Estimates of appropriations

Vote Treaty Negotiations - Māori, Other Populations and Cultural - Estimates 2014/2015

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

APPROPRIATION ADMINISTRATOR: Ministry of Justice

RESPONSIBLE MINISTER FOR MINISTRY OF JUSTICE: Minister of Justice

Summary of the Vote#

Overview#

The Minister for Treaty of Waitangi Negotiations is responsible for appropriations in Vote Treaty Negotiations for the 2014/15 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 five-year period 2014 to 2018. 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.

In addition, annual appropriations sought for Vote Treaty Negotiations in 2014/15 total $70.709 million. This is intended to be spent as follows:

  • $31.894 million (45% of the Vote) for the purchase of negotiation and implementation of historical Treaty claims and administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011 from the Ministry of Justice
  • $11.143 million (16% of the Vote) for the purchase of property management services from the Ministry of Justice
  • $8.102 million (12% of the Vote) for claimant funding to support the settlement of historical Treaty claims
  • $120,000 (less than 1% of the Vote) for debt write-off of rentals owing from Landbank properties
  • $2.400 million (3% of the Vote) for agreed payments for Foreshore and Seabed agreements
  • $3.450 million (5% of the Vote) for contributions toward determining customary interests in the Marine and Coastal Area
  • $3.600 million (5% of the Vote) for depreciation on assets held in the Landbank, and
  • $10 million (14% of the Vote) for the purchase of assets for possible use in future historical Treaty of Waitangi settlements.

The Ministry of Justice expects to collect $7.340 million of revenue on behalf of the Crown from Landbank property operations and $8.496 million of interest revenue from lending to implement the Ngati Whatua Orakei Deed of Settlement.

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

Estimates of Appropriations#

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations

  2013/14 2014/15
Titles and Scopes of Appropriations by Appropriation Type Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Property Portfolio Management (M74)

Management, transfer and disposal of Crown-owned property for Treaty settlement purposes.
10,401 10,401 11,143

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

36,574 36,574 -
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This output class 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.
1,601 1,601 -
Representation - Waitangi Tribunal and Courts
This output class 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.
1,396 1,396 -
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This output class 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.
33,577 33,577 -

Total Departmental Output Expenses

46,975 46,975 11,143

Non-Departmental Other Expenses

     

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.
- - 2,400

Claimant Funding (M74)

This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.
13,023 13,023 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.
743 743 3,450

Debt Write-offs (M74)

Write-off of Bad Debts from Landbank rental properties.
120 120 120

Depreciation (M74)

Depreciation on assets held in the Office of Treaty Settlements Landbank for Treaty settlements.
3,600 3,600 3,600

Contribution towards Northland Waitangi Tribunal hearings (M74)

This appropriation is limited to providing financial support to enable claimant participation in the Northland Waitangi Tribunal process.
635 635 -

Loss on Disposal or Write-off of Landbank Assets (M74)

This appropriation is limited to losses incurred on the disposal or write off of landbank assets.
1,000 1,000 -

Total Non-Departmental Other Expenses

19,121 19,121 17,672

Non-Departmental Capital Expenditure

     

Purchase of Assets for Possible Use in Future Treaty of Waitangi Settlements (M74)

This appropriation is limited to the purchase of assets for possible use in future Treaty of Waitangi settlements.
22,000 22,000 10,000

Land, Stock, Plant Purchases (M74)

The purchase of surplus Crown property is held in the Office of Treaty Settlements Landbank to protect it for possible use in future Treaty of Waitangi settlements.
12,655 12,655 -

Total Non-Departmental Capital Expenditure

34,655 34,655 10,000

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.
- - 31,894
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.
- - 1,397
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.
- - 2,083
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.
- - 28,414

Total Multi-Category Expenses and Capital Expenditure

- - 31,894

Total Annual and Permanent Appropriations

100,751 100,751 70,709

Multi-Year Appropriations

Type, Title, Scope and Period of Appropriations Appropriation, Adjustments and Use $000

Non-Departmental Other Expenses

   

Historical Treaty of Waitangi Settlements 2013 - 2017 (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 2013

Expires: 30 June 2017

Original Appropriation 1,400,000
Estimated Actual for 2013/14 542,563

Historical Treaty of Waitangi Settlements 2014 - 2018 (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 2014

Expires: 30 June 2018

Original Appropriation 1,400,000
Adjustments for 2013/14 -

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Demolition of derelict Landbank properties, harvesting of Pukeora forest

Property Portfolio Management

Departmental Output Expense
4,208 - - - -
Relativity mechanism negotiations

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

Departmental Output Expense
- 2,025 - - -
  Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - 2,025 - - -

