Information supporting the estimates of appropriations

Economic Development and Infrastructure Sector - Information Supporting the Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2010

Information Supporting the Estimates is organised on the basis of sectors, with each Vote and its administering department allocated to one sector (with a small number of exceptions). The Information Supporting the Estimates comprises of sector overview information, together with statements of responsibility; performance information for appropriations in Votes covered by the sector; and statements of forecast service performance and forecast financial statements of departments included in the sector. Statements of Intent of departments included in the sector form part of the supporting information.

Formats and related files

Information Supporting the Estimates is organised on the basis of sectors, with each Vote and its administering department allocated to one sector (with a small number of exceptions). The Information Supporting the Estimates comprises of sector overview information, together with statements of responsibility; performance information for appropriations in Votes covered by the sector; and statements of forecast service performance and forecast financial statements of departments included in the sector. Statements of Intent of departments included in the sector form part of the supporting information.

 

Chapters of the Economic Development and Infrastructure Sector volume of the Information Supporting the Estimates 2009/10 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

  • Purpose of Information Supporting the Estimates
  • Votes and Departments in Each Sector
  • Purpose and Nature of Appropriations
  • Guide to Reading Information Supporting the Estimates
  • Terms and Definitions
  • Useful Links

Sector Overview#

  • Sector Overview Statement
  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote ACC
  • Vote Commerce
  • Vote Communications
  • Vote Consumer Affairs
  • Vote Economic Development
  • Vote Employment
  • Vote Energy
  • Vote Immigration
  • Vote Labour
  • Vote Tourism
  • Vote Transport

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Ministry of Economic Development
  • Department of Labour
  • Ministry of Transport

Statements of Intent of Departments (separately produced but forming part of this volume)#

Purpose of Information Supporting the Estimates#

The Information Supporting the Estimates provides members of Parliament with information on expected performance to:

  • support their examination of the appropriations and other authorities requested by the Government in the first Appropriation Bill for the forthcoming financial year, and
  • provide a base against which they can later assess the actual performance of each individual department and Office of Parliament over that financial year.

The Information Supporting the Estimates is organised into 10 volumes by sector, each of which covers one or more Votes. The scope of each sector and the allocation of Votes to a sector reflect a balancing of three desired characteristics - namely that each volume should, where possible:

  • reflect natural sectors
  • keep together Votes administered by the same department, and
  • keep together Votes allocated to a particular select committee of the House of Representatives for examination.

The number of sectors and coverage of each sector is set in consultation with the Finance and Expenditure Committee. The 10 sectors are:

  • Economic Development and Infrastructure Sector
  • Education and Science Sector
  • Environment Sector
  • External Sector
  • Finance and Government Administration Sector
  • Health Sector
  • Justice Sector
  • Māori, Other Populations and Cultural Sector
  • Primary Sector
  • Social Development and Housing Sector.

 

Votes and Departments in Each Sector#

Votes and Departments in Each Sector
Votes by Sector Departments by Sector
Economic Development and Infrastructure Sector - B.5A Vol.1  
Vote Economic Development
Vote Commerce
Vote Communications
Vote Consumer Affairs
Vote Energy
Vote Tourism
Ministry of Economic Development
Vote Transport Ministry of Transport
Vote Labour
Vote ACC
Vote Employment
Vote Immigration
Department of Labour
Education and Science Sector - B.5A Vol.2  
Vote Education Ministry of Education
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector.)  
Vote Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Environment Sector - B.5A Vol.3  
Vote Environment
Vote Climate Change
Ministry for the Environment
Vote Conservation Department of Conservation
Vote Local Government (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment
External Sector - B.5A Vol.4  
Vote Foreign Affairs and Trade
Vote Official Development Assistance
Ministry of Foreign Affairs and Trade
Vote Defence Ministry of Defence
Vote Defence Force
Vote Veterans' Affairs - Defence Force
New Zealand Defence Force
Vote Customs New Zealand Customs Service
Finance and Government Administration Sector - B.5A Vol.5  
Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance
Vote State-Owned Enterprises
The Treasury
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Ombudsmen Office of the Ombudsmen
Vote Parliamentary Service Parliamentary Service
Vote Audit Office of the Auditor-General
Health Sector - B.5A Vol.6  
Vote Health Ministry of Health
Justice Sector - B.5A Vol.7  
Vote Justice
Vote Courts
Ministry of Justice
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office
Māori, Other Populations and Cultural Sector - B.5A Vol.8  
Vote Arts, Culture and Heritage
Vote Sport and Recreation
Ministry for Culture and Heritage
Vote Statistics Statistics New Zealand
Vote National Archives Archives New Zealand
Vote National Library National Library of New Zealand
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations (this Vote is administered by the Ministry of Justice, which is in the Justice Sector)  
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Internal Affairs
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing
Department of Internal Affairs
Primary Sector - B.5A Vol.9  
Vote Agriculture and Forestry
Vote Biosecurity
Ministry of Agriculture and Forestry
Vote Fisheries Ministry of Fisheries
Vote Food Safety New Zealand Food Safety Authority
Vote Lands Land Information New Zealand
Social Development and Housing Sector - B.5A Vol.10  
Vote Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth Development
Ministry of Social Development
Vote Housing Department of Building and Housing

Purpose and Nature of Appropriations#

An appropriation is a statutory authority from Parliament allowing the Crown or an Office of Parliament to incur expenses or capital expenditure.

Neither the Crown nor an Office of Parliament can legally incur any expense or capital expenditure - as those terms are defined in the Public Finance Act 1989 (PFA) - unless it is expressly authorised by or under an Act of Parliament.

Limits Created by Appropriations#

Each appropriation is allocated to, and managed as, one of six types of appropriation.

Each appropriation has a defined scope that limits the uses or activities for which the expenses or capital expenditure can be incurred. The scope should be sufficient on its own to establish the nature and extent of the authority to incur expenses or capital expenditure. The wording of the appropriation scope should achieve the balance between being sufficiently precise to act as an effective constraint against non-authorised activities and not so specific that it inadvertently limits activity intended to be authorised.

In most cases an appropriation also limits the amount of expenses or capital expenditure that can be incurred, and the time period within which those expenses or capital expenditure can be incurred.

Aside from the very limited exclusions provided for in the PFA, the amount of expense or capital expenditure authorised by an appropriation is measured in accordance with generally accepted accounting practice.

As generally accepted accounting practice does not normally treat GST as an expense, appropriation amounts also generally exclude GST. Prior to 2005/06, however, appropriations included applicable GST. All prior-year appropriation data, such as in the Summary of Trends table in the Estimates and the Summary of Financial Activity Table for each Vote in Information Supporting the Estimates - have been adjusted to exclude GST to allow appropriate comparison.

Responsibility for Appropriations#

Each appropriation is the responsibility of a designated Minister, who controls the right to use that appropriation within the limits authorised by Parliament. A department is also assigned to administer that appropriation in accordance with the Minister's wishes concerning its use.

A Vote is a group of appropriations (and can be a single appropriation) administered by a single department. Different appropriations within a Vote may be the responsibility of different Ministers.

 

Types of Appropriation#

The PFA provides for six types of appropriation. Four appropriation types authorise the incurring of expenses; one type authorises the incurring of capital expenditure; and the remaining type authorises both.

These appropriation types can be further differentiated by whether the expenses or capital expenditure are departmental or non-departmental transactions.

Types of Appropriation
Appropriation Type Transaction Status Description
Output Expenses Departmental Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).
Non-Departmental Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.
Benefits and Other Unrequited Expenses Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in transferring resources (generally to individuals for their personal benefit) for which the Crown receives nothing directly in return.

Examples include the Unemployment Benefit, student allowances and various scholarships and awards.

Borrowing Expenses Departmental

Authorises the incurring of interest or other financing expenses for loans made to a department or an Office of Parliament, or public securities (undertakings that represent part of the public debt) issued by a department or an Office of Parliament.

In practice, limitations on the rights of departments to borrow or issue securities mean that these are likely to be incurred only by Offices of Parliament.

Non-Departmental

Authorises the incurring of interest or other financing expenses for loans made to the Crown (excluding departments), or public securities (undertakings that represent part of the public debt) issued by the Crown.

Crown debt management is centralised, which means that most debt-servicing expenses appear in Vote Finance.

Other Expenses Departmental

Authorises expenses to be incurred by a department or an Office of Parliament that are not either output expenses or borrowing expenses.

Other expenses should be used only for events that cannot be related back to output production, such as redundancy costs arising from a government decision to cease purchasing certain types of outputs, or a loss on sale of assets made surplus by departmental restructuring.

Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) that are not structured or managed as output expenses, benefits and unrequited expenses, or borrowing expenses.

Other expenses is the residual appropriation type, which should not be used where an appropriation could be better classified or managed as one of the other appropriation types (eg, as output expenses).

Examples include disposal of an asset for less than market value, grants to community organisations, subscriptions for membership of international bodies and remuneration of independent statutory officers.

Capital expenditure Departmental Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.
Non-Departmental Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.
Expenses or Capital expenditure incurred by an intelligence and security department Departmental Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.

Types of Output Expense Appropriations#

A number of variations are possible for output expense appropriations. In particular, the constraint on the amount of expense that can be incurred is not always a fixed amount; and an output expense appropriation can cover more than one class of outputs.

Types of Output Expense Appropriations
Output Expense Appropriation Type and Authority Description, Constraints on Form and Typical Application

Standard Output Expense Appropriations

(section 7(1), Public Finance Act 1989)

Departmental or non-departmental: Authorise a department or an Office of Parliament to incur expenses in supplying a specified class of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase a specified class of outputs.

Annual or multi-year: The authority lapses at the end of the financial year or multi-year period specified.

Single output class only: The scope is limited to a single class of outputs (defined as a grouping of similar outputs).

Amount limited by Appropriation Act: The amount of a standard output expense appropriation is limited to a set amount of NZ dollars specified in an Appropriation Act.

Typical application: The normal or default form for an output expense appropriation, used for a wide range of outputs for which the flexibility offered by the other types of output expense appropriation is not required.

Multi-Class Output Expense Appropriations (MCOA)

(section 7(3)(b), Public Finance Act 1989)

Departmental or non-departmental: Authorise a department or an Office of Parliament to incur expenses in supplying more than one specified class of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase more than one specified class of outputs.

A proposed MCOA must be approved by the Minister of Finance before it is presented in the Estimates. The information supporting the Estimates must explain why the Minister has allowed those classes of outputs to be grouped in one appropriation.

Annual or multi-year: The authority lapses at the end of the financial year or multi-year period specified.

Multiple output classes: The scope of an MCOA is determined by the combined scope of each of the output classes included in that appropriation.

Amount limited by Appropriation Act: The amount of an MCOA is limited to a set amount of NZ dollars specified in an Appropriation Act. The amount of expense that can be incurred in relation to each component output class is flexible within the total amount of the MCOA, although expenses must be separately forecast and reported for each individual class in the Estimates, Information Supporting the Estimates, Supplementary Estimates and the department's annual report.

Typical application: An MCOA is used where it is appropriate to give the responsible Minister or department ongoing discretion over the output mix across two or more classes of outputs. Such discretion will most commonly be sought where the output classes contribute to a common outcome, or use a common or closely related set of inputs or processes, and the circumstances that determine the appropriate output choice or mix are likely to vary during the appropriation period.

Revenue-Dependent Appropriations (RDA)

(section 21(1), Public Finance Act 1989)

Departmental only: Authorise a department or an Office of Parliament to incur expenses in supplying a specified a class of outputs (goods and services) that are not paid for directly by the Crown.

A proposed RDA must be approved by the Minister of Finance, before it is presented in the Estimates. Each class of outputs for which an RDA is approved is listed in an Appropriation Act for the relevant financial year.

Annual only: The authority lapses at the end of the financial year specified.

Single output class only: The scope of an RDA is limited to a single class of outputs (defined as a grouping of similar outputs).

Amount limited by amount of revenue earned: The amount of an RDA is limited tothe amount of revenue earned by a department or an Office of Parliament from other departments or from parties other than the Crown during a financial year. The Minister of Finance can further direct a department to incur expenses to a level lower than the amount of revenue earned, though such directions have been rare.

Typical application: An RDA provides flexibility to respond to unanticipated changes in the level of external demand for a class of outputs, where the full cost of the outputs is met by external parties and not the Crown.

Department-to-Department Appropriation (DDA)

(section 20(2), Public Finance Act 1989)

Departmental only: Authorise a department or an Office of Parliament to incur expenses in supplying specified outputs (goods and services) paid for by another department.

Creation of a DDA requires an agreement between two departments. Implicitly it also requires the approval of the Minister who will become responsible for the appropriation - namely, the Minister responsible for the supplying department - as the agreement has implications for the scope and risk of that department's operations.

Annual or multi-year: The period of a DDA will depend on the negotiated terms of the agreement.

Single or multiple output class(es): The scope of a DDA (and hence whether it covers one or more classes of outputs) will depend on the way in which the agreement defines what is to be delivered. In most cases, an agreement that provides for a range of different outputs is better treated as creating several single-class DDAs.

Amount limited by departmental agreement: The amount of a DDA is limited to either the amount of revenue earned from the commissioning department, or the cost incurred by the supplying department in providing those outputs (if that cost is less than the amount of revenue earned under the agreement).

Typical application: DDAs are intended to make collaboration between departments easier by reducing the time and effort required to obtain / adjust the relevant appropriations while also allowing a commissioning department to retain full control over the resources it provides.

The use of a DDA is not confined to bilateral agreements. A set of related DDAs could be used to enable one department to co-ordinate and manage the work of several departments that must work together to contribute to providing an integrated service to third parties, or to pool contributions from several departments to enable another department to provide a specific service to or on behalf of those departments.

Appropriation Period#

The length of the appropriation period affects how appropriations are presented in the Estimates and Supplementary Estimates. Three kinds of appropriation can be distinguished on the basis of period - annual and multi-year (as referred to in the above table on types of output expense appropriations), and permanent:

  • Annual Appropriations - Most appropriations listed in the Estimates and Supplementary Estimates allow expenses or capital expenditure to be incurred only during a particular financial year. The annual amounts, for which parliamentary authority is normally sought, are shown in bold type in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote. The amounts for RDAs and annual DDAs are forecasts only, and so are not shown in bold type.
  • Multi-Year Appropriations (MYAs) - The PFA also permits appropriations that allow expenses or capital expenditure to be incurred during a specified period that spans the whole or parts of more than one financial year, but no more than five financial years. The details of each MYA, including its commencement date and expiry date, are specified in Details of Multi-Year Appropriations in the Estimates and Supplementary Estimates for relevant Votes.
  • Permanent Appropriations (sometimes referred to as permanent legislative authorities or PLAs) -Permanent appropriations are authorised by legislation other than an Appropriation Act and continue in effect until revoked by Parliament. Generally the authorising legislation will impose limits on the scope of the appropriation and not its amount. For those appropriations that with limits set in cash terms, section 11(2) of the Public Finance Act 1989 requires that they be reported on an accrual basis. The usual legislative wording allows for expenses or capital expenditure to be incurred for the purpose specified in the legislation “without further appropriation than this section”. Details of permanent appropriations are included in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote for completeness, though the amount specified is a forecast rather than a limit. The amounts of permanent appropriations are therefore not shown in bold type. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

 

Guide to Reading Information Supporting the Estimates#

The Information Supporting the Estimates for each of the 10 sectors comprises five components, each of which is briefly described, below.

1 Sector Overview Information#

The first component of the Information Supporting the Estimates may include a statement, agreed by all Ministers responsible for appropriations in each Vote included in the sector, that presents an overview of the sector and a high-level summary of the government's expectations and priorities. The Overview also includes Ministerial and Chief Executive Statements of Responsibility for the information provided in the Information Supporting the Estimates.

2 Performance Information Relating to Appropriations in Each Vote#

The second component of the Information Supporting the Estimates presents performance information relating to each appropriation.

The title pages for each Vote specify the Minister(s) responsible for existing and proposed appropriations in the Vote, and the Responsible Minister for the department. The performance information meets the requirements of sections 15 and 41(1)(e) of the PFA and contains up to six parts. If particular information is not applicable to the Vote or a specific appropriation or type, or is otherwise unavailable, the relevant heading is not included.

Part 1 - Summary of the Vote#

The Summary of the Vote comprises:

  • Part 1.1 Overview of the Vote - A plain-language summary of the focus of the appropriations through a brief explanation of the Vote. The Overview also appears at the start of the Vote in the Estimates.
  • Part 1.2 High-Level Objectives of the Vote - The objectives for the Vote presented through links and relationships and high-level priorities and outcomes to which they contribute. Where applicable, priorities and outcomes are drawn from the priorities and desired outcomes and published strategy documents. Links are also made to specific government strategies. Links may also be made to specific Government objectives.
  • Part 1.3 Trends in the Vote - A presentation of the actual and estimated trends in the Vote, comprising:
    • Summary of Financial Activity - A table showing financial information over the preceding five years (actual, budgeted or estimated actual), the current year (Budget) and the following three years (estimated) for the type of appropriations and Crown revenue and capital receipts.
    • New Policy Initiatives - A table showing how new initiatives (and the associated expenses or capital expenditure) are allocated to appropriations in the Vote. References are included where appropriations in other Votes are affected by the same initiative.
    • Analysis of Significant Trends - High-level analysis of appropriations and Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, explanations of significant changes and may also contain graphical presentations.
  • Part 1.4 Reconciliation of Changes in Appropriation Structure - a table providing a reconciliation and explanation of any changes in the structure or classification of appropriations made in the Budget year. These changes are restated for the previous financial year to facilitate comparison.

Part 2 - Details and Expected Performance for Output Expenses#

This Part provides further detail about appropriations and expected performance for output expenses.

  • Part 2.1 Departmental Output Expenses - Intended impacts, outcomes and objectives are presented for departmental output expense appropriations in the Vote. This is followed by information on each appropriation, including its scope, a table showing expenses and revenue (distinguishing the revenue sources between the Crown and others), a statement of reasons for change in the appropriation (if material), and tables detailing performance measures and standards for significant aspects of expected output performance, any conditions on use of appropriation, any memorandum accounts (which record accumulated surpluses and deficits incurred in the provision of outputs on a full cost-recovery basis), and any current and past policy initiatives affecting the appropriation.
    • Information on impacts and outcomes or objectives to which the outputs contribute is provided. Further information on the relationships between outputs, impacts, and outcomes or objectives is outlined in Part 1.2 and the Statement of Intent. Conditions on use include administrative criteria and processes contained in legislation, regulation and Government decisions, which may be reference in scope statement or performance measures. The current and past policy initiatives tables provides a five-year history of announced initiatives that impact on the Budget year, the preceding year and the following three years.
    • For MCOA, an explanation is provided as to why the classes of outputs have been grouped under a single appropriation, and the scope statement, expenses and revenue, and performance information is presented for each output class.
    • Information provided for MYAs enables the original appropriation to be reconciled to the adjusted level if changes have been approved or are proposed, and the balance remaining to be derived taking account of actual or estimated expenses incurred to date.
    • The appropriation scope, expenses and revenue, and output performance measures and standards match information required to be included in a department's Statement of Forecast Service Performance with respect to departmental output expense appropriations used by the department.
  • Part 2.2 Non-Departmental Output Expenses - This sub-part contains comparable information to that presented in Part 2.1 on departmental output expense appropriations. The main differences are that details of third parties’ other revenue is not relevant and a summary of service providers is included.
    • The service providers table shows Crown entities and non-governmental organisations providing outputs funded through the Vote, and (where applicable) the mechanism for reporting actual performance to Parliament and the expiry of the Government's resource commitment. The reporting mechanisms are typically an entity's annual report or a report by the responsible Minister required by section 32A of the PFA. Where the provider is a Crown entity that is required to produce a Statement of Intent, its annual report may contain more detailed performance information at the output class or output level. ‘Section 32A' reports include a statement of service performance in relation to the appropriation.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3 provides performance information about appropriations for benefits and other unrequited expenses incurred by the Crown. No departmental transactions arise under this appropriation type.

  • Part 3.2 Non-Departmental Benefits and Other Expenses - Information on each appropriation includes impacts and outcomes intended to be achieved, a scope statement, expense components, reasons for material changes, any conditions of use, and details of any current and past policy initiatives over the five years up to and including the Budget year.

Part 4 - Details for Borrowing Expenses#

This Part provides detail about appropriations for borrowing expenses. No departmental borrowing expense appropriations exist at present.

  • Part 4.2 Non-Departmental Borrowing Expenses - The set of performance information is the same as that for non-departmental benefits and other expenses, except that conditions on use are no specified.

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

  • Part 5.1 Departmental Other Expenses - It is uncommon for this category of appropriation to be utilised. In the few cases where it occurs, the performance information is the same as that for non-departmental other expense appropriations except for a summary of reporting mechanisms.
  • Part 5.2 Non-Departmental Other Expenses- Information on other expenses incurred by the Crown covers intended impacts and outcomes, appropriation scope, expenses analysed by component, reasons for material changes in the appropriation, expected results and standards, any conditions on use, any current and past policy initiatives, and a summary of mechanisms for reporting actual performance to Parliament.

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

  • Part 6.1 Departmental Capital Expenditure - The purchase or development of assets by a department is made under a permanent appropriation authorised by section 24(1) of the PFA. Capital expenditure is defined in section 2 as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories. The appropriation appears in the Vote that contains appropriations belonging to the department's Responsible Minister.
    • Information is provided on intended impacts and outcomes of the appropriation, its scope, expenditure analysed by standard asset categories, reasons for material changes in the appropriation, and expected results. The scope statement is in a standard form for all departments. The performance information relates to the department as a whole and is not limited to any specific capital injection.
  • Part 6.2 Non-Departmental Capital Expenditure - Performance information for capital expenditure incurred by the Crown is the same as that for departmental capital expenditure except for not detailing asset categories and the addition of any conditions on use of the appropriation, any current and past policy initiatives, and a summary of the mechanism for reporting to Parliament.
    • The scope statement indicates the form of interest or asset acquired by the Crown, such as a capital injection (equity), loan or shares.

The following table summarises the performance information that is required for a ‘standard' appropriation in each sub-part.

Summary of performance information that is required for a ‘standard' appropriation
Standard Appropriations Part 2.1 Part 2.2 Part 3.1 Part 3.2 Part 4.1 Part 4.2 Part 5.1 Part 5.2 Part 6.1 Part 6.2
For each sub-part:                    
Intended impacts, outcomes or objectives
For each appropriation:                    
Scope of appropriation
Expenses and revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A
Expenses N/A N/A N/A
Capital expenditure N/A N/A N/A N/A N/A N/A N/A N/A
Reasons for change in appropriation
Output performance measures and standards N/A N/A N/A N/A N/A N/A N/A N/A
Expected results N/A N/A N/A N/A N/A N/A
Conditions on use of appropriation N/A N/A N/A
Memorandum account N/A N/A N/A N/A N/A N/A N/A N/A N/A
Current and past policy initiatives N/A
Summary of service providers N/A N/A N/A N/A N/A N/A N/A N/A N/A
Reporting mechanism N/A N/A N/A N/A N/A N/A N/A

Information on reasons for change, conditions on use, current and past policy initiatives, and reporting mechanisms appears where applicable or material. Memorandum accounts are relevant only in Part 2. Some variations exist for non-standard appropriations, including MCOAs in Parts 2.1 and 2.2 and MYAs in Parts 2.2, 5.2 and 6.2. Furthermore performance information may not be available for some appropriations.

3 Statement of Forecast Service Performance of Departments#

The third component of the Information Supporting the Estimates of Appropriations comprises the Statement of Forecast Service Performance for each department included in the sector, by reference to material already set out in Part 2.1 of Votes containing appropriations proposed to be used by the department.

4 Forecast Financial Statements of Departments#

The fourth component of the Information Supporting the Estimates begins with a Statement of Common Accounting Policies applicable to all departments. The forecast financial statements for the forthcoming financial year for each department covered by the sector includes a:

  • Statement of Forecast Comprehensive Income
  • Statement of Forecast Changes in Taxpayers' Funds
  • Forecast Statement of Financial Position
  • Statement of Forecast Cash Flows
  • Statement of Significant Assumptions.

Each department will include a Statement of Entity- Specific Accounting Policies detailing policies for any matters not addressed by the Statement of Common Accounting Policies (such as a “going concern” statement) or where its policies are more specific than the common policies (such as capitalisation thresholds and estimated useful lives of individual classes of assets). Notes to the Financial Statements provide additional details to assist interpretation of the accounts and to meet disclosure requirements outlined in legislation and accounting standards.

5 Statements of Intent of Departments#

The final component of the Information Supporting the Estimates presents the Statements of Intent of the departments covered by each sector. These statements contain the information required by section 40 of the PFA. They focus on the medium term and generally cover:

  • Nature and scope of the department's functions - A brief high-level description of the department's functions, addressing its role(s) and purpose and how it intends fulfilling them.
  • Strategic direction - impacts and outcomes - A brief high-level overview of the department's strategic direction covering both the impacts and outcomes the department is seeking to achieve (or contribute to) and the strategic environment in which the department operates through, in particular, its responses to the government's priorities.
  • Operating intentions - Information that describes how the department intends to achieve (or contribute to) those desired impacts and outcomes through its operations. This section should also include the main measures and standards the department will use to assess and demonstrate what it has achieved, including measures of outcome achievement, impact and cost effectiveness.
  • Managing in a changeable operating environment - Information on the risks to achievement of the desired outcomes and priorities, and the department's mitigation strategies.
  • Assessing organisational health and capability - The department's intentions for building and strengthening its internal capability, including its responses to the development goals for the State Services and its strategic approach to managing its asset base and forecast capital expenditure in the medium term. If capital expenditure is significant, it is in a separate section.
  • Additionalinformationand statutory reporting requirements - As required either by the responsible Minister or Minister of Finance, or by specific legislation.

Terms and Definitions#

The table below contains terms that are used in the Supplementary Estimates and the Information Supporting the Supplementary Estimates.

Terms and Definitions
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Crown revenue and capital receipts Flows accounted for as revenue and capital receipts on behalf of the Crown rather than as departmental revenue.
DDA Department-to-department appropriation - as authorised by section 20(2) of the PFA.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the PFA.
Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year. Expenses are an accrual concept measured in accordance with generally accepted accounting practice.
GST Goods and services tax. Appropriations are stated GST- exclusive.
MCOA Multi-class output expense appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Outcomes States or conditions of society, the economy or the environment, including changes in those states or conditions.
Outputs Goods or services supplied by departments and other entities to external parties. Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989
PLA Permanent legislative authority - a traditional term for a permanent appropriation, ie, one that is authorised for an indefinite period by legislation other than an Appropriation Act.
Minister The Minister responsible for specific appropriations being sought within a Vote. As several Ministers may now hold appropriations within a single Vote, each appropriation will have a tag (M1, M2, etc) identifying the Minister responsible for that line item.
RDA Revenue-dependent appropriation - as authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity. In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the Responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown. These flows are accounted for as departmental revenue. Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties. Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by the one department.

