Vote Lands - Primary Sector - Estimates 2016/2017

Overview of the Vote#

The Minister for Land Information is responsible for appropriations in Vote Lands for the 2016/17 financial year covering the following:

• approximately $143 million on the management and protection of Crown land, making geographic information usable and accessible and protecting New Zealand's property rights
• a total of $3 million on expenses to assist government decision making around foreign ownership
• approximately $1 million for capital expenditure for the purchase or development of departmental assets
• a total of $2 million for managing contaminated sites and forestry operations on Crown land
• a total of $108 million on other expenses, the majority of which relates to proceeds from sale of New Zealand Transport Agency properties being distributed back to NZTA, and
• just over $1 million to acquire land on behalf of the Crown
• a total of $480 million on multi-year capital expenses, to be used for land tenure reform acquisitions.

The Minister for Land Information is also responsible for Crown revenue and receipts in the Vote for the 2015/16 financial year covering the following:

• a total forecast of $78 million in departmental third party revenue, the majority of which relates to the survey and title system
• a total forecast of $115 million for non-tax revenue, the majority of which relates to proceeds from the sale of New Zealand Transport Agency properties, and
• a total of $105 million in capital receipts relating to Land Tenure review and property sales.

The Minister for Treaty of Waitangi Negotiations is responsible for one appropriation in the Vote of $10 million for purchase of assets for possible use in future Treaty of Waitangi settlements.

The Minister supporting Greater Christchurch Regeneration is responsible for one appropriation in the Vote of $59 million for the purchase, clearance, maintenance and management of land affected by the Canterbury earthquakes.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Multi-Year Appropriations#

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

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 Appropriations in the Details of Appropriations and Capital Injections.

1.3 - Analysis of Significant Trends#

The decrease in output expenses over time is due to LINZ now only having one appropriation, Administering the Overseas Investment Regime, which is not a multi-year or multi category appropriation. Many of the output expenses that LINZ had previously have been incorporated into multi category appropriations. Up until 2013/14, LINZ also had an appropriation for Administering Ocean Survey 20/20.

A change in the methodology in the calculation of Land Tenure review settlement values has resulted in an increase to the Capital Expenditure, this is matched by a corresponding increase in Capital Receipts.

The movement in Other Expenses is due to fluctuations in the New Zealand Transport Agency land disposals work programme, of which Land Information New Zealand acts as an agent between the New Zealand Transport Agency and the Crown.

The Multi Category Appropriation Output Expenses have increased significantly from the 2015/16 year onwards as LINZ has inherited some of the functions of the Canterbury Earthquake Recovery Authority, including demolition recoveries, management and clearance of land and removal of structures or making structures safe. This is as a result of that agency being wound up in April 2016. This has led to a corresponding increase in Crown funding.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administering the Overseas Investment Regime (M44)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective administration of New Zealand's overseas investment regime.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - In all timeliness measures for the Overseas Investment Office, the reference to working days means those days where the relevant matter is under active consideration by the Overseas Investment Office. It excludes any time that the matter is under active consideration by a third party (for example, with Ministers pending a decision, or pending receipt of further information from the applicant).

The Overseas Investment Office categorises applications into one of three categories according to the time required to assess them.

Category 1 applications include:

• applications to vary a condition of an existing significant business assets or sensitive land consent to extend the time for compliance.

Category 2 applications include:

• applications for consent to purchase significant business assets
• applications for consent to purchase sensitive land
• applications for consent to purchase significant business assets and sensitive land
• applications for an exemption for significant business assets or sensitive land
• applications where the overseas person is intending to reside in New Zealand indefinitely, and
• applications to vary a consent or exemption, or a condition of a consent (other than to extend the time for compliance) or exemption for significant business assets or sensitive land.

Category 3 applications include:

• applications to acquire an interest in fishing quota
• applications for an exemption for an interest in fishing quota
• applications to vary a consent or exemption, or a condition of a consent or exemption for an interest in fishing quota
• applications where the vendor is required to offer special land (being land that includes foreshore or the bed of a river or lake)
• applications in respect of which a third party submission has been received by the Ministers or the Overseas Investment Office, and
• applications where the Ministers or the Overseas Investment Office have decided that consultation with third parties is appropriate in considering whether or not to grant consent.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Land Information New Zealand in the 2016/17 Annual Report.