1.2 - Trends in the Vote

Summary of Financial Activity
  2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 6,970 7,328 9,366 9,299 10,401 10,401 11,143 - 11,143 7,532 7,532 7,527
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 51,602 432,871 354,526 560,316 369,121 561,685 - 367,672 367,672 376,872 367,972 367,972
Capital Expenditure 87,348 8,523 10,702 81,090 34,655 34,655 - 10,000 10,000 10,000 10,000 10,000
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses
20,740 23,427 24,365 30,228 36,574 36,574 31,894 - 31,894 25,266 25,268 25,170
Other Expenses
- - - - - - - - - - - -
Capital Expenditure
- - - - - - N/A - - - - -

Total Appropriations

166,660 472,149 398,959 680,933 450,751 643,315 43,037 377,672 420,709 419,670 410,772 410,669

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 6,710 8,802 9,683 11,064 14,948 14,948 N/A 15,836 15,836 13,200 12,732 12,732
Capital Receipts - - - - - - N/A - - 14,000 - -

Total Crown Revenue and Capital Receipts

6,710 8,802 9,683 11,064 14,948 14,948 N/A 15,836 15,836 27,200 12,732 12,732

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.

Adjustments to the Summary of Financial Activity Table due to Vote Restructuring
  2009/10
Adjustments
$000
2010/11
Adjustments
$000
2011/12
Adjustments
$000
2012/13
Adjustments
$000
2013/14
Budgeted
Adjustments
$000
2013/14
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses (20,740) (23,427) (24,365) (30,228) (36,574) (36,574)
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses
20,740 23,427 24,365 30,228 36,574 36,574
Other Expenses
- - - - - -
Capital Expenditure
- - - - - -

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -

As a consequence of the 2013 Amendment to the Public Finance Act, Multi-Class Output Appropriations were converted to Multi Category Appropriations.

1.3 - Analysis of Significant Trends

Total Vote: All Appropriations
 
The Vote trends in actual expenses and capital expenditure by appropriation type chart is a Line chart. Sourced from Ministry of Justice - Vote Treaty Negotiations. The X axis shows Financial Year; The Y axis shows millions of dollars. The first seri
Source: Ministry of Justice - Vote Treaty Negotiations
Output Expenses

Departmental output expenses reduce slightly from 2014/15 onwards. This is due to the receipt of additional funding in 2013/14 to maintain Treaty settlement progress.

Other Expenses

During 2012/13 and 2013/14 a number of significant Treaty settlement milestones were reached. From 2014/15 onwards, expenditure on Treaty settlements is expected to remain relatively constant over the forecast period.

Non-Departmental Capital Expenditure

Non-departmental capital expenditure is scheduled to return to baseline levels from 2014/15 onwards.

Performance Trends

The increased settlement momentum from previous years is expected to continue, as the Ministry continues to negotiate with claimant groups who are willing and able. Over 2013/14 and 2014/15, it is expected that there will be an increase in the number of Mandates recognised and Terms of Negotiation agreed, as well as a continued high number of Agreements in Principles and Deeds of Settlement signed. It is anticipated that there will be a significant increase in legislation introduced and enacted.

1.4 - Reconciliation of Changes in Appropriation Structure

    Old Structure New Structure
2013/14 Appropriations
in the 2013/14 Structure
2013/14
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2013/14 Appropriations
in the 2014/15 Structure
2013/14
(Restated)
$000
2014/15
$000

Departmental Output Expense

           
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCOA 36,574 From Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCOA 36,574 To Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA 36,574 31,894

Total Changes in Appropriations

36,574

 

36,574

 

36,574

31,894

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Property Portfolio Management (M74)
Scope of Appropriation
Management, transfer and disposal of Crown-owned property for Treaty settlement purposes.
Expenses and Revenue
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,401 10,401 11,143
Revenue from the Crown 10,370 10,370 11,112
Revenue from Others 31 31 31
What is Intended to be Achieved with this Appropriation

This appropriation provides funding for the management, acquisition and disposal costs of Crown-owned property held in the Office of Treaty Settlements Landbank for historical Treaty of Waitangi settlements.

How Performance will be Assessed and End of Year Reporting Requirements
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of strategic future Treaty settlement assets acquired in compliance with Cabinet policy 100% 100% 100%
Percentage of Treaty settlement assets disposed on time and in accordance with Cabinet approvals and Treaty settlement legislation 100% 100% 100%
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
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Demolition of derelict Landbank properties, harvesting of Pukeora forest 2013/14 4,208 - - - -
Cost pressures associated with Landbank assets 2011/12 1,840 - - - -
Reasons for Change in Appropriation

The increase in this appropriation of $742,000 for 2014/15 is mainly due to an expense transfer from 2013/14 to 2014/15. The expense transfer will fund the delayed felling of the Pukeora forest.