The suite of Budget 2009 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2009. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Sector Overview#

Ministerial Statements of Responsibility#

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the Social Development and Housing Sector is in accordance with sections 38 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

Hon Paula Bennett
Responsible Minister for the Ministry of Social Development
27 April 2009

Hon Maurice Williamson
Responsible Minister for the Department of Building and Housing
22 April 2009

Chief Executive Statements of Responsibility#

Ministry of Social Development#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Social Development and Housing Sector relating to the Ministry of Social Development and for the Votes for which the Ministry of Social Development is the administering department. Specifically, this information is contained in the Ministry of Social Development's statement of forecast service performance, forecast financial statements and statement of intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Peter Hughes
Chief Executive
Ministry of Social Development
27 April 2009

Nick Gale
Chief Financial Officer
Ministry of Social Development
27 April 2009
Counter-signed

Department of Building and Housing#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Social Development and Housing Sector relating to the Department of Building and Housing and for the Vote for which the Department of Building and Housing is the administering department. Specifically, this information is contained in the Department of Building and Housing's statement of forecast service performance, forecast financial statements and statement of intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Katrina Bach
Chief Executive
Department of Building and Housing
22 April 2009

Jim Brough
Chief Advisor Finance and Administration
Department of Building and Housing
22 April 2009
Counter-signed

Performance Information for Appropriations Vote Housing#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)

ADMINISTERING DEPARTMENT: Department of Building and Housing

MINISTER RESPONSIBLE FOR DEPARTMENT OF BUILDING AND HOUSING: Minister for Building and Construction

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister for Building and Construction is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:

  • A total of just over $16 million on delivering regulatory and control services for the building industry under the Building Act 2004 and related consumer information.
  • A total of just over $11 million on developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers.
  • A total of just over $4 million on providing sector and regulatory policy advice on the building and housing sector in New Zealand.
  • A total of just over $14 million on providing assessment and dispute resolution services under the Weathertight Homes Resolution Services Act 2006.
  • A total of just under $5 million on departmental capital expenditure.

The Minister of Housing is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:

  • A total of just under $22 million on providing services under the Residential Tenancies Act 1986, including advice and guidance, dispute resolution and the administration of residential tenancy bond monies.
  • A total of just under $1 million on providing purchase and performance monitoring advice to Government in relation to Housing New Zealand Corporation (HNZC).
  • A total of just under $22 million on purchasing housing support services.
  • A total of $85 million on state house upgrades, comprising of $20 million operating and $65 million capital.
  • A total of just under $3 million on the purchase of housing policy advice from Housing New Zealand Corporation.
  • A total of just over $1 million for the management of Crown owned properties.
  • A total of just under $3 million on housing assistance payments.
  • A total of just over $540 million on Income Related Rent (IRR) subsidies to Housing New Zealand Corporation.
  • A total of just under $5 million on the community housing rent relief programme.
  • A total of just under $3 million on increase in provision for doubtful debts on IRR Debt.
  • A total of just over $13 million for Wellington City Council Social Housing Assistance.
  • A total of just over $394 million on capital expenditure, which includes debt refinancing of just under $235 million and $5 million for Maori Demonstration Partnerships.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities - links to appropriations - Housing
Government Priorities Appropriations
To ensure ongoing confidence and investment in the building and construction sector as this is critical in terms of economic activity, jobs and skill retention. Building Regulation and Control
Occupational Licensing
Sector and Regulatory Policy
To drive down the regulatory costs associated with building without compromising building quality and to remove unnecessary regulation that adds cost and delivers little benefit. Building Regulation and Control
Sector and Regulatory Policy
To get better results from the Government's investment in resolving weathertightness issues. Weathertight Homes Resolution Service
To support and encourage improved productivity across the building and construction sector. Occupational Licensing
To review the way liability works in relation to building work. Sector and Regulatory Policy
To ensure ongoing confidence and investment in the housing sector as this is critical in terms of economic activity, jobs and skill retention. Residential Tenancy and Unit Title Services
Contracted Housing Support Services
HNZC Housing Support Services
HNZC State House Upgrades
Housing Policy Advice
Management of Crown Properties held under the Housing Act 1955
Housing Assistance
KiwiSaver Deposit Subsidy
Wellington City Council Social Housing Assistance
Acquisition and Improvement of Housing New Zealand Corporation state houses
Loans to support Homeownership
Loans to support Social and Affordable Housing
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt
To maintain the supply of housing at a reasonable level to ensure that New Zealanders' housing needs are met and major supply issues do not start to emerge in the short to medium term. Sector and Regulatory Policy
Performance Monitoring and Advice - Housing New Zealand Corporation
Contracted Housing Support Services
HNZC Housing Support Services
Housing Policy Advice
Management of Crown Properties held under the Housing Act 1955
Housing Assistance
KiwiSaver Deposit Subsidy
Income Related Rental Subsidy
Community Housing Rent Relief Programme
Wellington City Council Social Housing Assistance
Acquisition and Improvement of Housing New Zealand Corporation state houses
Loans to support Homeownership
Loans to support Social and Affordable Housing
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt
To see more effective management of the state housing asset and better utilisation of the social housing stock. Performance Monitoring and Advice - Housing New Zealand Corporation
Contracted Housing Support Services
HNZC Housing Support Services
HNZC State Housing Upgrades
Housing Policy Advice
Management of Crown Properties held under the Housing Act 1955
Housing Assistance
Income Related Rental Subsidy
Community Housing Rent Relief Programme
Wellington City Council Social Housing Assistance
Acquisition and Improvement of Housing New Zealand Corporation state houses
Loans to support Homeownership
Loans to support Social and Affordable Housing
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt

Summary of Financial Activity#

Summary of Financial Activity - Housing
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
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 35,726 75,831 89,863 90,740 109,001 103,118 68,085 45,579 113,664 90,306 84,053 83,893
Benefits and Other Unrequited Expenses 383,602 400,002 440,371 474,108 513,733 510,554 N/A 543,033 543,033 592,886 642,597 691,093
Borrowing Expenses - - - 3,964 - - - - - - - -
Other Expenses 4,500 4,833 5,575 5,767 14,251 13,551 - 20,744 20,744 45,279 51,279 42,779
Capital Expenditure 202,416 292,251 447,535 321,910 296,612 284,718 4,771 394,779 399,550 191,582 187,976 169,134
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

626,244 772,917 983,344 896,489 933,597 911,941 72,856 1,004,135 1,076,991 920,053 965,905 986,899

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 129,244 110,888 135,374 164,763 128,870 128,870 N/A 134,370 134,370 133,423 135,862 136,862
Capital Receipts - - - - 1,858 1,858 N/A 4,619 4,619 9,200 22,153 5,280

Total Crown Revenue and Capital Receipts

129,244 110,888 135,374 164,763 130,728 130,728 N/A 138,989 138,989 142,623 158,015 142,142

New Policy Initiatives#

Budget Policy Intiatives - Housing
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000

Agreed by current government

           
Funding of memorandum account deficits Departmental capital injection 2,153 - - - -
Upgrade the existing housing stock, build new houses to add to the state housing stock HNZC State House Upgrades
Non-Departmental Output Expenses
22,000 20,000 - - -
Acquisition and Improvement of Housing New Zealand Corporation State Houses
Non-Departmental Capital Expenditure
8,000 65,000 - - -
Healthy Housing Acquisition and Improvement of Housing New Zealand Corporation State Houses
Non-Departmental Capital Expenditure
3,000 6,500 - - -
Contribution to rural housing programme Contracted Housing Support Services
Non-Departmental Output Expenses
- 7,000 5,000 - -
Increase the supply of affordable housing HNZC Housing Support Services
Non-Departmental Output Expenses
- 1,600 - - -
Loans to Support Social and Affordable Housing
Non-Departmental Capital Expenditure
- 20,000 - - -
Line by line Savings - Department Building Regulation and Control
Departmental Output Expenses
(1,199) (1,273) (846) - -
  Occupational Licensing
Departmental Output Expenses
(45) (344) (349) - -
  Performance Monitoring and Advice - Housing New Zealand Corporation
Departmental Output Expenses
(2) (4) (4) - -
  Residential Tenancy and Unit Title Services
Departmental Output Expenses
(587) (547) (434) - -
  Sector and Regulatory Policy
Departmental Output Expenses
(274) (114) (118) - -
  Weathertight Homes Resolution Services
Departmental Output Expenses
(1,064) (372) (387) - -
Line by line Savings - Non-Departmental Contracted Housing Support Services
Non-Departmental Output Expenses
(868) (868) (868) (868) (868)
  HNZC Housing Support Services
Non-Departmental Output Expenses
(4,964) - - - -
  Housing Assistance
Benefits and Other Unrequited Expenses
(1,783) (6,122) (6,124) (5,793) (5,793)
  Community Housing Rent Relief Programme
Other Expenses to be incurred by the Crown
(500) - - - -
  Loans to Support Homeownership
Non-Departmental Capital Expenditure
(14,469) (14,083) - - -

Agreed by previous government

           
KiwiSaver Housing deposit subsidy Housing Policy Advice
Non-Departmental Expenses
- 86 74 188 203
  HNZC Housing Support Services
Non-Departmental Output Expenses
- 782 1,273 1,289 1,289
  KiwiSaver Deposit Subsidy
Benefits and Other Unrequited Expenses
- - 8,000 11,700 7,900
  Capital Injection to Housing New Zealand Corporation State Houses
Non-Departmental Capital Expenditure
- 100 547 27 27
Wellington City Council Social Housing Wellington City Council Social Housing Assistance
Other Expenses to be incurred by the Crown
7,500 13,500 37,500 43,500 35,000
Total Initiatives   16,916 110,842 43,264 50,043 37,758

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Housing, are discussed briefly below.

Departmental Output Expenses

During 2004/05 a review was carried out of the configuration of agencies and functions in the housing sector. After this review it was agreed to fold a range of regulatory and dispute resolution functions into an expanded and renamed Ministry of Housing, namely the Department of Building and Housing. The establishment of the new Department required output class structure changes to more accurately reflect the role of the new organisation.

During 2004/05 the new output class, Residential Tenancy Services, was created which was the amalgamation of the output classes Administration of Residential Tenancies Bond Monies, Residential Tenancies Information and Dispute Resolution, and State Housing Appeal Authority.

The Building Act 2004 Implementation and Building Regulation and Controls output classes transferred from the Building Industry Authority. Occupational Licensing funding for the design, establishment and maintenance of the occupational licensing regime for building practitioners under the Building Act 2004 transferred from the Ministry of Economic Development.

Additional appropriations in 2004/05 for these output classes totalled $17.343 million.

In 2005/06 the Weathertight Homes Resolution Service was transferred into the Department of Building and Housing from the Department of Internal Affairs with an initial funding of $17.689 million in 2005/06 reducing to $15 million in 2008/09. The resolution service is provided to owners of dwelling houses affected by the leaky building syndrome.

In 2006/07 the electrical workers registration system was transferred from the Ministry of Economic Development (Vote Energy). Additional funding was provided to enhance the Weathertight Homes Resolution Service and for complementary initiatives - consumer education, the assessment and development of options for the introduction of home warranty insurance and professional indemnity insurance into New Zealand, and research to ensure that non-weathertight dwellings are repaired effectively. The Department of Building and Housing was provided with capability funding for essential infrastructure resources, in particular, for core information and communications technology (ICT) systems and secondly, to provide a foundation for adequately maintaining an appropriate fixed asset base going forward. Some functions for the Electrical Workers Registration Board were transferred from the Ministry of Economic Development.

In 2007/08 the level of funding for implementing the Building Act 2004 was reduced, reflecting the progress in implementation of the Act. The adjudication function for the Weathertight Homes Resolution Service was transferred to the Ministry of Justice.

In 2008/09 there was:

  • a reduction in funding for implementing the Building Act 2004
  • a reduction in funding for the Weathertight Homes Resolution Service, reflecting a forecast reduction in volume of services
  • funding to implement the Building Code Review and the New Zealand Energy Efficiency and Conservation Strategy, funded from Revenue Other.

The most significant developments in Budget 2009 are as follows:

  • The appropriation for Building Regulation and Control in 2008/09 was increased by $2.200 million of carry forward from 2007/08; 2009/10 sees a return to the usual level for this output.
  • For Occupational Licensing, 2009/10 shows an increase in appropriation and revenue other, which primarily reflects the originally anticipated level of building practitioner licensing.
  • For Residential Tenancy and Unit Title Services, the change in appropriation is due to increases to meet demand, approved in 2008 ($802,000), KiwiSaver ($24,000) and value for money ($40,000) offset by decreases in relation to the implementation funding for the amendments to the Residential Tenancies Act 1986 ($393,000) and the Unit Titles Act 1972 ($241,000), and one off funding in 2008/09 for infrastructure projects ($74,000).
  • The decrease in the appropriation for the Weathertight Homes Resolution Service is due to reductions as a result of an expense transfer from 2007/08 into 2008/09 for the delays in claim applications ($2 million), the forecast decrease in volumes ($2.463 million) offset by the decrease in the value for money savings ($692,000) and the reinstatement of one off transfers to other output classes in 2008/09 ($950,000).

For Budget 2009 changes have been made to output performance measures and standards for all appropriations to reflect the Government's priorities.

Non-Departmental Output Expenses

Housing Policy Advice

In 2005/06, $6.710 million was appropriated for Housing Policy Advice to increase the policy capability of HNZC over four years and out years, of which $2.530 million was appropriated in 2005/06, $1.620 million in 2006/07, $1.280 million in 2007/08 and $1.280 million in 2008/09 and out years. Over the next three years Housing Policy Advice is forecast to be maintained at similar levels to the 2008/09 appropriation.

Contracted Housing Support Services

In 2005/06, $22.600 million was appropriated for the Rural Housing Programme to continue addressing sub-standard housing in rural areas over three years, of which $7.500 million was in 2005/06, $7.500 million in 2006/07 and $7.600 million in 2007/08. In 2007/08, a further $1.215 million was appropriated for capability funding for community ventures, grants for retrofitting insulation and ongoing research and evaluation of the Rural Housing Programme. In 2008/09 the Rural Housing programme was funded through a reduced dividend payment to the Crown equal to $10 million. Funding for the Contracted Housing support services appropriation is forecast to decrease over the next two years.

HNZC Housing Support Services

The appropriation for HNZC Housing support services was significantly increased from $2.960 million in 2004/05 to $13.227 million in 2005/06. The majority of this increase related to the implementation of the expanded Welcome Home loan programme (mortgage insurance scheme) totalling $36.870 million to assist people into home ownership over three years and out years, of which $4.375 million was in 2005/06, $7.35 million in 2006/07, $10.840 million in 2007/08 and $14.310 million in 2008/09 and out years.

Community Renewal and Healthy Housing also received increases of $8.350 million and $3 million respectively in 2005/06 allocated over three years to cover all operating costs associated with the programmes. A further $500,000 was appropriated to investigate potential joint arrangements between Housing New Zealand Corporation and the Wellington City Council to manage Wellington City Council's housing stock.

In 2006/07, $1.876 million was appropriated to cover all operating costs associated with the Community Renewal programme over three years and out years. In 2008/09 the decrease in this appropriation was due to a reduction of $3.300 million identified in the line-by-line savings review as part of Budget 2009 for the Welcome Home Loan programme (mortgage insurance scheme). Over the next three years HNZC Housing Support Services is forecast to be maintained at similar levels to the 2009/10 appropriation.

For Budget 2009 changes have been made to output performance measures and standards for all appropriations to reflect the Government's priorities.

Benefits and Other Unrequited Expenses

Income Related Rent subsidy

The income related rental subsidy has grown from approximately $373 million in 2004/05 to approximately $505 million in 2008/09. The subsidy is forecast at $540 million for 2009/10 and is predicted to continue to grow substantially in future years. Growth in the income related rent rental subsidy is reflective of the growth in market rents relative to income based rents charged to tenants.

Housing Assistance

In 2004/05, $4.500 million was added to the Housing Assistance appropriation to meet housing need in rural communities. This support was for one year only, with future funding decisions to be informed by evaluation and coordination work. Funding for the Housing Assistance appropriation is forecast to decline significantly next year, due to a reduction in interest subsidy payments, and a restructuring of the Housing Innovation Fund.

Other Expenses

In 2001/02 the Non-Departmental Other Expense: Community Housing Rent Relief Programme was transferred from the then Vote Social Services to Vote Housing. This appropriation is forecast to continue at the level of approximately $4.500 million per year.

Capital Expenditure

In Budget 2008 the Non-Departmental Capital appropriations relating to Housing New Zealand Corporation were restructured as a result of the Review of Accountability Documents (RoADs) project to improve the accuracy and transparency of the appropriations.

In February 2009, Cabinet agreed to appropriate new funding to bring forward infrastructure spending.

This included $20 million in 2008/09 for the building of new houses, $65 million in 2009/10 for the upgrading of existing state housing stock and $3 million in 2008/09 and $6.500 million in 2009/10 for Healthy Housing initiative. This funding was all appropriated to the capital appropriation Acquisitions and Improvement of Housing New Zealand Corporation State Houses.

In Budget 2009, Cabinet agreed to the line-by-line savings initiative which reduced the capital appropriation Loans to Support Home Ownership by $14.469 million in 2008/09 and $14.083 million in 2009/10 reflecting reduced demand for shared equity loans.

The Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt appropriation is for the roll over of existing Housing New Zealand Corporation loans.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - A business-enabling regulatory environment for building and housing that is efficient and effective, ensures public safety and delivers good quality homes and buildings that perform well in the New Zealand environment Building Regulation and Control
Sector and Regulatory Policy
Outcome - An enhanced housing and building market that provides an accessible range of houses and buildings that meet New Zealanders' economic and social needs Building Regulation and Control
Performance Monitoring and Advice - Housing New Zealand Corporation
Sector and Regulatory Policy
Outcome - A well performing, professional building and housing sector that has the capability and capacity to do a good job Occupational Licensing
Sector and Regulatory Policy
Outcome - Participants in the building and housing market are well informed, can transact with confidence and are supported to resolve their disputes Residential Tenancy and Unit Title Services
Sector and Regulatory Policy
Weathertight Homes Resolution Service

Building Regulation and Control (M9)

Scope of Appropriation

This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.

Expenses and Revenue

Expenses and Revenue - Building Regulation and Control (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 18,470 17,598 16,339
Revenue from Crown 1,708 1,708 770
Revenue from Other 18,679 15,455 15,854

Reasons for Change in Appropriation

2008/09 was increased by $2.200 million of carry forward from the previous year. 2009/10 is returning to the usual level for this output.

Output Performance Measures and Standards

Output Performance Measures and Standards - Building Regulation and Control (M9) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provide Information, Advice and Guidance
Provide information, advice and guidance to the building sector on regulatory schemes under the Building Act 2004
Quality      
Percentage of users satisfied with information New measure New measure 70%
Set and Review Standards for Buildings
Maintain and review the Building Code and supporting documents; issue warnings and bans as required
Quality
Standards setting and reviews undertaken in accordance with the requirements of the Building Act 2004 Quality standards met Achieved Revised standard
User community is involved in developing the options to address the issues
All proposed changes are cost effective and the benefits outweigh costs
Product Certification
Provide administration of the product certification scheme
Quality      
Publish approved Product Certification Bodies and product certificates within 10 working days of receipt New measure New measure 100%
Quantity      
Report on annual evaluation of scheme performance New measure New measure Report produced
Investigate and Issue Determinations
Investigate and issue Determinations under the Building Act 2004. These are demand driven and the Department expects to complete approximately 135 Determinations per year.
Quality      
Determinations successfully appealed Less than 2% 0% Less than 2%
Determinations subject to clarification Less than 3% 2.4% Less than 3%
Timeliness      
Determinations completed within the statutory timeframe (60 days) without agreement of the parties to extend timeframes 95% 95% New Standard
100%
Building Science and Design Research
Undertake building science and design research that supports the regulatory system.
Quality      
Research projects completed in accordance with the terms of reference Terms of reference met Achieved Terms of reference met
Consent Authority Performance
Improve the performance of Local Government Consent Authorities. This involves undertaking technical reviews and resolving complaints about territorial and building consent authorities.
Timeliness      
Technical reviews
Annual summary report on all individual reviews (findings, conclusions and learnings) published by 30 June 2010
New measure New measure Measure achieved
All final review reports published within 60 working days of receipt of consultation feedback on the draft review report from Councils New measure New measure Measure achieved
Quality      
Councils provide positive feedback in annual process evaluation survey New measure New measure 80%
Complaints about Building Control Authorities      
Quality      
Complaints successfully appealed to Ombudsman New measure New measure No more than 2%
Timeliness      
Complaints formally acknowledged and preliminary enquiries commence within 3 working days of receipt of complete application New measure New measure 95%
Annual report on trends, issues and learnings identified produced by 30 June 2010 New measure New measure Measure achieved
Building Control Authority Guidance and Advice
Quality
Users of guidance and advice provide positive survey feedback
New measure New measure 70%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Building Regulation and Control (M9) - Housing
Reference Conditions
Quality standards for policy advice  
Quality Measure We will seek written response, at least four-monthly, from the Minister of Housing for the Purchasing and Monitoring advice on HNZC, performance on policy advice and Residential and Unit Titles services and from the Minister for Building and Construction for all other Departmental appropriations on our performance against the following quality standards.
The assessment process will also incorporate an assessment of ministerial satisfaction through a structured discussion with each Minister focusing on the quality standards. The performance target will be 3 (good) or better, on an overall scale of 1 (poor) to 5 (excellent).
We will supply high-quality services meeting the standard quality characteristics below.
We will provide a comprehensive service that:
  • has the capacity to act quickly in response to urgent or critical issues
  • offers timely and relevant briefings on significant issues
  • supports Ministers as required in Cabinet Committees, Select Committees and in the House.
Standard quality characteristics  
Purpose Clear issues definition and relationship to the Government's agreed outcomes and objectives and why it needs Ministerial action.
Cost effectiveness Viable options to address the issue are presented and costs and benefits assessed, and cost-effectiveness confirmed.
Evidence and Accuracy The sources of evidence on the problem and possible solutions are identified and facts are accurately represented.
Practicality The practicalities of implementing the advice and stakeholder views on implementation are clearly explained including any risks that may require management.
Consultation Stakeholder and Cabinet Office requirements for consultation are met and documented.
Presentation Comprehensible, accessible, free from any typographical or spelling errors, and meets Cabinet Office requirements.
Recommendations Recommendations are clear, logical, action-oriented and can stand alone from the rest of the advice.
Timeliness Specified reporting deadlines are met.
Cost Outturn is within budget.

Memorandum Account

Memorandum Account - Building Regulation and Control (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Building Controls

     
Opening Balance at 1 July 8,500 8,500 10,417
Revenue 18,582 15,358 15,754
Expenses 16,665 15,890 15,469
Closing Balance at 30 June 10,417 7,968 10,702

Note that with the downturn in the residential building industry there is likely to be an impact on the forecast Building levy 2008/09 revenue. This will be confirmed during the October Baseline Update process.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Building Regulation and Control (M9) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Implementation of Building Code Review 2008/09 1,965 1,965 1,720 995 995
Implementation of NZ Energy Efficiency Conservation Strategy 2008/09 1,565 1,565 750 - -
Line by line Savings 2008/09 (1,199) (1,273) (846) - -
Increasing the capability of the Department of Building and Housing 2006/07 494 492 - - -
Increasing the capability of the Department of Building and Housing 2005/06 921 - - - -

Occupational Licensing (M9)#

Scope of Appropriation#

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.

Expenses and Revenue#

Expenses and Revenue - Occupational Licensing (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,511 8,694 11,025
Revenue from Crown - - -
Revenue from Other 5,654 5,210 12,753

Reasons for Change in Appropriation#

2009/10 shows an increase in appropriation and revenue other, which primarily reflects the originally anticipated level of building practitioner licensing. Final decisions on the licensing framework will impact on the revenue and expenditure in 2009/10 and we expect to revise budgets to reflect these decisions as part of the October Baseline Update.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Occupational Licensing (M9) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Progress the development of a new registration system which incorporates the requirements of the electrical workers scheme and the Licensed Building Practitioner scheme New registration system progressed New registration system progressed Revised standard
New registration system implemented
Licensing of Building Practitioners
Administration and development of the occupational licensing scheme for building practitioners under the Building Act 2004. This is a demand driven activity that will involve issuing about 4,300 licences per year
     
Timeliness      
License building practitioners (Design licensing classes) New measure New measure 95% within 35 working days of receipt of a correctly completed application
License building practitioners (Non-Design licensing classes not requiring face to face assessments) New measure New measure 95% within 20 working days of receipt of a correctly completed application
License building practitioners (Non-Design licensing classes that require face to face assessments) New measure New measure 95% within 35 working days of receipt of correctly completed application
Quality      
Regulations and rules developed meet our quality standards for policy advice Quality standards met Quality standards met 100%
Justified complaints received by the Registrar related to process abnormalities New measure New measure None
Licensing of Electrical Workers
Administer the electrical occupational licensing requirements under the Electricity Act 1992. The licensing component is demand driven and will involve registering about 1,600 electrical workers, issuing about 23,000 practising licences and examining around 3,750 candidates per year
     
Quality      
Justified complaints received by the Registrar related to process abnormalities New measure New measure None
Provide the Electrical Workers Registration Board with audit programme findings New measure New measure 30 June 2010
Timeliness      
Register electrical workers 95% within 10 working days of receipt 96% 95% within 10 working days of receipt of a correctly completed registration application
Issue practising licenses New measure New measure 95% within 10 working days of receipt of a correctly completed registration application
Release examinations results New measure New measure 100% within 8 weeks of the date of the examination
Complaints against non-registered electrical workers
Period from the date a complaint is received by the Electrical Workers Licensing Group to be referred to the Registrar for decision on the action to be taken
New measure New measure 80% within 12 weeks of receipt
Complaints against registered electrical workers
(a) Period from the date a complaint is received by the Electrical Workers Licensing Group to the date of the Complaints Assessment Committee's decision
75% within 18 weeks of receipt 79% within 18 weeks of receipt 75% within 12 weeks of receipt
(b) Period from the date a complaint is received from the Complaints Assessment Committee to the date of the Electrical Workers Registration Board decision, where the committee decides to refer a complaint to the Board for decision 70% within 15 weeks of receipt 100% within 15 weeks of receipt 90% within 12 weeks of receipt

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Occupational Licensing (M9) - Housing
Reference Conditions
Quality standards for policy advice Refer to conditions on use of Appropriation noted under the Building Regulation and Control output.

