Estimates of appropriations

Vote Finance - Estimates 2013/2014

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Science and Innovation (M84)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Overview of the Vote#

The Minister of Finance is responsible for appropriations in Vote Finance for the 2013/14 financial year which cover the following:

  • a total of nearly $31 million for the provision of services which support the performance of the State sector including fiscal reporting, forecasting and monitoring, provision of Export Credit, managing, administering and monitoring Crown Guarantee Schemes, Crown Lending, Crown Investments, and Crown Bank accounts
  • a total of nearly $35 million for 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 Finance
  • a total of nearly $143 million for the implementation and direct costs associated with the Mixed Ownership Model and Loyalty Bonus Shares related to Initial Public Offers in three multi-year appropriations covering the period 2011/12 to 2015/16
  • a total of over $8 million for the provision of shared services to other entities and agencies
  • a total of nearly $4 million for departmental capital expenditure
  • a total of over $3,492 million for the payment of interest and other costs relating to the Crown's debt
  • a total of nearly $687 million for superannuation costs, primarily the Government Superannuation Fund
  • a total of $212 million for capital payments to International Financial Institutions
  • a total of nearly $15 million for costs of administering New Zealand House, London
  • a total of nearly $2 million for providing and administering grants and loans to Taitokerau Forests Limited
  • a total of over $5 million for unclaimed money, managing the Crown's residual liabilities, meeting costs relating to the Landcorp Protected Land Agreement, and provisions for meeting liabilities associated with Geothermal Wells
  • a total of over $10 million for the unwind of Crown Support Deed interest expense, and
  • a total of over $5 million for inquiries and research into productivity-related matters.

The Minister of Finance is also responsible for Crown revenue and receipts in the Vote for the 2013/14 financial year which account for over $3,395 million in non-tax revenue for return on investments, including capital charge, dividends, and interest on securities and deposits.

The Minister for State Owned Enterprises is responsible for one appropriation in Vote Finance for the 2013/14 financial year which covers over $4 million for Crown company monitoring, governance, and ownership advice.

The Minister of Science and Innovation is responsible for one appropriation in Vote Finance for the 2013/14 financial year which covers over $400,000 for Crown Research Institutes governance and ownership advice.

Details of these appropriations are set out in Parts 2-6 for Vote Finance in the Information Supporting the Estimates of Appropriations.

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Finance
2012/132013/14
Titles and Scopes of Appropriations by Appropriation TypeBudgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

Administration of Crown Borrowing PLA (M31)

This appropriation is limited to expenses incurred in connection with administering borrowing by the Crown, as authorised by section 61(1) of the Public Finance Act 1989.
5,1385,1385,512

Administration of Derivative Transactions PLA (M31)

This appropriation is limited to expenses incurred in connection with administering derivative transactions of the Crown, as authorised by section 65H(2) of the Public Finance Act 1989.
1,1261,1261,127

Administration of Guarantees and Indemnities given by the Crown PLA (M31)

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.
1,5511,551110

Administration of Investment of Public Money PLA (M31)

This appropriation is limited to expenses incurred in connection with administering the investment of public money, as authorised by section 65J(1) of the Public Finance Act 1989.
772772772

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65)

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.
4,0723,5724,042

Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84)

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.
436436436

Policy Advice - Finance (M31)

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 Finance.
33,79433,31834,933

Provision of Financial Operations Services and Operational Advice (M31)

This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.
27,85626,19623,249

Provision of Financial Services to the New Zealand Local Government Funding Agency RDA (M31)

This appropriation is limited to expenses incurred in connection with the provision of financial services on a commercial basis to the New Zealand Local Government Funding Agency (LGFA).
165165165

Shared Support Services (M31)

This appropriation is limited to provision of support services to other agencies.
8,0007,0008,000

Total Departmental Output Expenses

82,91079,27478,346

Non-Departmental Output Expenses

Inquiries and Research into Productivity Related Matters MCOA (M31)

5,0285,0285,030
Inquiries into Productivity - Related Matters
This output class is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
4,5254,5254,527
Research into and Promotion of Productivity - Related Matters
This output class is limited to the New Zealand Productivity Commission undertaking research into and promoting public understanding of productivity related matters in accordance with the New Zealand Productivity Commission Act 2010.
503503503

Management of New Zealand House, London (M31)

This appropriation is limited to the property management services in respect of New Zealand House, London.
1,0001,0001,000

Management of the Crown's Obligations for Geothermal Wells (M31)

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.
467467151

Management of the New Zealand Superannuation Fund (M31)

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.
528528528

Total Non-Departmental Output Expenses

7,0237,0236,709

Non-Departmental Borrowing Expenses

Debt Servicing PLA (M31)

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.
3,614,2993,614,2993,492,841

Total Non-Departmental Borrowing Expenses

3,614,2993,614,2993,492,841

Non-Departmental Other Expenses

Crown Residual Liabilities (M31)

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.
230230230

Geothermal Wells Fund (M31)

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.
300-500

Government Superannuation Appeals Board (M31)