Reasons for Change in Appropriation

This appropriation has decreased by $250,000 to $3.355 million in 2016/17. This is due to the 2015/16 appropriation being higher than normal based on increased volumes.

Memorandum Account

2.3 - Departmental Capital Expenditure and Capital Injections#

Land Information New Zealand - Capital Expenditure PLA (M44)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal upgrade and redesign of life-expired assets, and purchase of new assets in support of the delivery of Land Information New Zealand's 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 Land Information New Zealand in the 2016/17 Annual Report.

Capital Injections and Movements in Departmental Net Assets

Land Information New Zealand

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Contaminated Sites (M44)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective management of contaminated sites for which the Crown has accepted responsibility.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation

This appropriation has increased by $50,000 to $400,000 for 2016/17 which is a return to expected levels for this appropriation. Due to previous transfers to fund land liability settlements, the 2015/16 appropriation was lower than normal. LINZ decreased this appropriation by $100,000 per year for reprioritisation in Budget 2015.

Forestry Plantation Activity (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve effective forestry operations on Crown land.

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

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation#

This appropriation has increased by $421,000 to $1.326 million for 2016/17 which is due to increased forestry activity.

3.4 - Non-Departmental Other Expenses#

Bad and Doubtful Debts (M44)#

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the writing off bad and doubtful debts.

How Performance will be Assessed and End of Year Reporting Requirements

This appropriation is solely for writing off bad and doubtful debts. An exemption was granted under s.15D(2)(b)(ii) of the Public Finance Act 1989 because end of year performance information for this appropriation is not likely to be informative.

Reasons for Change in Appropriation

This appropriation has increased by $120,000 to $145,000 for the 2016/17 year due to a transfer from Vote Treaty Negotiations related to the Landbank transfer.

Crown Forest Management (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve effective management of Crown forest properties.

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

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation#

This appropriation has decreased by $50,000 to $400,000 in 2016/17 which is due to an expense transfer from 2014/15 into 2015/16. This is a return to the expected level for this appropriation.

Depreciation (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the depreciation of buildings on surplus Crown land.

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

This appropriation is solely for the payment of depreciation. An exemption was granted under s.15D(2)(b)(ii) of the Public Finance Act 1989 because end of year performance information for this appropriation is not likely to be informative. Performance information relating to the administration of Crown land is provided under the Crown land Multi-Category Appropriation.

Reasons for Change in Appropriation#

This appropriation has increased by $3.600 million to $3.993 million due to a transfer from Vote Treaty Negotiations related to the Landbank transfer.

Land Liabilities (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the investigation, resolution and settlement, of land-related liabilities administered by the department.

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

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation#

This appropriation has decreased by $90,000 to $843,000 in 2016/17 which is due to an expense transfer from 2014/15 into 2015/16. This is a return to the expected level for this appropriation.

Proceeds from Sale of New Zealand Transport Agency Properties (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve payment to the New Zealand Transport Agency for the equivalent of what the Crown has received from the sale of New Zealand Transport Agency properties.

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

An exemption was granted under s.15D(2)(b)(ii) of the Public Finance Act 1989 because this appropriation is solely to return to the New Zealand Transport Agency proceeds from the disposal of Crown land administered by the New Zealand Transport Agency. Performance information relating to the administration of this payment is provided within the New Zealand Transport Agency 2016/17 Annual Report.

Rates on Crown Land (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve payment of rates on Crown land and surplus government properties administered by the Department on behalf of the Crown.

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

This appropriation is solely for the payment of rates on Crown land. An exemption was granted under s.15D(2)(b)(ii) of the Public Finance Act 1989 because end of year performance information for this appropriation is not likely to be informative.

Reasons for Change in Appropriation#

This appropriation has decreased by $150,000 to $1.157 million in 2016/17 which is due to an expense transfer from 2014/15 into 2015/16. This is a return to the expected level for this appropriation.

Residual Crown Leasehold Rents (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the payment of leasehold liabilities on residual surplus government accommodation administered by the department on behalf of the Crown.

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

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

Soil Conservation Reserve Management (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the effective management of soil conservation reserves in accordance with the Soil Conservation and Rivers Control Act 1941.

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

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

Tangoio Catchment Management Fund (M44)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve management of environmental effects associated with the Tangoio Catchments Management Area.

End of Year Performance Reporting#

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $5 million for expenses.