Memorandum Account#

Memorandum Account - Occupational Licensing (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Building Practitioners

     
Opening Balance at 1 July (8,833) (8,833) (13,435)
Revenue 699 307 7,938
Expenses 5,301 4,089 6,889
Closing Balance at 30 June (13,435) (12,615) (12,386)

Memorandum Account#

Memorandum Account - Occupational Licensing (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Electrical Workers

     
Opening Balance at 1 July 3,204 3,204 3,258
Revenue 4,226 4,851 4,772
Expenses 4,172 4,567 3,766
Closing Balance at 30 June 3,258 3,488 4,915

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Occupational Licensing (M9) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Electrical Workers Registration and Licensing System 2008/09 214 434 510 510 510
Line by line Savings 2008/09 (45) (344) (349) - -
Licensed Building Practitioners' Scheme 2007/08 674 (1,571) (745) - -
Increasing the capability of the Department of Building and Housing 2006/07 311 309 309 309 309
Increasing the capability of the Department of Building and Housing 2005/06 257 257 257 257 257

Performance Monitoring and Advice - Housing New Zealand Corporation (M37)#

Scope of Appropriation#

This appropriation is limited to the provision of advice to Ministers arising from the monitoring of Housing New Zealand Corporation's current and expected performance.

Expenses and Revenue#

Expenses and Revenue - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 673 662 641
Revenue from Crown 659 659 625
Revenue from Other 14 14 16

Reasons for Change in Appropriation#

The decrease in appropriation is due to a one off transfer in 2008/09 of $30,000.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Performance Monitoring and Advice on Housing New Zealand Corporation      
Provide advice to the Minister on any matters relating to the Corporation's performance, governance advice (including Board appointments), vote administration for Vote Housing, and any other matters as requested by the Minister      
Quality      
Quality standards for policy advice met New measure New measure 100%
Ministerial satisfaction assessed through a structured discussion with the Minister three times per year. This will include performance on quality standards agreed with the Minister Measure achieved Measure achieved Measure achieved
Timeliness      
Advice is timely and meets the needs of the Minister to agreed deadlines 100% 100% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
Reference Conditions
Quality standards for policy advice Refer to conditions on use of Appropriations noted under the Building Regulation and Control output expense

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Line by line Savings 2008/09 (2) (4) (4) - -
Increasing the capability of the Department of Building and Housing 2007/08 230 230 230 230 230
Increasing the capability of the Department of Building and Housing 2006/07 15 15 15 15 15

Residential Tenancy and Unit Title Services (M37)#

Scope of Appropriation#

This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority.

Expenses and Revenue#

Expenses and Revenue - Residential Tenancy and Unit Title Services (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 21,458 20,686 21,616
Revenue from Crown - - 6,361
Revenue from Other 23,904 22,034 15,415

Reasons for Change in Appropriation#

The increase in appropriation is due to increases to meet demand approved in 2008 ($802,000), KiwiSaver ($24,000) and value for money ($40,000) offset by decreases in relation to the amendments to the Residential Tenancies Act 1986 ($393,000) and the Unit Titles Act 1972 ($241,000), one off funding in 2008/09 for infrastructure projects ($74,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Residential Tenancy and Unit Title Services (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Residential Tenancies Act Statutory functions
Manage bond lodgements, refunds and investment as required under the Residential Tenancies Act 1986 and over 53,000 tenancy tribunal applications
     
State Housing Appeals Authority      
Quality      
Meet the standards agreed by the Principal member of the State Housing Appeals Authority As set out annually Met Met
Residential Tenancy Dispute Resolution      
Quantity      
Decrease the level of residential tenancy disputes as a proportion of the total bond lodgements New measure New measure 1% decrease over the actual for 2008/09
Quality      
Client satisfaction with the quality of information supplied by the Department, that the information supported them to transact with confidence New measure New measure 70%
Proportion of applications for dispute resolution resolved out of court 65% 69% 5% increase over the audited actual for 2008/09
Deliver cost effective residential tenancy services, with 20% of residential tenancies transactions being completed electronically by 30 June 2010 New Measure New Measure 20% residential tenancies transactions being completed electronically by 30 June
All residential tenancies services processing completed with an error rate of no more than 1% New Measure New Measure 99% processing error free

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Residential Tenancy and Unit Title Services (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Line by line Savings 2008/09 (587) (547) (434) - -
Funding to deliver Unit Titles Act 1972 services 2007/08 563 394 395 395 395
Funding for the Residential Tenancies Act Amendment Bill 2007/08 552 412 311 311 311
Increasing the capability of the Department of Building and Housing 2006/07 668 664 664 664 664
Increasing the capability of the Department of Building and Housing 2004/05 1,647 1,647 1,647 1,647 1,647
Responding to growth in the Rental Housing Sector 2003/04 1,733 1,733 1,733 1,733 1,733
Assisting Tenancy Tribunal Judgement Creditors to Recover Judgement Debts 2003/04 120 120 120 120 120
Effective Regulatory Framework for the Private Rental Market 2003/04 285 - - - -
Review of the Residential Tenancies Act 1986 2003/04 100 100 100 100 100

Sector and Regulatory Policy (M9)#

Scope of Appropriation#

This appropriation is limited to the provision of policy advice on the adequacy, efficiency and effectiveness of the building and housing sector in New Zealand; advice on the regulatory framework for the sector; monitoring, analysing and providing information on the sector; and evaluating the effectiveness of the sector and statutory boards.

Expenses and Revenue#

Expenses and Revenue - Sector and Regulatory Policy (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,469 5,061 4,237
Revenue from Crown 5,388 5,388 4,153
Revenue from Other 81 81 84

Reasons for Change in Appropriation#

The decrease in appropriation is due to the carry forwards from 2007/08 to 2008/09, with 2009/10 reflecting the normal level of funding.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Sector and Regulatory Policy (M9) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Sector and Regulatory Policy Advice
Provide policy advice in relation to the efficiency and effectiveness of the building and housing sector in New Zealand
     
Quantity      
Provide policy and regulatory advice on the Residential Tenancies Act 1986 and the Unit Titles Act 1972 and Building Act 2004 New measure Met Measure achieved
Quality and timeliness      
Meet our quality standards for policy advice 100% 100% 100%
Sector, Industry and Market Monitoring
Monitor, evaluate and report on trends and developments in the building and housing sector.
     
Quality and timeliness      
Accurate, timely, credible and valued by sector participants shown by the download and re-use of our information New measure New measure Quality standards met
Statutory Board Responsibilities
Advice on the efficient and effective regulation of trades and professions operating within the building and housing sector, including monitoring the effectiveness of statutory boards.
     
Quality      
Board member appointments and re-appointments within statutory guidelines and requirements Guidelines and requirements met Guidelines and requirements met Guidelines and requirements met
Timeliness      
Advice on annual reports on performance Within one month of receipt of report Within one month of receipt of report Within one month of receipt of report
Ministerial Services
This includes:
  • responses to 70 to 90 (forecast) parliamentary questions
  • responses to 480 to 520 (forecast) ministerial correspondence items
  • responses to 440 - 500 (forecast) Official Information Act 1982 and Privacy Act 1993 requests.
     
Quality      
Ministerial satisfaction assessed through a structured discussion with Ministers three times per year. This will include performance against quality standards agreed with Ministers. Quality standards met Quality standards met Quality standards met
Responses to Official Information Act 1982 and Privacy Act 1993 requests comply with the legislation 100% 100% 100%
Timeliness      
Responses to parliamentary questions and ministerial correspondence provided within the deadlines agreed with the Minister 100% 100% 100%
Responses to Official Information Act 1982 and Privacy Act 1993 requests provided within statutory deadlines 100% 95% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Sector and Regulatory Policy (M9) - Housing
Reference Conditions
Quality standards for policy advice Refer Building Regulation and Control output expense above.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Sector and Regulatory Policy (M9) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Line by line Savings 2008/09 (274) (114) (118) - -
Purchasing and Monitoring Advice Transfer 2007/08 - (230) (230) (230) (230)
Increasing the capability of the Department of Building and Housing 2006/07 167 166 166 166 166
Increasing the capability of the Department of Building and Housing 2004/05 2,028 2,083 2,083 2,083 2,083

Weathertight Homes Resolution Service (M9)#

Scope of Appropriation#

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims; claim management until resolution and the provision of dispute resolution services.

Expenses and Revenue#

Expenses and Revenue - Weathertight Homes Resolution Service (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,044 15,109 14,227
Revenue from Crown 16,940 16,940 14,117
Revenue from Other 221 221 207

Reasons for Change in Appropriation#

The decrease is due to reductions as a result of an expense transfer from 2007/08 into 2008/09 for the delays in claim applications ($2 million), the forecast decrease in volumes ($2.463 million) offset by the decrease in the value for money savings ($692,000) and the reinstatement of one off transfers to other output classes in 2008/09 ($950,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Weathertight Homes Resolution Service (M9) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Claims Assessment

The Department expects to provide assessment and advisory services to owners of between 550 and 750 dwellings
     

Quality

     
Increased satisfaction with advice provided (annual measure) that enables clients to make their decisions in a timely way New measure New measure 5% greater than the increase over the audited actual for 2008/09
Percentage of assessment reports meeting agreed quality standards 90% 100% 90%
Annual independent audit of 10% sample of Assessment reports meets all quality standards New measure New Measure 100%

Timeliness

Percentage of claim assessments for single homes completed within 3 months of receipt of their application
75% 60% 75%
Percentage of claim assessments from multi-dwelling complexes completed within 9 months of receipt of their application 75% 40% 75%

Dispute Resolution

The Department provides a mediation service on behalf, and at the direction of, the Weathertight Homes Tribunal
     

Timeliness

     
Percentage of mediations completed within specified timeframes 99% 100% 99%

Quality

     
Percentage of mediations resulting in settlement
Ministry of Justice quality requirements met
85%
80%
93%
80%
85%
80%

Value for Money

     
Percentage of Disputes resolved without the need for an adjudicated hearing by the Weathertight Homes Tribunal 80% 85% 85%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Weathertight Homes Resolution Service (M9) - Housing
Reference Conditions

Quality standards for Assessment reports

 
Robust Investigative Methodology The investigative methodology is clear and notes investigation that has taken place on all elevations.
Presentation Report is consistent with the Department's format. Report is easy to follow.
Accuracy Appendices are accurately referenced.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Weathertight Homes Resolution Service (M9) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Line by line Savings 2008/09 (1,064) (372) (387) - -
Increasing the capability of the Department of Building and Housing 2006/07 579 576 576 576 576
Weathertightness - Weathertight Homes Resolution Services and related initiatives 2006/07 7,838 3,621 3,621 3,621 3,621
Transfer of Weathertight Homes Resolution Service 2005/06 15,000 15,000 15,000 15,000 15,000

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Housing Policy Advice
Upgrade the current Housing New Zealand stock and acquisition of new housing Contracted Housing Support Services
HNZC Housing Support Services
HNZC State House Upgrades
Housing Policy Advice
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Contracted Housing Support Services
HNZC Housing Support Services
Housing Policy Advice
Management of Crown properties held under the Housing Act 1955

Contracted Housing Support Services (M37)#

Scope of Appropriation

This appropriation is limited to the purchase of education, support and other services from third-party and iwi providers, by Housing New Zealand Corporation, to support target groups into improved housing outcomes.

Expenses

Expenses - Contracted Housing Support Services (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation Contracted Housing Support Services 2,641 2,641 9,400
Welcome Home First Steps Home Ownership Education 2,510 2,510 2,400
Energy Efficient Retrofits excluding Energy Efficiency Conservation Authority 131 131 -
Rural Housing - - 7,000

Reasons for Change in Appropriation

The increase in appropriation is primarily due to the new initiative funding received for the Rural Housing programme. In 2008/09, this was funded by reducing the dividend the government otherwise required from HNZC. The Energy Efficient Retrofit programme ceases to be funded in 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Contracted Housing Support Services (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of participants in the Welcome Home First Steps Home Ownership Education programme 4,000 - 5,000 4,000 - 5,000 4,000 - 5,000
The number of essential and infrastructure repairs New measure New measure 235 - 270
Number of dwellings repaired New measure New measure 205 - 230

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Contracted Housing Support Services (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Rural Housing Programme 2008/09 - 7,000 5,000 - -
Line by line Savings 2008/09 (868) (868) (868) (868) (868)
Home Ownership Education 2005/06 2,400 2,400 2,400 2,400 2,400

HNZC Housing Support Services (M37)#

Scope of Appropriation#

This appropriation is limited to the purchase of housing related services from Housing New Zealand Corporation including home ownership initiatives, the Housing Innovation Fund and Healthy Housing.

Expenses#

Expenses - HNZC Housing Support Services (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation HNZC Housing Support Services 7,713 6,673 12,293
Housing Innovation Fund - Administration 407 407 1,100
Housing Innovation Fund - Maori Demonstration Partnerships - - 500
Welcome Home Loan 4,280 4,280 8,423
Shared Equity 524 524 -
Non-weathertight homes financial assistance 1,586 546 70
Healthy Housing 916 916 1,418
KiwiSaver housing deposit subsidy - Establishment - - 782

Reasons for Change in Appropriation#

The appropriation increase is as a result of funding for the accelerated Healthy Housing programme. Financial assistance of non-weathertight homes decrease is due to the winding down of the two year pilot. The Housing Innovation Fund increase reflects HNZC administration costs required to deliver the programme previously funded by the Corporation. The appropriation for the Welcome Home Loan programme was reduced by $3.300 million from $7.580 million for 2008/09 only as a result of the line by line services review. The appropriation for the Welcome Home Loan programme in 2009/10 reflects a previous Budget decision.

Output Performance Measures and Standards#

Output Performance Measures and Standards - HNZC Housing Support Services (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Housing Innovation Fund loans issued meet the eligibility criteria New Measure New Measure At least 98%
Housing Innovation Fund loans are monitored and meet lending conditions New Measure New Measure 95%
The number of new loans underwritten through the Welcome Home Loan programme 900 -1,300 900 -1,300 A minimum of 1,150
Healthy Housing joint assessments undertaken New Measure New Measure 1,900 - 2,100

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - HNZC Housing Support Services (M37) - Housing
Reference Conditions
Cabinet decision updated by briefing notes to the Minister Welcome Home loans are only available to applicants that meet income and credit criteria set by participating lenders and Housing New Zealand Corporation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - HNZC Housing Support Services (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Increase the supply of affordable housing 2009/10 - 1,600 - - -
KiwiSaver Housing deposit subsidy 2009/10 - 782 1,273 1,289 1,289
Shared Equity Home Ownership Pilot 2008/09 224 (227) (1,083) (896) (896)
Line by line savings 2008/09 (4,964) - - - -
Housing Innovation Fund 2007/08 1,871 - - - -
Financial Assistance to owners of non-weathertight homes 2005/06 603 70 - - -
Healthy Housing 2005/06 916 943 972 972 972
Welcome Home Loan programme 2005/06 7,580 8,700 9,100 9,100 9,100

HNZC State House Upgrades (M37)#

Scope of Appropriation#

This appropriation is limited to the upgrading of Housing New Zealand Corporation State Houses to improve the safety, security, function and amenity value to a standard suitable for social housing purposes.

Expenses#

Expenses - HNZC State House Upgrades (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,000 22,000 20,000
Fiscal Stimulus Upgrades 10,000 10,000 20,000
State Housing Upgrades 12,000 12,000 -

Reasons for Change in Appropriation#

The decrease in the appropriation reflects the planned phasing of the Fiscal Stimulus package for Infrastructural Spending.

Output Performance Measures and Standards#

Output Performance Measures and Standards - HNZC State House Upgrades (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Fiscal Stimulus - Number of properties upgraded - immediate upgrades 1,100 - 1,400 1,100 - 1,400 1,800 - 2,000
State Housing - Number of properties upgraded 1,100 - 1,250 1,100 - 1,250 -

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - HNZC State House Upgrades (M37) - Housing
Reference Conditions
Cabinet decision Providing an economic stimulus by bringing forward infrastructure spending including boosting the upgrades programme for existing State Housing stock.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - HNZC State House Upgrades (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Fiscal stimulus infrastructural spending 2008/09 22,000 20,000 - - -

Housing Policy Advice (M37)#

Scope of Appropriation#

Purchase of housing policy advice, research and evaluation from HNZC.

Expenses#

Expenses - Housing Policy Advice (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation Housing Policy Advice 2,554 2,554 2,640
Policy Advice and Research and Evaluation 2,254 2,254 2,254
Ministerial Support 300 300 300
KiwiSaver Joint Evaluation Strategy - - 86

Reasons for Change in Appropriation#

The increase in the appropriation reflects the funding required for the joint evaluation strategy of the KiwiSaver programme.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Housing Policy Advice (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Policy Advice - Level of satisfaction assessed by the Minister quarterly New measure New measure Rated as meeting and frequently exceeding expectations
Policy Advice - Demonstrated through independent assessment New measure New measure Average rating of papers by NZIER at least 7.5
( on a 1 - 10 scale)
Ministerial Support - Acceptance rate on first draft responses New measure New measure 95%
Timeframes set in legislation, by Cabinet or otherwise agreed with the Minister met New measure New measure 95%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Housing Policy Advice (M37) - Housing
Reference Conditions
Quality standard  
  • Purpose
Aims of the paper clearly stated
  • Logic
Arguments logical and supported by the facts
  • Accuracy
Facts in the paper accurate and assumptions clearly stated
  • Options
An adequate range of options presented and each option assessed for benefits, costs and consequences
  • Impact
Impact of the proposals on specific interest groups considered
  • Practicality
Issues of implementation, costs, feasibility, legality, timing, communications, consistency with other policies considered
  • Recommendations
Recommendations logical and clear and reflect the key points of the paper

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Housing Policy Advice (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
KiwiSaver Housing deposit subsidy 2009/10 - 86 74 188 203
Housing New Zealand Corporation policy unit capability 2005/06 1,138 1,138 1,138 1,138 1,138

Management of Crown Properties held under the Housing Act 1955 (M37)#

Scope of Appropriation#

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.

Expenses#

Expenses - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation Management of Crown properties held under the Housing Act 1955 1,468 1,440 1,246
Hobsonville Urban Development 1,259 1,231 1,212
Other properties managed under Housing Act 1955 209 209 34

Reasons for Change in Appropriation#

There have been minimal changes to this appropriation.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Development projects managed in accordance with the Annual Housing Agency Account work programme New Measure New Measure Milestones Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
Reference Conditions
Housing Act 1955 (section 32) Any money required to carry out works authorised under Part 1 of the Housing Act 1955 may be paid out of money appropriated by Parliament for the purpose.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Hobsonville Urban Development 2008/09 8,042 8,376 8,736 8,918 8,918
Housing Agency Account excluding Hobsonville 2007/08 1,630 1,717 1,704 1,691 1,691

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Housing
Provider 2008/09
Budgeted
$000
2008/09
Estimated Actual
$000
2009/10
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Crown entities          
Housing New Zealand Corporation          
  • Contracted Housing Support Services
2,641 2,641 9,400 HNZC Annual Report  
  • HNZC Housing Support Services
7,713 6,673 12,293 HNZC Annual Report  
  • HNZC State House Upgrades
22,000 22,000 20,000 HNZC Annual Report June 2010
  • Housing Policy Advice
2,554 2,554 2,640 HNZC Annual Report  
  • Management of Crown Properties under the Housing Act 1955
1,468 1,440 1,246 HNZC Annual Report  

The above table summarises funding to be allocated through Vote Housing to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Income Related Rent Subsidy
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Housing Assistance
KiwiSaver Deposit Subsidy

Housing Assistance (M37)

Scope of Appropriation

Payments made to HNZC and other mortgage providers to compensate for the difference between the cost of funds and rate at which funds are lent and provide write-offs for loans.

Expenses

Expenses - Housing Assistance (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,291 9,171 2,742
Housing Innovation Fund - Subsidies 7,888 7,888 1,292
Other Subsidies 1,403 1,283 1,450

Reasons for Change in Appropriation

The decrease in appropriation reflects the returning of the Housing Innovation Fund capital loans to the Crown and forsaking the suspensory loans and interest subsidies as a result of this change.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Housing Assistance (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Line by line savings 2008/09 (1,783) (6,122) (6,124) (5,793) (5,793)

Scope of Appropriation#

Subsidy provided to HNZC to compensate for the difference between assessed income-related and market rentals.

Expenses#

Expenses - Income Related Rental Subsidy (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 504,442 501,383 540,291

Reasons for Change in Appropriation#

Changes are due to the number of eligible clients and changes in market rents.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Income Related Rental Subsidy (M37) - Housing
Reference Conditions
Cabinet decision Income must be below a specified level to be eligible for this subsidy

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Community Housing Rent Relief programme
Increase in Debt provision
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Wellington City Council Social Housing assistance

Community Housing Rent Relief Programme (M37)

Scope of Appropriation

This appropriation is limited to provision of a rent relief fund for service provider tenants of Community Group Housing properties who face difficulties in meeting rental payments.

Expenses

Expenses - Community Housing Rent Relief Programme (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,500 3,800 4,500

Reasons for Change in Appropriation

There have been no changes to this appropriation.

Expected Results

Expected Results - Community Housing Rent Relief Programme (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Community Group tenancies assisted with rent relief New measure New measure 700 - 750

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Community Housing Rent Relief Programme (M37) - Housing
Reference Conditions
Ministerial agreement The Community Housing Rent Relief Programme provides rent support to community groups for residential supported living and family and welfare living. Rent support covers:
  • 70% of the shortfall between the rent charged by the Corporation and the income received by the providers for residential supported living, or
  • 90% for family and welfare living for people who require temporary accommodation and respite for people who need temporary support.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Community Housing Rent Relief Programme (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Line by line savings 2008/09 (500) - - - -
Community Housing Rent Relief 2001/02 4,500 4,500 4,500 4,500 4,500

Increase in Debt Provision (M37)#

Scope of Appropriation#

Increase in provision for doubtful debts on Income Related Rents Crown Debt.

Expenses#

Expenses - Increase in Debt Provision (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,251 2,251 2,744

Reasons for Change in Appropriation#

The increase in appropriation is related to the forecast increase in the calculated entitlement difference relating to Income Related Rental Subsidy and its associated payment.

Wellington City Council Social Housing Assistance (M37)#

Scope of Appropriation#

This appropriation is limited to assisting the Wellington City Council upgrade its social housing portfolio under the terms of a Deed of Grant entered into between the Crown, Housing New Zealand Corporation and the Council.

Expenses#

Expenses - Wellington City Council Social Housing Assistance (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,500 7,500 13,500

Reasons for Change in Appropriation#

The increase in appropriation is to provide further funding for the financial assistance package to Wellington City Council

Expected Results#

Expected Results - Wellington City Council Social Housing Assistance (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Milestones in the work plan agreed between HNZC and the Wellington City Council under the Deed of Grant are met including:
  • One complex under construction
  • Design and consent phase for other complexes commenced.
New measure New measure Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Wellington City Council Social Housing Assistance (M37) - Housing
Reference Conditions
Deed of Grant Use of funding complies with Deed of Grant
Report is provided to Parliament on use of grant under section 32(a) of the Public Finance Act 1989.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Wellington City Council Social Housing Assistance (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Wellington City Council Upgrade of Social Housing 2008/09 7,500 13,500 37,500 43,500 35,000

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Housing
Appropriation Reporting Mechanism
Community Housing Rent Relief Programme Annual report of Housing New Zealand Corporation.
Wellington City Council Social Housing Assistance Report is provided to Parliament on use of grant under section 32(a) of the Public Finance Act 1989.

The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental other expenses appropriation.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - A business enabling regulatory framework that is efficient and effective and ensures good quality homes and buildings and public safety and delivers good quality homes and buildings that perform well in the New Zealand environment. Capital Expenditure PLA
Outcome - Participants in the building and housing market are well informed, can transact with confidence and are supported to resolve disputes. Capital Expenditure PLA

Department of Building and Housing - Capital Expenditure PLA (M9)

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the Department of Building and Housing, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

Capital Expenditure - Department of Building and Housing Capital Expenditure PLA (M9) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,296 1,296 1,250
Intangibles 6,594 6,594 3,521
Other - - -

Total Appropriation

7,890 7,890 4,771
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,296 1,296 1,250
Intangibles 6,594 6,594 3,521
Other - - -

Total Appropriation

7,890 7,890 4,771

Reasons for Change in Appropriation

The decrease in budget reflects the high activity in 2008/09 on the development and implementation of a number of key infrastructure projects within the Department of Building and Housing.

Expected Results

Expected Results - Department of Building and Housing Capital Expenditure PLA (M9) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Implementation of an Electronic Document Records Management System 2,300 2,300 207
Completion of a Voice and data network upgrade 1,421 1,421 107
Development of registration systems for Electrical Workers and Licensed Building Practitioners 1,188 1,188 1,499
Implementation of improved Financial and Human Management Information Systems 1,536 1,536 458
Office renovations 593 593 250
IT upgrade / replacements 852 852 2,000
Motor Vehicle replacements - - 250

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Acquisition and Improvement of Housing New Zealand Corporation State Houses
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited debt
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Acquisition and Development of Properties Under the Housing Act 1955
Acquisition and Improvement of Housing New Zealand Corporation State Houses
Loans to Support Homeownership
Loans to Support Social and Affordable Housing

Acquisition and Development of properties under the Housing Act 1955 (M37)#

Scope of Appropriation

This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955.

Capital Expenditure

Capital Expenditure - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,948 6,595 17,717
Hobsonville Urban Development 7,764 5,595 17,517
Other properties managed under the Housing Act 1955 1,184 1,000 200

Reasons for Change in Appropriation

The increase in appropriation largely reflects the purchase of additional land from the New Zealand Defence Force for the Hobsonville Urban development. The other properties managed under the Housing Act 1955 decrease reflects the reduction of planned acquisitions of surplus Crown land in 2009/10.

