Vote Finance - Finance and Government Administration Sector - Estimates 2021/22

Vote Finance#

Overview of the Vote#

The Minister of Finance is responsible for appropriations in Vote Finance for the 2021/22 financial year which cover the following:

• A total of over $78 million for the provision of policy and financial advice to support decision making by Ministers and to deliver financial services.
• A total of over $15 million for the administration of Crown borrowing, securities, derivative transactions, investments and guarantees.
• A total of over $10 million for the provision of shared services to other agencies and entities.
• A total of nearly $6 million for departmental capital expenditure.
• A total of over $3,154 million for the payment of interest and other costs relating to the Crown's debt.
• A total of over $2,854 million for superannuation costs, primarily as contributions to the Government Superannuation Fund and the NZ Superannuation Fund.
• A total of over $267 million for the continued support for the recovery of Christchurch by contributing operating and capital funding for the Anchor Projects Programme.
• A total of $120 million for continuation of Christchurch Regeneration grants to the Christchurch City Council.
• A total of $50 million for an equity injection for Airways New Zealand in response to the impacts of COVID-19.
• A total of over $3 million for the un-wind of interest expense on liabilities.
• A total of nearly $6 million for inquiries and research into productivity-related matters by the Productivity Commission.
• A total of nearly $4 million for unclaimed money, meeting costs associated with the Landcorp Protected Land Agreement, managing the Crown's residual liabilities and providing COVID-19 guarantees.
• A total of over $12 million for the Crown's participation in Dividend Reinvestment Plans.
• A total of over $217 million for refinancing of Kainga Ora - Homes and Communities and Housing New Zealand Limited Debt.
• A total of nearly $13 million for costs of administering New Zealand House, London.
• A total of over $37 million for an equity injection for Crown Infrastructure Partners Limited to invest in water and roading infrastructure and support the timely increase of housing supply.
• A total of $25 million for an equity injection to Tamaki Regeneration Company Limited for supporting the Tamaki regeneration programme and deliver new fit for purpose social housing and new open market housing.
• A total of nearly $28 million for the increased investment in the World Bank, International Finance Corporation.
• A total of $40 million to provide funding to the Venture Capital Fund for supporting the development of markets for early stage equity finance and venture capital.
• A total of $1,150 million to provide a commercial loan facility for Air New Zealand in response to COVID-19.

The Minister of Finance is also responsible for Crown revenue and receipts which account for nearly $3,367 million in non-tax revenue for return on investments, including capital charge, dividends, and interest on securities and deposits.

The Minister for Infrastructure is responsible for over $226 million for Infrastructure Projects to be funded or delivered by Crown Infrastructure Partners Limited and Otakaro Limited and for nearly $15 million to provide services to improve New Zealand's infrastructure outcomes.

The Minister for State Owned Enterprises is responsible for over $5 million for the provision of advice to shareholding or responsible Ministers to improve the performance of companies that the Crown has a shareholding in and some Crown entities in order to improve the wellbeing of New Zealanders.

The Minister for Climate Change is responsible for $200 million for the Green Investment Fund's capital investments and $6 million for its operating expenditure.

The Minister Responsible for the Earthquake Commission is responsible for over $53 million to the Earthquake Commission to provide for a timely, fair, and enduring resolution of on-sold over-cap claims resulting from the Canterbury earthquake sequence.

The Minister Responsible for the Earthquake Commission is responsible for $200,000 for an Independent Oversight Committee to oversee the settlement of potential obligations of Southern Response Earthquake Services Limited for Claims already settled.

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

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Multi-Year Appropriations#

Multi-Year Multi-Category Appropriations#

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

1.2 - Trends in the Vote#

Summary of Financial Activity

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

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

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

1.3 - Analysis of Significant Trends#

Total Vote: All Appropriations

The movements in appropriations in Vote Finance, as detailed in the Summary of Financial Activity table above, are largely due to movements in capital expenditure, debt servicing costs and other Non-Departmental expenses.

Significant movements within each appropriation category are shown below.

Non-Departmental Output Expenses

Time-limited funding of $20 million per annum for the Management of Anchor Projects by Otakaro Limited expires at 30 June 2022.

Non-Departmental Borrowing Expenses

Debt servicing costs have fluctuated over the period and are expected to continue to do so in the future, as a result of movements in forecast interest rates and the amount of outstanding debt.