3.5 - Non-Departmental Capital Expenditure#

Crown Acquisitions - Huntly East (M44)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the acquisition of properties captured within the Huntly East subsidence zone.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s.15D(2)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $15 million for capital expenditure.

Reasons for Change in Appropriation

This appropriation has increased by $1.245 million to $1.245 million in 2016/17 which is due to an expense transfer from 2015/16 into 2016/17. The timing and volume of these purchases are outside of LINZ's control. No purchases were required in the 2015/16 year.

Crown Purchases- Land Exchanges (M44)#

Scope of Appropriation#

Capital Expenditure#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the acquisition of land from other parties to effect boundary adjustments for works such as roading and rail service improvements or movements in stream or riverbeds.

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

An exemption was granted under s.15D(2)(iii) of the Public Finance Act 1989 because the annual amount of the non-departmental appropriation is less than $15 million for capital expenditure.

Land Tenure Reform Acquisitions (M44)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve acquisition of the leasees' interest in pastoral lease land and purchase of any land and/or assets required to complete the acquisition of lessee interest in order to achieve Tenure Review outcomes under the Crown Pastoral Land Act 1998, or achieve Government high country objectives.

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 for Land Information appended to the LINZ annual report for 2016/17.

Purchase of Assets for Possible Use in future Treaty of Waitangi settlements (M74)#

Scope of Appropriation#

Capital Expenditure#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the efficient and effective purchase of assets for possible use in future Treaty of Waitangi settlements.

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 the purchase of assets. Performance information relating to the purchase and disposal of assets is provided under the Property Portfolio Management appropriation.

Reasons for Change in Appropriation#

The increase in this appropriation is due to LINZ taking this funding on from Vote Treaty Negotiations for 2016/17 as part of the Landbank transfer.

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

Multi-Category Expenses and Capital Expenditure#

Canterbury Earthquake Recovery Land Ownership and Management (M85)

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 recovery of Canterbury through the purchase, clearance, maintenance and management of Crown land in the residential red zone affected by the Canterbury earthquakes.

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 Land Information New Zealand in the 2016/17 Annual Report.

Comparators for Restructured Appropriation

Note 1 - expenditure against this appropriation also corresponds to other appropriations in Vote Health, Vote Building and Housing, Vote Business, Science and Innovation and Vote Prime Minister and Cabinet.

Note 2 - all categories in Vote Canterbury Earthquake Recovery, Canterbury Earthquake Recovery Land Ownership and Management MCA correspond to this new Multi-Category appropriation in Vote Lands.

Reasons for Change in Appropriation

The increase in this appropriation for 2016/17 is due to:

• an increase of $850,000 in Managing the Recovery, this increase is a result of LINZ receiving a higher appropriation for 2016/17 than for 2015/16 when inheriting this from CERA

• an increase of $36.744 million in Management and Clearance of Land, this increase is a result of LINZ receiving a higher appropriation for 2016/17 than for 2015/16 when inheriting this from CERA

• a decrease of $6.412 million in Demolition and Making Structures Safe, this decrease is a result of LINZ receiving a lower appropriation for 2016/17 than for 2015/16 when inheriting this from CERA

• a decrease of $8.380 million in Mass Movement of Land, this decrease is a result of LINZ receiving no appropriation for 2016/17 when inheriting this from CERA as it is expected that all work will be completed by the end of 2015/16

• a decrease of $1.719 million in Vendor Legal Fees, this decrease is a result of LINZ receiving a wash up of CERA appropriations for 2015/16 which do not continue into 2016/17

• a decrease of $926,000 in Acquisition and Disposal Expenses, this decrease is a result of LINZ receiving a wash up of CERA appropriations for 2015/16 which do not continue into 2016/17, and

• a decrease of $12.812 million in Purchase of Land and Improvements - Capital, this decrease is a result of LINZ receiving a wash up of CERA appropriations for 2015/16 which do not continue into 2016/17.

For instances where this appropriation has increased, this is due LINZ inheriting only a partial year's appropriation in 2015/16 but a full year's appropriation in 2016/17. For instances where this appropriation has decreased this is largely due to work being scheduled to be completed by the end of 2015/16.

Crown Land (M44)#

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 effective and sustainable management of Crown-owned and used land.

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 - realised disposal value is no less than 90% of the current market value for all sales.

Note 2 - average disposal time is no more than 36 months.

Note 3 - realised disposal value is no less than 90% of the current market value for all sales.

