Vote Treaty Negotiations - Māori, Other Populations and Cultural Sector - Estimates 2016/2017

Overview of the Vote#

The Minister for Treaty of Waitangi Negotiations is responsible for appropriations in Vote Treaty Negotiations for the 2016/17 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 2016 to 2020. 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 2016/17 total $58 million. This is intended to be spent as follows:

• $300,000 (less than 1% of the Vote) for the purchase of property management services from the Ministry of Justice
• just under $14 million (24% of the Vote) for claimant funding to support the settlement of historical Treaty claims
• just under $15 million (25% of the Vote) for contributions toward determining customary interests in the Marine and Coastal Area
• $300,000 (less than 1% of the Vote) for a Crown contribution to the Parihaka community, and
• just under $29 million (51% of the Vote) 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#

Multi-Year Appropriations#

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

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#

Total Vote: All Appropriations

Output Expenses

The reduction in the departmental output expenses in 2016/17 and out years is mainly due to the transfer of the Office of Treaty Settlements' landbank and associated departmental output expenses to Vote Lands.

Other Expenses

During 2015/16 a number of significant Treaty settlement milestones were reached. From 2016/17 onwards, expenditure on Treaty settlements is expected to remain relatively constant over the forecast period.

Non-Departmental Capital Expenditure

The Purchase of Assets for Possible Use in Future Treaty of Waitangi Settlements appropriation will be transferred in 2016/17 and outyears to Vote Lands.

Multi-Year Appropriations

The $450.402 million estimated actual in the Historical Treaty of Waitangi Settlements multi-year appropriation sees other expenses peak in 2015/16 before plateauing in out-years with a budget of $350 million per annum for the multi-year appropriation.

Vote trends in actual expenses and capital expenditure by appropriation type

Source: Ministry of Justice Vote Treaty Negotiations

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Property Portfolio Management (M74)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the efficient and effective management, acquisition and disposal 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

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

Reasons for Change in Appropriation

The decrease in this appropriation in 2016/17 and out years is mainly due to the transfer of the Office of Treaty Settlements' landbank and associated departmental expenses to Land Information New Zealand.

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Claimant Funding (M74)

Scope of Appropriation

Expenses

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

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 increase in this appropriation of $6.192 million for 2016/17 is due to an expense transfer to ensure that unspent funds are retained for expected applications from claimants. In 2017/18 the appropriation returns to baseline.

Contribution to Parihaka community engagement with the Crown support package (M74)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve assistance to the Parihaka community to engage with the Crown in the development of a support package and reconciliation process.

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 information is unlikely to be informative because this appropriation is solely for payments to the Parihaka community.

Current and Past Policy Initiatives#

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

Scope of Appropriation#

Expenses#

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#

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 increase in this appropriation of $12.592 million for 2016/17 is mainly due to expense transfers to better align contributions with estimates of when funding will be needed.

Historical Treaty of Waitangi Settlements 2015 - 2019 (M74)#

Scope of Appropriation and Expenses#

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 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 2016 - 2020 (M74)#

Scope of Appropriation and Expenses#

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 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.

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

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

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

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

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 of Māori 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.

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

Reasons for Change in Appropriation

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

The decrease in this appropriation of $2.468 million for 2016/17 is mainly due to expense transfers to 2015/16 for negotiating historical Treaty of Waitangi settlements and to progress research into legal rights and interests in the common marine coastal area.