Expected Results

Expected Results - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Hobsonville developments managed to the performance milestones set out in the Annual Hobsonville work programme Milestones achieved Milestones not achieved Milestones achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
Reference Conditions
Housing Act 1955 Section 32 Any money required to carry out works authorised under Part 1 of the Housing Act 1955 may be paid out of money appropriated by Parliament for the purpose.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Hobsonville Urban Development 2008/09 7,764 17,517 13,448 12,142 -

Acquisition and Improvement of Housing New Zealand Corporation state houses (M37)#

Scope of Appropriation#

This appropriation is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure Housing New Zealand Corporation state houses.

Capital Expenditure#

Capital Expenditure - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 87,241 79,700 115,800
State Housing Acquisitions 35,905 32,300 9,000
Fiscal Stimulus - Acquisitions 20,000 20,000 -
Fiscal Stimulus - Upgrades - - 65,000
Auckland pensioner housing reconfiguration and development 10,636 6,700 8,000
Healthy Housing 7,000 7,000 15,000
Fiscal Stimulus - Healthy Housing 3,000 3,000 6,500
Energy Efficient Retrofits 4,900 4,900 6,500
Community Housing Standard Acquisitions 5,800 5,800 5,800

Reasons for Change in Appropriation#

The increase in appropriation largely reflects the Fiscal Stimulus infrastructure spend together with the reduction in the State Housing Acquisitions programme originally appropriated in Budget 2006. No further money has been appropriated the residual amount of which is a carry over from the 2008/09 financial year. The Healthy Housing programme increase reflects the Fiscal Stimulus infrastructure spend together with the transfer of an appropriation for Healthy Housing from 2009/10, previously appropriated in Vote Health.

Expected Results#

Expected Results - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
State Housing Acquisitions - number of properties added to portfolio New Measure New Measure 30
Fiscal Stimulus - number of properties added to portfolio - 86 -
Fiscal Stimulus - number of properties upgraded - immediate upgrades - - 6,000 - 6,500
Auckland pensioner housing reconfiguration and development - the number of properties redeveloped 95 26 66
Healthy Housing programme - the number of households assisted 800 800 1,250 - 1,350
Healthy Housing programme - Fiscal Stimulus - number of households assisted 150 150 650 - 750
The number of energy efficiency retrofits to properties 925 925 1,100 - 1,250
The number of energy efficiency heater installations 640 640 800 - 950
Community Group Housing - acquisitions 9 9 9 - 13

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
Reference Conditions
Cabinet decisions Auckland City Pensioner Housing improvements criteria is based on a total spend ($75 million) over an original five years period, delivering upgraded units meeting HNZC standards with the number of units to remain unchanged
Additional funding be provided for 2008/09 in the following areas
$20 million for building new houses to add to the state housing stock
$3 million for the Healthy Housing programme
Additional funding be provided for 2009/10 in the following areas
$65 million for upgrading existing state housing stock
$6.500 million for the Healthy Housing programme

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Energy Efficient Warm Homes 2008/09 4,400 6,000 6,000 6,000 6,000
Jobs and Growth Stimulus package - infrastructural spending 2008/09 23,000 71,500 - - -
Healthy Housing 2007/08 7,000 15,000 4,000 1,700 -

Capital Injections to Housing New Zealand Corporation for Housing Activities (M37)#

Scope of Appropriation#

Capital injections (debt or equity) to HNZC to give effect to Government policy decisions around stock acquisition, modernisation and other housing interventions.

Capital Expenditure#

Capital Expenditure - Capital Injections to Housing New Zealand Corporation for Housing Activities (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 620

Reasons for Change in Appropriation#

This is a new appropriation to support the increased functionality of information systems within Housing New Zealand Corporation to support the KiwiSaver Housing deposit subsidy scheme.

Expected Results#

Expected Results - Capital Injections to Housing New Zealand Corporation for Housing Activities (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Enhancements to current information system New Measure New Measure Achieved

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Capital Injections to Housing New Zealand Corporation for Housing Activities (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
KiwiSaver Housing deposit subsidy 2009/10 - 100 547 27 27

Loans to support Homeownership (M37)#

Scope of Appropriation#

This appropriation is limited to debt or equity in Housing New Zealand Corporation to provide loans to households to help them achieve or sustain home ownership.

Capital Expenditure#

Capital Expenditure - Loans to support Homeownership (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,563 7,563 6,000
Home ownership - Papakainga 1,563 1,563 -
Shared Equity Home Ownership pilot 4,000 2,000 6,000
Financial Assistance to Owners of non-weathertight Homes 4,000 4,000 -

Reasons for Change in Appropriation#

The decrease in the appropriation is due to cessation of the Papakainga - Home Ownership programme and the end of the Financial Assistance to Owners of Non-Weathertight Homes pilot. The Shared equity Home Ownership pilot reduced expenditure is driven by market conditions and less than forecast demand in 2008/09 and 2009/10.

Expected Results#

Expected Results - Loans to support Homeownership (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of loan approvals meet eligibility criteria 100% 96% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Loans to support Homeownership (M37) - Housing
Reference Conditions
Cabinet decision Non-weather tight loans are only available to those applicants who have a claim accepted by the Weathertight Homes Resolution Service and meet the financial criteria.
Cabinet decision Shared equity is only available to those applicants that are purchasing in the lower quartile of the market and meet the income criteria. Loans will range in size from 10-30% of price, depending on location and market conditions.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Loans to support Homeownership (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Home ownership - Papakainga 2008/09 1,500 - - - -
Shared Equity 2008/09 18,469 20,083 - - -
Line by line Savings 2008/09 (14,469) (14,083) - - -

Loans to support Social and Affordable Housing (M37)#

Scope of Appropriation#

This appropriation is limited to the provision of loans to housing providers to increase the supply of housing for those on low to moderate income with diverse needs.

Capital Expenditure#

Capital Expenditure - Loans to support Social and Affordable Housing (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 20,000
Housing Innovation Fund - - 15,000
Housing Innovation Fund - Maori Demonstration Partnerships - - 5,000

Reasons for Change in Appropriation#

This is a new appropriation for 2009/10. This was previously provided through an appropriation to HNZC to provide loans directly to housing providers.

Expected Results#

Expected Results - Loans to support Social and Affordable Housing (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Units provided through Housing Innovation Fund loans New measure New measure At least 120

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Loans to support Social and Affordable Housing (M37) - Housing
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Increase the supply of affordable housing 2009/10 - 20,000 - - -

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37)#

Scope of Appropriation#

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt.

Capital Expenditure#

Capital Expenditure - Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37) - Housing
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 170,970 170,970 234,642

Reasons for Change in Appropriation#

The change in appropriation reflects the funding required for facilities being renewed during the year

Expected Results#

Expected Results - Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37) - Housing
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Refinancing will be according to the agreed policy All All All

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Housing
Appropriation Reporting Mechanism
Acquisition and Development of Properties under the Housing Act 1955 Annual report of Housing New Zealand Corporation
Acquisition and Improvement of Housing New Zealand Corporation State Houses Annual report of Housing New Zealand Corporation
Loans to support Homeownership Annual report of Housing New Zealand Corporation
Loans to support Social And Affordable Housing Annual report of Housing New Zealand Corporation
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt Annual report of Housing New Zealand Corporation

The above table indicates the mechanisms to be used for reporting actual results for each non-departmental capital expenditure appropriation.

Performance Information for Appropriations Vote Senior Citizens#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Senior Citizens (M61)

ADMINISTERING DEPARTMENT: Ministry of Social Development

MINISTER RESPONSIBLE FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development and Employment

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister for Senior Citizens is responsible for the appropriation in the Vote for the 2009/10 financial year covering the following:

  • $1.035 million to purchase the services of the Office for Senior Citizens from the Ministry of Social Development.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations - Senior Citizens
Government Priorities Government Outcomes Appropriations
Provide leadership across government on issues that impact on older people Older people get their full entitlements and participate in their communities - Outcome for Older People Senior Citizens Services

Objectives of the Vote#

Vote Senior Citizens, on behalf of the Government, supports older New Zealanders to age positively through the provision of policy advice concerning legislation to protect the rights and interests of older people, their wellbeing and related issues, which fits neatly with the Government's goal.

The impacts that the appropriations in Vote Senior Citizens are intended to have are reflected in the Ministry of Social Development's outcome for Older People.

The table above maps the Ministry of Social Development's outcomes and appropriations to the Government's outcome for older people.

Summary of Financial Activity#

Summary of Financial Activity - Senior Citizens
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  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 897 955 988 911 1,035 1,035 1,035 - 1,035 1,035 1,035 1,035
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

897 955 988 911 1,035 1,035 1,035 - 1,035 1,035 1,035 1,035

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - - - - - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- - - - - - N/A - - - - -

Total Vote: All Appropriations

Significant changes in departmental appropriations in Vote Senior Citizens are discussed briefly below.

Trend in total voted and actual expenses and capital expenditure
Trend in total voted and actual expenses and capital expenditure
Source: Ministry of Social Development

Output Trends 2004/05 to 2009/10

Changes to expenditure in Vote Senior Citizens reflect the nature of policy advice on matters concerning the welfare of senior citizens and related issues in recent years.

In 2004/05 $75,000 was appropriated to extend the New Zealand Positive Ageing Strategy to the local government and community level.

In 2005/06 and 2006/07 one-off transfers occurred from Vote Social Development to Vote Senior Citizens of $151,000 and $107,000 to develop a code of practice for home equity release schemes.

From 2008/09 funding for Vote Senior Citizens is forecast to remain stable.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Senior Citizens
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome for Older people. Senior Citizens Services
Older people get their full entitlements and participate in their communities.  

Senior Citizens Services (M61)

Scope of Appropriation

Provision of policy advice on matters concerning legislation to protect the rights and interests of older people, their wellbeing, and related issues. It also includes ministerial services and support for local community involvement in senior citizens' issues.

Expenses and Revenue

Expenses and Revenue - Senior Citizens Services (M61) - Senior Citizens
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,035 1,035 1,035
Revenue from Crown 1,017 1,017 1,017
Revenue from Other 18 18 18

Output Performance Measures and Standards

Output Performance Measures and Standards - Senior Citizens Services (M61) - Senior Citizens
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Policy advice will be delivered in accordance with a work programme agreed at the commencement of each six-month period with the Minister for Senior Citizens. Standard met Standard met Standard met
(see Note 1)
An audit (see Note 2) shows that the Ministry of Social Development's policy processes as outlined in the Quality Management System have been followed in at least (see Note 3). 90% of cases 90% of cases 90% of cases
An external independent review of the Ministry of Social Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria. Standard met Standard met Standard met
(see Note 4)
Two six-monthly reports on the work programme will be provided within 20 working days from the period end. Standard met Standard met Standard met

Note 1 - Standard met means that we have received confirmation from the Minister for Senior Citizens via his Office that advice has been delivered in accordance with an agreed work programme.

Note 2 - The work in relation to the internal audit, review or survey for these measures will be conducted during the year and reported on an annual basis.

Note 3 - The quality characteristics in the Ministry's Quality Management System are based on decision-making (defining, debating and deciding) and communication (capturing issues, convincing and confirming).

Note 4 - The standard for this measure is based on a continuum of standard not met, standard met and standard exceeded.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Senior Citizens Services (M61) - Senior Citizens
Reference Conditions
Work Programme Work programme may include the Ministry's Key Priorities document as agreed between the Chief Executive and the Minister.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Senior Citizens Services (M61) - Senior Citizens
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Extend the New Zealand Positive Ageing Strategy 2004/05 75 75 75 75 75

Performance Information for Appropriations Vote Social Development#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Social Development and Employment (M63)

ADMINISTERING DEPARTMENT: Ministry of Social Development

MINISTER RESPONSIBLE FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development and Employment

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister for Social Development and Employment is responsible for the appropriations in the Vote for the 2009/10 financial year covering the following:

  • a total of over $433 million on Child Youth and Family related services including responding to and preventing child abuse and neglect, managing adoptions and youth justice services
  • a total of nearly $558 million on services to assist people into employment, and to assess and pay the appropriate entitlement of social assistance to beneficiaries, and to protect the integrity of the benefit system, including collection of debt
  • a total of over $77 million on specialised services, including services for students, seniors and administration of community services and SuperGold cards
  • a total of over $54 million on social policy advice and crown entity monitoring
  • a total of over $37 million on leadership and coordination services to support and strengthen families, communities and whanau
  • a total of over $283 million on services from other organisations
  • a total of over $15 million purchasing services from the Children's Commissioner, the Retirement Commissioner, and the Families Commission
  • a total of over $778 million on debt write-downs, and a series of assistance programmes
  • a total of $8,246 million on payments of New Zealand Superannuation
  • a total of $4,784 million on payments for the working age benefits - Domestic Purposes Benefit (DPB), Unemployment, Sickness, Invalid's and Widow's benefits
  • a total of $1,917 million on payments for assistance with expenses related to accommodation, disability, hardship and entering or remaining in the workforce
  • a total of $545 million on payments to assist people to obtain a qualification or independent youth to continue education/training or obtain work
  • a total of $334 million on other forms of financial assistance such as childcare, care of unsupported children, payments to Australia and special circumstances
  • a total of $1,478 million on payments for student loans, and
  • a total of $178 million on advances of benefits and other recoverable payments to assist with hardship.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations - Social Development
Government Priorities Government Outcomes Appropriations
Protect people from the worst effects of the recession and minimise unemployment People get into or stay in work and for those not ready for work advance their employment prospects - Outcome for Working Age People

Departmental Output Expenses

Collection of Balances Owed by Former Clients and Non-beneficiaries, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Services to Protect the Integrity of the Benefit System, Tailored Sets of Services to Help People Into Work or Achieve Independence, and Vocational Skills Training.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, Life Skills and Employment-Related Training Activities, Retirement Commissioner, Student Placement Services, and Vocational Services for People with Disabilities.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Employment-Related Training Assistance, Hardship Assistance, Invalid's Benefit, Redundancy Assistance, Sickness Benefit, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, Transition to Work, Unemployment Benefit and Emergency Benefit, and Widow's Benefit.

Non-Departmental Other Expenses

Community Labour Market Development Assistance, Debt Write-downs, Employment Assistance, Job Support Scheme, Mainstream Supported Employment Programme, and Out of School Care Programmes.

Non-Departmental Capital Expenditure

Recoverable Assistance, and Student Loans.

Departmental Capital Expenditure

Ministry of Social Development - Capital Expenditure PLA
Improve support for families - and young parents in particular Families and whanau provide a secure home environment to nurture children and support family members - Outcome for Families and Whanau
Non-government organisations deliver effective services to New Zealanders - Outcome for Communities, Hapu and Iwi

Departmental Output Expenses

Care and Protection Services, Development and Funding of Community Services, Family and Community Services, Management of Service Cards (MCOA) - Administration of Community Services Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.

Non-Departmental Output Expenses

Connected Communities, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities, Strong Families, and Student Placement Services.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Childcare Assistance, Family Start/NGO Awards, Redundancy Assistance, Special Annuities, Special Circumstance Assistance, Study Scholarships and Awards, and Transitional Assistance.

Non-Departmental Other Expenses

Contingency and Innovations Fund, and Out of School Care Programmes.

Departmental Capital Expenditure

Ministry of Social Development - Capital Expenditure PLA
Keep at-risk children safe - with emphasis on under two-year-olds Children are safe. Systems are in place to care for and protect children in at-risk families - Outcome for Children

Departmental Output Expenses

Adoption Services, Care and Protection Services, Family and Community Services, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, and Prevention Services.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, and Strengthening Providers and Communities.

Non-Departmental Benefits and Other Unrequited Expenses

Childcare Assistance, Disability Assistance, and Orphan's/Unsupported Child's Benefit

Non-Departmental Other Expenses

Contingency and Innovations Fund, and Out of School Care Programmes.

Departmental Capital Expenditure

Ministry of Social Development - Capital Expenditure PLA
Get troubled youth back on track and help young people achieve their potential Young people who get into trouble stop offending. Young people are in education, training, work or other worthwhile activities - Outcome for Young People

Departmental Output Expenses

Care and Protection Services, Family and Community Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Prevention Services, and Youth Justice Services.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Family and Wellbeing Services, Families Commission, Life Skills and Employment-Related Training, Strengthening Providers and Communities, and Student Placement Services.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Disability Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.

Departmental Capital Expenditure

Ministry of Social Development - Capital Expenditure PLA
Support the independence of older people Older people are supported and participate in their communities - Outcome for Older People

Departmental Output Expenses

Family and Community Services, Income Support and Assistance to Seniors, Management of Service Cards (MCOA) -Administration of Community Services Card output class and Management of SuperGold Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, and Retirement Commissioner.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, New Zealand Superannuation, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, and Unemployment Benefit and Emergency Benefit. Non-Departmental Other Expenses Debt Write-downs Non-Departmental Capital Expenditure Recoverable Assistance Departmental Capital Expenditure Ministry of Social Development - Capital Expenditure PLA

Objectives of the Vote#

The Government's goal is to deliver prosperity, security and opportunities to all New Zealanders. The Government's priorities reflect that paid work is the best route to independence and well-being for most people. The Government aims to have an active welfare system that assists people into work as well as alleviating the impact of financial and social pressures of families in genuine need.

The Government's priorities for the Ministry of Social Development are to:

  • protect people from the worst effects of the recession and minimise unemployment
  • get troubled youth back on track and help young people achieve their potential
  • keep at-risk children safe - with emphasis on under two-year-olds
  • support the independence of older people
  • improve support for families - and young parents in particular
  • individuals and families live in communities that provide them with the support they need to function effectively
  • promote positive change across society in attitudes towards people with disabilities.

The emphasis for the Ministry will be to help people help themselves. To do this we will:

  • support people through the recession and ensure that New Zealanders are ready for economic recovery
  • help businesses to retain their workforce
  • help people who lose their jobs because of the recession
  • support troubled youth to get them on a positive life path
  • help all youth, including those within the youth justice system, achieve their potential
  • provide parenting programmes to help families succeed
  • ensure value for money in everything we do by running efficient programmes and keeping overhead costs low.

The impacts that the appropriations in Vote Social Development are intended to have on different groups in society are reflected in the Ministry of Social Development's outcomes:

  • Working Age People
  • Young People
  • Children
  • Older People
  • Families and Whanau, and
  • Communities, Hapu and Iwi.

The table above maps the Ministry of Social Development's outcomes and appropriations to the Government's priorities. Most of the Ministry's appropriations contribute to more than one outcome.

Summary of Financial Activity#

Summary of Financial Activity - Social Development
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
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 1,144,937 1,255,523 1,302,499 1,363,119 1,454,834 1,451,834 1,162,115 299,058 1,461,173 1,461,639 1,532,962 1,557,010
Benefits and Other Unrequited Expenses 12,068,375 12,401,311 12,837,285 13,372,348 14,356,330 14,262,377 N/A 15,826,103 15,826,103 16,727,562 17,400,304 17,876,287
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 109,266 451,019 620,740 529,953 763,217 745,627 - 778,577 778,577 798,314 804,037 815,739
Capital Expenditure 1,147,341 1,221,079 1,343,077 1,319,975 1,644,962 1,598,633 139,157 1,655,687 1,794,844 1,823,023 1,836,017 1,858,617
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

14,469,919 15,328,932 16,103,601 16,585,395 18,219,343 18,058,471 1,301,272 18,559,425 19,860,697 20,810,538 21,573,320 22,107,653

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 70,582 50,617 52,872 54,850 74,996 74,996 N/A 75,860 75,860 78,949 80,383 81,553
Capital Receipts 463,070 481,740 501,704 499,615 529,279 529,279 N/A 558,026 558,026 579,022 599,942 611,819

Total Crown Revenue and Capital Receipts

533,652 532,357 554,576 554,465 604,275 604,275 N/A 633,886 633,886 657,971 680,325 693,372

New Policy Initiatives#

Budget Policy Intiatives - Social Development
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
A Fresh Start for Young Offenders Youth Justice Services (M63) - 8,684 22,360 22,050 22,050
Departmental Output Expenses          
Bonus for voluntary student loan repayments Debt Write-downs (M63)
Non-Departmental Other Expenses
- (1,151) (1,223) (1,296) (1,363)
  Student Loans (M63)
Non-Departmental Capital Expenditure
- 20,677 21,962 23,277 24,472
Carers Strategy Information Pack for informal carers Policy Advice and Support to Ministers MCOA (M63)
  • Social Policy Advice Output Class
Departmental Output Expenses
- 130 80 80 80
Childcare Subsidy for Limited Attendance Centres Childcare Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
61 435 508 519 519
Increasing Medical Training Places Accommodation Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 1 3 5 7
  Student Allowances (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 107 301 462 628
  Unemployment Benefit and Emergency Benefit (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 11 30 46 62
  Debt Write-downs (M63)
Non-Departmental Other Expenses
- 152 374 600 833
  Student Loans (M63)
Non-Departmental Capital Expenditure
- 388 955 1,533 2,129
Job Support Scheme Job Support Scheme (M63)
Non-Departmental Other Expenses
- 11,607 5,804 - -
ReStart: Transitional Relief Package Accommodation Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
128 1,796 751 - -
Redundancy Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
2,981 30,890 14,515 - -
Setting New Zealand Superannuation and Veterans' Pension rates at a minimum of 66% of the net average wage New Zealand Superannuation (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 1,523 6,423 6,707 7,000
Strengthening Relationships: Government, and the Community and Voluntary Sector Policy Advice and Support to Ministers MCOA (M63)
  • Social Policy Advice Output Class
Departmental Output Expenses
- 400 400 400 -
Time Limited Programmes to Support Families, Children and Young People at Risk Care and Protection (M63)
Departmental Output Expenses
- 251 - - -
  Family and Community Services (M63)
Departmental Output Expenses
- 1,121 - - -
  Youth Justice Services (M63)
Departmental Output Expenses
- 1,400 - - -
  Strong Families (M63)
Non-Departmental Output Expenses
- 1,423 - - -
Value for Money (VFM) Departmental Spending Pressures and Savings Care and Protection Services (M63) - 6,800 3,400 - -
Departmental Output Expenses          
  Aggregated Efficiency Savings (M63)
Departmental Output Expenses
- - (3,180) (7,590) (7,590)
Young Parent Childcare Payment Employment Related Training Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
150 300 300 300 300
Special Needs Grants, Core Benefit Changes and Further Work Hardship Assistance (M63) 14,000 14,000 14,000 14,000 14,000
Non-Departmental Benefits and Other Unrequited Expenses          
Capital Repayment Net Asset Schedule of the Ministry of Social Development (M63) - (25,000) - - -
  Capital Expenditure to be Incurred by the Department          
Community Response Contingency: Responding to Urgent Funding Issues Family and Community Services (M63) - (3,787) (4,657) - -
Departmental Output Expenses          
Strong Families (M63) - (12,171) (57,375) (24,480) -
Non-Departmental Other Expenses          
Enterprising Communities Subsidies Savings Community Labour Market Development (M63) - (5,600) (8,000) (9,333) (9,333)
  Non-Departmental Other Expenses          
Reversing Unfunded Budget 2008 Commitments for Economic Transformation: Innovation Management of Student Support (M63)Departmental Output Expenses - (935) (1,131) (1,254) (1,286)
       
Cease Awarding Bonded Merit and Step-Up Scholarships Study Awards and Scholarships (M63) - (7,929) (16,047) (23,526) (26,151)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M63) - 802 1,621 2,381 2,645
  Non-Departmental Other Expenses          
  Student Loans (M63) - 2,048 4,142 6,081 6,756
  Non-Departmental Capital Expenditure          
Savings from the Health and Disability Innovation Fund Tailored Sets of Services to Help People into Work or Achieve Independence (M63) (3,000) - - - -
  Departmental Output Expenses          
Saving Training Incentive Allowance Employment Related Training Assistance (M63) - (2,037) (5,890) (9,061) (11,469)
  Non-Departmental Benefits and Other Unrequited Expenses          
Total Initiatives   14,320 46,336 426 1,901 24,289

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Social Development, are discussed briefly below.

On 1 July 2008 Vote Child, Youth and Family Services merged with Vote Social Development. Data in Part 1.3 Trends in the Vote includes the trends in Vote Child, Youth and Family Services for the period 2004/05 to 2007/08 before the Votes were merged. This data is also reflected in the relevant graphs below, but the numbers quoted in the written trend analyses for 2004/05 to 2007/08 refer only to changes in Vote Social Development before the Votes were merged.

Trends in total voted and actual expenses and capital expenditure
Trends in total voted and actual expenses and capital expenditure
Source: Ministry of Social Development

The movements in departmental and non-departmental appropriations in Vote Social Development, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in Benefits and Other Unrequited Expenses and Capital Expenditure in particular New Zealand Superannuation.

Departmental Output Expenses

Departmental Output Expenses
Trends in departmental output expenses
Source: Ministry of Social Development

Departmental outputs increased between 2003/04 and 2004/05 largely as a result of new initiatives. The most significant was the implementation of the Working for Families reforms.

Departmental output expenses increased by $48.577 million between 2004/05 and 2005/06. The most significant increase was $13.098 million transferred from Vote Employment to administer Community Labour Market Development Assistance. The departmental costs of a number of new initiatives - for example Addressing Long Term Unemployed, New Service for Sickness and Invalid's Beneficiaries, and Early Intervention - also contributed to the increase.

Departmental output expenses decreased by $11.174 million between 2005/06 and 2006/07 mainly because after the merger between the Ministry of Social Development and the Department of Child, Youth and Family Services on 1 July 2006. There was no need to appropriate funding for Information Technology Services to the Department of Child, Youth and Family Services in Vote Social Development. Accordingly this departmental output expense is no longer reported.

Departmental output expenses increased by $22.369 million between 2006/07 and 2007/08 mainly because of additional funding for Working New Zealand.

Departmental output expenses increased by $448.701 million between 2007/08 and 2008/09 mainly because Vote Child, Youth and Family Services merged with Vote Social Development, on 1 July 2008 (approximately $420 million).

Departmental output expenses remained stable between 2008/09 and 2009/10 with a slight decrease of $2.925 million.

Non-Departmental Output Expenses

Non-Departmental Output Expenses
Trends in non-departmental output expenses
Source: Ministry of Social Development

Non-departmental outputs increased by $16.738 million between 2003/04 and 2004/05 as a result of the establishment of the Families Commission and additional funding for Vocational Services for People with Disabilities.

Non-departmental outputs increased by $39.638 million between 2004/05 and 2005/06. The main reasons for this increase were the transfer of funding from Vote Child, Youth and Family Services for services purchased from Non-Government Organisations (NGOs) that fitted better with the outcomes sought from Vote Social Development ($21.835 million) and an increase in the funding for Vocational Services for People with Disabilities of $13.163 million.