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses

Agreed Payments for Foreshore and Seabed Deeds of Agreement (M74)
Scope of Appropriation
This appropriation is limited to agreed payments associated with implementing foreshore and seabed Deeds of Agreement.
Expenses
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 2,400
What is Intended to be Achieved with this Appropriation

This appropriation provides funding to settle Deeds of Agreement signed under the Foreshore and Seabed Act 2004, before it was repealed.

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 Deeds of Agreement payments. 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 Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act category.

Reasons for Change in Appropriation

The increase in this appropriation of $2.400 million for 2014/15 is due to expected payments as per the signed Deed of Agreement.

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
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,023 13,023 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
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of claimant groups funded (see Note 1) 52 50 50
Percentage of payments made to groups within 10 working days of approval of claim 95% 89% 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 Ministry of Justice in its Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Integration of legal aid into Crown claimant funding policy 2010/11 5,700 5,700 5,700 5,700 5,700
Establishing separate appropriation for claimant funding 2011/12 2,401 2,401 2,401 2,401 2,401
Reasons for Change in Appropriation

The decrease in this appropriation of $4.921 million for 2014/15 is mainly due to an expense transfer from 2012/13 to 2013/14, which increased the appropriation in 2013/14. In 2014/15 the appropriation returns to baseline.

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
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 743 743 3,450
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
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All groups that have signed terms of engagement with the Minister under section 95 of the Marine and Coastal Area (Takutai Moana) Act are funded New measure New measure Achieved
All applications in the High Court are funded in accordance with funding policy New measure New measure Achieved
End of Year Performance Reporting

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

Reasons for Change in Appropriation

The increase in this appropriation of $2.707 million for 2014/15 is due to an expense transfer from 2013/14 to 2015/16, which decreased the appropriation in 2013/14. The transfer will align contributions with estimates of when funding will be needed.

Debt Write-offs (M74)
Scope of Appropriation
Write-off of Bad Debts from Landbank rental properties.
Expenses
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 120 120 120
What is Intended to be Achieved with this Appropriation

This appropriation provides for incurring the expense involved in the write-off of debt from rental properties held in the Office of Treaty Settlements Landbank.

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 write-off of bad debts. Performance information relating to what is intended to be achieved with this expenditure is provided under the Property Portfolio Management appropriation.

Depreciation (M74)
Scope of Appropriation
Depreciation on assets held in the Office of Treaty Settlements Landbank for Treaty settlements.
Expenses
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,600 3,600 3,600
What is Intended to be Achieved with this Appropriation

This appropriation provides funding for incurring the expense involved in the depreciation of property held in the Office of Treaty Settlements Landbank.

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 depreciation on assets. Performance information relating to what is intended to be achieved with this expenditure is provided under the Property Portfolio Management appropriation.

Historical Treaty of Waitangi Settlements 2013 - 2017 (M74)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Historical Treaty of Waitangi Settlements 2013 - 2017 (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 2013

Expires: 30 June 2017
Original Appropriation 1,400,000
Estimated Actual for 2013/14 542,563

Note that the Estimated Actual for 2013/14 includes actual and projected settlements from 1 July 2013 to 30 June 2014, based on the Office of Treaty Settlements work programme.

What is Intended to be Achieved with this Appropriation

This appropriation provides payments to claimant groups for redress associated with the 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 2014 - 2018 (M74)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Historical Treaty of Waitangi Settlements 2014 - 2018 (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 2014

Expires: 30 June 2018
Original Appropriation 1,400,000
Estimated Actual for 2013/14 -

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 agreements in principle 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 provides payments to claimant groups for redress associated with the 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.

3.5 - Non-Departmental Capital Expenditure

Land, Stock, Plant Purchases (M74)
Scope of Appropriation
The purchase of surplus Crown property is held in the Office of Treaty Settlements Landbank to protect it for possible use in future Treaty of Waitangi settlements.
Capital Expenditure
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,655 12,655 -
Reasons for Change in Appropriation

This appropriation has been replaced by a new non-departmental capital expenditure appropriation Purchase of Assets for Possible Use in Future Treaty of Waitangi Settlements.