Non-Departmental Other Expenses

During 2020/21 the following significant changes occurred:

• $3.143 billion was expensed in 2020/21 to recognise liabilities arising from guarantees or indemnities given in respect of the COVID-19 Large Scale Asset Purchases and the Business Finance Guarantee Scheme
• $1.265 billion in 2020/21 was appropriated to provide grants to Crown Infrastructure Partners to fund or deliver Shovel Ready Infrastructure Projects
• $139 million was appropriated in 2020/21 to provide grants to Otakaro Limited to fund or deliver Shovel Ready Infrastructure Projects
• $100 million was appropriated in 2020/21 to provide for ex-gratia payments to be made to Canterbury residents to settle on-sold over-cap claims resulting from the Canterbury earthquake sequence, and
• $94 million was appropriated in 2020/21 and $120 million in 2021/22 to provide grants to the Christchurch City Council to fund projects pursuant to the Christchurch Regeneration Acceleration Facility, the main project being the Multi-Use Arena.

Material changes in previous years included:

• $86 million was granted in 2019/20 to the Christchurch City Council to fund projects pursuant to the Christchurch Regeneration Acceleration Facility, the main projects being the Otakaro Avon River Corridor and Roading Works
• $50 million was expensed in 2019/20 in meeting the terms of the Global Settlement Agreement negotiated with the Christchurch City Council in relation to assets transferred into the ownership of the Council, in particular the Bus Interchange
• Grants of $115 million in 2019/20 and $125 million in 2018/19 to meet a cash deficiency in the Earthquake Commission's Natural Disaster Fund, and
• $1,000 million was appropriated for the impairment of the Crown's investment in Southern Response Earthquake Services Limited (SRES). Between 2014/15 and 2018/19 $921 million was expensed, leaving $79 million in 2020/21.

Non-Departmental Capital Expenditure

This appropriation category comprises purchases of debt and equity by the Crown in various Crown entities, and capital additions to the Crown's physical assets.

Significant changes comprise:

• up to $600 million of an additional loan facility has been made to Air New Zealand, this is expected to be drawn in 2021/22
• $130 million of advances have been provided to meet a cash deficiency in the Earthquake Commission's Natural Disaster Fund
• $45 million in 2020/21 and $50 million in 2021/22 was appropriated for additional equity investment in Airways New Zealand, New Zealand's primary air navigation service provider, in response to COVID-19
• $200 million in 2021/22 was appropriated to increase capitalisation of New Zealand Green Investment Finance Ltd, and
• $28 million was appropriated in 2021/22 to increase the Crown's investment in the World Bank, International Finance Corporation.

Material movements in previous years included:

• subscription for non-recurring investments of $45 million to the World Bank's International Bank for Reconstruction and Development in 2020/21
• an increase in contributions to the NZ Superannuation Fund to $500 million in 2017/18, $1,000 million in 2018/19, $1,460 million in 2019/20 and $2,120 million in 2020/21
• in response to COVID-19 a loan facility of up to $900 million was made to Air New Zealand in 2020/21
• in response to COVID-19 an equity investment of $70 million in 2019/20 was made in Airways New Zealand
• in response to COVID-19 an equity investment of $80 million in 2019/20 was made in New Zealand Post Limited
• between 2014/15 and 2018/19 $1,000 million was appropriated for additional Crown investment in Southern Response Earthquake Services Limited, and
• $300 million was appropriated for additional Crown investment in Tamaki Regeneration Limited.

Multi-Category Expenses and Capital Expenditure

Changes in the multi-category expenses and capital expenditure across the reporting periods are largely associated with fluctuations in expenditure related to activities to achieve the objectives of the Greater Christchurch Anchor Projects multi-category appropriation.

Crown Revenue

Non-tax Crown Revenue largely comprises capital charge, interest from securities and deposits, and dividends from State-Owned Enterprises, Crown Entities, and partly owned listed companies.

Crown Capital Receipts

Capital receipts are expected to increase in 2021/22 by nearly $490 million principally due to the timing of loan repayments. An increase in the expected Capital Charge from Departments of $120 million and an increase in the expected return from investments of $18 million is partly offset by reduced dividends from State Owned Enterprises, leading to Non-Tax Revenues increasing by nearly $87 million.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31) (A40)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure the government has access to a sustainable and cost-effective source of debt funding for the provision of public services to New Zealanders.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Current and Past Policy Initiatives

Conditions on Use of Appropriation

Administration of Guarantees and Indemnities Given by the Crown PLA (M31) (A40)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve efficient and effective administration of the Crown's Guarantees and Indemnities, including the Wholesale and Retail Deposit Guarantee Schemes.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Shared Support Services (M31) (A40)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve quality, efficient support services for other agencies.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Southern Response Earthquake Services Independent Oversight Committee (M86) (A40)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve independent oversight and advice on the implementation and delivery of a Southern Response proactive settlement package for former AMI policyholders who cash settled for earthquake damage before 1 October 2014.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The decrease in this appropriation from 2020/21 to 2021/22 is due to the phasing of the work that the committee will provide.

