Vote Treaty Negotiations - Māori Affairs Sector - Estimates 2018/19

Vote Treaty Negotiations#

APPROPRIATION MINISTER(S): Minister for Treaty of Waitangi Negotiations (M74)

APPROPRIATION ADMINISTRATOR: Ministry of Justice

RESPONSIBLE MINISTER FOR MINISTRY OF JUSTICE: Minister of Justice

Overview of the Vote#

The Minister for Treaty of Waitangi Negotiations is responsible for appropriations in Vote Treaty Negotiations for the 2018/19 financial year including a multi-year appropriation and a range of annual appropriations.

Vote Treaty Negotiations contains a multi-year appropriation of $1,400 million for the four-year period 2018 to 2022. This appropriation is for the settlement of historical Treaty of Waitangi claims and provides for the payment of redress through the transfer of assets (cash and property) from the Crown to claimant groups, and for the payment of interest on settlement redress.

The following annual appropriations for the 2018/19 financial year in Vote Treaty Negotiations total just over $51 million:

a total of just over $8 million for claimant funding to support the settlement of historical Treaty claims
a total of over $5 million for contributions toward determining customary interests in the Marine and Coastal Area, and

a total of under $38 million for the negotiation and implementation of historical Treaty claims, and administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Final Budgeted $000	Estimated Actual $000	Budget $000
	2017/18		2018/19
Non-Departmental Other Expenses
*Claimant Funding (M74)* This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.	9,952	5,500	8,102
*Contribution Toward Determining Customary Interests in the Marine and Coastal Area (M74)* This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.	9,650	3,400	5,450
*Agreed Payments for Foreshore and Seabed Deeds of Agreement (M74)* This appropriation is limited to agreed payments associated with implementing foreshore and seabed Deeds of Agreement.	15,530	15,530	-
*Contribution to Parihaka community engagement with the Crown support package (M74)* This appropriation is limited to providing financial support to the Parihaka community to engage in the development and implementation of the Crown support package.	250	250	-
*Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua (M74)* This appropriation is limited to part payment by the Crown for Landcorp assets being transferred to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua.	2,425	2,425	-
*Loss on Sale of Commercial Properties (M74)* This appropriation is limited to the loss on transfer of commercial properties transferred as part of Treaty of Waitangi Settlements.	440	440	-
Total Non-Departmental Other Expenses	38,247	27,545	13,552
Non-Departmental Capital Expenditure
*Crown Share in Kaweka Gwavas Forestry Company Limited (M74)* This appropriation is limited to the Crown's acquisition of its portion of shares in Kaweka Gwavas Forestry Company Limited.	6,111	6,111	-
*Crown Share in Patunamu Forest Limited (M74)* This appropriation is limited to the Crown's acquisition of its portion of shares in Patunamu Forest Limited.	2,466	2,466	-
Total Non-Departmental Capital Expenditure	8,577	8,577	-
Multi-Category Expenses and Capital Expenditure
*Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA (M74)* The overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.	35,272	35,272	37,548
Departmental Output Expenses
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.	1,447	1,447	1,122
Representation - Waitangi Tribunal and Courts This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.	1,837	1,837	3,234
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.	31,988	31,988	33,192
Total Multi-Category Expenses and Capital Expenditure	35,272	35,272	37,548
Total Annual and Permanent Appropriations	82,096	71,394	51,100

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Non-Departmental Other Expenses
*Historical Treaty of Waitangi Settlements 2017 - 2021 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2017 Expires: 30 June 2021	Original Appropriation	1,400,000
	Estimated Actual for 2017/18	278,288
*Historical Treaty of Waitangi Settlements 2018 - 2022 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2018 Expires: 30 June 2022	Original Appropriation	1,400,000
	Estimated Actual for 2017/18	-

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

	2017/18		2018/19
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Annual and Permanent Appropriations	82,096	71,394	51,100
Total MYA Non-Departmental Other Expenses Forecasts	350,000	278,288	350,000
Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts	432,096	349,682	401,100

