Estimates of appropriations

Vote Economic Development and Employment - Economic Development and Infrastructure - Estimates 2014/2015

Formats and related files

APPROPRIATION MINISTER(S): Minister for Tertiary Education, Skills and Employment (M14), Minister for Economic Development (M25), Minister for Small Business (M62)

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#

The Minister for Economic Development is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

  • a total of just over $20 million for co-ordination of the departmental response to the Canterbury recovery, and improving and leading the public sector economic procurement reform programme
  • a total of just under $44 million for departmental capital expenditure
  • a total of just over $72 million for non-departmental other and MYA expenditure
  • a total of just over $10 million for non-departmental MYA capital expenditure, and
  • a total of just under $218 million for multi-category expenses and capital expenditure.

The Minister for Tertiary Education, Skills and Employment is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

  • a total of just under $3 million for provision of employment sector information including facilitiation services
  • a total of just over $2 million for non-departmental output expenditure.

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

Estimates of Appropriations#

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations

2013/142014/15
Titles and Scopes of Appropriations by Appropriation TypeBudgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

Canterbury Recovery (M25)

This appropriation is limited to the co-ordination, and management of MBIE's contribution to the Canterbury recovery.
--2,557

Employment Sector Analysis and Facilitation (M14)

This appropriation is limited to the provision of employment information, facilitation and matching services, analysis of the functioning of the labour market, and of the economic performance of sectors and regions.
--2,894

Implementation of Improvements in Public Sector Procurement and Services to Business (M25)

This appropriation is limited to improving and leading the public sector procurement reform programme and reducing the costs for and improving the service experience of businesses interacting with government.
--17,517

Enhancing Small Business Capability and Performance (M62)

This appropriation is limited to development of operational policies to lift the capability and performance of Small to Medium Enterprises and services to support the Minister.
221221-

Labour Market Information and Facilitation Services (M14)

This appropriation is limited to the provision of information and regional and sector engagement on labour market effectiveness and employment.
3,1903,190-

Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development (M25)

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 relating to policy areas of development, evaluation and overview of economic, industry and regional development policies and initiatives to achieve short and long term economic growth and stability, and improving and leading the public sector procurement policy.
18,44618,446-

Policy Advice - Small Business (M62)

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 relating to areas of development, coordination and implementation of policies and programmes that affect Small to Medium Enterprises.
1,4251,425-

Policy Advice and Related Outputs MCOA (M14)

5,8385,838-
Labour Market Policy Advice
This output class 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 relating to the labour market and employment policy.
5,0335,033-
Ministerial Services
This output class is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
805805-

Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M25)

This appropriation is limited to development of operational policies to achieve short and long term economic growth and stability, services to support the Minister, monitoring the performance and compliance of Crown Entities, administering grants programmes, providing support for statutory bodies and improving and leading the public sector procurement practises.
19,16019,160-

Total Departmental Output Expenses

48,28048,28022,968

Departmental Capital Expenditure

Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Business, Innovation and Employment, as authorised by section 24(1) of the Public Finance Act 1989.
67,74367,74343,772

Total Departmental Capital Expenditure

67,74367,74343,772

Non-Departmental Output Expenses

Maori and Pasifika Trades Training Consortia (M14)

This appropriation is limited to funding Maori and Pasifika Trades Training consortia to provide project management, co-ordination and evaluation.
--2,319

International Business Growth Services (M25)

This appropriation is limited to helping firms export and internationalise by identifying and exploiting market and investment opportunities; overcoming internationalisation barriers; providing customised advice and support; and enabling access to international business networks.
104,630104,630-

Investment Fund Management (M25)

Operational costs of the Venture Investment and Seed Co-investment Funds.
2,3302,330-

Services to Develop Business Capability (M25)

This appropriation is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information.
13,44413,444-

Services to Support Sector Development and Special Events (M25)

This appropriation is limited to securing and capitalising on significant economic development opportunities for New Zealand, with a focus on sectors and special events.
31,86731,867-

Total Non-Departmental Output Expenses

152,271152,2712,319

Non-Departmental Other Expenses

Depreciation on Auckland's Queens Wharf (M25)

This appropriation is limited to depreciation expenses associated with Auckland's Queens Wharf.
2,0002,0002,000

Film New Zealand (M25)

This appropriation is limited to the operation of an independent structure for Film New Zealand, developing a marketing plan for the film sector and coordination of regional film offices.
1,3001,3001,300

Major Events Development Fund (M25)

This appropriation is limited to support for major events that provide economic, social, cultural and international profiling benefits to New Zealand.
13,9838,18310,000

Management Development Fund (M25)

This appropriation is limited to assistance to address the management capability gap in New Zealand, through the commissioning of research, stimulation of business interest and supply of management development services.
756756756

Regional and Industry Development Fund (M25)

This appropriation is limited to the provision of funding to support industry and regional specific projects that are intended to contribute to economic growth.
1,3001,300400

Establishment and operation of the Food Innovation Network New Zealand (M25)

This appropriation is limited to the establishment and operation of the Food Innovation Network New Zealand.
1,506--

International Growth Fund (M25)

This appropriation is limited to support for high growth firms to undertake additional market development and business capability activities required for growth in new markets, that deliver benefits for both the firm and the wider New Zealand economy.
15,72715,727-

Large Budget Screen Production Fund (M25)

This appropriation is limited to assistance to film and television productions that spend over $15 million in New Zealand.
50,55640,556-

Promotion of New Zealand Associated with the America's Cup (M25)

This appropriation is limited to meeting costs associated with the proposed sponsorship of Team New Zealand's participation in the next multi-challenger America's Cup.
5,0005,000-

Regional Partnerships and Facilitation (M25)

Provision of advice and grants to support the development of business incubators and regional clusters, and to support regional partnerships to develop and implement sustainable economic growth strategies.
4,5564,556-

Sector Strategies and Facilitation (M25)

Assistance with the facilitation of specific sector initiatives, particularly in the areas of major events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other government programmes and cash grants.
1,2041,204-

Square Kilometre Array (M25)

This appropriation is limited to supporting New Zealand's engagement on the Square Kilometre Array project in collaboration with Australia.
1,3521,352-

Total Non-Departmental Other Expenses

99,24081,93414,456

Non-Departmental Capital Expenditure

Seed Co-investment Fund (M25)

Support the development of the market for early stage equity finance.
7,2507,250-

Venture Investment Fund (M25)

Capital Investment to accelerate the development of the New Zealand Venture Capital Market. Public funds will be co-invested with the private sector to increase the rate of formation of new businesses based on high added value goods and services.
15,00015,000-

Total Non-Departmental Capital Expenditure

22,25022,250-

Multi-Category Expenses and Capital Expenditure

Policy Advice and Related Outputs MCA (M25)