Non-departmental outputs increased by $31.255 million between 2005/06 and 2006/07. The main reasons for this increase were a further transfer of funding from Vote Child, Youth and Family Services for services purchased from NGOs that fitted better with the outcomes sought from Vote Social Development ($10.762 million) and a transfer of funding from Vote Health for services purchased from NGOs ($7.454 million).

Non-departmental outputs increased by $25.840 million between 2006/07 and 2007/08. The main reasons for this were the transfer of contract management for Children's Health Camps from Vote Health ($12.183 million) and new initiatives funding of $9.748 million for the Pathway to Partnership initiative.

Non-departmental output expenses increased by $109.616 million between 2007/08 and 2008/09 mainly because Vote Child, Youth and Family Services merged with Vote Social Development, on 1 July 2008 (approximately $67 million). The other main reason is increased funding for the Pathway to Partnership initiative for 2008/09 and outyears. Funding increases from approximately $25 million in 2008/09 to approximately $175 million in 2011/12.

Non-departmental output expenses increased by $9.264 million between 2008/09 and 2009/10 mainly because funding for the Pathway to Partnership initiative increased in 2009/10 compared with 2008/09.

Non-Departmental Other Expenses

Non-Departmental Other Expenses
Trends in non-departmental other expenses
Source: Ministry of Social Development

Other Expenses increased by $340.066 million between 2004/05 and 2005/06 to $450.695 million. The main reasons are the early adoption of the New Zealand International Accounting Standard 39 for Debt Write-downs of Student Loans, and the Ministry of Social Development (MSD) accounting for Debt Write-downs from 2005/06 as a result of the change in the transfer treatment of Student Loans between MSD and the Department of Inland Revenue.

The increase in Other Expenses between 2006/07 and 2009/10 is mainly due to an increase in Debt Write-downs to reflect the growth in Student Loans over recent years.

Non-Departmental Capital Expenditure

Non-Departmental Capital Expenditure
Trends in non-departmental capital expenditure
Source: Ministry of Social Development

Capital Expenditure is dominated by Student Loans, with the next largest item, Recoverable Assistance, making up 9% to 10% of the total. Additional recession related demand is expected to see Recoverable Assistance increase to nearly 11% during 2009/10. The steady increase from 2004/05 to 2007/08 in capital expenditure reflects greater Student Loan borrowing since the introduction of no interest on loans policy from April 2006. Ongoing growth is expected in line with continuing cost increases, reduced earnings from other sources and a rising proportion of eligible students that take up Student Loans. Also contributing to the ongoing expenditure rise is the greater use of Student Loans by those expecting to take advantage of the bonus for voluntary repayment. All of these effects contribute to the rise in expenditure between 2007/08 and 2009/10 and ongoing increase out to 2012/13.

Non-Departmental Benefits and Other Unrequited Expenses

Non-Departmental Benefits and Other Unrequited Expenses
Trends in non-departmental benefits and other unrequited expenses
Source: Ministry of Social Development

The movement in expenditure between 2004/05 and 2007/08 was mostly driven by New Zealand Superannuation, which accounted for 50% of expenditure in 2004/05 and 55% in 2007/08. The net decreases in Domestic Purposes Benefit, and Unemployment Benefit and Emergency Benefit expenditure (covering about 51,000 fewer recipients) almost exactly offset increases in Invalid's Benefit, Sickness Benefit (about 11,000 more recipients) and second tier assistance (Accommodation Assistance, Disability Assistance, Childcare Assistance) over that period. New Zealand Superannuation continues to increase by between $400 million and $500 million each year. Adding to this growth in the 2007/08 to 2010/11 years is the expected worsening economic conditions, with Unemployment Benefit and Emergency Benefit, Domestic Purposes Benefit, Accommodation Assistance and Hardship Assistance spending all rising until part way through the 2010/11 year. Nearly 60% of growth in expenditure between 2004/05 and 2012/13 is caused by the cost of living indexation adjustments made each April.

New Zealand Superannuation

Trends in New Zealand Superannuation
Trends in New Zealand Superannuation
Source: Ministry of Social Development

About 60% of the $3,580 million increase over the 2004/05 to 2012/13 period is explained by annual cost of living indexation adjustments. These include wage floor impacts where relevant, for example the 66% floor in April 2007 and expected in April 2010. Tax cuts in October 2008 added directly to gross expenditure through applying the next indexation adjustment to a higher net rate while tax cuts in April 2009 raise the level at which future wage floors are applied. Over the same nine year period the number of recipients is expected to rise by 127,000 or 27% to reach 596,000. This growth is in line with the projected growth in the NZ population aged 65 years and over.

Invalid's Benefit

Trends in Invalid's Benefit
Trends in Invalid's Benefit
Source: Ministry of Social Development

Annual expenditure is projected to increase by $365 million or 36% between 2004/05 and 2012/13. Cost of living indexation adjustments account for about 75% of the increase. The number of recipients has increased from an average of 73,500 in 2004/05 to an expected 85,900 in 2008/09 and a projected 91,600 on average in 2012/13. Demographic features such as increasing population and aging population contribute to the projected growth in uptake.

Domestic Purpose Benefit

Trends in Domestic Purpose Benefit
Trends in Domestic Purpose Benefit
Source: Ministry of Social Development

Annual expenditure is expected to rise by nearly $240 million or about 15% between 2004/05 and 2012/13. This increase includes indexation adjustments of about $370 million over the nine year period. The average number of recipients in 2004/05 was 108,700 and fell steadily to a low of 97,500 in 2007/08. This is expected to increase to 109,600 by 2012/13, just above the 2004/05 level. A rise in the birth rate, especially in the 18 to 24 year age group, and the deteriorating economic outlook contribute to the rise in recipients.

Unemployment Benefit and Emergency Benefit

Trends in Unemployment Benefit and Emergency Benefit
Trends in Unemployment Benefit and Emergency Benefit
Source: Ministry of Social Development

Annual expenditure is expected to rise by nearly $374 million or about 45% between 2004/05 and 2012/13. The indexation adjustments each April account for about 65% of the increase, at $240 million. Over the nine year period the number of recipients is expected to increase by about 18% from 77,800 to 91,500. Between 2004/05 and 2007/08 the number of recipients was halved to 37,400, but is now expected to rise in line with the deteriorating economic outlook. The average number of recipients is expected to peak at 99,000 in 2010/11. Included in the total is an 11% reduction in the number of Emergency Benefit recipients from 8,600 in 2004/05 to 7,700 in 2012/13.

Sickness Benefit

Trends in Sickness Benefit
Trends in Sickness Benefit
Source: Ministry of Social Development

Annual expenditure is expected to rise by nearly 50% from $510 million in 2004/05 to $751 million in 2012/13. Over 60% of this increase relates to the indexation adjustment of benefit rates each April. The number of recipients rose steadily from 44,900 on average in 2004/05 to reach 50,000 in 2007/08. This is expected to accelerate to reach 58,400 in 2010/11 before settling back toward 57,900 by 2012/13. The increase is influenced by the deteriorating economic outlook.

Accommodation Assistance

Trends in Accommodation Assistance
Trends in Accommodation Assistance
Source: Ministry of Social Development

Annual expenditure will increase from $750 million in 2004/05 to an estimated $1,296 million in 2012/13, a rise of 73%. Expenditure is expected to reach $988 million in 2008/09. There were 242,800 recipients in 2004/05 and are expected to be 266,100 in 2008/09 and 331,100 recipients by 2012/13. This 36% increase over nine years reflects two different trends. Between 2004/05 and 2007/08 the fall in Unemployment Benefit and Emergency Benefit recipients was partly offset by a rise in the uptake of Accommodation Assistance by working households. The rise from 2008/09 onward reflects the rise in the number of main benefit recipients. Increases in the maximum weekly amount payable and new definitions of regions that the maxima apply to (reflecting changes in relative accommodation costs in various NZ towns and cities) account for most of the remaining increase in expenditure up to 2008/09, with ongoing cost increases expected to play a lesser role in the next few years.

Student Allowances

Trends in Student Allowances
Trends in Student Allowances
Source: Ministry of Social Development

Annual expenditure will increase by $110 million from $359 million in 2004/05 to an estimated $470 million in 2012/13, a rise of 31%. A significant amount of this increase occurs between 2007/08 and 2009/10, which accounts for $71 million. The average number of recipients was 35,500 in 2004/05, reached 32,300 in 2007/08 and is expected to quickly rise to 37,700 by 2009/10 on its way to 37,200 by 2012/13. The rise between 2007/08 and 2009/10 reflects a reduction in the number of students subject to parental income testing and a greater inflow of eligible students, likely contributed to by a tighter job market. Indexation of allowance rates to movements in the consumers price index accounts for nearly 70% of the total nine year change in expenditure.

Other Benefits

Trends in Other Benefits
Trends in Other Benefits
Source: Ministry of Social Development

This section covers the other 17 benefits and other unrequited expense appropriations not already discussed. The largest item, Disability Assistance, has about 35% of the annual expenditure in the 'Other Benefits' category and grows at a steady pace of about $21 million each year (from $330 million in 2004/05 to $479 million by 2012/13). About 30% of this caused by indexation. The next two largest contributors are Hardship Assistance and Childcare Assistance. Hardship Assistance includes third tier assistance such as Special Needs Grants and Temporary Additional Support, both of which are sensitive to economic conditions. After falling from 2004/05 to 2006/07 Hardship Assistance stabilised in 2007/08 and is expected to rise quickly until 2010/11. By 2012/13 Hardship Assistance spending will be $337 million or $108 million greater than in 2004/05 (with a low of $182 million in 2006/07). Childcare Assistance grew quickly from $79 million in 2004/05 to reach an expected $159 million in 2008/09. This increase reflects greater subsidies offered since 2004 and greater use of childcare facilities. By 2012/13 annual expenditure is expected to be $212 million, with increases in under 5 year olds a significant driver. Indexation accounts for about 30% of the increase in annual expenditure between 2004/05 and 2012/13. These three items account for 70% of the 'Other Benefits' category. The next three largest items are Widow's Benefit, Orphan's/Unsupported Child's Benefit and Payments to Australia. These account for 20% of the 'Other Benefits' category and show a collective decrease of $45 million between 2004/05 and 2012/13. Included in this is a $32 million increase due to indexation and a $33 million rise in Orphan's/Unsupported Child's Benefit payments (other than indexation).

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome for Working Age People - People get into or stay in work and those not ready for work advance their employment prospects Collection of Balances Owed by Former Clients and Non-beneficiaries, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Services to Protect the Integrity of the Benefit System, Tailored Sets of Services to Help People into Work or Achieve Independence, and Vocational Skills Training.
Outcome for Young People - Young people who get into trouble stop offending. Young people are in education, training, work or other worthwhile activities Care and Protection Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Prevention Services, and Youth Justice Services.
Outcome for Children - Children are safe. Systems are in place to care for and protect children in at-risk families. Adoption Services, Care and Protection Services, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, and Prevention Services.
Outcome for Older People - Older people are supported and participate in their communities Family and Community Services, Income Support and Assistance to Seniors, Management of Service Cards (MCOA) - Administration of Community Services Card output class and Management of SuperGold Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.
Outcome for Families and Whanau - Families and whanau provide a secure home environment to nurture children and support family members Care and Protection Services, Development and Funding of Community Services, Family and Community Services, Management of Service Cards (MCOA) - Administration of Community Services Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.
Outcome for Communities, Hapu and Iwi - Individuals and families live in communities that provide them with the support they need to function effectively Family and Community Services, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.

Adoption Services (M63)

Scope of Appropriation

The management of services, incorporating education, assessment, reporting, counselling, and mediation, to all people who are party to adoption-related matters, past or present.

Expenses and Revenue

Expenses and Revenue - Adoption Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,090 8,090 8,690
Revenue from Crown 8,044 8,044 8,644
Revenue from Other 46 46 46

Reasons for Change in Appropriation

This appropriation increased because a fiscally neutral reallocation of overheads to reflect current staff numbers reduced this appropriation in 2008/09 only.

Output Performance Measures and Standards

Output Performance Measures and Standards - Adoption Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of prospective adoptive parents evaluating the education programme as achieving its objectives (see Note 1): 95% 95% 95%

Note 1 - Programme delivered by CYF to prepare adoptive applicants for receiving an adopted child.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Adoption Services (M63) - Social Development
Reference Conditions
Adoption Act 1955. The Adoption Act 1955 provides for the management of the adoption process for the placement of New Zealand children in New Zealand.
Adoption (Inter-Country) Act 1997. The Adoption (Inter-Country) Act 1997 sets out processes for managing inter-country adoptions and provides for the Chief Executive to exercise responsibilities and to manage the adoption process where international parties are involved under the Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption.
Adult Adoption Information Act 1985. The Adult Adoption Information Act 1985 provides for adult adopted persons and their birth parents to request and receive information about their adoptions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Adoption Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (30) (71)
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 258 264 264 264 264
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 145 145 145 145 145
First Principles Baseline Review 2004/05 307 307 307 307 307
Implement Adoptions Law Reform Proposals 2004/05 1,141 1,141 1,141 1,141 1,141

Care and Protection Services (M63)#

Scope of Appropriation#

Social work services, both statutory and informal, that protect and assist children and young people who are in need of care and protection.

Expenses and Revenue#

Expenses and Revenue - Care and Protection Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 317,008 317,008 303,310
Revenue from Crown 314,412 314,412 300,714
Revenue from Other 2,596 2,596 2,596

Reasons for Change in Appropriation#

This appropriation decreased because a fiscally neutral reallocation of overheads to reflect current staff numbers increased this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Care and Protection Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Intake, Investigation and Assessment

     
Response to notifications      
Notifications allocated to a social worker for investigation within timeframes:      
  • Critical - within 24 hours
95-100% 95-100% 95-100%
  • Very Urgent - within 48 hours
90-95% 90-95% 90-95%
Action taken at sites by a social worker to establish the immediate safety of the child or young person, and to confirm the response time and further action required, within timeframes:      
  • Urgent - within 7 days
50-85% 50-85% 50-85%
  • Low Urgent - within 28 days
50-85% 50-85% 50-85%
Percentage of investigations that will be completed in 90 days is no less than (see Note 2): 70% 70% 70%

Case Management

     
Percentage of children and young people whose care and protection Family Group Conference plans were completed and the objectives were assessed as being met (see Note 3): 80% 80% 80%
Percentage of care and protection Family Group Conference plans reviewed on time: 90% 90% 90%
Resolution Services      
Percentage of Family Court plans reviewed on time: N/A N/A 90%
Court-ordered Assessments and Reports Under Other Enactments      
Assessments and reports provided to Courts are delivered on time: N/A N/A 90%

Note 2 - A Family Group Conference commenced by being convened under Part II of the Children, Young Persons and Their Families Act 1989. A Family Group Conference is convened when a social worker, police officer or other referrer has formed a belief that a child or young person is in need of care or protection.

Note 3 - This performance measure focuses social work activity on the achievement of an outcome to a notification. Reporting captures the length of time to complete an investigation from allocation to assessment decision.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Care and Protection Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. The Children, Young Persons, and Their Families Act 1989 serves to protect and assist children and young people in need of care and protection. Care and Protection Services provided by Child, Youth and Family under the Act include:
  • notification, investigation and assessment of reports about children and young people at risk
  • management of casework where Child, Youth and Family intervenes to achieve care and protection outcomes
  • coordination of Family Group Conferences
  • supporting families to improve their capacity to meet their care, control and support responsibilities
  • the provision of care in the nature of foster care and residential services
  • the provision of resolution services to assist achieving care and protection needs.
Care of Children Act 2004. The Care of Children Act 2004 provides for the recognition of certain rights of children and provides for appropriate arrangements to be in place for the guardianship and care of children.
Domestic Violence Act 1995. The Domestic Violence Act 1995 provides legal protection to victims of domestic violence.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Care and Protection Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - - 6,800 2,656 (1,774)
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 - 251 - - -
Reinstatement of Care and Protection Baseline 2008/09 6,800 - - - -
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 5,371 5,371 5,371 5,371 5,371
Care and Protection System Service Response to Demand 2006/07 20,444 20,444 20,444 20,444 20,444
Child, Youth and Family Services Reprioritisation 2005/06 (889) (889) (889) (889) (889)
Implement Adoptions Law Reform Proposals 2005/06 137 137 137 137 137
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 19 19 19 19 19
First Principles Baseline Review 2004/05 8,835 8,835 8,835 8,835 8,835
Reduce Family Violence through the Establishment of Inter-agency Family Safety Teams 2004/05 181 181 181 181 181
Reforms in Social Assistance 2004/05 2,878 2,878 2,878 2,878 2,878
Residential Services Strategy 2004/05 6,375 6,375 6,375 6,375 6,375

Collection of Balances Owed by Former Clients and Non-beneficiaries (M63)#

Scope of Appropriation#

Services to manage the collection of overpayments and recoverable assistance loans from former clients and other balances owed comprising of Student Allowance overpayments, Liable Parent Contributions, and court ordered Maintenance.

Expenses and Revenue#

Expenses and Revenue - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,224 16,224 19,782
Revenue from Crown 16,044 16,044 19,602
Revenue from Other 180 180 180

Reasons for Change in Appropriation#

This appropriation increased because a fiscally neutral reallocation of overheads to reflect current staff numbers reduced this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The actual amount of money collected by the Integrity Services Collection Units is expected to be(see Note 4): $77-$82m $77-$82m $70-$76m
The cost per dollar of collecting balances owed will be no more than: N/A N/A $0.25
The percentage of former clients on arrangement to pay, or paid in full, within four months of the balances owed transferring to the Integrity Services Collection Units will be no less than: 82% 82% 80%
The percentage of former clients on arrangement to pay, or paid in full, within 12 months of the balances owed transferring to the Integrity Services Collection Units will be no less than: N/A N/A 85%

Note 4 - This performance measure is money collected from those former clients no longer in receipt of a benefit. Performance target reduced as more clients return to benefit money owed will be recovered from their benefit and not via this Output Expense.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
Reference Conditions
Sections 85A to 86J of the Social Security Act 1964 and the Ministerial Direction for section 86 pursuant to section 5 of the Social Security Act 1964. The Social Security Act 1964 provides for the recovery of payments made in excess of authorised rates and for recoverable assistance loans.
The Ministerial Direction for section 86A is in relation to the Chief Executive's powers to recover monies as debts due to the Crown.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (63) (152)

Development and Funding of Community Services (M63)#

Scope of Appropriation#

Management of Government funding of community-based social and welfare services.

Expenses and Revenue#

Expenses and Revenue - Development and Funding of Community Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,257 8,257 7,761
Revenue from Crown 8,198 8,198 7,702
Revenue from Other 59 59 59

Reasons for Change in Appropriation#

This appropriation decreased because a fiscally neutral reallocation of overheads to reflect current staff numbers increased this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Development and Funding of Community Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All funding agreements will have their provider monitoring reports reviewed and assessed at least once per year for funding agreement compliance: 100% 100% 100%
All providers contracted under the Children, Young Persons, and their Families Act 1989 will be assessed at least once every two years against Child, Youth and Family Approval Standards (see Note 5): 100% 100% 100%

Note 5 - This measure covers all providers contracted under sections 396 and 403 of the Children, Young Persons, and Their Families Act 1989 who are classified as high or medium risk providers.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Development and Funding of Community Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Part 8 of the Children, Young Persons, and Their Families Act 1989 comprises provisions relating to iwi social services, cultural social services, child and family support services, and community services.
Child Youth and Family Services develop and fund Community Services through:
  • community services planning
  • working with the community sector and other government agencies to develop service frameworks for community-based social services
  • provider development
  • quality assurance processes to ensure providers meet quality standards
  • the management of service provider funding agreements.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Development and Funding of Community Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (26) (63)
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 128 128 128 128 128
Services for Children Witnessing Family Violence 2005/06 71 71 71 71 71
Early Intervention for At Risk Families 2004/05 327 327 327 327 327
First Principles Baseline Review 2004/05 439 439 439 439 439
Social Workers in Schools 2004/05 459 459 459 459 459

Family and Community Services (M63)#

Scope of Appropriation#

Provision of leadership and co-ordination services to support and strengthen families and whanau; including providing information and advice that assists families, young people and communities and managing preventative social services programmes.

Expenses and Revenue#

Expenses and Revenue - Family and Community Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 34,230 34,230 29,827
Revenue from Crown 34,101 34,101 29,698
Revenue from Other 129 129 129

Reasons for Change in Appropriation#

This appropriation decreased largely due to the creation of the Community Response Contingency and because of a fiscally neutral reallocation of overheads to reflect current staff numbers which increased this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Family and Community Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Facilitation, Leadership, Influencing and Coordination Processes

     

Local Service Mapping

     
Local Service mapping has supported the development of 35 local service plans to date.      
Family and Community Services will facilitate, subject to the active support of local authorities, the development of local service plans in 10-15 of the remaining 37 territorial authorities: N/A N/A 10-15

Heartland Services

     
The Ministry of Social Development provides facilities and co-ordination services to Heartland Services Centres to the satisfaction of clients:      
  • the average number of clients using Heartland Services Centres on a monthly basis will be no less than (see Note 6):
7,000 7,000 7,000

Strengthening Families

     
The number of new cases opened in the Strengthening Families process will be: N/A N/A 120-150

Development and Management of Early Intervention, and Preventative Social Support Services Programmes

     

The Campaign for Action on Family Violence

     
The level of public awareness of the key messages of the Campaign for Action on Family Violence will be higher than: N/A N/A 80%
The average number of visits to the campaign website each month will be: N/A N/A 4,000-5,000
The number of community projects funded through the Campaign for Action on Family Violence Community Action Fund: N/A N/A 30-40

Family Violence

     
The number of host agencies contracted to employ advocates, acting as a resource for people working with children and young people affected by family violence will be: N/A N/A 45

Positive Parenting

     

SKIP

     
Number of community projects funded through SKIP's Local Initiatives Fund per round will be: N/A N/A 20-25

Note 6 - This measure was developed as a quantity measure but also as a proxy for quality. As attendance is voluntary, the assumption made is that if the service was not useful clients would not use the centres.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Family and Community Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (59) (141)
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 - 1,121 - - -
Community Response Contingency: Responding to Urgent Funding Issues 2009/10 - (3,787) (4,657) - -
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 3,972 5,262 6,132 6,902 6,902
Early Years: Giving Children the Best Start in Life 2007/08 114 - - - -
Pathway to Partnership: Strengthening the Child and Family Services Sector 2007/08 452 - - - -
Continue Strategies with Kids Information for Parents (SKIP) Programme 2006/07 3,684 3,684 3,684 3,684 3,684
Expansion of Youth Transitions 2006/07 2,500 2,500 2,500 2,500 2,500
Reducing Violence Within Families 2006/07 1,285 1,046 - - -
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 245 245 245 245 245
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 221 221 221 221 221
Early Intervention for Vulnerable Children - Pilot Parenting Support to Complement Well-Child 2005/06 31 - - - -
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 202 202 202 202 202
Families Programme of Action - Families Innovation Fund 2005/06 444 444 444 444 444
Increase in Funding for Elder Abuse and Neglect Prevention 2005/06 116 116 116 116 116
Increase Strengthening Families Co-ordinators' Paid Hours 2005/06 581 581 581 581 581
NGO Study Awards 2005/06 79 79 79 79 79
Strengthening Families Review 2005/06 646 646 646 646 646
Community Initiatives Fund 2004/05 89 89 89 89 89
Leadership and Coordination of Family Services 2004/05 5,804 5,804 5,804 5,804 5,804

Income Support and Assistance to Seniors (M63)#

Scope of Appropriation#

This appropriation is limited to paying New Zealand Superannuation and social security entitlements (including administering related international social security agreements) and providing advice and brokering services to help older people maintain independence and social participation; and administering international social security agreements relating to non-superannuitants.

Expenses and Revenue#

Expenses and Revenue - Income Support and Assistance to Seniors (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 35,623 35,623 37,097
Revenue from Crown 35,211 35,211 36,685
Revenue from Other 412 412 412

Reasons for Change in Appropriation#

This appropriation increased because a fiscally neutral reallocation of overheads to reflect current staff numbers reduced this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Income Support and Assistance to Seniors (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Services to Seniors (see Note 7)

     
The percentage of independently-surveyed clients satisfied with the quality of service provided will be no less than: N/A N/A 90-95%
The percentage of entitlement assessments completed accurately will be no less than: 92% 92% 90%
The percentage of entitlement completed within five working days shall be no less than: 85% 85% 85%

International Services

     
The percentage of independently-surveyed clients satisfied with the quality of service will be no less than: N/A N/A 80-85%
The percentage of entitlement assessments completed accurately will be no less than: 92% 92% 90%
The percentage of applications for payment overseas finalised within 20 working days will be no less than: 90% 90% 90%
The percentage of review actions that are completed within five working days will be no less than: 93% 93% 90%

Note 7 - A programme of work that will deliver services for seniors in a more integrated way has begun. This includes a review to align all performance measures for each of these outputs.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Income Support and Assistance to Seniors (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (126) (301)
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 1,741 233 227 228 228
Progressive Removal of Asset Testing for Older People in Long-Term Residential Care 2004/05 1,658 1,658 1,658 1,658 1,658

Management of Service Cards MCOA (M63)#

Scope of Appropriation#

Administration of Community Services Card
This output class is limited to assessing entitlement, issuing cards, and promoting and distributing information about the Community Services Card.
Management of SuperGold Card
This output class is limited to management of the SuperGold Card and the Veteran SuperGold Card comprising assessing entitlement for, and issuing cards, distributing information about the Card, enlisting business partners to provide discounts to cardholders, and promoting use of the Card and related discounts.

Explanation for Use of Multi-Class Output Expense Appropriation#

The two output classes grouped together under this MCOA are both related to Service Cards and as such involve similar services.