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative	Appropriation	2017/18 Final Budgeted $000	2018/19 Budget $000	2019/20 Estimated $000	2020/21 Estimated $000	2021/22 Estimated $000
Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua	Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngati Kahungunu ki Wairarapa Tamaki nui-a-Rua Non-Departmental Other Expense	2,425	-	-	-	-
Crown Share in Kaweka Gwavas Forestry Company Limited	Kaweka Gwavas Forestry Company Limited Non-Departmental Capital Expenditure	6,111	-	-	-	-
Crown Share in Patunamu Forest Limited	Patunamu Crown Forest Limited Non-Departmental Capital Expenditure	2,466	-	-	-	-
Marine and Coastal Area (Takutai Moana) Act 2011: Determination of Interests and Implementation	Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (MCA) Departmental Output Expenses Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	-	2,865	3,640	-	-
	Contribution Toward Determining Customary Interests in the Marine and Coastal Area Non-Departmental Other Expense	-	-	5,000	-	-
Relativity Mechanism Dispute Resolution	Treaty Negotiations ad Marine and Coastal Area (Takutai Moana) Act (MCA) Departmental Output Expenses Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	-	2,300	-	-	-
Total Initiatives		11,002	5,165	8,640	-	-

1.2 - Trends in the Vote#

Summary of Financial Activity#

	2013/14	2014/15	2015/16	2016/17	2017/18		2018/19			2019/20	2020/21	2021/22
	Actual $000	Actual $000	Actual $000	Actual $000	Final Budgeted $000	Estimated Actual $000	Departmental Transactions Budget $000	Non- Departmental Transactions Budget $000	Total Budget $000	Estimated $000	Estimated $000	Estimated $000
Appropriations
Output Expenses	9,892	9,466	9,122	-	-	-	-	-	-	-	-	-
Benefits or Related Expenses	-	-	-	-	-	-	N/A	-	-	-	-	-
Borrowing Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Other Expenses	537,740	108,412	424,846	143,150	388,247	305,833	-	363,552	363,552	368,552	363,552	363,552
Capital Expenditure	22,072	16,830	11,818	-	8,577	8,577	-	-	-	-	-	-
Intelligence and Security Department Expenses and Capital Expenditure	-	-	-	-	-	-	-	N/A	-	-	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	34,796	31,007	29,040	32,922	35,272	35,272	37,548	-	37,548	29,026	25,428	25,428
Other Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Capital Expenditure	-	-	-	-	-	-	N/A	-	-	-	-	-
Total Appropriations	604,500	165,715	474,826	176,072	432,096	349,682	37,548	363,552	401,100	397,578	388,980	388,980
Crown Revenue and Capital Receipts
Tax Revenue	-	-	-	-	-	-	N/A	-	-	-	-	-
Non-Tax Revenue	15,868	14,396	9,777	1,024	724	724	N/A	708	708	708	708	708
Capital Receipts	-	-	-	-	-	-	N/A	-	-	-	-	-
Total Crown Revenue and Capital Receipts	15,868	14,396	9,777	1,024	724	724	N/A	708	708	708	708	708

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#

Total Vote: All Appropriations

Output Expenses

Time-limited funding has been approved for 2018/19 to broaden the geographic and population reach of Treaty settlement negotiations with key groups. Funding for this initiative ceases in 2019/20 with a corresponding decrease of the multi-category appropriation 'Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act'.

Other Expenses

The fluctuation in Other Expenses primarily reflects the size and timing of Treaty Settlements under Historical Treaty of Waitangi Settlements multi-year appropriation, which varies as each negotiation progresses through key milestones over the full course of the negotiation.

Non-Tax Revenue and Capital Expenditure

Prior to 2016/17 the Ministry administered the Landbank purchases, and maintenance of properties and received rental income. This activity was transferred to Land Information New Zealand from 1 July 2016. Also prior to 2016/17 interest revenue was received from lending to implement the Ngati Whatua Orakei Deed of Settlement.

Vote trends in actual expenses and capital expenditure by appropriation type: Source: Ministry of Justice

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Claimant Funding (M74)

Scope of Appropriation

This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.

Expenses

	2017/18		2018/19
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	9,952	5,500	8,102

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an effective process for providing financial assistance for claimant groups, to durably settle historical Treaty of Waitangi claims.