Note 4 - outstanding rent is no more than 4% of total rental revenue.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Land Information New Zealand in the 2016/17 Annual Report.

Reasons for Change in Appropriation#

The increase in this appropriation for 2016/17 is due to:

• an increase of $2 million in Land disposal services for other agencies. This is due to forecasting changes in 2015/16 to decrease this appropriation. 2016/17 is a return to the expected level for this appropriation
• a decrease of $935,000 in Land Information New Zealand Biosecurity Programme. In 2015/16 LINZ had a higher level of funding for MidDome, an expense transfer from 2014/15 into 2015/16 which increased the appropriation in this year and forecasting changes. 2016/17 is a return to the expected level for this appropriation, and
• an increase of $12.486 million in Management of Crown land. This is due to an increase of $12.539 million transferred from Vote Treaty Negotiations related to the Landbank Transfer. This is offset by a decrease from the Canterbury Earthquake Recovery portion of this appropriation being stripped out.

Memorandum Account#

Location Based Information (M44)#

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 increased availability, easier accessibility and greater value being created from location based information.

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 - for more information on the New Zealand Government Open Access and Licensing (NZGOAL) framework, visit: https://www.ict.govt.nz/guidance-and-resources/open-government/new-zealand-government-open-access-and-licensing-nzgoal-framework/.

Note 2 - electronically submitted new allocated addresses are processed within 5 working days.

Note 3 - on average, high visibility changes in the landscape are maintained within 30 working days. On average, road corridor and selected updates are maintained within 12 working days.

Note 4 - timeframes vary for different types of work and are agreed with contractors.

Note 5 - timeframes vary for different data and are specified in the contract specifications supplied to the contractor.

Note 6 - maritime hazards and critical information are notified within 1 working day.

Note 7 - sea level data is transmitted and received within 10 minutes.

Note 8 - New information from hydrographic surveys is available on charting products within 12 months.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Land Information New Zealand in the 2016/17 Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to:

• a decrease of $10,000 in the Administration of the New Zealand Geographic Board Nga Pou Taunaha O Aotearoa category, this is based on a forecast adjustment. 2016/17 is a return to expected levels for this appropriation
• a decrease of $609,000 in the Land Information New Zealand Location Based Information Infrastructure category. This is due to expense transfers from 2014/15 to 2015/16 resulting in a higher than normal appropriation in 2015/16. 2016/17 is a return to expected levels for this appropriation, and
• a decrease of $3.987 million in Leading the New Zealand Geospatial Strategy. This is a result of 2015/16 being significantly higher than normal. In 2015/16 LINZ received appropriation for Smart Cities, Open Data and Metadata. In addition there were expense transfers in this category from 2014/15 to 2015/16 related to Canterbury SDI and Smart Cities.

Policy Advice and Related Services (M44)#

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 high quality, timely policy advice and services to Ministers.

How Performance will be Assessed for this Appropriation#

Land Information New Zealand will assess its performance for the Policy Advice Multi Category Appropriation by on-going monitoring of the quality of policy advice briefings it produces, the satisfaction of the Minister for Land Information with the advice and services it provides and the timeliness with which outputs under this Policy Advice Multi Category Appropriation are produced. The performance measures for the Policy Advice Multi Category Appropriation are listed below in the relevant categories of the Multi Category 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 Land Information New Zealand in the 2016/17 Annual Report.

Reasons for Change in Appropriation#

This appropriation has decreased by $745,000 to $3.484 million for 2016/17. This is due to 2015/16 being higher than expected with increased policy work on Canterbury Boundaries and Maori Land Service. 2016/17 is a return to the expected level for this appropriation.

Property Rights (M44)#

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 ease of transacting property rights and maintained confidence in property rights.

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 Landonline system will be available to customers from 7am to 9pm Monday to Thursday, 7am to 9pm Friday, and 9am to 5pm Saturday.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Land Information New Zealand in the 2016/17 Annual Report.

Reasons for Change in Appropriation#

The increase in appropriation from $70.439 million to $72.089 million is a return to expected levels for this appropriation. In 2015/16 this appropriation was lower than expected due to an internal reprioritisation to increase the Location Based Information Infrastructure category of the Location Based Information appropriation.

Memorandum Account#

The Survey and Title System is currently undergoing a fee review. It is expected that the balance of the memorandum account will trend towards zero over time as fees will be set to a level that will under recover on the costs being incurred. These fees will be reviewed again upon the completion of the Advanced Survey and Title System.