The single 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.
--24,239
Departmental Output Expenses
Ministerial Services - Employment
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy-making), relating to Employment.
--1,504
Ministerial Services - Small Business
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) relating to Small Business.
--217
Ministerial Services and Crown Entity Monitoring - Economic Development
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) including monitoring of Crown Entities and Statutory Bodies, relating to Economic Development.
--5,135
Policy Advice - Economic Development
This category 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 relating to Economic Development.
--10,448
Policy Advice - Employment
This category 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 relating to Employment.
--5,701
Policy Advice - Small Business
This category 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 relating to Small Business.
--1,234

Seed Co-Investment Fund MCA (M25)

The single overarching purpose of this appropriation is to provide capital to support the development of markets for early stage equity finance and venture capital.
--7,580
Non-Departmental Output Expenses
Investment Fund Management
This category is limited to operational Costs of the Venture and Seed Co-Investment Funds.
--2,330
Non-Departmental Capital Expenditure
Seed Co-Investment Fund
This category is limited to providing capital to support the development of the market for early stage equity finance.
--5,250

Support New Market Opportunities for High Growth New Zealand Firms and Sectors MCA (M25)

The single overarching purpose of this appropriation is to provide support to high growth firms and sectors in securing new market opportunities.
--30,916
Non-Departmental Other Expenses
International Growth Fund
This category is limited to supporting high growth firms to undertake additional market development and business capability activities required for growth in new markets, that deliver benefits for both the firm and the wider New Zealand economy.
--29,712
Sector Strategies and Facilitation
This category is limited to assistance with the facilitation of specific sector initiatives, particularly in areas of major events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other government programmes and cash grants.
--1,204

Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA (M25)

The single overarching purpose of this appropriation is to provide support for the growth and development of New Zealand firms, sectors and regions to maximise international business opportunities.
--155,259
Non-Departmental Output Expenses
International Business Growth Services
This category is limited to helping firms export and internationalise by identifying and exploiting market and investment opportunities; overcoming internationalisation barriers; providing customised advice and support; and enabling access to international business networks.
--111,006
Services to Support Sector Development and Special Events
This category is limited to securing and capitalising on significant economic development opportunities for New Zealand, with a focus on sectors and special events.
--31,072
Services to Support the Growth and Development of New Zealand Businesses
This category is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information.
--13,181

Total Multi-Category Expenses and Capital Expenditure

--217,994

Total Annual and Permanent Appropriations

389,784372,478301,509

Multi-Year Appropriations

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

Non-Departmental Other Expenses

New Zealand Screen Production Grant – International (M25)

This appropriation is limited to providing grant assistance to screen productions that are internationally focused and produced in New Zealand.

Commences: 01 July 2014

Expires: 30 June 2019

Original Appropriation252,780
Adjustments for 2012/13-
Adjustments to 2013/14-
Adjusted Appropriation252,780
Actual to 2012/13 Year End-
Estimated Actual for 2013/14-
Estimated Actual for 2014/1557,650
Estimated Appropriation Remaining195,130

Non-Departmental Capital Expenditure

Venture Investment Fund (M25)

This appropriation is limited to capital Investment to NZVIF to accelerate the development of the New Zealand Venture Capital Market.

Commences: 01 July 2014

Expires: 30 June 2018

Original Appropriation37,453
Adjustments for 2012/13-
Adjustments to 2013/14-
Adjusted Appropriation37,453
Actual to 2012/13 Year End-
Estimated Actual for 2013/14-
Estimated Actual for 2014/1510,378
Estimated Appropriation Remaining27,075

Capital Injection Authorisations

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Ministry of Business, Innovation and Employment - Capital Injection (M25)45,41645,41649,045

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy InitiativeAppropriation2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Better Public Services Seed Funding - Banking Services CategoryPolicy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development587---
Better Public Services Seed Funding - Result 9Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development4,0004,000---
Sports NZ for the 2015 ICC Cricket World CupMajor Events Development Fund(5,000)----
Development West CoastRegional and Industry Development Fund500----
NZ Screen Production GrantNew Zealand Screen Production Grant - International MYA-57,65086,80050,55657,774
Large Budget Screen Production Grant-(50,556)(50,556)(50,556)(50,556)
Canterbury Recovery ResponseCanterbury Recovery-2,5572,557--
Government-to-Government Partnerships OfficeSupport the Growth and Development of New Zealand Firms, Sectors and Regions MCA - Services to Support Sector Development and Special Events-1,000---
Interim Investment in Team New ZealandPromotion of New Zealand's Association with the America's Cup5,000----
Square Kilometre Array transfer to Vote Science and InnovationSquare Kilometre Array(109)(977)---
Saudi Agrihub PartnershipSupport the Growth and Development of New Zealand Firms, Sectors and Regions MCA - International Business Growth Services3,0502,700---
Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA - Services to Support Sector Development and Special Events(750)----
Saudi Agrihub Partnership - MFAT ContributionSupport the Growth and Development of New Zealand Firms, Sectors and Regions MCA - International Business Growth Services-1,500---
Financial Markets Conduct Act 2013 funding for RegistersMinistry of Business, Innovation and Employment - Capital Injection1,568
Savings due to the formation of the new MinistryEmployment Sector Analysis and Facilitation-(58)(58)(58)(58)
Implementation of Improvements in Public Sector Procurement and Services to Business-(298)(298)(298)(298)
Policy Advice and Related Outputs MCA - Ministerial Services - Employment-(21)(21)(21)(21)
Policy Advice and Related Outputs MCA - Ministerial Services - Small Business-(4)(4)(4)(4)
Policy Advice and Related Outputs MCA - Policy Advice - Economic Development-(248)(248)(248)(248)
Policy Advice and Related Outputs MCA - Policy Advice - Employment-(113)(113)(113)(113)
Policy Advice and Related Outputs MCA - Policy Advice - Small Business-(31)(31)(31)(31)
New Zealand Trade and EnterpriseSupport the Growth and Development of New Zealand Firms, Sectors and Regions MCA - International Business Growth Services-7,00014,40014,40014,400
Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA - Services to Support Sector Development and Special Events-3,0005,4005,4004,000
Support New Market Opportunities for High Growth New Zealand Firms and Sectors MCA - International Growth Fund(12,800)----
Maori and Pacifika Trades Training ConsortiaMaori and Pacifika Trades Training Consortia-2,3192,3182,3181,985
Replacement of Refugee Resettlement FacilitiesMinistry of Business, Innovation and Employment - Capital Injection-9,000---
Establishment of the New Zealand Venture Investment Fund MYANew Zealand Venture Investment Fund MYA-10,37810,5188,2788,279
Venture Investment Fund-(10,378)(10,518)(8,278)(8,279)
Reprioritisation of Venture Investment FundVenture Investment Fund4,481--(2,240)(2,241)
Reprioritisation of International Growth FundInternational Growth Fund-(315)(700)--
Reprioritisation of Seed Co-Investment FundSeed Co-Investment Fund1,000(1,000)---
Total Initiatives1,52737,10559,44619,10524,589