How Performance will be Assessed and End of Year Reporting Requirements

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2017/18		2018/19
Number of claimant groups funded (see Note 1)	40	40	40
Percentage of payments made to groups within 10 working days of approval of claim	95%	95%	95%

Note 1 - Claimant groups can lodge an application for funding at any stage of the negotiation and settlement process. The amount of funding they may receive depends on the size of the claimant group and the complexity of the claim.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Treaty of Waitangi Negotiations in a report appended to the Ministry of Justice's Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation of $1.850 million for 2018/19 is due to:

an increase of $2.300 million for 2017/18 as a result of a one-off expense transfer from 2016/17.

Offset by:

a decrease of $450,000 for 2017/18 due to a transfer to Vote Environment for the transitional support for Local Government and iwi to support the implementation of Hauraki collective redress.

Contribution Toward Determining Customary Interests in the Marine and Coastal Area (M74)#

Scope of Appropriation#

This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.

Expenses#

	2017/18		2018/19
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	9,650	3,400	5,450

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an effective process for providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2017/18		2018/19
Percentage of funding payments made to groups within 10 days of approval of claim	95%	95%	95%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Treaty of Waitangi Negotiations in a report appended to the Ministry of Justice's Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2017/18 Final Budgeted $000	2018/19 Budget $000	2019/20 Estimated $000	2020/21 Estimated $000	2021/22 Estimated $000
Current Government
Marine and Coastal Area (Takutai Moana) Act 2011: Determination of Interests and Implementation	2019/20	-	-	5,000	-	-

Reasons for Change in Appropriation#

The decrease in this appropriation of $4.200 million for 2018/19 is due to:

one-off transfer of $4 million from 2015/16 to 2017/18 to match expected demand for applicant assistance, and

one-off transfer of $1.200 million from 2016/17 to 2017/18 to support additional demand for contributions to determining customary interests.

Offset by:

one-off transfer of $1 million in 2017/18 from Vote Treaty Negotiations to Vote Maori Development.

Historical Treaty of Waitangi Settlements 2017 - 2021 (M74)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*Historical Treaty of Waitangi Settlements 2017 - 2021 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2017 Expires: 30 June 2021	Original Appropriation	1,400,000
	Estimated Actual for 2017/18	278,288

A multi-year appropriation for historical Treaty of Waitangi settlements is established each year in the Appropriation (Supplementary Estimates) Act, and the previous multi-year appropriation is revoked. The reason for this change is to ensure there is sufficient legal authority to finalise deeds of settlements negotiated in earlier years and to continue the momentum of settling Treaty of Waitangi claims.

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve durable settlement of historical Treaty of Waitangi claims.

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 settlement of claims, including redress. Performance information relating to what is intended to be achieved with this expenditure is provided under the Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act multi-category appropriation, specifically the Representation - Waitangi Tribunal and Courts, and Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act categories.

Historical Treaty of Waitangi Settlements 2018 - 2022 (M74)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*Historical Treaty of Waitangi Settlements 2018 - 2022 (M74)* This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date. Commences: 30 June 2018 Expires: 30 June 2022	Original Appropriation	1,400,000
	Estimated Actual for 2017/18	-

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve durable settlement of historical Treaty of Waitangi claims.

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

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

Multi-Category Expenses and Capital Expenditure#

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (M74)

Overarching Purpose Statement

The overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.

Scope of Appropriation

Departmental Output Expenses

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.
Representation - Waitangi Tribunal and Courts
This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.

Expenses, Revenue and Capital Expenditure

	2017/18		2018/19
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	35,272	35,272	37,548
*Departmental Output Expenses*
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	1,447	1,447	1,122
Representation - Waitangi Tribunal and Courts	1,837	1,837	3,234
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	31,988	31,988	33,192
Funding for Departmental Output Expenses
*Revenue from the Crown*	35,019	35,019	37,416
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	1,336	1,336	1,116
Representation - Waitangi Tribunal and Courts	1,835	1,835	3,232
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	31,848	31,848	33,068
*Revenue from Others*	253	253	132
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	111	111	6
Representation - Waitangi Tribunal and Courts	2	2	2
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act	140	140	124

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the negotiation, administration and implementation of historical Treaty of Waitangi claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.

