Vote Prime Minister and Cabinet - Finance and Government Administration Sector - Estimates 2016/2017

Overview of the Vote#

The Prime Minister is responsible for appropriations in Vote Prime Minister and Cabinet for the 2016/17 financial year which cover the following:

• a total of over $4 million for free and frank advice on policy issues, services to facilitate inter-departmental coordination of policy development and leadership of a more collective approach to performance across the state sector

• a total of nearly $6 million for secretariat services to Cabinet, Cabinet committees and the Executive Council, administration of the New Zealand Royal Honours system and coordination of the Government's legislation programme

• a total of over $4 million for support services to the Governor-General and maintenance of the official residences

• a total of just nearly $10 million for leadership, advice, coordination around national security matters, leading collaboration within the New Zealand intelligence community, managing the National Cyber Policy Office and providing assessments to support national security

• a total of nearly $800,000 for the operation of the Science Advisory Committee and an ex gratia payment for the services of the Prime Minister's Chief Science Advisor

• a total of over $1 million on Government House capital investment

• a total of nearly $2 million under permanent legislative authority (Governor-General Act 2010) for payments for the salary, allowances, programme and travel expenses outside New Zealand of the Governor-General

• a total of over $2 million on departmental capital expenditure

• a total of $74,000 under permanent legislative authority (New Zealand Security Intelligence Service (NZSIS) Amendment (No. 2) Act 1999) for payments to the Commissioner of Security Warrants, and

• a total of nearly $3 million for costs of ownership on Crown assets (Government Houses and their contents).

The Minister supporting Greater Christchurch Regeneration is responsible for appropriations in Vote Prime Minister and Cabinet for the 2016/17 year which cover the following:

• a total of nearly $25 million for the provision of services supporting the regeneration of greater Christchurch.

The Minister of Civil Defence is responsible for appropriations in Vote Prime Minister and Cabinet for the 2016/17 financial year which cover the following:

• a total of nearly $12 million for ensuring the effective delivery and responsiveness of New Zealand's civil defence emergency management services

• a total of $2 million for emergency expense payments in line with the criteria as detailed in the National Civil Defence and Emergency Management (CDEM) Plan, and

• a total of $889,000 in subsidies to Local Government for emergency management preparation.

The Minister for Communications is responsible for appropriations in Vote Prime Minister and Cabinet for the 2016/17 financial year which cover the following:

• a total of over $5 million for carrying out the functions and services of a national CERT (a New Zealand computer emergency response organisation).

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.

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

It was not practicable to restate information in the Summary of Financial Activity table to reflect restructuring of appropriations undertaken because the allocation of the Canterbury Earthquake appropriations is spread across a number of government agencies, and it is not possible to ascertain the portion of historical data that would apply to each agency.

1.3 - Analysis of Significant Trends#

Total Vote - All Appropriations

The movements in departmental and non-departmental appropriations in Vote Prime Minister and Cabinet, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in output expenses and non-departmental capital expenditure.

Details of significant movements within each appropriation category are detailed below.

Output Expenses

The increase in 2012/13 was largely due to additional funding for a project to provide an electronic platform to support Cabinet processes (CabNet), for establishing a new visitor centre at Government House Wellington, for implementing the National Cyber Policy Office, and for increasing capability in the corporate support functions.

The decrease in 2013/14 was mainly due to changes in the restatement of the Vote to reflect the transfer from Vote Internal Affairs in the 2011/12 and 2012/13 years for the transition of emergency functions. This decrease was off-set by increases due to expense transfers from 2012/13 for the Central Agencies Shared Services development programme, a one-off provision of funding to redevelop the future options for CabNet, and a one-off fiscally neutral transfer from Canterbury Earthquake Recovery Authority (CERA) to accelerate the resolution of insurance claims and repair of houses.

The increase in 2014/15 is mainly due to a full year of costs to administer emergency management functions transferred from Vote Internal Affairs, plus the expected costs of the Flag Consideration Project, offset by a reduction due to the baseline returning to status quo after one-off increases due to expense transfers in 2013/14.

The increase in 2015/16 is mainly due to the expected costs of the CabNet project implementation and the Flag Consideration Project, and expected costs relating to supporting the regeneration of greater Christchurch.

The increase in 2016/17 is mainly due to the transfer of a full year of funding from the Canterbury Earthquake Recovery Authority from 1 March 2016 to support ongoing Canterbury earthquake recovery work, funding to establish a New Zealand computer emergency response organisation, and funding to support increased capability and capacity in Emergency Management.

Other Expenses

The decreases in 2012/13 were mainly due to the restatement of the Vote to reflect the transfer from Vote Internal Affairs in the 2011/12 and 2012/13 years, offset by payments made as a result of the September 2010 and February 2011 Canterbury Earthquakes for civil defence and emergency management. In 2012/13 payments were also made to Environment Bay of Plenty for hazard mitigation work following civil defence emergency events in 2004 and 2005, and to the West Coast Regional Council as a result of the December 2010 flood event.