This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.
505050

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Act 1956.
24,59924,59924,599

Government Superannuation Fund Unfunded Liability PLA (M31)

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Act 1956.
639,505639,505635,803

Impairment of Loans to Taitokerau Forest Limited (M31)

This appropriation is limited to the expense incurred on the impairment of new loans to Taitokerau Forests Limited.
800800800

Landcorp Protected Land Agreement - Operating (M31)

This appropriation is limited to providing for operating costs incurred under the Landcorp Protected Land Agreement.
20,46417,5282,000

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.
24,00024,00026,000

New Zealand House, London (M31)

This appropriation is limited to the operational costs of New Zealand House, London.
13,00013,00013,000

Taitokerau Forests Limited Grant (M31)

This appropriation is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
200200200

Unclaimed Money PLA (M31)

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.
250250250

Unclaimed Trust Money PLA (M31)

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.
250250250

Unwind of Discount Rate used in the Present Value Calculation of Payment under Crown Deed of Support with AMI (M31)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.
13,67813,67810,218

EQC Apportioned and Unclaimed Damage Expense (M31)

This appropriation is limited to enabling EQC to meet claimants' damage that has been apportioned to events for which they have not made a valid claim.
16,600--

Payments in respect of Guarantees and Indemnities PLA (M31)

This appropriation is limited to payments by the Crown under a guarantee or indemnity given under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.
44-

Total Non-Departmental Other Expenses

753,930734,094713,900

Departmental Capital Expenditure

The Treasury - Capital Expenditure PLA (M31)

This appropriation is limited to the purchase or development of assets by and for the use of the Treasury, as authorised by section 24(1) of the Public Finance Act 1989.
4,6544,6543,788

Total Departmental Capital Expenditure

4,6544,6543,788

Non-Departmental Capital Expenditure

International Financial Institutions PLA (M31)

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.
47,43347,433212,000

Landcorp Protected Land Agreement - Capital (M31)

This appropriation is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.
8,0005,5442,000

New Zealand House, London, capital (M31)

This appropriation is limited to capital expenditure in relation to New Zealand House, London.
750-750

Taitokerau Forests (M31)

This appropriation is limited to the provision of loans to Taitokerau Forests Ltd for forest management and development.
1,550700800

Crown Asset Management Limited (CAML) Equity Injection (M31)

This appropriation is limited to the capital injection for CAML to purchase and manage assets of receiverships under the Deposit Guarantee Scheme and other residual Crown assets.
397,94158,809-

Solid Energy New Zealand Limited Funding (M31)

This appropriation is limited to provision of a loan (secured or unsecured) to, or purchase of assets from, Solid Energy New Zealand Limited.
50,00015,000-

Total Non-Departmental Capital Expenditure

505,674127,486215,550

Total Annual and Permanent Appropriations

4,968,4904,566,8304,511,134

Details of Multi-Year Appropriations#

Multi-Year Appropriations - Finance
Type, Title, Scope and Period of AppropriationsAppropriation, Adjustments and Use$000

Departmental Output Expenses

Implementation of Mixed Ownership Model (M31) (M31)

This appropriation is limited to the policy, operational, and transactional work to implement the Mixed Ownership Model.

Commences: 15 December 2011

Expires: 30 June 2015

Original Appropriation46,802
Adjustments for 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation46,802
Actual to 2011/12 Year End6,639
Estimated Actual for 2012/1323,850
Estimated Actual for 2013/1415,313
Estimated Appropriation Remaining1,000

Non-Departmental Other Expenses

Direct Sale costs for Implementing the Mixed Ownership Model (M31) (M31)

This appropriation is limited to the direct sales costs of implementing the Mixed Ownership Model.

Commences: 15 December 2011

Expires: 30 June 2015

Original Appropriation56,000
Adjustments for 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation56,000
Actual to 2011/12 Year End-
Estimated Actual for 2012/1318,150
Estimated Actual for 2013/1433,850
Estimated Appropriation Remaining4,000

Loyalty Bonus Scheme Related to Initial Public Offers (M31) (M31)

This appropriation is limited to expenses incurred by allocating shares under a loyalty bonus scheme to eligible investors in initial public offers.

Commences: 1 March 2013

Expires: 30 June 2016

Original Appropriation40,000
Adjustments for 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation40,000
Actual to 2011/12 Year End-
Estimated Actual for 2012/1340,000
Estimated Actual for 2013/14-
Estimated Appropriation Remaining-

Details of Projected Movements in Departmental
Net Assets#

The Treasury

The Treasury - Details of Projected Movements in Departmental Net Assets - Finance
Details of Net Asset Schedule2012/13
Estimated Actual
$000
2013/14
Projected
$000
Explanation of Projected Movements in 2013/14
Opening Balance8,9578,957
Capital Injections-700Funding for the replacement information system for the operation of the debt funding and investment portfolio activities.
Capital Withdrawals--
Surplus to be Retained (Deficit Incurred)--
Other Movements--

Closing Balance

8,9579,657