2.3 - Departmental Capital Expenditure and Capital Injections#

The Treasury - Capital Expenditure PLA (M31) (A40)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal and replacement of life-expired assets in support of the delivery of Treasury services.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Capital Injections and Movements in Departmental Net Assets

The Treasury

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Independent Infrastructure Advice and Oversight (M80) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved infrastructure outcomes for the wellbeing of New Zealanders.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Infrastructure Commission in its 2021/22 Annual Report.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 of $1.387 million is in accordance with the original funding profile for this appropriation upon its establishment.

Service Providers

Services will be delivered by the New Zealand Infrastructure Commission.

Inquiries and Research into Productivity-Related Matters (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve inquiries and research in accordance with the New Zealand Productivity Commission Act 2010.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Productivity Commission in its 2021/22 Annual Report.

Service Providers

Services will be delivered by New Zealand Productivity Commission.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 and outyears is due to an additional funding of $900,000 to contribute to rebuilding and preserving the Commission's capability and capacity to lead and coordinate independent research, increase consultation with key communities, deliver flexible and tailored inquiry reports, and promote wider public understanding of productivity issues.

Management of Anchor Projects by Otakaro Limited (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve continuation of Christchurch earthquake recovery Anchor Projects Programme and divestment of Crown-owned land in Christchurch.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by Otakaro Limited in its 2021/22 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is due to a transfer of unused funding of $9.318 million from 2019/20 to 2020/21 to contribute to the operating and financing costs of Otakaro Limited.

Management of the New Zealand Superannuation Fund (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management and administration of the Guardians of New Zealand Superannuation Fund.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the PFA, as the amount of this annual appropriation for Non-departmental output expense is less than $5 million.

Service Providers

Services will be provided by Guardians of New Zealand Superannuation Fund.

3.3 - Non-Departmental Borrowing Expenses#

Debt Servicing PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)(b) of the PFA.

End of Year Performance Reporting

This borrowing expense appropriation is exempt from end of year performance reporting under section 15A(4)(b) of the PFA.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to movements in forecast interest rates and the amount of debt outstanding.

3.4 - Non-Departmental Other Expenses#

Carrying Value of Future Liabilities (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve recognition of the impact of increases in the carrying value of future liabilities resulting from being recorded on a discounted present value basis.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the interest unwind in respect of Crown's liabilities.

Christchurch Regeneration Acceleration Facility (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the timely delivery of Crown funding to the Christchurch City Council, to allow it to deliver capital works for Christchurch's regeneration.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's 2021/22 Annual Report.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to:

• a fiscally neutral transfer of unused funding of $214 million from 2019/20 to 2020/21 for the process of designing and building the Canterbury Multi-Use Arena, and
• a further fiscally neutral transfer of funding of $120 million from 2020/21 to 2021/22 to align funding with expected project costs.

Government Superannuation Appeals Board (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the on-going operations of the Government Superannuation Appeals Board.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for payments of board fees, disbursements and allowances. Performance information relating to the administration of the payment is provided under the Multi-year, multi-category appropriation Policy Advice and Financial Services.

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management and administration of the Government Superannuation Fund and the schemes, authorised by s15E and s95 of the Government Superannuation Act 1956, through payment of the Crown's share of the expenses of the Government Superannuation Fund Authority.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for payments of the Crown's share of expenses relating to the management and administration of the Government Superannuation Fund and the schemes authorised by s15E and s95 of the Government Superannuation Fund Act 1956.

Reasons for Change in Appropriation

This appropriation increased by $4.340 million to $43.465 million due to an updated actuarial assessment of the Crown's share of expenses.

Government Superannuation Fund Unfunded Liability PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to recognise the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown as authorised by s95AA of the Government Superannuation Fund Act 1956 in accordance with generally accepted accounting practice.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment of the Crown's liability.

Reasons for Change in Appropriation

This appropriation decreased by $18.718 million to $387.981 million due to an updated actuarial assessment of the Crown's liability to the Government Superannuation Fund.

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the recognition of 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 s60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by s66 of the National Provident Fund Restructuring Act 1990.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for costs payable to the National Provident Fund Scheme. Further information about the performance of the Scheme can be found in the National Provident Fund's Annual Report.

Payments and Expenses in Respect of Guarantees and Indemnities PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the recognition of expenses associated with Crown guarantees and indemnities.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's 2021/22 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 of $3.143 billion relates mainly to:

• indemnities of $2.982 billion provided to the Reserve Bank for fiscal impacts from the Large Scale Asset Purchase (LSAP) programme in 2020/21, and
• an additional $160.997 million related to guarantees provided under the Business Finance Guarantee Scheme (BFGS) in 2020/21.