Summary of Financial Activity#

2009/102010/112011/122012/132013/142014/152015/162016/172017/18
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 Expenses70,91281,5443,5152,7483,1903,19022,9682,31925,28715,18211,99511,662
Benefits or Related Expenses------N/A-----
Borrowing Expenses------------
Other Expenses149,398165,851146,09666,33182,30964,913-72,10672,106100,85663,61270,830
Capital Expenditure29,6037,2549,90747,00370,07370,07343,77210,37854,15044,62942,38942,390
Intelligence and Security Department Expenses and Capital Expenditure-------N/A----
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses
137,066138,649173,089169,017195,031195,03124,239157,589181,828188,781188,232186,732
Other Expenses
4,31420,67424,49629,07616,93116,931-30,91630,91630,53131,23131,231
Capital Expenditure
6,82912,97714,1866,83022,25022,250N/A5,2505,250---

Total Appropriations

398,122426,949371,289321,005389,784372,38890,979278,558369,537379,979337,459342,845

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.

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

2009/10
Adjustments
$000
2010/11
Adjustments
$000
2011/12
Adjustments
$000
2012/13
Adjustments
$000
2013/14
Budgeted
Adjustments
$000
2013/14
Estimated
Actual
Adjustments
$000

Appropriations

Output Expenses(137,066)(138,649)(173,089)(169,.017)(195,031)(195,031)
Benefits or Related Expenses------
Borrowing Expenses------
Other Expenses(4,314)(20,674)(24,496)(29,076)(16,931)(16,931)
Capital Expenditure(6,829)(12,977)(14,186)(6,830)(22,250)(22,250)
Intelligence and Security Department Expenses and Capital Expenditure------
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses
137,066138,649173,089169,017195,031195,031
Other Expenses
4,31420,67424,49629,07616,93116,931
Capital Expenditure
6,82912,97714,1866,83022,25022,250

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

Tax Revenue------
Non-Tax Revenue------
Capital Receipts------

Total Crown Revenue and Capital Receipts

------

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

Output Expenses

The following are the key initiatives that impact the trend:

  • the one off funding in 2010/11 for the Stadium Development appropriation of $27.900 million, and
  • the ceasing of funding at 30 June 2011 of the appropriations for Analysis and Development Services for Firms ($19.400 million), International Investment Facilitation Services ($13.600 million), Stadium Development ($27.900 million) and Standardised Training and Advisory Services ($10.900 million).

Non-Departmental Output Expenses

From 2009/10 to 2010/11 there was additional funding for participation at the 2010 Expo at Shanghai which was partially offset by savings from NZTE. From 2013/14 expenditure averages around $143 million.

Other Expenses

The following are the key initiatives that impact the trend:

  • funding for Market Development Fund ($35.100 million) and Negotiation and Completion of the Stadium Projects ($34 million) finishing at 30 June 2010
  • the phasing of the expenditure for the Large Budget Screen Production Fund (significant increase in 2010/11 of $70 million)
  • the phasing of the expenditure for Major Events Development Fund (ranging from $5 million to $14 million)
  • significant one off expenditure in 2010/11 for the Enterprise Development Fund ($13.700 million)
  • significant one off expenditure in 2011/12 for the Promotion of NZ associated with the America's Cup ($16 million), and
  • the finalisation of multi-year appropriations in 2011/12 for the Rugby World Cup and the Transformation Initiatives.

Capital Expenditure

The following are the key initiatives that impact the trend:

  • investment of $20 million for the purchase of Queens wharf in Auckland in 2009/10
  • the temporary Rugby World Cup festival building in 2010/11
  • the investment in the intellectual property of NZ (IPONZ) capital project, and
  • investment in other assets for the Ministry.

Multi-Category Output Expenses

The following are the key initiatives that impact the trend:

  • funding in 2011/12 for the Managed funds domicile
  • funding in 2011/12 for the Rugby World Cup
  • the ceasing of funding for the Identification and Coordination of Market Opportunities ($79 million) and Regional and Sector Development Services ($27.600 million) at 30 June 2011, and
  • the introduction of the following appropriations in 2011/12: International Business Growth Services ($100.900 million), Services to Develop Business Capability ($11.900 million) and Services to Support Sector Development and Special Events ($30.400 million).

Multi-Category Other Expenses

The trend here mainly reflects the phasing of the expenditure for the International Growth Fund appropriation.

Multi-Category Capital Expenditure

The trend here mainly reflects the funding profile for the non-departmental capital investment fund Seed Co-Investment Fund.

1.4 - Reconciliation of Changes in Appropriation Structure#

From 1 July 2014 the former Vote Economic Development and Vote Employment have been merged into Vote Economic Development and Employment.

The following table provides a detailed analysis of the appropriation restructure, which includes:

  • one departmental output appropriation transferred from Vote Employment to Vote Economic Development and Employment with a change of name
  • one departmental multi-class output appropriation transferred from Vote Employment to Vote Economic development and Employment to form part of the new departmental MCA, and
  • one departmental output MCA, one non-departmental output MCA, one non-departmental other expense MCA and one mixed non-departmental output and capital expense MCA have been established.

The analysis of the restructure does not include any appropriations that have not changed in title and scope, neither does the table include the conversion to multi-year appropriations of a non-departmental other expense and a non-departmental capital expenditure respectively:

  • Large Budget Screen Production Fund to New Zealand Screen Production Grant - International for the period 1 July 2014 to 30 June 2019, and
  • Venture Investment Fund to Venture Investment Fund for the period 1 July 2014 to 30 June 2018.
Old StructureNew Structure
2013/14 Appropriations
in the 2013/14 Structure
2013/14
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2013/14 Appropriations
in the 2014/15 Structure
2013/14
(Restated)
$000
2014/15
$000

Vote Employment

Vote Economic Development and Employment

Departmental Output Expenses
Departmental Output Expenses
Labour Market Information and Facilitation Services3,190Name change to: Employment Sector Analysis and Facilitation3,190Employment Sector Analysis and Facilitation3,1902,894