Expenses and Revenue#

Expenses and Revenue - Management of Service Cards MCOA (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

7,614 7,614 7,064
Administration of Community Services Card 5,764 5,764 5,764
Management of SuperGold Card 1,850 1,850 1,300

Revenue from Crown

7,578 7,578 7,028
Administration of Community Services Card 5,728 5,728 5,728
Management of SuperGold Card 1,850 1,850 1,300

Revenue from Other

36 36 36
Administration of Community Services Card 36 36 36
Management of SuperGold Card - - -

Reasons for Change in Appropriation#

The decrease in appropriation for the Management of SuperGold Card output class is due to a decision in Budget 2008 to fund the establishment phase of the card in 2008/09 more than 2009/10.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Service Cards MCOA (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Administration of Community Services Card Output Class      
The percentage of Community Services Card entitlement assessments accurately completed will be no less than: 95% 95% 90%
The percentage of applications processed within five working days of receipt will be no less than: N/A N/A 90%
Management of SuperGold Card Output Class      
The percentage of accurate SuperGold Card entitlement assessments completed as determined will be: 95% 95% 95%
The percentage of SuperGold Card applications processed within five working days of receipt will be no less than: N/A N/A 90%
The percentage of business partner applications approved within five working days of receipt will be no less than: N/A N/A 90%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Management of Service Cards MCOA (M63) - Social Development
Reference Conditions
Administration of Community Services Card Output Class  
Health Entitlement Cards Regulations 1993 pursuant to section 52 of the Health and Disability Services Act 1993, section 25(1)(c) of the Health Reforms (Transitional Provisions) Act 1993, and section 132A of the Social Security Act 1964. The Health Entitlement Cards Regulations 1993 provide for the assessment, issue, and administration of Community Services Cards.
Management of SuperGold Card Output Class  
Social Security (SuperGold Card) Regulations 2007 pursuant to section 132A of the Social Security Act 1964 and the Health Entitlement Cards Regulations 1993 pursuant to section 52 of the Health and Disability Services Act 1993, section 25(1)(c) of the Health Reforms (Transitional Provisions) Act 1993, and section 132A of the Social Security Act 1964. The Social Security (SuperGold Card) Regulations 2007 and the Health Entitlement Cards Regulations 1993 provide for the assessment, issue and administration of SuperGold Cards.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of Service Cards MCOA (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (20) (47)
Implementing a "Golden Age" Card 2006/07 1,210 1,210 1,210 1,210 1,210

Management of Student Support (M63)#

Scope of Appropriation#

This appropriation is limited to managing financial support to students involving assessing and paying student allowances to eligible secondary and tertiary students, student loans to tertiary students, and Government scholarships and awards for tertiary students, and, as part of managing this support, providing related guidance to students making financial and study decisions.

Expenses and Revenue#

Expenses and Revenue - Management of Student Support (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 37,669 37,669 33,435
Revenue from Crown 37,505 37,505 33,271
Revenue from Other 164 164 164

Reasons for Change in Appropriation#

The decrease in this appropriation is largely due to one off funding for Student Loan volume pressures in 2008/09 only, which is partially offset by a transfer to Vote Economic Development to build the capacity and capability of volunteers to maximise the benefit of hosting the Rugby World Cup 2011. Funding is also reduced in 2009/10 because new Bonded Merit Scholarships and StepUp Scholarships cease from 1 July 2009.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Student Support (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Student Allowances and Student Loans (see Note 8)

     
The percentage of independently-surveyed students satisfied with the quality of service provided will be no less than: 80-85% 80-85% 75-80%

Student Allowances

     
The percentage of students who receive their correct Student Allowance entitlement on their first payment will be no less than: 95% 95% 90%
The initial entitlement assessment for a Student Allowance will be completed within five working days of application receipt: 95% 95% 90%

Student Loans

     
The percentage of students who receive their correct entitlement (living cost component) on their first payment will be no less than: 96% 96% 90%
The initial entitlement assessment for a Student Loan will be completed within three working days of application receipt: 95% 95% 90%

Note 8 - All measures for this output expense have been reduced due to the expected forecast volume increases.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Management of Student Support (M63) - Social Development
Reference Conditions
Education Act 1989. Part 25 of the Education Act 1989
provides for the administration of Student Loans and Student Allowances and scholarships.
Student Loan Scheme Act 1992. The Student Loan Scheme Act 1992 provides for the collection of Student Loan repayments and Bonded Scholarships.
Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of Hardship pursuant to section 5 of the Social Security Act 1964. The Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of Hardship provides that students may be eligible for Unemployment Benefit Student Hardship if they meet certain criteria.
Student Allowance Regulations 1998 pursuant to sections 303, 306, and 307 of the Education Act 1989. Student Allowances are governed by the Student Allowance Regulations 1998 and are paid to assist eligible students with their living expenses whilst they undertake full-time study.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of Student Support (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (100) (239)
Reversing Unfunded Budget 2008 Commitments for Economic Transformation: Innovation 2009/10 - (935) (1,131) (1,254) (1,286)
Expansion of Bonded Merit Scholarship Scheme 2008/09 100 130 170 215 215
Increasing the student allowance parental income threshold by 10% 2008/09 730 690 745 775 775
Increasing the Student Loan Scheme Living cost component to $155 per week 2008/09 370 - - - -
Lowering the age limit for student allowance parental income testing by one year 2008/09 1,285 950 995 1,045 1,045
Student Loans Redesign 2008/09 800 - - - -
Expansion and Redesign of Step Up Scholarships 2007/08 493 503 527 527 527
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 114 116 119 119 119
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 187 187 187 187 187
Enhance and Extend the Integrated Data Set of Student Loan Scheme Borrowers 2005/06 80 80 80 80 80
Establish a Pilot Student Finance Advisory Service 2005/06 1,460 1,460 1,460 1,460 1,460
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 116 116 116 116 116
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 213 213 213 213 213
Introduce Bonded Merit Scholarships 2005/06 311 311 311 311 311
Access to Student Loans for Part-Time Part Year Students 2004/05 78 78 78 78 78
Focusing on Priorities for Teacher Supply 2004/05 164 164 164 164 164
Increasing Student Allowance Parental Income Thresholds 2004/05 1,888 1,888 1,888 1,888 1,888
Non-Asset Procedure Debtors-Access to Student Loans 2004/05 12 12 12 12 12
Removing the Work History Criterion for the Independent Circumstances Grant 2004/05 (58) (58) (58) (58) (58)
Step Up Scholarships 2004/05 373 373 373 373 373

Policy Advice and Support to Ministers MCOA (M63)#

Scope of Appropriation#

Crown Entity Monitoring
This output class is limited to the purchase, appointment and monitoring advice for social development and employment Crown entities, and appointment advice for social development and employment statutory tribunals.
Social Policy Advice
This output class is limited to policy advice and servicing support comprising advice on cross-sectoral and long term social policy matters; advice on the design and operation of social development programmes and initiatives; the provision of information to, and discussion fora for, the public and other agencies on social policy issues; and ministerial servicing.

Explanation for Use of Multi-Class Output Expense Appropriation#

The two output classes under the MCOA both relate to the same broad service of providing advisory support to Ministers.

Expenses and Revenue#

Expenses and Revenue - Policy Advice and Support to Ministers MCOA (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

48,827 48,827 54,374
Crown Entity Monitoring 300 300 1,900
Social Policy Advice 48,527 48,527 52,474

Revenue from Crown

47,282 47,282 52,829
Crown Entity Monitoring 300 300 1,900
Social Policy Advice 46,982 46,982 50,929

Revenue from Other

1,545 1,545 1,545
Crown Entity Monitoring - - -
Social Policy Advice 1,545 1,545 1,545

Reasons for Change in Appropriation#

The increase in the Crown Entity Monitoring output class is because a fiscally neutral reallocation of overheads to reflect current staff numbers reduced this output class in 2008/09 only.

The increase in the Social Policy Advice output class output class is largely due to additional funding for the Longitudinal Study of New Zealand Children and Families that was agreed in Budget 2008.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Support to Ministers MCOA (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Social Policy Advice Output Class      
Policy advice will be delivered in accordance with work programmes agreed with their respective Ministers (see Note 9): Standard met Standard met Standard met (see Note 10)
An audit (see Note 11) shows that the Ministry of Social Development's policy and research processes as outlined in the Quality Management System have been followed in at least (see Note 12): 90% of cases 90% of cases 90% of cases
Technical Robustness      
An external independent review of the Ministry of Social Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria: Standard met Standard met Standard met
Ministerial Services Output      
The percentage of all drafts provided for the Minister's signature that are factually accurate, meet any legislative requirements, and contain no avoidable errors will be no less than:      
  • Ministerial correspondence replies
95% 95% 95%
  • Parliamentary question responses
100% 100% 100%
  • Ministerial Official Information Act request replies
N/A N/A 100%
  • Select Committee Estimates examination responses
N/A N/A 100%
The percentage of all drafts provided for the Minister's signature within the following timeframes will be no less than:      
  • Ministerial correspondence replies completed within 20 working days of receipt by the Ministry, unless otherwise agreed:
95% 95% 95%
  • Parliamentary question responses provided to the Minister's office so that answers can meet the timeframe set in Parliamentary Standing Orders:
100% 100% 100%
  • Ministerial Official Information Act request replies completed five days prior to the statutory time limit, unless otherwise agreed:
N/A N/A 100%
  • responses to Select Committee examinations provided to the Minister's office so that answers can meet the timeframe set by the Committee(s):
N/A N/A 100%
Crown Entity Monitoring Output Class      
Provide advice to the Minister on the development of Crown entity statements of intent and output agreements: 10 10 10
Provide monitoring advice to the Minister on each Crown entity's performance reports against their statements of intent and output agreements: 20 20 Minimum 10
Provide advice to the Minister on Crown entity and Statutory Board appointments, as required N/A N/A Standard met (see Note 13)
The number of meetings held with Crown entities will be: N/A N/A Minimum 4 per entity
The percentage of all reports provided to the Minister that are factually accurate, meet any legislative requirements, and contain no avoidable errors will be no less than: N/A N/A 95%
Purchase advice will be delivered to Ministers within negotiated deadlines 100% 100% 100%
Advice to Ministers on draft statements of intent for the five Crown entities for the next year is provided by no later than 31 May 2010: 100% 100% 100%
Advice to Ministers on draft output agreements for the 5 Crown entities for the next year is provided by no later than 30 June 2010: 100% 100% 100%
Performance reports are reviewed no later than 20 working days from receipt of the final Crown entity reports: 100% 100% 100%

Note 9 - The Ministers who receive services are: the Minister for Social Development and Employment, the Minister for Disability Issues, and the Minister for the Community and Voluntary Sector

Note 10 - Standard met means that we have received confirmation from the Ministers via their Offices that advice has been delivered in accordance with a work programme.

Note 11 - The work in relation to the internal audit, review or survey for these measures will be conducted during the year and reported on an annual basis.

Note 12 - The quality characteristics in the Ministry's Quality Management System are based on decision-making (identifying, debating and deciding) and communication (capturing issues, convincing and confirming).

Note 13 - The standard for this measure is based on a continuum of standard not met, standard met and standard exceeded.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Policy Advice and Support to Ministers MCOA (M63) - Social Development
Reference Conditions
Work Programme. Work programme may include the Ministry's Key Priorities document as agreed between the Chief Executive and the Minister.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice and Support to Ministers MCOA (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (94) (226)
Strengthening Relationships: Government, and the Community and Voluntary Sector 2009/10 - 400 400 400 -
Carers Strategy Information Pack for informal carers 2009/10 - 130 80 80 80
Historical Claims 2008/09 5,283 6,783 - - -
Longitudinal Study of New Zealand Children and Families 2008/09 - 4,750 3,100 - -
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 535 335 335 355 335
Working New Zealand: Work-Focused Support: Support and Services 2007/08 1,244 504 297 297 297
Reducing Violence Within Families 2006/07 420 295 - - -
Disabled Persons Nomination Register 2005/06 142 142 142 142 142
Early Intervention for Vulnerable Children - Expansion of family Start 2005/06 36 - - - -
Early Intervention for Vulnerable Children - Pilot Parenting Support to Complement Well-Child 2005/06 156 - - - -
Blueprint Investment Strategy 2004/05 461 461 461 461 461
First Principles Baseline Review 2004/05 259 259 259 259 259
Residential Services Strategy 2004/05 89 89 89 89 89
Evaluation of Working for Families Package 2004/05 1,550 1,550 222 222 222
Office for Disability Issues 2004/05 274 274 274 274 274
Te Wero and Community Sector Taskforce 2004/05 421 421 421 421 421
Youth Transition Service 2004/05 139 139 139 139 139

Prevention Services (M63)#

Scope of Appropriation#

Education and advice services for the prevention of child abuse and neglect, and the promotion of the wellbeing of children, young people and their families

Expenses and Revenue#

Expenses and Revenue - Prevention Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,704 3,704 5,104
Revenue from Crown 3,090 3,090 4,490
Revenue from Other 614 614 614

Reasons for Change in Appropriation#

This appropriation increased because a fiscally neutral reallocation of overheads to reflect current staff numbers reduced this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Prevention Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
In those communities in which the Everyday Communities Programme is run, there is an increased awareness of child abuse and neglect: Increase in awareness as measured by monitoring at the end of each phase of the programme Increase in awareness as measured by monitoring at the end of each phase of the programme Increase in awareness as measured by monitoring at the end of each phase of the programme (see Note 14)

Note 14 - The standard for this measure is an increase in awareness as measured by monitoring at the end of each phase of the programme. Each programme goes through four phases. A benchmark is established at the beginning of the programme and at the end of each phase.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Prevention Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Part 1 section 7 of the Children, Young Persons, and Their Families Act 1989 sets out the general duties of the Chief Executive which include promoting the provision and establishment of support services, as well as raising awareness, by education and publicity, of child abuse.
Prevention Services include:
  • activities to promote and support stronger communities
  • public education programmes to promote the importance of child and family wellbeing
  • Everyday Communities programme, which focuses on ensuring all New Zealanders act to achieve wellbeing and safety for New Zealand children.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Prevention Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (8) (19)
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 130 130 130 130 130
First Principles Baseline Review 2004/05 312 312 312 312 312

Services to Protect the Integrity of the Benefit System (M63)#

Scope of Appropriation#

Services to minimise errors, fraud and abuse of the benefit system.

Expenses and Revenue#

Expenses and Revenue - Services to Protect the Integrity of the Benefit System (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 37,492 37,492 35,750
Revenue from Crown 37,146 37,146 35,404
Revenue from Other 346 346 346

Reasons for Change in Appropriation#

This appropriation decreased because a fiscally neutral reallocation of overheads to reflect current staff numbers increased this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Services to Protect the Integrity of the Benefit System (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Of all the cases we prosecute, the percentage of successful prosecutions concluded will exceed: 85% 85% 90%
The percentage of cases concluded within a 12 month period will be no less than: N/A N/A 95%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Services to Protect the Integrity of the Benefit System (M63) - Social Development
Reference Conditions
Crimes Act 1961. The Crimes Act 1961 provides for criminal offences including dishonestly using a document.
Education Act 1989 and the Student Allowance Regulations 1998 pursuant to sections 303, 306, and 307 of the Education Act 1989. The Education Act 1989 and the Student Allowances Regulations 1998 provide for the investigation of Student Allowance and Student Loan applications.
Privacy Act 1993. The Privacy Act 1993 establishes principles for the collection, storage, security, and access to personal information about individuals. The Privacy Act 1993 also prescribes rules for establishing and maintaining information matching programmes.
Social Security Act 1964. The Social Security Act 1964 provides for offences and the investigation of claims and grants of benefits, including the power to obtain information and apply financial sanctions.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Services to Protect the Integrity of the Benefit System (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (119) (282)
Extend Data Matches to Students 2004/05 1,079 1,079 1,079 1,079 1,079
Family Violence Intervention One on One Mentoring 2004/05 4,275 4,275 4,275 4,275 4,275

Tailored Sets of Services to Help People into Work or Achieve Independence (M63)#

Scope of Appropriation#

This appropriation is limited to delivering tailored sets of services to individuals to help them into sustainable employment, participate more fully in their community or achieve a greater level of social independence; and the management of related non-departmental output contracts. The composition of each set of services is determined by the individual's needs and selected from a mix of employment readiness training and support, employment placement, social support services, payment of income support and training support benefits, and referrals to other employment or social support providers.

Expenses and Revenue#

Expenses and Revenue - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated
Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 415,526 412,526 417,194 416,020 401,103 401,103
Revenue from Crown 401,068 401,068 402,736 401,562 386,645 386,645
Revenue from Other 14,458 11,458 14,458 14,458 14,458 14,458

Reasons for Change in Appropriation#

This increase in this appropriation is largely due to one off reductions in funding in 2008/09 which are partially offset by a Budget 2008 decision to reduce funding in 2009/10.

The main changes in 2008/09 are a fiscally neutral reallocation of overheads to reflect current staff numbers and an expense transfer to fund the replacement of MSD's key business systems which both reduce funding in 2008/09.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Jobseekers not coming onto the benefit

     
The proportion of Work for You seminar participants who do not require a benefit within 28 days of attending the seminar will be (see Note 15): N/A N/A 30-35%

Getting clients into full-time work (see Note 16)

     
The proportion of Unemployment Benefit (UB) Jobseekers (see Note 17) who exit a main benefit into full-time employment will be: N/A N/A 23-25%
The proportion of work-ready non UB clients (see Note 18) who exit a main benefit into full-time employment will be: N/A N/A 13-15%
The proportion of UB Jobseekers with a duration of six months or more, who exit a main benefit into full-time employment will be: N/A N/A 25-27%
The proportion of work-ready non UB clients with a duration of six months or more, who exit a main benefit into full-time employment will be: N/A N/A 4-6%

Sustainable Employment

     
The average cumulative time that UB Jobseekers, who exit a main benefit into work, spend in employment over the course of a year will be: N/A N/A 35 weeks
The average cumulative time that work-ready non UB clients, who exit a main benefit into work, spend in employment over the course of a year will be: N/A N/A 39 weeks
The proportion of UB Jobseekers who exit a main benefit into employment and achieve six months employment will be: N/A N/A 53-55%
The proportion of work-ready non UB clients who exit a main benefit into employment and achieve six months employment will be: N/A N/A 59-61%

Benefit Entitlement

     
The percentage of entitlement assessments completed accurately will be no less than: 90% 90% 90%
The percentage of entitlement assessments completed within five working days will be no less than: 85% 85% 85%

Note 15 - Our work-focused job-search service is aimed at helping people get a job rather than needing a benefit. Jobseekers applying for a benefit are required to attend a Work for You seminar where they are assisted with their job-search skills and advised of their responsibilities and obligations.

Note 16 - these sustainable employment measures replace the 2008/09 measures, which included all job-seeking clients together in one population regardless of benefit type. For 2009/10, these measures have been separated into the client groups of UB jobseekers and non UB clients.

Note 17 - Unemployment Benefit (UB) Jobseekers include Unemployment Benefit, Unemployment Benefit Hardship, Independent Youth Benefit, Unemployment Benefit Hardship Training and Unemployment Benefit Training.

Note 18 - Non UB clients include Domestic Purposes-Benefit (DPB) Sole Parent, DPB-Woman Alone, Widows Benefit, Emergency Maintenance Allowance, Sickness Benefit and Sickness Benefit Hardship.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (1,480) (3,534)
Savings from the Health and Disability Innovation Fund 2008/09 (3,000) - - - -
Expansion of Youth Transitions 2007/08 2,500 2,500 2,500 2,500 2,500
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 210 315 315 315 315
Working New Zealand: Work-Focused Support and Services 2007/08 15,353 14,652 14,652 14,652 14,652
Implementing Free Early Childhood Education 2006/07 1,044 1,058 1,058 1,058 1,058
Accommodation Supplement (Retirement Villages) 2005/06 23 23 23 23 23
Automated Reassessment of Accommodation Supplement Entitlement in Line with the Annual General Adjustment 2005/06 (572) (572) (572) (572) (572)
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 280 280 280 280 280
Enhancing Parents' Work Choices 2005/06 680 680 680 680 680
New Services for Sickness and Invalid's Benefit Recipients 2005/06 1,053 1,053 1,053 1,053 1,053
New Services for Sickness and Invalid's Benefit Recipients 2005/06 2,228 2,228 2,228 2,228 2,228
Accommodation Supplement Automated Reassessment of Entitlement in line with the Annual General Adjustment 2004/05 508 508 508 508 508
Addressing Long-Term Unemployment 2004/05 2,444 2,444 2,444 2,444 2,444
Benefit Stand down - Changes to remove barriers to seasonal work 2004/05 75 75 75 75 75
Disability Allowance for Vocational Services - Streamlining payments to Vocational Services providers and improving service delivery to clients 2004/05 76 76 76 76 76
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 1,392 1,392 1,392 1,392 1,392
Legal Recognition of Relationships 2004/05 26 26 26 26 26
Repositioning of Community Employment Activities 2004/05 13,067 13,067 13,067 13,067 13,067
Working for Families - Delivery 2004/05 14,000 14,000 14,000 14,000 14,000
Working for Families - Future Directions: Family Income Assistance Delivery Enhancements 2004/05 56 56 56 56 56
Youth Transition Service 2004/05 6,155 6,155 6,155 6,155 6,155

Vocational Skills Training (M63)#

Scope of Appropriation#

This appropriation is limited to vocationally based skills training for working-age people through the Training Opportunities Programme.

Expenses and Revenue#

Expenses and Revenue - Vocational Skills Training (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 89,851 89,851 86,024
Revenue from Crown 89,851 89,851 86,024
Revenue from Other - - -

Reasons for Change in Appropriation#

The decrease in this appropriation is largely due to additional funding in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Vocational Skills Training (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
In-depth discussions regarding training needs will be undertaken before to annual purchase: 11 Work and Income regions 11 Work and Income regions Standard met (see Note 19)
The proportion of programmes delivered by NZQA registered and accredited training providers will be no less than: 100% 100% 100%
The percentage of learners who move on to employment or further tertiary training outside of Training Opportunities within two months of leaving the programme will be no less than: 60% 60% 60%
The proportion of training providers monitored and programme performance evaluated including outcome achievement will be no less than: 100% 100% 100%
The average number of learners in training at any one time will be: 7,400 7,400 7,000

Note 19 - Standard met means discussion have been undertaken between the Tertiary Education Commission, and Work and Income at a national level.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Vocational Skills Training (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Expanding the Community Organisation Grants Scheme 2008/09 (2,065) (2,192) (2,065) (2,065) (2,065)
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 (5,581) (5,581) (5,581) (5,581) (5,581)

Youth Justice Services (M63)#

Scope of Appropriation#

Social work and other services to manage and resolve offending behaviour by children and young people, by providing assessment, support, programmes, containment and care of young offenders.

Expenses and Revenue#

Expenses and Revenue - Youth Justice Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 104,925 104,925 116,703
Revenue from Crown 104,528 104,528 116,306
Revenue from Other 397 397 397

Reasons for Change in Appropriation#

This increase in this appropriation is largely due to additional funding for A Fresh Start for Young Offenders, and a Budget 2008 decision to increase funding for the Youth Justice Central Residential facility in 2009/10 compared with 2008/09.

The increase is partially offset by a fiscally neutral reallocation of overheads to reflect current staff numbers which increased this appropriation in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Youth Justice Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Case Management

     
Youth Justice Family Group Conferences are held within statutory timeframes (unless there are special reasons for delay): 100% 100% 95% - 100%

Restorative Services (see Note 20)

     
Percentage of children and young people whose Youth Justice Family Group Conference plans were completed and the objectives were assessed as being met: 80% 80% 80%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Youth Justice Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Part 4 of the Children, Young Persons, and Their Families Act 1989 provides for social work and other services to manage and resolve offending behaviour by children and young persons.
Youth Justice Services include assessment, support, programmes, and containment and care of young offenders.

Note 20 - A Youth Justice Family Group Conference convened under s245 of the Children, Young Persons and Their Families Act 1989 requires Family Group Conferences be completed within seven days or one month after being convened unless there are special reasons why a longer period is required.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Youth Justice Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - - (311) (741)
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 - 1,400 - - -
A Fresh Start for Young Offenders 2009/10 - 8,684 22,360 22,050 22,050
Operating Funding for Additional Beds at Youth Justice Central Residences 2009/10 - 1,309 1,309 2,617 2,617
Youth Justice Central Residential Facility 2008/09 1,509 6,754 11,089 11,089 11,089
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 1,864 1,864 1,864 1,864 1,864
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 397 397 397 397 397
First Principles Baseline Review 2004/05 3,070 3,070 3,070 3,070 3,070
Reforms in Social Assistance 2004/05 40 40 40 40 40
Residential Services Strategy 2004/05 6,626 6,626 6,626 6,626 6,626

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Outcomes are listed in full in the equivalent table in Part 2.1.

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome for Working Age People Assistance to Disadvantaged Persons, Life Skills and Employment-Related Training Activities, Retirement Commissioner, Student Placement Services, and Vocational Services for People with Disabilities.
Outcome for Young People Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Life Skills and Employment-Related Training Activities, Strengthening Providers and Communities, and Student Placement Services.
Outcome for Children Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities.
Outcome for Older People Assistance to Disadvantaged Persons and Retirement Commissioner.
Outcome for Families and Whanau Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities, Strong Families, and Student Placement Services.
Outcome for Communities, Hapu and Iwi Connected Communities and Strengthening Providers and Communities.

Assistance to Disadvantaged Persons (M63)#

Scope of Appropriation

This appropriation is limited to the provision of resources and assistance to disadvantaged persons in the community and comprises: distribution of talking books and articles for the blind; support for carers of older persons, disabled or others in the community; and advocacy assistance to people seeking entitlements from government agencies.

Expenses

Expenses - Assistance to Disadvantaged Persons (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,450 1,450 1,450

Output Performance Measures and Standards

Output Performance Measures and Standards - Assistance to Disadvantaged Persons (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Talking Books for the Blind

     
The number of talking books delivered and returned will be no less than: 370,000 370,000 370,000

Articles for the Blind

     
The number of articles for the blind delivered will be no less than: 8,000 8,000 8,000

Red Cross

     
A contract is established with the Red Cross that provides support for carers of older persons, disabled or others in the community: Contract established Contract established Contract established (see Note 21)

Citizens' Support

     
Provide advocacy services in each of the Work and Income regions: 11 11 11

Note 21 - As a contract was not established in 2008/09, this performance measure remains unchanged for 2009/10.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Assistance to Disadvantaged Persons (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Funding for the Red Cross 2005/06 500 500 500 500 500
Community Initiatives Fund 2004/05 711 711 711 711 711
Older People as Life and Home Skills Mentors 2004/05 965 965 965 965 965

Children's Commissioner (M63)#

Scope of Appropriation#

Provision of services from the Children's Commissioner including the discharge of the Commissioner's duties under the Children, Young Persons and Their Families Act 1989, the Children's Commissioner Act, identification of aspects of law, policy and practice that might adversely affect children and the development and proposal of remedies.