Shovel Ready Project Funding - Crown Infrastructure Partners (M80) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide grant funding to Crown Infrastructure Partners Limited to fund or deliver 'Shovel Ready' Infrastructure Projects.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by Crown Infrastructure Partners Limited in its 2021/22 Annual Report.

Service Providers

Delivery of 'Shovel Ready' Infrastructure Projects will be undertaken by Crown Infrastructure Partners Limited.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This is a new multi-year appropriation commencing in 2020/21.

Shovel Ready Project Funding - Otakaro Limited (M80) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide grant funding to Otakaro Limited to fund or deliver 'Shovel Ready' Infrastructure Projects.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by Otakaro Limited in its 2021/22 Annual Report.

Service Providers

Delivery of 'Shovel Ready' Infrastructure Projects will be undertaken by Otakaro Limited.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This is a new multi-year appropriation commencing in 2020/21.

Stewardship of Residual Crown Obligations (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve timely and accurate delivery of the Crown's residual liabilities and obligations.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting transactions.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 of $195,000 relates to the transfer of this amount in 2020/21 to Management of the Crown's agreement with Taitokerau Forests Limited appropriation, to provide for the write-off of the remaining impaired loans.

Unclaimed Money PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the repayment of unclaimed money authorised by s74(5) of the PFA.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the repayment of unclaimed money to claimants and repayments are made in accordance with s74(5) of the PFA.

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31) (A40)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the recognition of interest unwind for Crown's liability to International Financial Institutions.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the interest unwind in respect of Crown's liability with International Financial Institutions.

Reasons for Change in Appropriation

This appropriation reflects unwinding the discount rate used in the present value calculation of the remaining liability in respect of subscription to International Financial Institutions.

3.5 - Non-Departmental Capital Expenditure#

COVID-19: Capital Injections to Airways New Zealand (M31) (A40)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to fund the Crown's contribution to the Airways New Zealand in response to the impacts of COVID-19.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's 2021/22 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation from 2020/21 to 2021/22 is due to the phasing of the expected further equity investment in Airways New Zealand, New Zealand's primary air navigation service provider, in response to the impacts of COVID-19.

COVID-19: Loans to Air New Zealand (M31) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to fund the Crown's contribution to Air New Zealand Limited in response to the impacts of COVID-19.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's annual report for 2021/22.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

An additional commercial loan facility of $600 million for 2021/22 was provided to Air New Zealand to protect the core part of Air New Zealand's services, in response to COVID-19.

Crown Infrastructure Partners Limited - Equity Injection (M31) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable Crown Infrastructure Partners Limited to invest in water and roading infrastructure to support the timely increase of housing supply.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for an investment in Crown Infrastructure Partners Limited.

Current and Past Policy Initiatives

International Financial Institutions PLA (M31) (A40)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide for the capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, as authorised by s5 of the International Finance Agreements Act 1961.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for payments of New Zealand's share subscriptions as a member of International Financial Institutions.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

New Zealand agreed to subscribe to increase the investment in the World Bank, International Finance Corporation.

New Zealand Green Investment Finance Ltd - Equity Injections for Capital Investments (M12) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to fund the Crown's contribution to the New Zealand Green Investment Fund Ltd for its capital investments.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported on by New Zealand Green Investment Finance Ltd in its Annual Report for 2021/22.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation is due to additional funding of $200 million for the 2021/22 year to increase capitalisation of New Zealand Green Investment Finance Ltd.

New Zealand Green Investment Finance Ltd - Equity Injections for Operating Expenditure (M12) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide capital to NZGIF to fund its operating costs and enable it to facilitate and accelerate low emissions investment.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported on by New Zealand Green Investment Finance Ltd in its Annual Report for 2021/22.

Current and Past Policy Initiatives

NZ Superannuation Fund - Contributions (M31) (A40)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide capital contributions to the New Zealand Superannuation Fund, to be invested on behalf of New Zealanders to smooth the present and future cost of New Zealand Superannuation.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by New Zealand Superannuation Fund in its 2021/22 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 reflects the original funding profile associated with the Government's decision to recommence its contributions to the New Zealand Superannuation Fund.

Participation in Dividend Reinvestment Plans by the Mixed Ownership Model Companies (M31) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve participation in any Dividend Reinvestment Plans by the four mixed ownership companies, Genesis Energy Limited, Mercury NZ Limited, Meridian Energy Limited, and Air New Zealand Limited.

