Information supporting the estimates of appropriations

Environment Sector - Information Supporting the Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2009

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 Environment Sector volume of the Information Supporting the Estimates 2008/09 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Environment
  • Vote Climate Change
  • Vote Conservation
  • Vote Local Government
  • Vote Parliamentary Commissioner for the Environment

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Ministry for the Environment
  • Department of Conservation
  • Parliamentary Commissioner for the Environment

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

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2009#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 302009 - Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Balance at 1 July

         
General funds   2,043 3,039 3,039 3,712
Revaluation reserve   - - - -
Other reserves   - - - -

Taxpayers' Funds Opening Balance

  2,043 3,039 3,039 3,712

Changes in Taxpayers' Funds

         

Income and Expense for the Period

         
Net surplus / (deficit) for the year   676 5 5 5
Total gains / (losses) taken to equity   - - - -

Total Income and Expense for the Period

  676 5 5 5

Other Changes

         
Repayment of surplus   (676) (5) (5) (5)
Capital contribution   996 673 673 1,604
Capital withdrawal   - - - -
Other   - - - -

Total Changes in Taxpayers' Funds

  996 673 673 1,604

Balance at 30 June

         
General funds   3,039 3,712 3,712 5,316
Revaluation reserve   - - - -
Other reserves   - - - -

Taxpayers' Funds Closing Balance

  3,039 3,712 3,712 5,316

 

Forecast Statement of Financial Position as at 30 June 2009#

 

Forecast Statement of Financial Position as at 30 June 2009 - Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   10,249 7,390 7,390 8,051
Debtors and other receivables   1,231 350 350 350
Prepayments   155 100 100 100
Inventories   - - - -
Other current assets   - - - -

Total Current Assets

  11,635 7,840 7,840 8,501

Non-current Assets

         
Property, plant and equipment   3,031 2,325 2,325 1,385
Intangible assets   296 832 832 2,715
Other non-current assets   - - - -

Total Non- current Assets

  3,327 3,157 3,157 4,100

Total Assets

  14,962 10,997 10,997 12,601

Liabilities

         

Current Liabilities

         
Creditors and other payables   9,193 5,880 5,880 5,880
Repayment of surplus   676 5 5 5
Employee entitlements   1,300 785 785 785
Other current liabilities   - - - -

Total Current Liabilities

  11,169 6,670 6,670 6,670

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   754 615 615 615
Other non-current liabilities   - - -- -

Total Non-current Liabilities

  754 615 615 615

Total Liabilities

  11,923 7,285 7,285 7,285

Taxpayers' Funds

         
General funds   3,039 3,712 3,712 5,316
Revaluation reserve   - - - -
Other reserves   - - - -

Total Taxpayers' Funds

  3,039 3,712 3,712 5,316

Total Liabilities and Taxpayers' Funds

  14,962 10,997 10,997 12,601

 

Statement of Forecast Cash Flows for the year ending 30 June 2009#

 

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2009 - Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   49,503 61,296 61,296 78,320
Department(s)   452 572 572 428
Other   381 3,060 3,060 667
Interest   - - - -

Payments to:

         
Suppliers   (27,225) (42,252) (42,252) (53,930)
Employees   (20,871) (25,089) (25,089) (23,418)
Capital charge   (177) (228) (228) (278)
Goods and services tax (net)   (643) 646 646 -
Other operating activities   - - - -

Net Cash from Operating Activities

2 1,420 (1,995) (1,995) 1,789

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   6 5 5 5
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (1,326) (422) (422) (390)
Intangible assets   (82) (444) (444) (2,342)
Other non-current assets   - - - -

Net Cash from Investing Activities

  (1,402) (861) (861) (2,727)

Cash Flow from Financing Activities

         
Capital contribution   996 673 673 1,604
Other financing cash inflows   - - - -
Repayment of surplus   (1,902) (676) (676) (5)
Capital withdrawal   - - - -
Other financing cash outflows   - - - -

Net Cash from Financing Activities

  (906) (3) (3) 1,599

Net Increase / (Decrease) in Cash

  (888) (2,859) (2,859) 661
Cash at the beginning of the year   11,137 10,249 10,249 7,390
Cash at the end of the year   10,249 7,390 7,390 8,051

 

Statement of Significant Assumptions#

 

These forecast financial statements have been compiled on the basis of existing government policies and Ministerial expectations at the time the statements were finalised.

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 300 full time equivalent staff.
  • Operating costs are based on historical experience and various other factors that are believed to be reasonable under the circumstances.
  • The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revisions and future periods if the revision affects both current and future periods.
  • Estimated year end information for 2007/08 is used as the opening position for the 2008/09 forecasts.

These assumptions are adopted as at 02 April 2008.

Factors that could lead to material differences between the forecast financial statements and the 2008/09 actual financial statements include:

  • Changes to the baseline budget through new initiatives, or technical adjustments.