How Performance will be Assessed for this Appropriation

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2017/18		2018/19
The satisfaction of the Minister for Treaty of Waitangi Negotiations with progress towards negotiation milestones	At least 8.5/10	At least 8.5/10	At least 8.5/10

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2017/18		2018/19
Departmental Output Expenses
*Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act*
This category is intended to achieve efficient and effective services to support decision-making by Ministers on government policy matters relating to historical Treaty of Waitangi claims and the Marine and Coastal Area (Takutai Moana) Act 2011.
Technical quality of policy advice papers assessed by a survey with a methodological robustness of 90% (see Note 1)	At least an average of 8.5/10	At least an average of 8.5/10	At least an average of 8.5/10
The satisfaction of the Minister for Treaty of Waitangi Negotiations with the policy advice service, as per the common satisfaction survey	At least 8.5/10	At least 8.5/10	At least 8.5/10
The total cost per hour of producing outputs	At most $150	At most $150	At most $150
*Representation - Waitangi Tribunal and Courts*
This category is intended to achieve efficient and effective crown representation in the Waitangi Tribunal and in the courts on matters concerning Treaty claims, and support the High Court's consideration of Marine and Coastal Area (Takutai Moana) Act 2011 applications.
The Crown is represented at 100% of current District enquiries	100%	100%	100%
Number of Higher Court cases at which the Crown is represented	5	5	5
*Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act*
This category is intended to achieve efficient and effective services to support the negotiation, administration and implementation of historical Treaty of Waitangi claims and to support the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.
Percentage of settlement date obligations met	100%	100%	100%
Mandates recognised (see Notes 2 and 3)	3	3	1
Agreements in Principle signed (see Notes 2 and 4)	6	6	4
Deeds of Settlement initialled (see Notes 2 and 5)	11	11	10
Legislation introduced (see Note 2)	5	5	9
Engagement decisions made under section 95(3) of the Marine and Coastal Area (Takutai Moana) Act (see Note 6)	6	0	20
Determinations made under the Marine and Coastal Area (Takutai Moana) Act	2	2	1
Percentage of preliminary appraisals completed in less than 6 months	30%	5%	10%

Note 1 - This indicator provides a standardised score for technical quality reviews of policy advice, which are undertaken by a third party assessor. The review may include an assessment of clarity, accuracy, analytical rigour, fitness for purpose, and relevance.

Note 2 - The Ministry does not have full control over the achievement of these measures as it is partially reliant on claimant groups undertaking the work required by them to achieve a mandate to negotiate, broadly agree to the Crown's offer and move steadily towards the conclusion of negotiations.

Note 3 - A Deed of Mandate is a formal statement prepared by a claimant group stating who is appointed to represent them in negotiations with the Crown, and how the Mandate was approved by the claimant group. If satisfied, the Minister for Treaty of Waitangi Negotiations and the Minister for Maori Development recognise the Mandate on behalf of the Crown.

Note 4 - An Agreement in Principle is agreed between the Crown and a claimant group. The document describes the broad outline of a settlement package and is signed by the claimant group and the Minister for Treaty of Waitangi Negotiations.

Note 5 - A Deed of Settlement is the complete, detailed and formal settlement agreement between the Crown and the claimant group.

Note 6 - Engagement under the MACA Act means a decision made by the Minister for Treaty of Waitangi Negotiations to investigate an application more fully to see whether it meets the criteria under the Act to grant customary marine title or protected customary rights. It is part of the formal process for determining these rights.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Justice in its Annual Report.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2017/18 Final Budgeted $000	2018/19 Budget $000	2019/20 Estimated $000	2020/21 Estimated $000	2021/22 Estimated $000
Current Government
Marine and Coastal Area (Takutai Moana) Act 2011: Determination of Interests and Implementation	2018/19	-	2,865	3,640	-	-
Relativity Mechanism Dispute Resolution	2018/19	-	2,300	-	-	-
Previous Government
Broadening the Reach of Historical Treaty of Waitangi Settlements	2017/18	5,934	6,244	-	-	-
Relativity Mechanism Dispute Resolution	2017/18	2,800	-	-	-	-