Expenses#

Expenses - Children's Commissioner (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,757 1,757 1,757

Output Performance Measures and Standards#

Output Performance Measures and Standards - Children's Commissioner (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Monitoring of Child, Youth and Family complies with standards and measures established in the Monitoring Framework (see Note 22): Joint annual review of the effectiveness of the memorandum of understanding Joint annual review of the effectiveness of the memorandum of understanding Reports reflect all standards and measures met
The Office promotes individual and systemic advocacy of children's rights as specified in the Output Agreement (see Note 23): N/A N/A Output Agreement commitments met

Note 22 - A document that outlines how the Children's Commissioner will carry out its monitoring functions in respect of Child, Youth and Family. It is agreed between both parties.

Note 23 - An agreed document that is signed by the Crown entity and the responsible Minister.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Children's Commissioner (M63) - Social Development
Reference Conditions
Children's Commissioner Act 2003 The Children's Commissioner Act 2003 provides for the appointment, functions, and powers of Commissioner.
Children, Young Persons, and Their Families Act 1989 The Children, Young Persons, and Their Families Act 1989 provides for the wellbeing of children, young persons, and their families and family groups.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Output Agreement Outlines the commitments and standards required.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Children's Commissioner (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Children's Commissioner: Operating Pressures 2005/06 71 71 71 71 71
Children's Commissioner 2004/05 133 133 133 133 133

Connected Communities (M63)#

Scope of Appropriation#

Funding of services that strengthen and support communities and community functioning, and which assist communities to support families in improving their family circumstances.

Expenses#

Expenses - Connected Communities (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,644 4,644 4,644

Output Performance Measures and Standards#

Output Performance Measures and Standards - Connected Communities (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Social Service Development for Refugee and Migrant groups:

     
The percentage of projects funded that achieve their contracted outputs within agreed timeframes will be no less than (see Note 24): 90% 90% 90%
The number of refugee and migrant community groups throughout the country that are provided with assistance to develop the skills, knowledge and confidence they need to become fully functioning participants within their communities will be no less than: 30 30 30

Note 24 - The Community Initiative Fund supports innovative projects that benefit communities. All sorts of projects are considered but they must be run by a community leader and be backed by a community project sponsor, like a district council.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Connected Communities (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Pathway to Partnership: Strengthening the Child and Family Services Sector 2007/08 9,748 - - - -

Counselling and Rehabilitation Services (M63)#

Scope of Appropriation#

Purchase of services, including family counselling and other post-crisis interventions that restore the wellbeing of children, young people and families who have suffered harm and abuse or other forms of family breakdown or youth justice issues.

Expenses#

Expenses - Counselling and Rehabilitation Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,026 17,026 16,906

Output Performance Measures and Standards#

Output Performance Measures and Standards - Counselling and Rehabilitation Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of new clients receiving intervention: 23,000-27,000 23,000-27,000 23,000-27,000
Percentage of clients completing intervention: 80-90% 80-90% 80-90%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Counselling and Rehabilitation Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service or Child and Family Support Service (under section 396), or a Community Service (under section 403).
The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Counselling and Rehabilitation Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Care and Protection System Service Response to Demand 2006/07 988 988 988 988 988
First Principles Baseline Review 2004/05 52 - - - -

Education and Prevention Services (M63)#

Scope of Appropriation#

Purchase of education and prevention programmes and initiatives that aim to provide skills to children, young people and families who are at risk of harm or abuse, which will help them reduce the risk of that abuse or harm.

Expenses#

Expenses - Education and Prevention Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,766 8,766 8,766

Output Performance Measures and Standards#

Output Performance Measures and Standards - Education and Prevention Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of new clients receiving intervention: 26,000-32,000 26, 000-32,000 26,000-32,000
Percentage of clients completing intervention: 75-85% 75-85% 75-85%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Education and Prevention Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. The general duties of the Chief Executive as set out in section 7 of the Children, Young Persons, and Their Families Act 1989 cover the provision of education and advice services for the prevention of child abuse and neglect, and the promotion of the wellbeing of children, young people and their families.
Education and Prevention Services include:
  • community liaison presentations
  • community liaison networking
  • every community programme
  • promotional services.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Education and Prevention Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Care and Protection System Service Response to Demand 2006/07 363 363 363 363 363
First Principles Baseline Review 2004/05 180 - - - -

Families Commission (M63)#

Scope of Appropriation#

Provision of services from the Families Commission to promote the interests of the full range of New Zealand families and promote better understanding of family issues and needs amongst government agencies and in the wider community, and to undertake a research programme.

Expenses#

Expenses - Families Commission (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,170 8,170 8,170

Output Performance Measures and Standards#

Output Performance Measures and Standards - Families Commission (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Work items will be delivered as specified in the Output Agreement agreed with the Minister for Social Development and Employment Work items delivered in accordance with the Output Agreement Work items delivered in accordance with the Output Agreement Work items delivered in accordance with the Output Agreement

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Families Commission (M63) - Social Development
Reference Conditions
Families Commission Act 2003 The Families Commission Act 2003 provides for the establishment, functions, and powers of Commission.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Output Agreement Outlines the commitment and standards required.

Family Wellbeing Services (M63)#

Scope of Appropriation#

Purchase of services that aim to improve the life outcomes for children, young people and families through support and development programmes, and programmes that will prevent any future harm or abuse.

Expenses#

Expenses - Family Wellbeing Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 52,662 52,662 52,816

Output Performance Measures and Standards#

Output Performance Measures and Standards - Family Wellbeing Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of new clients or families receiving intervention will be (see Note 25): 62,000-68,000 62,000-68,000 62,000-68,000
Number of schools receiving services from the Social Workers in Schools programme will be (see Note 26): 330-350 330-350 300-350
Number of full-time equivalent social workers employed in the Social Workers in Schools programme will be: 125 125 118-125
Percentage of clients/families completing a planned intervention will be: 85-90% 85-90% 85-90%

Note 25 - An intervention is defined as a structured counselling session with an individual, or in a group setting as part of a structured programme.

Note 26 - Provision of school-based social workers to assist children whose social and family circumstances put them at risk of not achieving good health, education and welfare outcomes.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Family Wellbeing Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service, or Child and Family Support Service (under section 396), or a Community Service (under section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.
Family Wellbeing Services include:
  • funding planning
  • service and provider development
  • funding agreements
  • provider assessment and approval.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Family Wellbeing Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Care and Protection System Service Response to Demand 2006/07 700 700 700 700 700
Blueprint Investment Strategy 2005/06 498 - - - -
Services for Children Witnessing Family Violence 2005/06 889 - - - -
Early Intervention for At Risk Families 2004/05 8,968 8,968 8,968 8,968 8,968
First Principles Baseline Review 2004/05 1,098 - - - -
Social Workers in Schools 2004/05 4,161 4,161 4,161 4,161 4,161

Scope of Appropriation#

This appropriation is limited to the provision of life-skills and employment-related training activities for at-risk youth within the Eastern Bay of Plenty.

Expenses#

Expenses - Life Skills and EmploymentRelated Training Activities (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 543 543 543

Output Performance Measures and Standards#

Output Performance Measures and Standards - Life Skills and EmploymentRelated Training Activities (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The provision of services within the Eastern Bay of Plenty will be delivered annually to no less than: 20 young people 20 young people 20 young people
The proportion of participants who start either full-time paid employment or further training within eight weeks of completing training will be no less than: 75% 75% 75%
A review will be completed to evaluate the effectiveness of the services delivered: Review completed Review completed Review completed

Retirement Commissioner (M63)#

Scope of Appropriation#

Provision of services from the Retirement Commissioner to develop and promote methods of improving the effectiveness of retirement income policies. This is achieved through the publishing of information and the delivery of a comprehensive public education programme on retirement savings issues.

Expenses#

Expenses - Retirement Commissioner (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,682 5,682 5,682

Output Performance Measures and Standards#

Output Performance Measures and Standards - Retirement Commissioner (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The review of retirement income policies is carried out in accordance with the New Zealand Superannuation and Retirement Income Act 2001: New measure in 2009/10 New measure in 2009/10 Standard met (see Note 27)
Reviews to ensure that www.sorted.org.nz contains up-to-date information with functioning links will be carried out at least quarterly (see Note 28): New measure in 2009/10 New measure in 2009/10 Review conducted at least once per quarter

Note 27 - Standard met means the review is done in accordance with legislative requirements.

Note 28 - A website run by the Retirement Commission that provides independent financial information to help New Zealanders prepare for retirement and be financially sorted.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Retirement Commissioner (M63) - Social Development
Reference Conditions
New Zealand Superannuation and Retirement Income Act 2001. Part 4 of the New Zealand Superannuation and Retirement Income Act 2001 provides for the constitution, appointment, functions, powers, and duties of the Commissioner.
Retirement Villages Act 2003 Part 3 provides for the monitoring and other functions of the Retirement Commissioner.
Part 4 provides for the Commissioner to approve members eligible for appointment to a disputes panel.
Part 5 provides for the Commissioner to make recommendations to the Minister on any draft Code of Practice or variation, and to publish information and receive submissions on any Codes of Practice or variation.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Output Agreement Outlines the commitments and standards required.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Retirement Commissioner (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
KiwiSaver Financial Education Programme 2008/09 1,900 1,900 2,000 2,000 2,000
Retirement Village Dispute Panel Functions and Registration Fees 2006/07 (105) (105) (105) (105) (105)
Retirement Commissioner - Retirement Villages Act 2003 2005/06 204 204 204 204 204
Retirement Commissioner Capability 2005/06 200 200 200 200 200
Retirement Commissioner: Periodic Review Group Report 2004/05 111 111 111 111 111

Strengthening Providers and Communities (M63)#

Scope of Appropriation#

Purchase of services that contribute to strengthening the capacity and capability of providers to deliver strong and effective social services.

Expenses#

Expenses - Strengthening Providers and Communities (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,803 5,803 5,803

Output Performance Measures and Standards#

Output Performance Measures and Standards - Strengthening Providers and Communities (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of groups/organisations whose infrastructure were supported by a national body will be: 180-210 180-210 180-210
Number of groups/organisations receiving organisation development funding, eg, training, business mentoring or other forms of development will be: 260-320 260-320 260-320
Satisfaction survey results indicate the level of satisfaction with services received from a national body will be: 80-90% 80-90% 80-90%
The percentage of provider plans which were completed and the objective were assessed as being met will be: 80-90% 80-90% 80-90%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Strengthening Providers and Communities (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service and Family Support Service (section 396), or a Community Service (section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.
Strengthening Providers and Communities Services include:
  • funding planning
  • service and provider development
  • funding agreements
  • provider assessment and approval.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Strengthening Providers and Communities (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
First Principles Baseline Review 2004/05 31 - - - -

Strong Families (M63)#

Scope of Appropriation#

Purchase of services to improve outcomes for families and their members. These services aim to support vulnerable families with a focus on prevention and early intervention.

Expenses#

Expenses - Strong Families (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 91,539 91,539 100,769 101,077 193,513 217,993

Reasons for Change in Appropriation#

The increase in this appropriation is largely due to additional funding for the Pathway to Partnership initiative in 2009/10 compared with funding in 2008/09. This is partially offset by a fiscally neutral adjustment to funding for Pathway to Partnership and the creation of Community Response Contingency in 2009/10. The increase in funding in out years is mainly due to increasing funding for the Pathway to Partnership initiative. Also in 2012/13 the Community Response Contingency does not reduce the appropriation.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Strong Families (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Early Intervention Initiatives

     
The number of families receiving Family and Early Start services will be: 5,500 - 6,000 5,500 - 6,000 5,500 - 6,000
The number of Family Start sites will be no less than: 26 26 32

Study Awards

     
The number of Social Work and Family Start study awards will be: 260 - 290 260 - 290 280 - 315
The number of students who have completed their study and graduated since the inception of Study Awards will be: 105 - 130 105 - 130 160 - 201

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Strong Families (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 - 1,423 - - -
Community Response Contingency: Responding to Urgent Funding Issues 2009/10 - (12,171) (57,375) (24,480) -
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 25,016 66,847 119,256 175,206 175,206
Early Years: Giving Children the Best Start in Life 2006/07 1,488 - - - -
Reducing Violence Within Families 2006/07 1,839 1,699 199 199 199
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 1,376 1,376 1,376 1,376 1,376
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 924 786 786 786 786
Early Intervention for Vulnerable Children - Pilot Parenting Support to Complement Well-Child 2005/06 656 - - - -
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 3,088 3,348 3,348 3,348 3,348
Increase in Funding for Elder Abuse and Neglect Prevention 2005/06 627 627 627 627 627
NGO Study Awards 2005/06 988 988 988 988 988
Strengthening Families Review 2005/06 2,750 2,750 2,750 2,750 2,750

Student Placement Services (M63)#

Scope of Appropriation#

Provision of placement services for students for holiday and term employment.

Expenses#

Expenses - Student Placement Services (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,512 3,512 3,512

Output Performance Measures and Standards#

Output Performance Measures and Standards - Student Placement Services (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of weeks that students are connected to work placements through services provided by Student Job Search will be: 194,000-199,000 weeks of work 194,000-199,000 weeks of work 160,000-165,000 weeks of work
The estimated earnings by students who are connected to work placements through services provided by Student Job Search will be: $81- $86m $81- $86m $67- $72m
The percentage of independently-surveyed students satisfied with the service they receive from Student Job Search will be: 80-85% 80-85% 80-85%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Student Placement Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Student Job Search 2004/05 494 494 494 494 494

Vocational Services for People with Disabilities (M63)#

Scope of Appropriation#

Provision of vocational services for people with disabilities including community participation and employment services.

Expenses#

Expenses - Vocational Services for People with Disabilities (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 88,240 88,240 88,240

Output Performance Measures and Standards#

Output Performance Measures and Standards - Vocational Services for People with Disabilities (M63) - Social Development
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of individuals placed or supported to remain in paid open employment will be: 9,300 9,300 9,300
The number of individuals receiving a range of vocational services will be: 20,000 20,000 20,000
Independent reviews to build capacity and quality will be completed for 20 service providers 20 reviews completed 20 reviews completed 20 reviews completed

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Vocational Services for People with Disabilities (M63) - Social Development
Reference Conditions
Cabinet decision as set out in Pathways to Inclusions: Improving Vocational Services for People with Disabilities. Pathways to Inclusion sets out the government strategy for vocational services. It aims to increase:
  • the participation of people with disabilities in employment
  • the participation of people with disabilities in their communities.
Standard for independent quality reviews. These service evaluations are based on the principles and philosophy promoted by the Standards and Monitoring Services Trust.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Vocational Services for People with Disabilities (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Disability Allowance for Vocational Services - Streamlining payments to Vocational Services providers and improving service delivery to clients 2005/06 15,252 15,252 15,252 15,252 15,252
New Services for Sickness and Invalids' Benefit Recipients 2005/06 2,667 2,667 2,667 2,667 2,667
Vocational Services for Very High Needs School Leavers 2005/06 4,272 4,272 4,272 4,272 4,272

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Social Development
Provider 2008/09
Budgeted
$000
2008/09
Estimated Actual
$000
2009/10
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown entities

         
Children's Commissioner          
  • Children's Commissioner
2,257 2,257 1,757 Office of the Children's Commission Annual Report Ongoing
Families Commission          
  • Families Commission
7,670 7,670 8,170 Families Commission Annual Report Ongoing
Retirement Commission          
  • Retirement Commission
5,747 5,747 5,682 Retirement Commission Annual Report Ongoing

Non-government organisations

         
Intellectual Disability Empowerment in Action (IDEA) Services Limited          
  • Family Wellbeing Services (part)
134 134 Contract information unavailable for 2009/10. Section 32A report  
  • Strong Families (part)
5 5 Contract information unavailable for 2009/10. Section 32A report  
  • Vocational Services for People with Disabilities (part)
26,856 25,856 Contract information unavailable for 2009/10. Section 32A report  
Total IDEA Services Limited 26,995 26,995      
Workbridge Incorporated          
  • Vocational Services for People with Disabilities (part)
18,057 18,057 9,281 Section 32A report 30 June
Te Puna Whaiora, Children's Health Camp          
  • Strong Families (part)
12,605 12,605 12,624 Section 32A report 30 June 2010 ($12,183,000)
          30 June 2011 ($8,000)
National Collective Women's Refuge          
  • Counselling and Rehabilitation Services (part)
195 195 Contract information unavailable for 2009/10..    
  • Education and Prevention Services (part)
305 305 Contract information unavailable for 2009/10..    
  • Family Wellbeing Services (part)
6,696 6,696 Contract information unavailable for 2009/10. Section 32A report  
  • Strengthening Providers and Communities (part)
711 711 Contract information unavailable for 2009/10.    
  • Strong Families (part)
361 361 Contract information unavailable for 2009/10.    
Total National Collective Women's Refuge 8,268 8,268      
Barnardos New Zealand          
  • Counselling and Rehabilitation Services (part)
138 138 Contract information unavailable for 2009/10.    
  • Education and Prevention Services (part)
41 41 Contract information unavailable for 2009/10.    
  • Family Wellbeing Services (part)
2,481 2,481 468    
  • Strong Families (part)
1,809 1,809 1,825    
  • Vocational Services for People with Disabilities (part)
100 100 Contract information unavailable for 2009/10.    
Total Barnardos New Zealand 4,569 4,569 2,293    
Family Start Manukau          
  • Strong Families (part)
3,638 3,638 3,611 Section 32A report  
Student Job Search          
  • Student Placement Services
3,512 3,512 3,512 Section 32A report  
Relationship Services          
  • Counselling and Rehabilitation Services (part)
2,516 2,516 2,457    
  • Education and Prevention Services (part)
9 9 Contract information unavailable for 2009/10.    
  • Family Wellbeing Services (part)
322 322 237 Section 32A report 30 June 2010 ($2,442,797)
  • Strengthening Providers and Communities (part)
44 44 42   30 June 2011 ($4,000)
  • Strong Families (part)
415 415 418    
Total Relationship Services 3,306 3,306 3,154    
Family Works          
  • Education and Prevention Services (part)
76 76 Contract information unavailable for 2009/10.    
  • Family Wellbeing Services (part)
2,689 2,689 2,108 Section 32A report  
  • Strong Families (part)
481 481 706    
Total Family Works 3,246 3,246 2,814    
Royal New Zealand Plunket Society          
  • Strong Families (part)
2,964 2,964 2,964 Section 32A report  
Kirikiriroa Family Services Trust          
  • Strong Families (part)
2,920 2,920 2,920 Section 32A report  
Anglican Trust for Women & Children          
  • Counselling and Rehabilitation Services (part)
130 130 129    
  • Family Wellbeing Services (part)
864 864 877 Section 32A report  
  • Strong Families (part)
1,926 1,926 1,923    
Total Anglican Trust for Women & Children 2,920 2,920 3,057    
Open Home Foundation          
  • Counselling and Rehabilitation Services (part)
89 89 Contract information unavailable for 2009/10.    
  • Education and Prevention Services (part)
30 30 Contract information unavailable for 2009/10. Section 32A report  
  • Family Wellbeing Services (part)
2,174 2,174 77    
  • Strong Families (part)
23 23 51    
Total Open Home Foundation 2,316 2,316 128    
CCS Disability Action Incorporated          
  • Vocational Services for People with Disabilities (part)
2,199 2,199 Contract information unavailable for 2009/10. Section 32A report  
Anglican Family Care Centre          
  • Counselling and Rehabilitation Services (part)
113 113 111    
  • Family Wellbeing Services (part)
751 751 737 Section 32A report  
  • Strong Families (part)
1,153 1,153 1,153    
Total Anglican Family Care Centre 2,017 2,017 2,001    
Te Whanau O Waipareira Trust          
  • Counselling and Rehabilitation Services (part)
895 895 873    
  • Education and Prevention Services (part)
39 39 38 Section 32A report  
  • Family Wellbeing Services (part)
162 162 159    
  • Strong Families (part)
776 776 1,868    
Total Te Whanau O Waipareira Trust 1,872 1,872 2,938    
Te Runanga O Raukawa Inc          
  • Counselling and Rehabilitation Services (part)
53 53 Contract information unavailable for 2009/10.    
  • Education and Prevention Services (part)
13 13 Contract information unavailable for 2009/10.    
  • Family Wellbeing Services (part)
678 678 461 Section 32A report  
  • Strengthening Providers and Communities (part)
2 2 Contract information unavailable for 2009/10.    
  • Strong Families (part)
1,061 1,061 1,055    
Total Te Runanga O Raukawa Inc 1,807 1,807 1,516    

This table presents the 20 major service providers Vote Social Development has funding arrangements with.

The above table summarises funding to be allocated through Vote Social Development to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

Intended Impacts, Outcomes and Objectives

Outcomes are listed in full in the equivalent table in Part 2.1.

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome for Working Age People Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Employment-Related Training Assistance, Hardship Assistance, Invalid's Benefit, Redundancy Assistance, Sickness Benefit, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, Transition to Work, Unemployment Benefit and Emergency Benefit, and Widow's Benefit.
Outcome for Young People Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.
Outcome for Children Childcare Assistance, Disability Assistance, Orphan's/Unsupported Child's Benefit.
Outcome for Older People Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, New Zealand Superannuation, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, and Unemployment Benefit and Emergency Benefit.
Outcome for Families and Whanau Accommodation Assistance Childcare Assistance, Redundancy Assistance, Special Circumstance Assistance, and Transitional Assistance.
Outcome for Communities, Hapu and Iwi Family Start/NGO Awards, Special Annuities, Special Circumstance Assistance, and Study Scholarships and Awards.

Appropriations for Benefits and Other Unrequited Expenses and for Capital Expenditure items in this Vote are forecast on a mid-point basis. This means it is to be expected that actual expenditure on some of the forecast items will be more than the mid-point forecast and on other forecast items less than the mid-point forecast. As an appropriation is a legal upper limit on expenditure, using a mid-point forecast to determine the amount of the appropriation inevitably means that there will be unappropriated expenditure for some forecast items, requiring separate ministerial approval and parliamentary confirmation, or parliamentary validation.

To reduce the likelihood of unappropriated expenditure on forecast items in this Vote, the cumulative appropriation for each forecast item in this Vote in the 2008/09 Supplementary Estimates includes for the last three months of 2008/09 not the mid-point forecast but a reasonable upper bound of the forecast range. The estimated actual amounts for 2008/09 and the amounts to be appropriated for 2009/10 shown in the 2009/10 Estimates of Appropriations and here in the Information Supporting the Supplementary Estimates for forecast items in this Vote continue to be on a mid-point forecast basis. These are the amounts that continue to be used in the fiscal forecasts in the Budget Economic and Fiscal Update.

In cases where the amounts have been split into subset parts below, the 2008/09 Budgeted figures all exclude any such additional amounts and so equal the Estimated Actual amounts.

Accommodation Assistance (M63)

Scope of Appropriation

This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to persons to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Accommodation Assistance (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 996,119 988,299 1,165,866 1,247,832 1,282,104 1,296,362
Accommodation Supplement (incorporating Away from Home Allowance) 988,193 988,193 1,165,773 1,247,752 1,282,035 1,296,302
Special Transfer Allowance 106 106 93 80 69 60

Reasons for Change in Appropriation

Increases in Accommodation Supplement recipients are expected to drive the increase in expenditure between 2008/09 and 2009/10 reflecting increases in main benefit recipients. Increases in the number of recipients as well as the average rate will increase expenditure between 2009/10 and 2012/13.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Accommodation Assistance (M63) - Social Development
Reference Conditions
Accommodation Supplement is paid under sections 61DH to 61EC of the Social Security Act 1964. The Accommodation Supplement provides a 70% subsidy for housing costs that exceed 25% of the recipient's income (for renters or boarders) or 30% of the recipient's income (for homeowners), up to a set maximum amount. The level of assistance depends on the recipient's accommodation costs, benefit payment rate, where the recipient lives and on his or her family size. The Supplement is a non-taxable payment that is asset and (for non-beneficiaries) income tested.
Away from Home Allowance is paid under the Away from Home Allowance Welfare Programme pursuant to section 124(1)(d) of the Social Security Act 1964. The Away from Home Allowance provides assistance with accommodation costs for the caregivers of dependent 16-17 year olds who move away from home to undertake tertiary study or an approved employment related training course. The level of Allowance is based on the same formula as for Accommodation Supplement. The Allowance is a non-taxable payment.
Special Transfer Allowance is paid under the Special Transfer Allowance Programme 2000 pursuant to section 124(1)(d) of the Social Security Act 1964. The Special Transfer Allowance provides assistance with accommodation costs to recipients of the Special Transfer Allowance prior to November 2000 and to former Tenure Protection Allowance recipients who have had their present house sold to a private landlord by Housing New Zealand Corporation. Tenure Protection Allowance ceased to exist with the introduction of the Income Related Rental Subsidy in November 2000. This Allowance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Accommodation Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
ReStart: Transitional Relief Package 2008/09 128 1,796 751 - -
Increasing Medical Training Places 2009/10 - 1 3 5 7
Increasing the Student Allowance Parental Income Threshold by 10% 2008/09 115 237 249 262 262
Lowering the Age Limit for Student Allowance Parental Income Testing by One Year 2008/09 159 325 338 352 352
Student Achievement Component: Access in priority areas 2008/09 30 56 29 (25) (25)
Accommodation Supplement Effects HNZC Housing Applications 2007/08 (8,057) (11,065) (11,065) (11,065) (11,065)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 2 2 2 2 2
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 98 101 103 103 103
Accommodation Supplement Effects of HNZC Housing Acquisitions 2006/07 461 449 449 449 449
Aligning Student Support with Funded Qualifications 2006/07 (111) (113) (113) (113) (113)
Increasing the Student Allowance Parental Income Thresholds 2006/07 82 83 83 83 83
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 91 91 91 91 91
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 75 75 75 75 75
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 8 8 8 8 8
Accommodation Supplement Automated Reassessment of Entitlement in line with the Annual General Adjustment 2004/05 (6,414) (6,414) (6,414) (6,414) (6,414)
Benefit Stand down - Changes to remove barriers to seasonal work 2004/05 272 272 272 272 272
Extending the Student Allowance Parental Income Test to Married Students under 25 with no Dependents 2004/05 (13) (13) (13) (13) (13)
HNZC's Housing Response in Auckland 2004/05 (2,543) (2,543) (2,543) (2,543) (2,543)
Increasing Student Allowance Parental Income Thresholds 2004/05 678 678 678 678 678
Legal Recognition of Relationships 2004/05 (790) (790) (790) (790) (790)
Removing the Work history Criterion for the Independent Circumstances Grant 2004/05 (180) (180) (180) (180) (180)
Working for Families-Housing 2004/05 142,771 142,771 142,771 142,771 142,771

Benefits Paid in Australia (M63)#

Scope of Appropriation#

Reimbursement to the Australian Government for income support assistance provided to New Zealanders eligible under the 1994 Reciprocal Agreement, which was terminated for new entrants on 1 July 2002. From 1 July 2002 the Social Welfare (Reciprocity with Australia) Order 2002 came into force, with payments now reflecting pre-agreed amounts in Australian currency before adjusting for annual inflation.

