potential non-compliance with New Zealand and international legislation met.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of the NZDF's specialised military capabilities to support Antarctic New Zealand's operations in New Zealand and on the Antarctic continent, including contributions to the joint United States/New Zealand logistics pool to support New Zealand's right to sovereignty over the Ross Dependency and continuous presence on the Antarctic continent.

Not less than 90% Not less than 90% Not less than 90%

Percentage of satisfaction of the Ministry of Foreign Affairs and Trade for the NZDF's provision of specialised military capabilities to support New Zealand's efforts to manage marine living resources on and about the Antarctic continent.

Not less than 90% Not less than 90% Not less than 90%

Percentage of total pre-planned tasks requested by the National Maritime Coordination Centre to conduct pre-planned missions to service the offshore islands and demonstrate New Zealand's sovereignty met.

Not less than 90% Not less than 90% Not less than 90%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Chief of Defence Force in the NZDF Annual Report for the year ended 30 June 2017 to be presented in the House.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2015/16
Final Budgeted
$000
2016/17
Budget
$000
2017/18
Estimated
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
Defence Mid-Point Rebalancing Review - Funding Track 2016/17 - 2,895 8,163 8,163 8,163
Share of costs for Budget 2015 whole-of-government initiative 2015/16 (915) (878) (631) (475) (475)

Reasons for Change in Appropriation#

The appropriation increased by $14.551 million to $444.963 million for 2016/17. This increase between 2015/16 and 2016/17 relates to:

  • a fiscally neutral transfer of $6.613 million from other appropriations to align the resource requirements with demand and activities
  • a carry forward of $6.462 million from prior years
  • funding of $1.439 million from the Defence Mid-Point Rebalancing Review, and
  • a reduction of $37,000 in the contribution towards the share of the costs for Budget 2015 whole-of-government initiative.