Vote Economic Development

Transferred to
Departmental Output Expenses

Policy Advice and Related Outputs MCA

Departmental Output Expenses

Policy Advice and Related Outputs MCA

Departmental Output Expenses
Enhancing Small Business Capability and Performance221Ministerial Services - Small Business221Ministerial Services - Small Business221217
Policy Advice - Small Business1,425Policy Advice - Small Business1,425Policy Advice - Small Business1,4251,234
Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development18,446Policy Advice - Economic Development11,327Policy Advice - Economic Development11,32710,448
Ministerial Services and Crown Entity Monitoring- Economic Development5,8655,135
Implementation of Improvements in Public Sector Procurements and Services to Business7,119

Vote Economic Development

Transferred to
Departmental Output Expenses
Policy Advice and Related Outputs MCOA

Policy Advice and Related Outputs MCA

Departmental Output Expenses
Ministerial Services805Ministerial Services - Employment805Ministerial Services - Employment8051,504
Labour Market Policy Advice5,033Policy Advice - Employment5,033Policy Advice - Employment5,0335,701

Vote Economic Development

Transferred to
Departmental Output Expenses
Departmental Output Expenses
Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring19,160Implementation of Improvements in Public Sector Procurements and Services to Business13,295Implementation of Improvements in Public Sector Procurements and Services to Business20,41417,517

Policy Advice and Related Outputs MCA

Departmental Output Expenses
Ministerial Services and Crown Entity Monitoring- Economic Development5,865

Multi-Category Appropriations

Vote Economic Development

Transferred to
Non-Departmental Output Expense

Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA

Non-Departmental Output Expense

Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA

Non-Departmental Output Expense
International Business Growth Services104,630International Business Growth Services104,630International Business Growth Services104,630111,006
Services to Develop Business Capability13,444Services to Support the Growth and Development of New Zealand Businesses13,444Services to Support the Growth and Development of New Zealand Businesses13,44413,181
Services to Support Sector Development and Special Events31,867Services to Support Sector Development and Special Events31,867Services to Support Sector Development and Special Events31,86731,072

Vote Economic Development

Transferred to
Non-Departmental Other Expenses

Support New Market Opportunities for High Growth New Zealand Firms and Sectors MCA

Non-Departmental Other Expenses

Support New Market Opportunities for High Growth New Zealand Firms and Sectors MCA

Non-Departmental Other Expenses
International Growth Fund15,727International Growth Fund15,727International Growth Fund15,72729,712
Sector Strategies and Facilitation1,204Sector Strategies and Facilitation1,204Sector Strategies and Facilitation1,2041,204

Vote Economic Development

Transferred to
Non-Departmental Output Expense

Seed Co-Investment Fund MCA

Non-Departmental Output Expense

Seed Co-Investment Fund MCA

Non-Departmental Output Expense
Investment Fund Management2,330Investment Fund Management2,330Investment Fund Management2,3302,330
Non-Departmental Capital Expenditure
Non-Departmental Capital Expenditure
Non-Departmental Capital Expenditure
Seed Co-Investment Fund7,250Seed Co-Investment Fund7,250Seed Co-Investment Fund7,2505,250

Totals

$224,732$224,732$224,732$238,405

The above changes reflect the implementation and restructure of Multi-Class Output appropriations (MCOAs) to Multi-Category appropriations (MCAs) as per the Public Finance Act amendments, and Vote Rationalisation.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Canterbury Recovery (M25)

Scope of Appropriation

This appropriation is limited to the co-ordination, and management of MBIE's contribution to the Canterbury recovery.

Expenses and Revenue

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--2,557
Revenue from the Crown--2,557
Revenue from Others---

 

Comparators for Restructured Appropriation

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Housing, Departmental Output Expense: Canterbury Earthquakes: Building and Housing Assistance2,5572,557-
Total2,5572,5572,557

 

What is Intended to be Achieved with this Appropriation

This appropriation is to coordinate the Ministry's contribution to the Canterbury recovery to contribute to productive and successful people, communities and regions.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The satisfaction of the Minister for Economic Development with the policy advice service, as per the common satisfaction survey.New measureNew measureSatisfied or very satisfied

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Transfer of the appropriation from Vote Housing2014/15-2,5572,557--

Reasons for Change in Appropriation

This appropriation was established as a result of a transfer of the response co-ordination part from Vote Housing. Coordination response spans activity within a range of Votes within the Ministry and also supports its engagement with agencies on the policy areas for which it has a leadership role. This is better aligned with Vote Economic Development and Employment.

Employment Sector Analysis and Facilitation (M14)#

Scope of Appropriation#

This appropriation is limited to the provision of employment information, facilitation and matching services, analysis of the functioning of the labour market, and of the economic performance of sectors and regions.

Expenses and Revenue#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--2,894
Revenue from the Crown--2,894
Revenue from Others---

 

Comparators for Restructured Appropriation#

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Vote Employment 

   

Departmental Output Expense

   
Labour Market Information and Facilitation Services3,1903,190-
Total3,1903,1902,894

 

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to contribute to skilled and safe workplaces; and productive and successful people, communities and regions.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Labour market information (such as the Household Labour Force Survey and 'Jobs Online') is published on the Ministry's website within agreed timeframes.New measureNew measure100% published within agreed timeframes
Labour market scorecard reports are delivered quarterly within agreed timeframes.New measureNew measure100% published within agreed timeframes

End of Year Performance Reporting#

The 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 InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Transfer of funding from Vote Employment to Vote Economic Development and Employment2014/15-5,2715,2735,3284,995
Maori And Pasifika Trades Training2014/15-(2,319)(2,318)(2,318)(1,985)
Reprioritisation Across Votes to Meet Cost Pressures2015/16--(55)--
Maori and Pasifika Trades Training2013/142,0002,0002,0002,0002,000
Efficiency Savings2012/13(106)(105)(105)(105)(105)
Vote Realignment to Reflect Changes to Cost Allocation and Reprioritisation2012/13(4,741)(4,663)(4,605)(4,605)(4,605)
New Zealand Productivity Commission2010/11(150)(150)(150)(150)(150)
Departmental Savings Budget 2009 Expenditure Review2009/10(1,538)(1,538)(1,538)(1,538)(1,538)

Reasons for Change in Appropriation#

This appropriation was previously named "Labour Market Information and Facilitation Services" under Vote Employment. The revised name more fairly reflects the scope of appropriation.

Implementation of Improvements in Public Sector Procurement and Services to Business (M25)#

Scope of Appropriation#

This appropriation is limited to improving and leading the public sector procurement reform programme and reducing the costs for and improving the service experience of businesses interacting with government.