The decrease in 2013/14 is mainly due to a transfer of depreciation funding to 2014/15 arising from a revision of the useful life of the Government House main building.

The decrease in 2014/15 is mainly due to the transfer of depreciation funding to the new multi-category appropriation, as well as a reduction in actual costs for emergency expenses.

The increase for 2015/16 is mainly due to a transfer of funding from 2014/15 to the new Government House Building and Assets Multi-Category appropriation to now be used on capital and maintenance expenditure, expected increases in the costs of Emergency Management due to the flooding events of June 2015, and funding received for the transition of functions related to the Canterbury earthquake recovery.

The decrease for 2016/17 is mainly due to the return to baseline funding for Emergency Expenses, as well as the baseline returning to status quo after one-off increases due to expense transfers from 2014/15 for Emergency Management Preparedness Grants.

Capital Expenditure

The decrease in 2012/13 is mainly due to a return to baseline levels of expenditure after the increases in the previous year.

The decrease in 2013/14 is mainly due to reduced capital spend on Government House capital projects reflecting the uncertainty of ongoing baseline funding.

The increase in 2014/15 is mainly due to funding received for the CabNet project to provide an electronic platform to support Cabinet processes.

The decrease in 2015/16 is mainly due to the completion of the CabNet project, offset by transfers of assets from Canterbury Earthquake Recovery Authority.

The increase in 2016/17 is mainly due to transfers from 2015/16 for expected delays in securing vendor contracts for ongoing capital maintenance for Government House, expected expenditure to support increased capability and capacity in Emergency Management, and expected expenditure to establish a New Zealand computer emergency response organisation.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Canterbury Earthquake Recovery (M85)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve support for the regeneration of greater Christchurch including the ongoing provision of corporate capability.

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 Lands.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Reporting on this measure will be covered in the Stakeholder Survey to the Minister supporting Greater Christchurch Regeneration.

Note 2 - The quality characteristics of policy advice to be surveyed with the Minister supporting Greater Christchurch Regeneration in 2016/17 are:

• completeness/alignment (advice meets the Minister's needs)

• timeliness (advice provided in time to meet Cabinet Office and ministerial requirements, or as otherwise agreed)

• robustness (advice received is of high technical quality, considering clarity, accuracy, analytical rigour, fitness for purpose and relevance to the wider context), and

• likelihood to recommend (level to which the Minister will tell other Ministers they have received good policy advice from policy advice units).

Note 3 - Reporting on this measure will be covered through Stakeholder Survey to the Minister supporting Greater Christchurch Regeneration. Achieved means that all the advice provided on appointments meet the Minister's expectations on completeness, quality and timeliness.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2016/17 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This is a new appropriation established as part of the transition from Canterbury Earthquake Recovery Authority (CERA) to other central government agencies. The new appropriation reflects the increased functions and accountabilities transferred to the Department of the Prime Minister and Cabinet.

Cyber Security Services (M88)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the establishment and operation of a New Zealand computer emergency response organisation to enhance New Zealand's cyber security and resilience and help prevent cybercrime.

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 Department of the Prime Minister and Cabinet in the 2016/17 Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation to fund the establishment and operation of a New Zealand computer emergency response organisation.

2.3 - Departmental Capital Expenditure and Capital Injections#

Department of the Prime Minister and Cabinet - Capital Expenditure PLA (M52)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal, upgrade or redesign of assets in support of the delivery of the department's services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure is in accordance with the department's capital asset management plan.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2016/17 Annual Report.

Reasons for Change in Appropriation

The increase in this appropriation is due to the increased funding for the establishment and operation of a New Zealand computer emergency response organisation, and increased funding to support increased capability and capacity in Emergency Management.

Capital Injections and Movements in Departmental Net Assets

Department of the Prime Minister and Cabinet

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Regenerate Christchurch (M85)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve strategies and planning activities for the regeneration of areas 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 the Minister supporting Greater Christchurch Regeneration in a report appended to the Department of the Prime Minister and Cabinet's 2016/17 Annual Report.

Reasons for Change in Appropriation

This is a new multi-year appropriation to support the strategies and planning activities for the regeneration of areas in Christchurch.

3.4 - Non-Departmental Other Expenses#

Emergency Expenses (M11)#

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve provision of financial assistance to local authorities facing emergency management related expenses, through reimbursing them, where eligible, for costs incurred in caring for displaced people; while other eligible response and recovery will be partially reimbursed under the criteria provided for in the National CDEM Plan.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989 on the basis that the amount (or annual average equivalent) of the appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation

The decrease in this appropriation for 2016/17 is due to a return to baseline levels after a funding increase in 2015/16 of $1 million to cover the reimbursements of response and recovery costs to local authorities after flooding events in June 2015.

Emergency Management Preparedness Grants (M11)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve enhanced preparedness and response capabilities in the local community through provision of contestable funding for relevant projects managed by local authorities. Where practicable, the local authority is encouraged to contribute to the cost of the project.

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

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989 on the basis that the amount (or annual average equivalent) of the appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to the return to base level funding after a one-off transfer into 2015/16 from 2014/15 to reflect delays from local authorities in completing complex projects claims.

Ex Gratia Payment to the University of Auckland (M52)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the provision of high-quality scientific advice to the Prime Minister.

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

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989 on the basis that the amount (or annual average equivalent) of the appropriation is less than $5 million for expenses.

Fees for the Commissioner of Security Warrants PLA (M52)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve remuneration of the Commissioner of Security Warrants.

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

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989 on the basis that end-of-year performance information for the appropriation or category is not likely to be informative, because this appropriation is solely for payments to the Commissioner of Security Warrants for authorisation of domestic security warrants.

Governor-General's Programme PLA (M52)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve strengthening of the office of the Governor-General as a symbol of national unity and leadership and enhancement of New Zealand's sense of nationhood.

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

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989 on the basis that the amount (or annual average equivalent) of the appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to the variable expenditure pattern associated with the Governor-General's official programme.

Governor-General's Salary and Allowance PLA (M52)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve remuneration of the Governor-General.

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

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989 on the basis that end-of-year performance information for the appropriation or category is not likely to be informative, because this appropriation is solely for salary and allowance payments to the Governor-General.

Reasons for Change in Appropriation#

This increase in this appropriation for 2016/17 is due to the expected increase in salary costs associated with the transition to the incoming Governor-General.

Governor-General's Travel Outside New Zealand PLA (M52)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the enablement of the Governor-General, in the head of state role, to represent New Zealand overseas, in support of the government's foreign policy objectives, to enhance relations between New Zealand and other countries, and to attend events that are important to New Zealand and New Zealanders.

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

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989 on the basis that the amount (or annual average equivalent) of the appropriation is less than $5 million for expenses.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to expected lower levels of expenditure in the approved international travel plan.

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

Multi-Category Expenses and Capital Expenditure#

Emergency Management (M11)

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 enablement and facilitation of leadership in promoting resilience to hazard risks and development of capability and capacity in civil defence emergency management.

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 - Satisfaction performance measure involves a five point scale, either numerical 1-5 (with '5' the highest rating) or qualitative: Very Good, Good, Satisfied, Poor and Very Poor.

Note 2 - Satisfaction performance measure involves a 10 point scale (with '10' the highest rating).

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2016/17 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

In 2016/17 new funding will increase capacity and capability to manage emergencies, and new funding for operating costs for the Christchurch Justice and Emergency Services Precinct.

Funding for 2015/16 was higher due to:

• $913,000 transfer from categories in Policy Advice and Support Services multi-category appropriation to reflect a recalibration of corporate costs across the Department

• $436,000 for overseas aid for civil defence and emergency management funded by recoveries from the Ministry of Foreign Affairs and Trade, and recoverable communications activities, and

• $175,000 expense transfers from 2014/15.

Government House Buildings and Assets (M52)#

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 an ongoing programme of planned capital and maintenance for Government Houses.

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 Department of the Prime Minister and Cabinet in a report appended to its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Advice and Support Services (M52)#

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 enablement and facilitation of decision making by executive government through the delivery of policy advice and support services to the Prime Minister, Cabinet and its committees, the Executive Council and the Governor-General.

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 National Security Priorities and Intelligence Coordination category encompasses three primary functions: gathering information, assessment of information and intelligence coordination.

Note 2 - Reporting on this measure will cover the satisfaction of stakeholders with the support DPMC provides to ODESC governance boards, as well as satisfaction with the national exercise programme and responses to national security events.

Note 3 - The quality characteristics of policy and scientific advice to be surveyed with the Prime Minister in 2016/17 are:

• completeness/alignment (advice meets the Prime Minister's needs)
• timeliness (advice provided in time to meet Cabinet Office and ministerial requirements, or as otherwise agreed)
• robustness (advice received is of high technical quality, considering clarity, accuracy, analytical rigour, fitness for purpose and relevance to the wider context), and
• likelihood to recommend (level to which the Prime Minister will tell other Ministers they have received good policy advice from policy advice units).

Note 4 - The higher the robustness score, the stronger the quality of the completed assessment.

Note - Alongside the other central agencies, the department plays a system-level coordination and leadership role within the State Sector and therefore has an important role in enhancing the wider State Sector's performance.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2016/17 Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to completed projects for which there was a transfer from 2014/15 to 2015/16; including CabNet, information technology expenditure and secondment costs, which are recovered from other agencies; partially offset by an increase in funding for the direction, coordination and provision of intelligence assessments to support national intelligence priorities.

Current and Past Policy Initiatives#