End of Year Performance Reporting

An exemption was granted under s15(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the issuing of new shares to the Crown by either Air New Zealand Limited, Genesis Energy Limited, Mercury NZ Limited, or Meridian Energy Limited as a result of the Crown's participation in any dividend reinvestment plans carried out by the company.

Current and Past Policy Initiatives

Refinancing of Kainga Ora - Homes and Communities and Housing New Zealand Limited Debt (M31) (A40)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable Kainga Ora - Homes and Communities and Housing New Zealand Limited to refinance their loans.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's annual report for 2021/22.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to the alignment of the amount with Kainga Ora - Homes and Communities and Housing New Zealand Limited debt refinancing requirements.

Tamaki Regeneration Company Limited - Equity Injection (M31) (A40)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support the Tamaki regeneration programme and deliver new fit for purpose social housing and new open market housing.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for an equity injection. Further information will be available in Tamaki Regeneration Company Limited's Annual Reports.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is due to the forecast cash flow requirements of the company in relation to its housing construction programme.

Venture Capital Fund (M31) (A40)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to deepen early stage capital markets and enable New Zealand's venture capital market to become more self-sustaining.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's 2021/22 Annual Report.

Current and Past Policy Initiatives

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

4 - Multi-Category Expenses and Capital Expenditure#

Crown Company Monitoring Advice (M65) (A40)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide advice to shareholding or responsible Ministers to help them ensure appropriate financial returns and long-term value, from improved performance of companies that the Crown has a shareholding in and some Crown entities in order to improve the wellbeing of New Zealanders.

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

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Current and Past Policy Initiatives

Earthquake Commission - On-Sold Canterbury Properties (M86) (A40)

Overarching Purpose Statement

Scope of Appropriation, Expenses and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the repair of eligible Canterbury homes to address social issues arising from unrepaired homes with inadequate EQC commissioned repairs and/or damage missed from EQC insurance assessments.

How Performance will be Assessed for this Appropriation

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

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Earthquake Commission in its 2021/22 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This multi-year multi-category appropriation increased by $100 million to cover additional claims and administrative costs related to ex-gratia payment to eligible on-sold over-cap property owners in Canterbury to cover the cost of uninsured earthquake repairs.

Greater Christchurch Anchor Projects (M31) (A40)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of Anchor Projects and divestment of Crown-owned land in Christchurch.

How Performance will be Assessed for this Appropriation

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

Note 1 - The Christchurch Bus Exchange was sold to the Christchurch City Council within the 2019/20 financial year (30 September, 2019).

Service Providers for the Multi-Category Appropriation

Delivery of Greater Christchurch Anchor Projects will be undertaken by Otakaro Limited.

End of Year Performance Reporting

Performance information for this appropriation will be reported on by Otakaro Limited in its 2021/22 Annual Report.

Reasons for Change in Appropriation

The net increase in this appropriation is due to a combination of expense and capital transfers from 2019/20 to 2020/21 and expense and capital transfers from 2021/20 to 2021/22 to align funding with construction costs.

Management of Landcorp Protected Land Agreement (M31) (A40)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support the maintenance and management of land to ensure it is fit-for-purpose when it is required for public policy requirements.

How Performance will be Assessed for this Appropriation

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

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Management of New Zealand House, London (M31) (A40)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure that New Zealand House, London is well managed.

How Performance will be Assessed for this Appropriation

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

Service Providers

Services are provided through Jones Lang LaSalle International Property Consultants, London.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is mainly due to an expense transfer of $8 million from 2019/20 to 2020/21 of unused funding relating to the costs of managing the property.

Policy Advice and Financial Services (M31) (A40)

Overarching Purpose Statement

Scope of Appropriation, Expenses and Capital Expenditure

Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide a sound information base for government decision making, as well as the delivery of financial services, to contribute to improving the wellbeing of New Zealanders.

How Performance will be Assessed for this Appropriation

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2021/22 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase of $26.938 million in this multi-year appropriation is due to project funding of $2.300 million, a transfer from the Ministry of Housing and Urban Development to monitor the Government Services Package of $1.400 million, a transfer from the Infrastructure Funding & Financing Appropriation of $1.034 million and an increase in third party revenue of $2.500 million. This is offset by a reduction in capital charge of $708,000.

In addition the Treasury received additional funding of $18.894 million over the four years to accelerate New Zealand's economic recovery, $800,000 for the 2021/22 year to develop a funding and financing strategy for Aotearoa New Zealand's climate transition and $718,000 for the 2021/22 and 2022/23 financial years for the Government Implementation Unit.