Expenses#

Expenses - Benefits Paid in Australia (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 51,861 51,851 45,482 39,272 35,024 21,754

Reasons for Change in Appropriation#

Expenditure for this item will reduce in line with the agreed annual amounts payable. It is subject to Australian cost of living adjustments and exchange rate fluctuations. The large reduction in the final year represents grandparented payments for the Disability Support Pension and Parenting Payment ceasing under the Agreement after ten years of payment.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Benefits Paid in Australia (M63) - Social Development
Reference Conditions
Benefits Paid in Australia are paid under the Social Welfare (Reciprocity with Australia) Order 2002 issued pursuant to section 19 of the Social Welfare (Transitional Provisions) Act 1990. This appropriation is a result of the 1994 Social Security Agreement between the Australian and New Zealand Governments to provide income support to former New Zealand residents now living in Australia. The Agreement required the New Zealand Government to reimburse the Australian Government for assistance provided. This agreement was revised in 2002 to allow New Zealand to make direct payments to recipients of New Zealand Superannuation and Invalid's Benefit for applications made after 1 July 2002. Reimbursement provisions for people who were receiving payment as at June 2002 under the 1994 Agreement were 'grandparented'.

Childcare Assistance (M63)#

Scope of Appropriation#

Provision of assistance for the costs of childcare that meets specific quality guidelines, where parents meet activity and income criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses#

Expenses - Childcare Assistance (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 163,809 159,786 177,737 188,796 202,092 211,822

Reasons for Change in Appropriation#

The increase between 2008/09 and 2012/13 is mainly driven by more people using childcare or out of school care. In part this is due to actual and projected growth in the child population. About one-quarter of the increase in expenditure is attributable to the annual indexation adjustment. The number of children reaches a peak of nearly 60,000 by June 2013 from nearly 49,000 expected in June 2009.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Childcare Assistance (M63) - Social Development
Reference Conditions
Childcare Assistance includes the Childcare Subsidy and the Out of School Care and Recreation Subsidy (OSCAR subsidy). These are paid under section 61GA of the Social Security Act 1964 and the Social Security (Childcare Assistance) Regulations 2004 pursuant to section 132AC of the Social Security Act 1964. The Childcare Subsidy assists with pre-school costs for caregivers. The Subsidy covers children aged 0 to 4 years old, or 0 to 5 if a Child Disability Allowance is also payable. Childcare Subsidy is payable for up to 50 hours per week of attendance at an approved early childhood programme where a caregiver is engaged in an approved activity such as employment or training; has serious illness or disability or whose dependent child or children have a serious illness or disability; or up to 9 hours per week in most other cases. There are three standard levels of subsidy depending on household income. The Childcare Subsidy may be used in combination with Free Early Childhood Education for 3 and 4 year olds where hours exceed 6 per day or 20 per week. The Subsidy is a non-taxable income tested payment.
OSCAR subsidy assists with out-of-school care costs for caregivers to take up or remain in paid employment. OSCAR covers 5 to 13 year olds, and 5 to 17 if a Child Disability Allowance is also payable.
OSCAR subsidy is available for approved before and after school care for up to 20 hours per week and up to 50 hours per week in approved school holiday programmes. The caregiver must be participating in an approved activity such as employment or training. The OSCAR subsidy is a non-taxable income tested payment.
Early Learning Programme Assistance is paid under the Family Start and Early Start (Childcare Assistance) Programme pursuant to section 124(1)(d) of the Social Security Act 1964. Early Learning Programme Assistance is provided to families who are enrolled in selected Family Start or Early Start programmes. The rate provided is 20 hours per week for an eligible child under 30 months of age or 15 hours per week for an eligible child between 30 and 36 months of age. The Assistance is a non-taxable payment.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Childcare Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Extension to Limited Attendance Centres 2008/09 61 435 508 519 519
Implementing Free Early Childhood Education 2007/08 (21,138) (21,066) (21,066) (21,066) (21,066)
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 1,841 1,841 1,841 1,841 1,841
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 5,338 5,338 5,338 5,338 5,338
Enhancing Parents' Work Choices 2005/06 9,426 9,426 9,426 9,426 9,426
Temporary Additional Support: Measures to Prevent Unintended Disadvantage 2005/06 243 249 249 249 249
Working for Families-Childcare 2004/05 34,552 34,552 34,552 34,552 34,552

Disability Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to the Disability Allowance to persons with disability costs and the Child Disability Allowance to the caregivers of children with a serious disability, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses#

Expenses - Disability Assistance (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 391,060 390,168 417,439 439,215 460,568 478,704
Child Disability Allowance 98,236 98,236 107,942 116,037 124,088 130,499
Disability Allowance 291,932 291,932 309,497 323,178 336,480 348,205

Reasons for Change in Appropriation#

Increases in recipient numbers accounts for over 60% of the 2008/09 to 2009/10 increment for Disability Allowance. In the outyears the ongoing growth in the number of New Zealand Superannuation recipients aged over 75 years is expected to drive growth in expenditure. The number of recipients will grow from about 242,000 today to more than 264,000 by 2012/13. The number of Child Disability Allowance recipients continues to grow and will reach 56,000 at the end of 2012/13 from 45,000 in March 2009.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Disability Assistance (M63) - Social Development
Reference Conditions
Child Disability Allowance is paid under sections 39A to 39E of the Social Security Act 1964. Child Disability Allowance is a non-taxable allowance that is available to the principal caregiver of a dependent child who has a serious disability. The child must have a physical or mental disability, need constant care and attention because of that disability and be likely to need that care for more than 12 months. This Allowance is non-taxable payment.
Disability Allowance is paid under section 69C of the Social Security Act 1964 and the Ministerial Direction - Disability Allowance pursuant to section 5 of the Social Security Act 1964. This Allowance reimburses additional costs arising from a disability that is likely to continue for a minimum of six months. Disability Allowance only covers additional costs that are not funded or provided by other agencies. Disability Allowance may be paid to persons receiving main benefits and, on an income-tested basis, to New Zealand Superannuation and Veteran's Pension recipients and to low-income earners. The Allowance is a non-taxable payment.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Disability Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 78 78 78 78 78
Disability Allowance for People in Residential Care 2005/06 14,731 15,249 15,249 15,249 15,249
Progressive Removal of Asset Testing for older People in Long-Term Residential Care 2005/06 800 800 800 800 800
Legal Recognition of Relationships 2004/05 (117) (117) (117) (117) (117)

Domestic Purposes Benefit (M63)#

Scope of Appropriation#

Provision of income support for sole parents, caregivers of sick or infirm people or women alone, whose domestic circumstances exclude them from fully participating in the labour force. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses#

Expenses - Domestic Purposes Benefit (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,534,295 1,528,188 1,646,835 1,711,190 1,758,625 1,786,410

Reasons for Change in Appropriation#

Around three-quarters of the increase in expenditure between 2008/09 and 2009/10 is caused by a 3,600 rise in the number of recipients, with the cost of living adjustment accounting for the remainder. In the outyears over half of this growth is caused by accumulated indexation adjustments with growth in the number of recipients accounting for around one-third.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Domestic Purposes Benefit (M63) - Social Development
Reference Conditions
Domestic Purposes Benefit is paid under sections 27A to 27H of the Social Security Act 1964. Domestic Purposes Benefit provides assistance to people caring for others. Domestic purposes benefit - sole parent provides income support for sole parents with dependent children. Domestic purposes benefit - women alone provides income support for women with no dependent children who have lost the support of their partner or have finished caring for a sick relative or children after 50. Domestic purposes benefit - care of sick or infirm is available for people aged 16 or over who are caring full-time for someone other than their partner who would need hospital or other care if not in this care.
The net weekly rates paid depend on age, and domestic purposes benefit - care of sick or infirm is paid at a higher rate. The standard sole parent net rate is $263.78. The benefit is income tested. The appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Domestic Purposes Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 527 542 545 545 545
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 (22,223) (22,223) (22,223) (22,223) (22,223)
Benefit Stand down - Changes to remove barriers to seasonal work 2004/05 213 213 213 213 213
Encourage Sole parent beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (4,971) (4,971) (4,971) (4,971) (4,971)
Legal Recognition of Relationships 2004/05 (2,862) (2,862) (2,862) (2,862) (2,862)
Working for Families - Family Income Assistance 2004/05 (123,290) (123,290) (123,290) (123,290) (123,290)
Working for Families - Housing 2004/05 970 970 970 970 970

Scope of Appropriation#

Provision of assistance with costs of undertaking approved employment related training, which are paid in accordance with the criteria set out in delegated legislation under the Social Security Act 1964.

Expenses#

Expenses - Employment Related Training Assistance (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 30,385 30,385 23,467 19,797 16,470 14,767
Training Incentive Allowance 29,470 29,470 22,579 18,909 15,579 13,879
Course Participation Assistance Programme 915 915 888 888 891 888

Reasons for Change in Appropriation#

This is a capped item. The cap has been reduced in each year between 2009/10 to 2012/13. This reduction is mainly because Training Incentive Allowance will be restricted to only include courses below level 4 on the National Qualifications Framework.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Employment Related Training Assistance (M63) - Social Development
Reference Conditions
Training Incentive Allowance and Young Parent Childcare payments are paid under the Training Incentive Allowance Programme pursuant to section 124(1)(d) of the Social Security Act 1964. To qualify for the Training Incentive Allowance a client must be receiving a qualifying benefit and be enrolled in a course that: is approved employment related training, and attracts Student Component Funding or other Government funding; or is considered to meet government quality and relevance standards but is not student component funded, eg, secondary school courses and university pre-enrolment courses.
Young Parent Childcare payments can be made to some teenage parents aged under 18 to cover childcare costs to enable those parents to attend secondary education.
Course Participation Assistance is paid under the Course Participation Assistance Programme pursuant to section 124(1)(d) of the Social Security Act 1964. Course Participation Assistance helps with costs incurred through participating in short-term employment related training courses or programmes. The payment is available to assist with childcare and transport costs and some short course fees, for example, to obtain a heavy traffic licence. This Assistance is not available where a Training Incentive Allowance is already paid for the same course. It is subject to income and asset tests. The Assistance is a non-taxable payment.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Employment Related Training Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Young Parent Childcare Payment 2008/09 150 300 300 300 300
Saving Training Incentive Allowance 2009/10 - (2,037) (5,890) (9,061) (11,469)
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 (17,673) (17,646) (17,454) (17,070) (17,070)
Pilot Training Incentive Allowance Eligibility Extension to Teenage Parents 2004/05 150 150 150 150 150

Family Start/NGO Awards (M63)#

Scope of Appropriation#

Payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications.

Expenses#

Expenses - Family Start/NGO Awards (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 550 550 630
Family Start family/whanau Awards 146 146 227
Non-Government Organisation (NGO) Awards 404 404 404

Reasons for Change in Appropriation#

Maximum amounts per annum and per award (typically up to three years) apply to these items.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Family Start/NGO Awards (M63) - Social Development
Reference Conditions
Family Start family/whanau Awards are paid under Cabinet decisions. The Family Start Awards pay for course fees that enable Family Start employees to study for diploma or degree level qualifications in social work, early childhood education or health.
Non-Government Organisation (NGO) Awards are paid under Cabinet decisions. The NGO Awards pay for course fees that enable NGO staff to study for social work qualifications that meet the prerequisite educational qualifications for social worker registration.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Family Start/NGO Awards (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 300 255 255 255 255
NGO Study Awards 2005/06 525 525 525 525 525

Hardship Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to the Funeral Grants, Live Organ Donors Assistance, Special Benefit, Special Needs Grants and Temporary Additional Support to provide means-tested temporary financial assistance to persons with emergency or essential costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses#

Expenses - Hardship Assistance (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 232,369 229,199 294,920 324,029 328,971 336,529
Funeral Grants 8,804 8,804 8,887 9,061 9,231 9,346
Special Benefit 56,618 56,618 53,794 50,465 42,692 42,942
Special Needs Grants (incorporating Live Organ Donors Assistance) 64,037 64,037 78,995 82,392 78,357 75,108
Temporary Additional Support 99,740 99,740 153,244 182,111 198,691 209,133

Reasons for Change in Appropriation#

The number of people in receipt of a Special Benefit will continue to fall, at a slowing pace. This payment was closed to new applicants from April 2006 but is still subject to reviews of costs. Temporary Additional Support replaced Special Benefit for new applicants and is expected to increase in line with growing applications from people in financial hardship. Special Needs Grants is also expected to rise between 2008/09 and 2010/11 as financial hardship increases.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Hardship Assistance (M63) - Social Development
Reference Conditions
Funeral Grants are paid under sections 61D to 61DE of the Social Security Act 1964. Funeral Grants are discretionary payments designed to help people with actual and reasonable funeral costs only up to a set maximum. The Grant depends on the assessable estate of the deceased person, and on the assets and income of the surviving spouse or partner (if any) or, if the deceased is a child, on the assets and income of the parents and other persons liable in law to maintain the child. The Grant is a non-taxable payment.
Special Benefit is paid under section 23 of the Social Security (Working for Families) Amendment Act 2004 and the Direction In Relation to Special Benefit pursuant to section 5 of the Social Security Act 1964. Special Benefit provides assistance to clients whose particular financial circumstances and commitments are causing them financial hardship. Special Benefit is available to beneficiaries and low income earners who were receiving it immediately before 1 April 2006 whose Special Benefit has not been cancelled.
Special Benefit is not intended as a long-term solution to a client's financial shortfall. It is instead paid to help clients meet essential costs while they make efforts to reduce their commitments and live within their usual income. This Benefit is a non-taxable payment.
Special Needs Grants are paid under the Special Needs Grants Programme pursuant to section 124(1)(d) of the Social Security Act 1964. The Special Needs Grant assists people who have an immediate and essential or emergency need and have no other means of paying for it. The Grant includes the Rural Sector Assistance Programme, which assists farmers who are unable to meet living expenses because of adverse events (such as flooding). Special Need Grants are income and cash asset tested. The Grants are generally one-off recoverable or non-recoverable, non-taxable financial assistance, although grants can be made on a continuing basis for living expenses to some persons (for example, under the rural assistance provisions).
Live Organ Donor Assistance is paid under the Assistance to Live Organ Donors Programme and Ministerial Direction pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964. Live Organ Donor Assistance is financial assistance for people who donate a kidney or liver tissue for transplant purposes. It is not subject to income or asset tests. The Grant is a non-taxable payment.
Temporary Additional Support is paid under section 61G of the Social Security Act 1964 and the Social Security (Temporary Additional Support) Regulations 2005 made pursuant to section 132AB of the Social Security Act 1964. Temporary Additional Support provides financial assistance as a last resort to alleviate financial hardship for people whose essential costs cannot be met from their chargeable income and other resources. This support became available from 1 April 2006. This non-taxable payment is made to help meet essential living costs while clients reduce their commitments and live within their usual income. The financial assistance is available for a maximum of 13 weeks.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Hardship Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Special Needs Grant, Core Benefit Changes and Further Work 2008/09 14,000 14,000 14,000 14,000 14,000
Hardship Assistance: Implementation of Temporary Additional Support 2005/06 (2,597) (2,597) (2,597) (2,597) (2,597)
Temporary Additional Support: Measures to Prevent Unintended Disadvantage 2005/06 228 243 243 243 243
Temporary Additional Support: Ministerial Welfare Programme for Short-Term Residential Treatment Programmes 2005/06 (382) (409) (409) (409) (409)
Income Support for Live Organ Donors 2004/05 230 230 230 230 230
Working for Families-Hardship 2004/05 (91,177) (91,177) (91,177) (91,177) (91,177)

Independent Youth Benefit (M63)#

Scope of Appropriation#

Provision of income support for people aged 16 or 17 years who are currently unemployed but actively seeking work, training for work, at school, or sick, injured or disabled, where it is inappropriate for them to obtain financial support from their parents. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses#

Expenses - Independent Youth Benefit (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 15,878 15,690 19,376 20,869 21,088 19,362

Reasons for Change in Appropriation#

The increase between 2008/09 and 2009/10 mainly reflects increases in the number of recipients. Growth in the outyears is most influenced by accumulated indexation adjustments, with a lower number of recipients affecting expenditure in the final year.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Independent Youth Benefit (M63) - Social Development
Reference Conditions
Independent Youth Benefit is paid under sections 60F to 60GAC of the Social Security Act 1964. Independent Youth Benefit is for 16 to 17 year olds who are looking for work, training for work, in school or cannot work due to sickness, injury, disability or pregnancy, and it is inappropriate for them to obtain financial support from their parents. Those attending secondary school can receive this Benefit until the end of the year in which they turn 18 years old. This appropriation is inclusive of tax and is after deductions for debt establishments.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Independent Youth Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2007/08 (136) (137) (137) (137) (137)
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 36 36 36 36 36
Working for Families-Housing 2004/05 32 32 32 32 32

Invalid's Benefit (M63)#

Scope of Appropriation#

Provision of means-tested income support for people who are totally blind, or permanently and severely restricted in their capacity for work due to sickness, injury or disability. Paid in accordance with the criteria set out in the Social Security Act 1964.

Expenses#

Expenses - Invalid's Benefit (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,261,614 1,257,799 1,296,942 1,337,297 1,374,796 1,390,725

Reasons for Change in Appropriation#

Ongoing growth in expenditure is dominated by accumulated cost of living adjustments, accounting for over 80% of growth between 2008/09 and 2012/13.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Invalid's Benefit (M63) - Social Development
Reference Conditions
Invalid's Benefit is paid under sections 39F to 44A of the Social Security Act 1964. The Invalid's Benefit is paid to people who are medically assessed as having a permanent and severe disability or illness (ie, one that will last for not less than two years, or is expected to be terminal within that period) that prevents them from regularly working 15 hours or more a week in open employment. They also qualify if they are totally blind. To receive Invalid's benefit a client must be aged 16 or over.
The benefit is income tested and subject to income abatement but all personal earnings of a totally blind person are excluded. Invalid's Benefit is paid at a higher rate than other benefits with rates dependent on age and family status.
This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Invalid's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 13,221 13,496 13,762 13,762 13,762
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 26 26 26 26 26
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (67) (67) (67) (67) (67)
Legal Recognition of Relationships 2004/05 (1,065) (1,065) (1,065) (1,065) (1,065)
Working for Families-Family Income Assistance 2004/05 (2,673) (2,673) (2,673) (2,673) (2,673)
Working for Families-Housing 2004/05 280 280 280 280 280

New Zealand Superannuation (M63)#

Scope of Appropriation#

Provision of an income for people who have reached the qualifying age of 65 years and fulfil the residency requirements, as provided for in the New Zealand Superannuation and Retirement Income Act 2001.

Expenses#

Expenses - New Zealand Superannuation (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 7,761,569 7,746,379 8,246,007 8,665,266 9,185,521 9,666,448

Reasons for Change in Appropriation#

Growth in New Zealand Superannuation expenditure is about 60% due to rising number of eligible people aged 65 and over and about 40% due to accumulated indexation adjustments. Indexation includes the effect of rising Consumers Price Index and wage floor impacts.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - New Zealand Superannuation (M63) - Social Development
Reference Conditions
New Zealand Superannuation is paid under the New Zealand Superannuation and Retirement Income Act 2001. Living Alone Payment is paid in accordance with the criteria set out in the New Zealand Superannuation and Retirement Income Act 2001 and in the Ministerial Direction - Living Alone Payments pursuant to section 5 of the Social Security Act 1964. New Zealand Superannuation provides income for people who have reached the qualifying age of 65 and fulfil the residency requirements. The Living Alone Payment is an additional rate of New Zealand Superannuation which recognises the extra costs for clients maintaining a household on their own. New Zealand Superannuation at a higher, income-tested rate is also paid on the election of a person with a spouse or partner who does not qualify for New Zealand Superannuation.
With the exception of the higher rate where a non-qualified spouse is included New Zealand Superannuation is not income tested.
This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - New Zealand Superannuation (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Setting New Zealand Superannuation and Veteran's Pension rates at a minimum of 66% of the net average wage 2009/10 - 1,523 $6,423 $6,707 $7,000
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 297 1,245 1,303 1,349 1,349
New Zealand Superannuation and Veteran's Pension: Extension of Payment Overseas to Recognised Aid Agency Volunteers 2006/07 354 354 354 354 354
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 90,098 56,667 4,157 4,157 4,157
Single Rates of New Zealand Superannuation for Some Married People 2006/07 8,341 8,341 8,341 8,341 8,341
Removal of Sharing Expenses Rule for Eligibility to the Living Alone Payment 2005/06 186 186 186 186 186
Legal Recognition of Relationships 2004/05 (1,037) (1,037) (1,037) (1,037) (1,037)
Working for Families-Housing 2004/05 20 20 20 20 20

Orphan's/Unsupported Child's Benefit (M63)#

Scope of Appropriation#

Provision of income support for people charged with the responsibility for the care of a child whose parents are dead or cannot be located, or suffer a serious long-term disablement which renders them unable to care for the child, or where there has been a breakdown in the child's family. Paid in accordance with criteria set out in the Social Security Act 1964. It also provides for payments to former foster parents receiving Orphan's Benefit or Unsupported Child's Benefit for a child previously in the care of Child, Youth and Family in accordance with criteria set out in delegated legislation under the Act.

Expenses#

Expenses - Orphan's/Unsupported Child's Benefit (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 87,739 87,289 97,056 100,938 105,236 108,174

Reasons for Change in Appropriation#

The effects of indexation and the rising number of children for whom this is payable contribute to the 2008/09 to 2009/10 increase. In the outyears ongoing indexation is the largest driver of expenditure.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Orphan's/Unsupported Child's Benefit (M63) - Social Development
Reference Conditions
The Orphan's and Unsupported Child's Benefits are paid under sections 28, 29A and 31 of the Social Security Act 1964. Orphan's Benefit and Unsupported Child's Benefit are paid to a caregiver of a dependent child whose parent(s) cannot support them or care for them because the parents are dead, cannot be located, suffer a serious long-term disablement or there has been a breakdown in the child's family. The applicant must be likely to be the principal caregiver for at least one year from the date of application for the benefit. Both Benefits are not income tested on the caregiver's income or assets but are on the child's income excluding the personal earnings of the child. Both Benefits are non-taxable payments.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Orphan's/Unsupported Child's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Alignment of UCB/OB weekly rates with the FCA weekly board rates 2008/09 1,781 7,314 7,580 7,898 7,898
Increasing Financial Support for Caregivers Receiving Unsupported Child's Benefit/Orphan's Benefit 2006/07 6,851 7,157 7,157 7,157 7,157
Working for Families-Family Income Assistance 2004/05 7,516 7,516 7,516 7,516 7,516

Redundancy Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to paying assistance for a limited period to people made redundant, pursuant to the conditions and criteria set out in ReStart Transitional Relief Ministerial Welfare Programme 2008 and the Social Security Act 1964

Expenses#

Expenses - Redundancy Assistance (M63) - Social Development
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,957 2,457 21,367

Reasons for Change in Appropriation#

The increase in expenditure between 2008/09 and 2009/10 is because 2009/10 is a full year's spend and because there is higher anticipated demand for this payment.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Redundancy Assistance (M63) - Social Development
Reference Conditions
ReStart assistance is paid under the ReStart Transitional Relief Ministerial Welfare Programme. ReStart provides short-term support to low to moderate income families with children and low to middle income people with high housing costs, who have been made redundant from full-time work or have ceased full time self employment. ReStart is available to people who have been in employment for the previous six months and are looking for full time work. ReStart can be paid for up to 16 weeks or until a person returns to work, whichever is earlier.
ReStart payments can be suspended in specified circumstances.

ReStart is made up of:
  • ReCover - a payment for people with dependent children and who are no longer entitled to an in-work tax credit
  • RePlace - an extra payment to help people with their accommodation costs if they are already getting the maximum Accommodation Supplement, and
  • ReConnect - services to help with finding a job.
Applications are to be made within 20 working days after the date of redundancy and up until 31 December 2010. The Programme expires with the end of the last grant to be made in respect of any application granted prior to 1 January 2011.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Redundancy Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
ReStart: Transitional Relief Package 2008/09 2,981 30,890 14,515 - -

Sickness Benefit (M63)#

Scope of Appropriation#

Provision of means-tested income support for people who are not in full-time employment and are limited in their capacity for work, or who are in employment but working at a reduced level, because of sickness, injury, disability or pregnancy. Paid in accordance with the criteria set out in the Social Security Act 1964.

Expenses#

Expenses - Sickness Benefit (M63) - Social Development
  2008/09 2009/10 2010/11 2011/12 2012/13
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 612,826 610,191 691,852 736,216 747,151 750,840

Reasons for Change in Appropriation#

The number of Sickness Benefit recipients rises by over 11% (5,800) between 2008/09 and 2009/10 reflecting weak economic conditions. Growth in the number of recipients also increases expenditure into 2010/11. This growth accounts for around 85% of the increase in expenditure between 2008/09 and 2010/11. Accumulated indexation adjustments also increase expenditure between 2009/10 and 2012/13.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Sickness Benefit (M63) - Social Development
Reference Conditions
The Sickness Benefit is paid under sections 54 to 54F of the Social Security Act 1964. It includes Sickness Benefit on grounds of hardship as set out in the Emergency Benefit and Benefits on Ground of Hardship Ministerial Direction pursuant to section 5 of the Social Security Act 1964. Sickness Benefit provides assistance to those who are willing to undertake work but are limited in their capacity to work due to sickness, injury or disability. Sickness Benefit is also available from the 27th week of pregnancy (earlier if there are complications). It is not a work-tested benefit except for the spouse or partner of clients in receipt of Sickness Benefit. Weekly rates depend on age and family status and the benefit is income-tested. The sole parent rate is the same as for the Domestic Purposes Benefit.
Sickness benefit on grounds of hardship is paid where an applicant meets the sickness criteria but not the residential criteria for entitlement to sickness benefit , and is in hardship.
This Benefit is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Sickness Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 (485) (549) (549) (549) (549)
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 239 239 239 239 239
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (41) (41) (41) (41) (41)
Legal Recognition of Relationships 2004/05 (1,092) (1,092) (1,092) (1,092) (1,092)
Working for Families-Family Income Assistance 2004/05 (6,839) (6,839) (6,839) (6,839) (6,839)
Working for Families-Housing 2004/05 617 617 617 617 617

Summary of Financial Activity#

Summary of Financial Activity - Transport
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental