Vote Prime Minister and Cabinet - Finance and Government Administration Sector - The Estimates of Appropriations 2017/18 - Estimates 2017/18

Overview of the Vote#

The Prime Minister is responsible for appropriations in Vote Prime Minister and Cabinet for the 2017/18 financial year which cover the following:

• a total of nearly $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 nearly $11 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 $795,000 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 $730,000 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 $300,000 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 of Crown assets (Government Houses and their contents).

The Prime Minister is also responsible for a capital injection of $200,000 to the Department of the Prime Minister and Cabinet.

The Minister supporting Greater Christchurch Regeneration is responsible for appropriations in Vote Prime Minister and Cabinet for the 2017/18 year which cover the following:

• a total of over $16 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 2017/18 financial year which cover the following:

• a total of over $16 million for ensuring the effective delivery and responsiveness of New Zealand's civil defence emergency management services

• a total of $5 million under permanent legislative authority (Civil Defence Emergency Management Act 2002) for reimbursing a local authority for, or meeting, expenses incurred by a local authority in connection with an emergency as authorised by section 115A of the Civil Defence Emergency Management Act 2002

• a total of $720,000 to support the rehabilitation of Kaikoura Harbour

• a total of nearly $2 million for a contribution to Kaikoura District Council to support additional resilience, capacity, improved materials, or other alternatives to the original infrastructure as part of restoration of essential infrastructure systems.

• 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 and support to Local Government for emergency management preparation.

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#

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

1.3 - Analysis of Significant Trends#

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

Output Expenses

An appropriation was established in 2014/15 for the Flag Consideration Project.

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

The increase in 2016/17 was 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.

The decrease in 2017/18 is mainly due to the completion of some activities that transitioned from the Canterbury Earthquake Recovery Authority (CERA) to the Department of the Prime Minister and Cabinet following the disestablishment of CERA in April 2016. This appropriation will continue to decrease in the outyears as the Canterbury earthquake recovery activities come to an end and/or are transferred to local agencies, leaving a residual function in the Department of the Prime Minister and Cabinet.

Other Expenses

The decrease in 2013/14 was 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 was mainly due to the transfer of depreciation funding to the new multi-category appropriation, as well as a reduction in actual costs for Emergency Management.

The increase in 2015/16 was mainly due to an increase in the costs of Emergency Management as a result of floods in June 2015.

The increase in 2016/17 was mainly due to $60 million provided for reimbursement to local authorities for the expenses incurred by them in connection with the November 2016 Kaikoura earthquake and tsunami, the implementation of a Cell Broadcast Alerting capability and $5 million for the rehabilitation of Kaikoura Harbour.

The decrease in 2017/18 is due to a return to a base level of expenditure for the reimbursement of emergency expenses to local authorities. This is subject to change in the event of a significant Civil Defence emergency.

Capital Expenditure

The decrease in 2013/14 was mainly due to reduced capital expenditure on Government House projects.

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

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

The increase in 2016/17 and subsequent decrease in 2017/18 is mainly due to the cyclical nature of the routine replacement of the Department's fixed assets.

Multi-Category Output Expenses

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 partially offset by increases due to expense transfers from 2012/13 for the Central Agencies Shared Services development programme 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 was mainly due to a full year of costs to administer emergency management functions transferred from Vote Internal Affairs.

The increase in 2016/17 was mainly due to increased funding support to capability and capacity in Emergency Management and the implementation of Cell Broadcast Alerting capacity.

The decrease in 2017/18 is mainly due to a reduction in the departmental costs of supporting the response to, and the recovery from, the November 2016 Kaikoura earthquake and tsunami, a reduction in overseas aid for civil defence emergency management and a reduction in revenue from other Departments for the Policy Project.

Multi-Category Other Expenses

This category was established in 2014/15 for the depreciation and maintenance of Government House.

Changes since 2015/16 have mainly been the result of the cyclical nature of Government House maintenance costs. Expenditure is expected to be consistent in the outyears.

Multi-Category Capital Expenditure

This category was established in 2014/15 to preserve the functionality and value of Government House.

Changes since 2015/16 have mainly been the result of delays in securing vendor contracts for ongoing capital maintenance and the cyclical nature of the routine replacement of fixed assets. Expenditure is expected to be consistent in the outyears.

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.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - This measure has been revised to improve consistency and focus on the number of reports instead of the timing of reporting.

Note 2 - This measure has been revised to clarify that it is related to the Christchurch Horizontal Infrastructure programme. The measure also required a target date for completion.

Note 3 - The Common Satisfaction Survey measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means fell well short of expectations and 10 means far exceeded expectations.

Note 4 - A sample of the Department's policy advice will be assessed by a panel using the Policy Project quality framework. The target ranges for the quality of our policy advice are: that 70% of our assessed papers will score 7 or more, and that 30% will score 8 or more out of 10, with 10 being the highest quality.

Note 5 - Discontinued in 2017/18 because the report will be completed by June 2017.

Note 6 - This measure has been revised to reflect the current stage of the rebuild/regeneration rather than recovery. A focus has also been placed on the number of reports produced rather than frequency of reporting.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2017/18 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The decrease in this appropriation for 2017/18 is due to a $7.516 million reduction as a result of the completion of some activities that transitioned from the Canterbury Earthquake Recovery Authority (CERA) to the Department of the Prime Minister and Cabinet following the disestablishment of CERA in April 2016.

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 2017/18 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2017/18 is due to a $213,000 reduction in the costs of replacement of the Department's fixed assets, which is of a cyclical nature.

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

Note 1- In the absence of Regenerate Christchurch's final work programme, the measure and standard have been updated to ensure Regenerate Christchurch meets its statutory 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 2017/18 Annual Report.

Current and Past Policy Initiatives

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 costs will be partially reimbursed under the criteria provided for in the National CDEM Plan.

The scope and purpose of this appropriation will be reviewed during 2017/18 as a new non-departmental other expenses appropriation, Local Authority Emergency Expenses PLA, was established in December 2016. That new appropriation is also intended to achieve provision of financial assistance to local authorities facing emergency related expenses and was established with permanent legislative authority.

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 2017/18 is $450,000 due to an expected reduction in emergency payments to local authorities from this appropriation.

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.

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 2017/18 is $150,000 due to the variable expenditure pattern of 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 decrease in this appropriation for 2017/18 is $250,000 due to the inclusion of the costs of transition to the new Governor-General in 2016/17.

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.

Local Authority Emergency Expenses PLA (M11)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve reimbursement of local authorities for the purposes of reimbursing, or meeting, expenses incurred by them in connection with an emergency as authorised by section 115A of the Civil Defence Emergency Management Act 2002.

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 Civil Defence in a report appended to the Department of the Prime Minister and Cabinet's 2017/18 Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The decrease in this appropriation for 2017/18 is due to recognising $60 million in the previous year's budget for reimbursement to Local Authorities for expenses incurred by them in connection with the November 2016 Kaikoura earthquake and tsunami.

Rehabilitation of Kaikoura Harbour (M11)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the restoration of the functionality of Kaikoura Harbour.

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 Civil Defence in a report appended to the Department of the Prime Minister and Cabinet's 2017/18 Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The decrease in this appropriation for 2017/18 is due to:

• $5 million decrease due to the substantial programme of work to dredge the harbour being completed in 2016/17, and

• $720,000 further contribution to Kaikoura Harbour rehabilitation in 2017/18.

Conditions on Use of Appropriation#

Restoration of Kaikoura District Three Waters Network (M11)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve some additional resilience, capacity or other improvements where appropriate to the Kaikoura District three waters network.

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 Civil Defence in a report appended to the Department of the Prime Minister and Cabinet's 2017/18 Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation to support restoration of the Kaikoura District Council's essential infrastructure assets, particularly the three waters network, with some additional resilience, capacity or other improvements where appropriate.

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 - The baseline for 2015-16 was 47%.

Note 2 - 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 3 - The project milestones regarding Cell Broadcast Alerting are met as per project plan.

Note 4 - A sample of the Department's policy advice will be assessed by a panel using the Policy Project quality framework. The target ranges for the quality of our policy advice are: that 70% of our assessed papers will score 7 or more, and that 30% will score 8 or more out of 10, with 10 being the highest quality.

Note 5 - The Common Satisfaction Survey measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means fell well short of expectations and 10 means far exceeded expectations.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2017/18 Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The decrease in this appropriation for 2017/18 is due to:

• $2.910 million decrease for cost of supporting the November 2016 Kaikoura earthquake and tsunami response and recovery
• $1.150 million decrease for the costs of overseas aid for civil defence emergency management and communications activities, and

• a decrease in the costs of Cell Broadcast Alerting.

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 its 2017/18 Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The decrease in this appropriation for 2017/18 is due to:

• $500,000 reduction in capital investment, which reflects the cyclical nature of the routine replacement of Government House's fixed assets
• $100,000 reduction in annual maintenance costs, and
• $170,000 loss on the disposal of assets in 2016/17.

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 Common Satisfaction Survey measures the Prime Minister's satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means fell well short of expectations and 10 means far exceeded expectations. DPMC does not survey Cabinet for this category, so this reference has been withdrawn.

Note 4 - The Common Satisfaction Survey measures the Prime Minister's satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means extremely dissatisfied and 10 means extremely satisfied.

Note 5 - The Building and Grounds Committee's role is to ensure the Capital and Long-Term Maintenance Plan developed by Government House and formally approved by the Chief Executive is properly devised and then implemented. The committee receives support and advice from DPMC officials following the development of the Plan regarding its implementation. The committee's satisfaction will be assessed through an annual feedback form.

Note 6 - Measure amended to improve accuracy: The previous reference to 'business' day in respect of Cabinet material was unnecessary.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Department of the Prime Minister and Cabinet in the 2017/18 Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The net decrease in this appropriation for 2017/18 is $1.717 million mainly due to a reduction in the costs of the Policy Project and staff secondments to other entities.