Purchase of Assets for Possible Use in Future Treaty of Waitangi Settlements (M74)
Scope of Appropriation
This appropriation is limited to the purchase of assets for possible use in future Treaty of Waitangi settlements.
Capital Expenditure
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,000 22,000 10,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the 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

This is a new appropriation in 2013/14 which replaced the previous non-departmental capital expenditure appropriation Land, Stock, Plant Purchases. The remaining funding from Land, Stock, Plant Purchases has been transferred to this appropriation in 2013/14 and outyears.

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
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 31,894

Departmental Output Expenses

     
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - - 1,397
Representation - Waitangi Tribunal and Courts - - 2,083
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - - 28,414

Funding for Departmental Output Expenses

     

Revenue from the Crown

- - 31,682
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - - 1,386
Representation - Waitangi Tribunal and Courts - - 2,081
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - - 28,215

Revenue from Others

- - 212
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - - 11
Representation - Waitangi Tribunal and Courts - - 2
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act - - 199
Comparators for Restructured Appropriation
  2013/14 2014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 1,601 1,601 1,397
Representation - Waitangi Tribunal and Courts 1,396 1,396 2,083
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 33,577 33,577 28,414
Total 36,574 36,574 31,894

As a result of the Public Finance Amendment Act 2013, the existing Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act Multi-Class Output Appropriation (MCOA) was converted to a Multi Category Appropriation (MCA).

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
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

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

     
The satisfaction of the Minister for Treaty of Waitangi Negotiations with progress towards negotiation milestones At least 80% At least 80% At least 80%
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

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

     

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 70% (see Note 2) At least an average of 70% At least an average of 70%
The satisfaction of the Minister for Treaty of Waitangi Negotiations with the policy advice service, as per the common satisfaction survey. At least 80% At least 80% At least 80%
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 Courts on matters concerning Treaty of Waitangi claims. It also provides funding to provide support and evidence to the High Court to assist this Court's consideration of Marine and Coastal Area (Takutai Moana) Act 2011 applications.      
Number of District enquiries at which the Crown is represented New measure New measure 3
Number of Higher Court cases at which the Crown is represented New measure New measure 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 Note 3) New measure New measure 11
Terms of Negotiation agreed (see Note 4) New measure New measure 11
Agreements in Principle signed (see Note 5) New measure New measure 13
Deeds of Settlement initialled (see Note 6) 12 6 (see Note 7) 8
Deeds of Settlement signed (see Note 6) New measure New measure 11
Legislation introduced 15 17 16
Legislation enacted 20 16 15
Proportion of claims settled New measure New measure 67%

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. A higher robustness score indicates that the methodological quality is stronger.

Note 2 - In other words, the target is for at least 70% of assessed papers to be scored 90% for methodological robustness.

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 of Māori Affairs recognise the Mandate on behalf of the Crown.

Note 4 - The Terms of Negotiation is a written agreement between the Crown and a claimant group setting out the agreed objectives and ground rules for negotiations.

Note 5 - An Agreement in Principle is an agreement between the Crown and a claimant group marked by an exchange of letters between the claimant group and the Minister for Treaty of Waitangi Negotiations. The letters describe the broad outline of a settlement package.

Note 6 - A Deed of Settlement is the complete, detailed and formal settlement agreement signed on behalf of the Crown and the claimant group.

Note 7 - Four Hauraki groups will initial Deeds of Settlement in 2014/15, rather than 2013/14.

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
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
           
Relativity mechanism negotiations 2014/15 - 2,025 - - -
Additional funding to maintain Treaty progress 2013/14 3,500 - - - -
Iwi participation in Government share offer 2012/13 3,000 3,500 - - -
Relativity mechanism negotiations 2012/13 3,335 - - - -
Reasons for Change in Appropriation

As a result of the Public Finance Amendment Act 2013, the existing Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act Multi-Class Output Appropriation (MCOA) was converted to a Multi Category Appropriation (MCA). The explanations below represent the movements between the MCOA figures in 2013/14 and the new MCA figures for 2014/15 as they fund the same outputs.

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

The decrease in this appropriation of $204,000 for 2014/15 is mainly due to an expense transfer from 2012/13 to 2013/14 to address cost pressures and priorities identified in the Justice Sector Four-year Plan. In 2014/15 the appropriation returns to baseline.

Representation - Waitangi Tribunal and Courts

The increase in this appropriation of $687,000 for 2014/15 is mainly due to a fiscally neutral adjustment from 2013/14 to address cost pressures and priorities identified in the Justice Sector Four-year Plan. In 2014/15 the appropriation returns to baseline.

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

The decrease in this appropriation of $5.163 million for 2014/15 is mainly due to additional funding received for negotiating historical Treaty of Waitangi settlements in 2013/14.