Expenses and Revenue#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--17,517
Revenue from the Crown--10,915
Revenue from Others--6,602

 

Comparators for Restructured Appropriation#

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Vote Economic Development

   

Departmental Output Expense

   
Implementation of Improvements in Public Sector Procurement and Service to Business
   
Policy Advice - Sectoral Leadership and Development, Firm Capability and Regional Development  7,119 7,119 -
Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring 13,295 13,295 -
Total20,41420,41417,517

 

What is Intended to be Achieved with this Appropriation#

This appropriation is to improve procurement and commercial practices across government and lead and co-ordinate programmes that will reduce business costs from dealing with government.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Uptake of all-of-government contracts.Updated measureUpdated measure80% for public service agencies within 12 months of contract establishment. Participation in all-of-government contracts by state sector agencies (excluding Boards of Trustees) to increase year on year.
75% of participating agencies satisfied or very satisfied.
Meet the financial targets identified through the Government Procurement Reform agenda.Updated measureUpdated measureAgency savings $68.600 over financial year.
All-of-Government Income $7.248m over financial year.
Reduce business costs (using effort as proxy for costs) from dealing with government by 25% by 2017; government services to business have similar key performance ratings and leading private sector firms by 2017.New measureNew measureOn-going to 30 June 2017.

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 InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Establishment of the Appropriation2014/15-17,8157,7087,0237,023
Savings as a result of MBIE formation2014/15-(298)(298)(298)(298)

Reasons for Change in Appropriation#

This appropriation has been established from 1 July 2014.

Memorandum Account#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Government Procurement Reform Agenda

Opening Balance at 1 July(5,581)(5,581)(6,404)
Revenue13,69512,80412,497
Expenses(13,695)(13,627)(12,497)
Transfers and Adjustments---

Closing Balance at 30 June

(5,581)(6,404)(6,404)

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25)#

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Business, Innovation and Employment, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural---
Land---
Property, Plant and Equipment17,82917,82917,914
Intangibles49,91449,91425,858
Other---

Total Appropriation

67,74367,74343,772

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide funding for the Ministry of Business, Innovation and Employment's capital plan.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

The appropriation decreased by $23.971 million from 2013/14 to 2014/15. This is mainly due to the decrease in the funding profile for the Immigration Global Management System (IGMS).

Capital Injections and Movements in Departmental Net Assets

Ministry of Business, Innovation and Employment

Details of Net Asset Schedule2013/14
Estimated Actual
$000
2014/15
Projected
$000
Explanation of Projected Movements in 2014/15
Opening Balance144,459179,888
Capital Injections45,41649,045The increase is mainly due to $24.700 million relating to the Refugee Resettlement Facilities which is partially offset by a decrease of $20.311 million for the Immigration Global Management Systems, and $1.600 million for the Government Procurement Agenda memorandum account.
Capital Withdrawals(6,923)(6,323)Government Procurement Reform Agenda memorandum account withdrawal of $5.600 million in 2013/14 and $4 million in 2014/15. This is offset by a $1 million withdrawal in 2013/14 and $2 million in 2014/15 for the Companies Office memorandum account.
Surplus to be Retained (Deficit Incurred)(3,064)3,065The surplus of $3.065 million consists of forecast surpluses, off-set by forecast losses, contributed by memorandum accounts.
Other Movements13,716-

Closing Balance

193,604225,675

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Maori and Pasifika Trades Training Consortia (M14)

Scope of Appropriation

This appropriation is limited to funding Maori and Pasifika Trades Training consortia to provide project management, co-ordination and evaluation.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--2,319

 

Comparators for Restructured Appropriation

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Maori and Pasifika Trades Training Consortia

   
Vote Employment, Departmental Output Expense: Labour Market Information and Facilitation Services 1,0001,000-
Total1,0001,0002,319

 

What is Intended to be Achieved with this Appropriation

This appropriation is to provide funding to the Maori and Pasifika Trades Training consortia, contributing to productive and successful people, communities and regions.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of applications are assessed against eligibility and assessment criteria within agreed timeframes.New measureNew measure100%
Percentage of contracts assessed to achieve their objectives and critical steps.New measureNew measure100%
Maturing contracts assessed against contract outputs.New measureNew measure100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Tertiary Education, Skills and Employment in a report appended to the Ministry of Business, Innovation and Employment's annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Establishment of the Appropriation2014/15-2,3192,3182,3181,985

Reasons for Change in Appropriation

This appropriation was transferred from departmental output expense to a non-departmental output expense. As the funding is largely paid to external providers, it is more appropriately included as a non-departmental appropriation.

3.4 - Non-Departmental Other Expenses#

Depreciation on Auckland's Queens Wharf (M25)#

Scope of Appropriation

This appropriation is limited to depreciation expenses associated with Auckland's Queens Wharf.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation2,0002,0002,000

What is Intended to be Achieved with this Appropriation

This appropriation provides the expenses incurred as part of the depreciation of Auckland's Queens Wharf.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for recognition of depreciation expenses.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Auckland's Queens Wharf Development2010/112,0002,0002,0002,0002,000

Film New Zealand (M25)#

Scope of Appropriation#

This appropriation is limited to the operation of an independent structure for Film New Zealand, developing a marketing plan for the film sector and coordination of regional film offices.

Expenses#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,3001,3001,300

What is Intended to be Achieved with this Appropriation#

This appropriation is a grant to Film New Zealand to market, facilitate and coordinate access to New Zealand for screen production purposes, contributing to trusted, competitive and well-functioning markets; and improved international flows of people, ideas, investment and trade.

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.

Current and Past Policy Initiatives#

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Film New Zealand from Square Kilometre Array2013/14833800700--
Film New Zealand from the Prime Ministers Emerging Priorities Fund2013/14167200300--

Major Events Development Fund (M25)#

Scope of Appropriation#

This appropriation is limited to support for major events that provide economic, social, cultural and international profiling benefits to New Zealand.

Expenses#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation13,9838,18310,000

What is Intended to be Achieved with this Appropriation#

This appropriation is to support major events providing economic, social, cultural and international benefits for New Zealand. This contributes to productive and successful people, communities and regions; and improved international flows of people, ideas, investment and trade.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Additional economic, social and cultural, and international exposure benefits are leveraged from new and existing major events.Funding directed to 10 to 15 major events to achieve a portfolio of major events where 100% achieve additional net social, cultural or economic benefitsFunding directed to 10 to 15 major events to achieve a portfolio of major events where 100% achieve additional net social, cultural or economic benefitsFunding directed to 10 to 15 major events to achieve a portfolio of major events where 100% achieve additional net social, cultural or economic benefits

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Economic Development in a report appended to the Ministry of Business, Innovation and Employment's annual report.

Current and Past Policy Initiatives#

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Transfer of 2012/13 Unspent Funds2013/148,983----
2015 ICC Cricket World Cup transfer to Sports NZ2013/14(5,000)----
Increasing the Benefits to New Zealand from Major Events2010/116,6796,6796,6796,6796,679

Reasons for Change in Appropriation#

The decreased appropriation is a net movement of $3.983 million relating to one off transfers in 2013/14. There was an expense transfer of $8.983 million from 2012/13 to 2013/14 offset by a payment of $5 million to Sports NZ to support the 2015 ICC Cricket World Cup.

Management Development Fund (M25)#

Scope of Appropriation#

This appropriation is limited to assistance to address the management capability gap in New Zealand, through the commissioning of research, stimulation of business interest and supply of management development services.

Expenses#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation756756756

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to increase management capability in New Zealand, contributing to business capability and higher levels of innovation; and productive and successful people, communities and regions.

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.

New Zealand Screen Production Grant - International (M25)#

Scope of Appropriation and Expenses#

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

New Zealand Screen Production Grant - International (M25)

This appropriation is limited to providing grant assistance to screen productions that are internationally focused and produced in New Zealand.

Commences: 01 July 2014

Expires: 30 June 2019
Original Appropriation252,780
Adjustments to 2012/13-
Adjustments for 2013/14-
Adjusted Appropriation252,780
Actual to 2012/13 Year End-
Estimated Actual for 2013/14-
Estimated Actual for 2014/1557,650
Estimated Appropriation Remaining195,130

What is Intended to be Achieved with this Appropriation#

This appropriation provides grant assistance to incentivise screen productions that are internationally focussed and produced in New Zealand, contributing to trusted, competitive and well-functioning market; and improved international flow of people, ideas and investment and trade.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
International and domestic large scale film productions located in New Zealand.New measureNew measureAt least 4 large scale productions located in New Zealand

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Economic Development in a report appended to the Ministry of Business, Innovation and Employment's annual report.

Current and Past Policy Initiatives#

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Establishment of the MYA2014/15-57,65086,80050,55657,774

Reasons for Change in Appropriation#

This appropriation was established from 1 July 2014 to improve the development and resilience of the screen sector.

Regional and Industry Development Fund (M25)#

Scope of Appropriation#

This appropriation is limited to the provision of funding to support industry and regional specific projects that are intended to contribute to economic growth.

Expenses#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,3001,300400

What is Intended to be Achieved with this Appropriation#

This appropriation is a grant to KEA New Zealand and is intended to increase economic growth of New Zealand through providing global connections through its network of members. This contributes to improved business capability and higher levels of innovation; and improved international flows of people, ideas, investment and trade.

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.

Current and Past Policy Initiatives#

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Funding Arrangement with Development West Coast2013/14500----
Funding for Kiwi Expats Association2012/13800400---

Reasons for Change in Appropriation#

The decreased appropriation is a result of a one-off transfer in 2013/14 for the Development West Coast project and the decrease in the funding profile for the Kiwi Expatriates Association.

3.5 - Non-Departmental Capital Expenditure#

Venture Investment Fund (M25)#

Scope of Appropriation and Expenses

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

Venture Investment Fund (M25)

This appropriation is limited to capital Investment to NZVIF to accelerate the development of the New Zealand Venture Capital Market.

Commences: 01 July 2014

Expires: 30 June 2018
Original Appropriation37,453
Adjustments to 2012/13-
Adjustments for 2013/14-
Adjusted Appropriation37,453
Actual to 2012/13 Year End-
Estimated Actual for 2013/14-
Estimated Actual for 2014/1510,378
Estimated Appropriation Remaining27,075

What is Intended to be Achieved with this Appropriation

This category is intended to provide funds to be co-invested with the private sector to address the capital market gap for emerging high growth New Zealand companies that require new risk capital for growth.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Selection of Venture Capital Fund Managers - Selection methodology and due diligence to select investment managers; investment charters and governance processes conform to industry standard practice.New measureNew measureStandard practices are followed

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Economic Development in a report appended to the Ministry of Business, Innovation and Employment's annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
The establishment of the New Zealand Venture Investment Fund MYA from an annual appropriation2014/15-10,37810,5188,2788,279

Reasons for Change in Appropriation

This appropriation was established in 2013/14 to commence 1 July 2014 ending 30 June 2018.

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M25)

Overarching Purpose Statement

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

Scope of Appropriation

Departmental Output Expenses
Ministerial Services - Employment
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy-making), relating to Employment.
Ministerial Services - Small Business
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) relating to Small Business.
Ministerial Services and Crown Entity Monitoring - Economic Development
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) including monitoring of Crown Entities and Statutory Bodies, relating to Economic Development.
Policy Advice - Economic Development
This category 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 relating to Economic Development.
Policy Advice - Employment
This category 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 relating to Employment.
Policy Advice - Small Business
This category 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 relating to Small Business.

Expenses, Revenue and Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--24,239

Departmental Output Expenses

Ministerial Services - Employment--1,504
Ministerial Services - Small Business--217
Ministerial Services and Crown Entity Monitoring - Economic Development--5,135
Policy Advice - Economic Development--10,448
Policy Advice - Employment--5,701
Policy Advice - Small Business--1,234

Funding for Departmental Output Expenses

Revenue from the Crown

--17,589
Ministerial Services - Employment--1,504
Ministerial Services - Small Business--217
Ministerial Services and Crown Entity Monitoring - Economic Development--4,385
Policy Advice - Economic Development--4,548
Policy Advice - Employment--5,701
Policy Advice - Small Business--1,234

Revenue from Others

--6,650
Ministerial Services - Employment---
Ministerial Services - Small Business---
Ministerial Services and Crown Entity Monitoring - Economic Development--750
Policy Advice - Economic Development--5,900
Policy Advice - Employment---
Policy Advice - Small Business---

Comparators for Restructured Appropriation

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Departmental

Policy Advice and Related Outputs

Ministerial Services - Employment8058051,504
Ministerial Services - Small Business221221217
Ministerial Services and Crown Entity Monitoring - Economic Development5,8655,8655,135
Policy Advice - Economic Development11,32711,32710,448
Policy Advice - Employment5,0335,0335,701
Policy Advice - Small Business1,4251,4251,234
Total24,67624,67624,239

What is Intended to be Achieved with this Appropriation

This appropriation is to provide effective and efficient ministerial services and policy advice of high quality contributing to trusted, competitive and well-functioning markets; improved business capability and higher levels of innovation; and productive and successful people, communities and regions.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed following the performance measures specified in the each category below.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Related Outputs

Departmental Output Expenses

Ministerial Services - Employment
This category is intended to achieve effective and efficient ministerial services.
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 above95% or above95% or above
Ministerial Services - Small Business
This category is intended to achieve effective and efficient ministerial services.
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 above95% or above95% or above
Ministerial Services and Crown Entity Monitoring - Economic Development
This category is intended to achieve effective and efficient ministerial services.
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 above95% or above95% or above
Ministers receive advice on entities Statement of Intents, Annual Report and Quarterly Reports, within two weeks of receipt.New measureNew measure100%
Policy Advice - Economic Development
This category is intended to achieve policy advice of high technical quality relating to economic development.
The satisfaction of the Minister for Economic Development 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 $155At most $155At most $155
Policy Advice - Employment
This category is intended to achieve policy advice of high technical quality relating to employment.
The satisfaction of the Minister for Tertiary Education, Skills and Employment 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 $155At most $155At most $155
Policy Advice - Small Business
This category is intended to achieve policy advice of high technical quality relating to small business.
The satisfaction of the Minister for Small Business 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 $155At most $155At 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 InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000

Ministerial Services - Employment

Transfer from Vote Employment to Vote Economic Development and Employment2014/15-1,5251,5251,5251,525
Savings as a result of MBIE formation2014/15-(21)(21)(21)(21)
Vote Alignment2013/14(950)----
Reprioritisation of Funding to Reflect Increased Focus on Policy and Research Services in Vote Employment2012/13420420420420420

Ministerial Services - Small Business

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-221221221221
Savings as a result of MBIE formation2014/15-(4)(4)(4)(4)
Efficiency Dividend2012/13(3)(3)(3)(3)(3)

Ministerial Services and Crown Entity Monitoring - Economic Development

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-4,3854,3253,9403,940
Reprioritisation for Convention Centre2012/13362217---
Efficiency Dividend2012/13(105)(105)(105)(105)(105)

Policy Advice - Economic Development

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-21,44616,99616,79616,696
Savings as a result of MBIE formation2014/15-(248)(248)(248)(248)
Vote Alignment2013/14(3,500)----
Efficiency Dividend2012/13(105)(105)(105)(105)(105)

Policy Advice - Employment

Transfer from Vote Employment to Vote Economic Development and Employment2014/15-5,8144,2704,3064,306
Savings as a result of MBIE formation2014/15-(113)(113)(113)(113)
Vote Alignment2013/14(1,500)----

Policy Advice - Small Business

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-1,2651,2651,2651,265
Savings as a result of MBIE formation2014/15-(31)(31)(31)(31)
Vote Alignment2013/14160----
Efficiency Dividend2012/13(17)(17)(17)(17)(17)

Reasons for Change in Appropriation

These appropriations have been established through the changes to the Public Finance Act.

Seed Co-Investment Fund (M25)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to provide capital to support the development of markets for early stage equity finance and venture capital.

Scope of Appropriation#

Non-Departmental Output Expenses

Investment Fund Management
This category is limited to operational Costs of the Venture and Seed Co-Investment Funds.

Non-Departmental Capital Expenditure

Seed Co-Investment Fund
This category is limited to providing capital to support the development of the market for early stage equity finance.

Expenses, Revenue and Capital Expenditure#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--7,580

Non-Departmental Output Expenses

Investment Fund Management--2,330

Non-Departmental Capital Expenditure

Seed Co-Investment Fund--5,250

Comparators for Restructured Appropriation#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Non-Departmental

Investment Fund Management2,3302,3302,330
Seed Co-Investment Fund7,2507,2505,250
Total9,5809,5807,580

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to address the capital market gap and to provide funds to be co-invested with the private sector for emerging high growth New Zealand companies that require new risk capital for growth.

How Performance will be Assessed for this Appropriation#

The performance for this appropriation will be assessed following the performance measures specified in the each category below.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Venture Investment Fund and Seed Co-Investment Fund

Non-Departmental Output Expenses

Investment Fund Management
This category is intended to address the capital market gap for emerging high growth New Zealand companies that require new risk capital for growth.
Manage the Venture Investment Fund and the Seed Co-Investment Fund - fund management conforms to industry standard practice for venture capital "fund of funds" and angel co-investment portfolio.Standard practices are followedStandard practices are followedStandard practices are followed
Monitor the performance and results achieved by the seed fund managers and the angel networks.100% adherence with agreed performance measures. Compliance monitoring as specified in the Output Agreement100% adherence with agreed performance measures. Compliance monitoring as specified in the Output Agreement100% adherence with agreed performance measures. Compliance monitoring as specified in the Output Agreement
Provision of advice to the Minister as required will be delivered within 15 working days of the formal request, unless otherwise agreed, and will be of a standard acceptable to the Minister.100% within agreed timelines100% within agreed timelines100% within agreed timelines

Non-Departmental Capital Expenditure

Seed Co-Investment Fund
This category is intended to provide funds to be co-invested with the private sector to address the capital market gap for emerging high growth New Zealand companies that require new risk capital for growth.
Support the market with early stage equity finance.100%100%100%
Selection of Seed Co-Investment Fund partners - selection methodology and due diligence to select investment managers; investment charters and governance processes conform to industry standard practice.Standard practices are followedStandard practices are followedStandard practices are followed

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 InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000

Seed Co-Investment Fund

Reprioritisation of Seed Co-Investment Fund2013/141,000(1,000)---

Reasons for Change in Appropriation#

These appropriations have been established through the changes to the Public Finance Act and Vote Rationalisation.

Support New Market Opportunities for High Growth New Zealand Firms and Sectors (M25)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to provide support to high growth firms and sectors in securing new market opportunities.

Scope of Appropriation#

Non-Departmental Other Expenses

International Growth Fund
This category is limited to supporting high growth firms to undertake additional market development and business capability activities required for growth in new markets, that deliver benefits for both the firm and the wider New Zealand economy.
Sector Strategies and Facilitation
This category is limited to assistance with the facilitation of specific sector initiatives, particularly in areas of major events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other government programmes and cash grants.

Expenses, Revenue and Capital Expenditure#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--30,916

Non-Departmental Other Expenses

International Growth Fund--29,712
Sector Strategies and Facilitation--1,204

Comparators for Restructured Appropriation#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Non-Departmental Other Expenses

Support New Market Opportunities for High Growth New Zealand Firms and Sectors
International Growth Fund15,72715,72729,712
Sector Strategies and facilitation1,2041,2041,204
Total16,93116,93130,916

What is Intended to be Achieved with this Appropriation#

This appropriation is to support high growth firms to undertake additional market development and business activities and co-fund feasibility studies of investment cases required for growth in new markets that delivers benefits for the firm and the New Zealand economy.

How Performance will be Assessed for this Appropriation#

The performance for this appropriation will be assessed following the performance measures specified in the each category below.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Support New Market Opportunities for High Growth New Zealand Firms and Sectors

Non-Departmental Other Expenses

International Growth Fund
This category is intended to support high growth firms to undertake additional market development and business capability activities required for growth in new markets, that delivers benefits for the firm and the NZ economy.
Number of businesses receiving grants funding as part of a wider assistance package.60 (demand driven)60 (demand driven)60 (demand driven)
Percentage of businesses that give their experience with the International Growth Fund a positive rating.Exceeds 2012/13 resultExceeds 2012/13 resultMeets or exceeds 2013/14 result
Sector Strategies and Facilitation
This appropriation is intended to co-fund feasibility studies which are used to develop and present the business case for investment in New Zealand.
Number of Strategic Investment Fund grants awarded.Up to 6 grantsUp to 6 grantsUp to 6 grants

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 InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000

International Growth Fund

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-30,02730,02730,02730,027
Reprioritisation of Investment Growth Fund2014/15-(315)(700)--
New Zealand Trade and Enterprise2013/14(12,800)----
Transfer to International Business Growth Services to address the Whey Protein Concentrate Response2013/14(1,500)----

Sector Strategies and Facilitation

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-1,2041,2041,2041,204

Reasons for Change in Appropriation#

These appropriations have been established through the changes to the Public Finance Act.

International Growth Fund

The increase from the appropriation that transferred to this classification is mainly due to a New Zealand Trade and Enterprise significant initiative. This covers calibration of the international footprint to meet rising costs and customer demand (especially China and Middle East) to increase the number of companies serviced from 500 to 700, deliver the Government to Government commercialisation initiative (up to $1.800 million) and maintenance of multi-company high impact programmes.

Support the Growth and Development of New Zealand Firms, Sectors and Regions (M25)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to provide support for the growth and development of New Zealand firms, sectors and regions to maximise international business opportunities.

Scope of Appropriation#

Non-Departmental Output Expenses

International Business Growth Services
This category is limited to helping firms export and internationalise by identifying and exploiting market and investment opportunities; overcoming internationalisation barriers; providing customised advice and support; and enabling access to international business networks.
Services to Support Sector Development and Special Events
This category is limited to securing and capitalising on significant economic development opportunities for New Zealand, with a focus on sectors and special events.
Services to Support the Growth and Development of New Zealand Businesses
This category is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information.

Expenses, Revenue and Capital Expenditure#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--155,259

Non-Departmental Output Expenses

International Business Growth Services--111,006
Services to Support Sector Development and Special Events--31,072
Services to Support the Growth and Development of New Zealand Businesses--13,181

Comparators for Restructured Appropriation#

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Non-Departmental

Support the Growth and Development of New Zealand Firms, Sectors and Regions

International Business Growth Services104,630104,630111,006
Services to Support Sector Development and Special Events31,86731,86731,072
Services to Support the Growth and Development of New Zealand Businesses13,44413,44413,181
Total149,941149,941155,259

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to assist firms to develop and grow international business and exports; to develop business and management capability to improve individual firms; and to support key sector initiatives and special events that can provide significant economic benefit for New Zealand.

How Performance will be Assessed for this Appropriation#

The performance for this appropriation will be assessed following the performance measures specified in the each category below.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Support the Growth and Development of New Zealand Firms, Sectors and Regions

Non-Departmental Output Expenses

International Business Growth Services
This category is intended to assist firms to develop and grow their international business and exports to generate economic benefits for New Zealand.
Number of intensively account managed (F500) customers in NZTE's customer portfolio.Updated measureUpdated measure525 - 575
Total number of customers in NZTE's customer portfolio (excluding those intensively managed).1,500-2,000 (demand driven)1,500-2,000 (demand driven)3000-3500 (demand driven)
Percentage of intensively account managed (F500) customers that agree or strongly agree that NZTE has added value to their business.Updated measureUpdated measureMeets or exceeds 2013/14 result
Percentage of NZTE customers that agree or strongly agree that NZTE has added value to their business (excluding those intensively account managed).Exceeds 2012/13 resultExceeds 2012/13 resultExceeds 2013/14 result
Total value of deals effected with NZTE involvement.Exceeds 2012/13 resultExceeds 2012/13 resultMeets or exceeds 2013/14 result
Annual growth in international revenue for NZTE's intensively account managed customers.2 percentage points higher than NZ's overall total export growth2 percentage points higher than NZ's overall total export growth2 percentage points higher than NZ's overall total export growth
Total value of Capital deployed (debt and equity) with NZTE involvement.New measureNew measure$600m
Under development - Effectiveness measure for HIPs.New measureNew measureNew measure
Potential direct economic impact ratio for approved International Growth Fund grants.4 to 14 to 14 to 1
Total net promoter score for the Regional Partner Network.New measureNew measureBaseline to be established in 2014/15
Services to Support Sector Development and Special Events
This category is intended to support key sector initiatives and special events that can provide significant economic benefits for New Zealand.
Number of high-impact programmes funded by NZTE.Up to 10Up to 10Up to 10
Percentage of deliverables achieved for high-impact programmes.85%85%85%
Services to Support the Growth and Development of New Zealand Businesses
This category is intended to develop business and management capability to improve individual firm and wider business performance and generate economic benefits for New Zealand.
Number of businesses receiving business development services through the Regional Partner Network.2,500 (demand driven)2,500 (demand driven)2,500 (demand driven)
Percentage of businesses that give a positive satisfaction rating to services provided through the Regional Partner Network.Meets or exceeds 2012/13 resultMeets or exceeds 2012/13 resultMeets or exceeds 2013/14 result

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 InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000

International Business Growth Services

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-102,50698,21398,21398,213
New Zealand Trade and Enterprise2014/15-7,00014,40014,40014,400
Saudi Agrihub Partnership - MFAT Contribution2014/15-1,500---
Saudi Agrihub Partnership2013/143,0502,700---
Whey Protein Concentrate Response2013/141,500----

Services to Support Sector Development and Special Events

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-27,07227,07227,07227,072
Government-to-Government Partnerships Office2014/15-1,000---
Saudi Agrihub Partnership2014/15(750)----
New Zealand Trade and Enterprise2014/15-3,0005,4005,4004,000
International Growth Package2013/142,000----
America's Cup Leveraging and Legacy2012/131,390----

Services to Support the Growth and Development of New Zealand Businesses

Transfer from Vote Economic Development to Vote Economic Development and Employment2014/15-13,18113,18113,18113,181
Proposed Changes to NZTE's Capital Management Services2011/12(1,854)(1,854)(1,854)(1,854)(1,854)

Reasons for Change in Appropriation#

These appropriations have been established through the changes to the Public Finance Act.

International Business Growth Services

The change in appropriation from the appropriations that transferred to this classification is mainly due to a one-off transfer in 2013/14 for the Whey Protein Concentrate response.

Services to Support Sector Development and Special Events

The increased appropriation from the appropriations that transferred to this classification is mainly due to one-off funding in 2013/14 for the International Growth Package and the America's Cup Leveraging and Legacy initiatives.