Department-Specific Accounting Policies#

The Ministry for the Environment has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Ministry for the Environment, prepared in accordance with section 38 of the Public Finance Act 1989.

Ministry for the Environment is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Ministry for the Environment is a public benefit entity.

Statement of Entity-Specific Accounting Policies

Revenue

Rental income

Rental income is recognised in the Statement of Financial Performance on a straight-line basis over the term of the lease. Lease incentives granted are recognised evenly over the term of the lease as a reduction in total rental income.

Leases

Finance leases

The Ministry for the Environment is not permitted to enter into finance leases under the Public Finance Act 1989.

Expenses

Grants/subsidies

Where grants and subsidies are discretionary until payment, the expense is recognised when the payment is made. Otherwise, the expense is recognised when the specified criteria have been fulfilled and notice has been given to the Crown.

Property, plant and equipment

Capitalisation thresholds applied are set out below:

  • IT equipment/hardware - $1,500.
  • All other property, plant and equipment - $1,500.

Depreciation

The estimated useful lives of property, plant and equipment are set out below:

  • Furniture and fittings - 5 years.
  • Office equipment - 5 years.
  • Computer hardware - 3 years.

Intangible assets

Capitalisation thresholds applied are set out below:

  • Purchased software - $1,500.

The estimated useful lives of intangible assets are set out below:

  • Purchased software - 3 years.

Cost allocation

The Ministry derives the costs of outputs using a cost allocation system. Direct costs are charged directly to the Ministry's outputs. Indirect costs are charged to outputs based on a primary cost driver of salaried full-time equivalent staff.

'Direct costs' are those costs directly attributed to an output. 'Indirect costs' are those costs that cannot be directly associated with a specific output.

 

Notes to the Financial Statements#

 

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Environment
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Operating expenses (as currently estimated) include:        
Consultants (including contractors) fees 11,823 14,887 14,887 15,970
Overseas travel 874 1,332 1,332 1,482
Domestic travel 1,319 1,417 1,417 1,446
Grants, contributions and sponsorships 2,931 3,162 3,162 3,200
Rental, leasing and other property costs 2,638 3,090 3,090 3,183
Training 445 653 653 650
Network Operating Expenses 926 1,116 1,116 1,100
Research and Development (calculation of carbon sinks under the Kyoto Protocol) 3,221 4,468 4,468 10,506
Planning and Reporting (Carbon Neutral Public Service) - 550 550 2,100
Other - Invest in offsets for six lead agencies under Carbon Neutral Public Service initiative - 150 150 5,000
Other - Further the work relating to the implementation of the Waste Minimisation and Resource Recovery Bill - - - 2,893
Other - Hosting of World Environment Day - 2,937 2,937 -
Other - Costs associated with implementing the Emissions Trading Scheme (forums, technical advisory groups, iwi engagement, public awareness) - 768 768 900
Other 3,193 4,394 4,394 5,434

Total operating expenses

27,370 38,924 38,924 53,864

 

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the Year Ended 30 June 2009#

 

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the Year Ended 30 June 2009 - Environment
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Net surplus / (deficit)    676 5 5 5
Add / (less) non-cash items        
Depreciation and amortisation expense 582 1,036 1,036 1,789
Total non-cash items 582 1,036 1,036 1,789
Add / (less) items classified as investing or financing activities        
(Gains) / losses on disposal of property, plant and equipment 3 (5) (5) (5)
Total items classified as investing or financing activities 3 (5) (5) (5)
Add / (less) movements in working capital items        
(Inc) / Dec in debtors and other receivables (558) 881 881 -
(Inc) / Dec in prepayments (22) 55 55 -
Inc / (Dec) in creditors and other payables 399 (3,313) (3,313) -
Inc / (Dec) in employee entitlements 205 (515) (515) -
Net movements in working capital items 24 (2,892) (2,892) -
Add / (less) movements in non-current liabilities        
Inc / (Dec) in employee entitlements 135 (139) (139) -
Net movements in non-current liabilities 135 (139) (139) -
Net cash from operating activities 1,420 (1,995) (1,995) 1,789

 

Forecast Financial Statements Department of Conservation#

 

Statement of Forecast Financial Performance for the year ending 30 June 2009#

Statement of Forecast Financial Performance for the year ending 30 June 2009 - Conservation
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Income

         
Crown   251,175 263,950 257,325 280,727
Department(s)   1,852 3,299 3,299 2,959
Other revenue   27,121 32,190 32,190 32,190
Gains   - - - -
Interest   - - - -

Total Income

  280,148 299,439 292,814 315,876

Expenses

         
Personnel   121,686 128,705 128,705 128,938
Operating   100,750 115,231 112,217 121,374
Depreciation and amortisation   18,758 21,480 17,869 27,950
Capital charge   29,460 31,723 31,723 38,214
Finance costs   - - - -
Other   2,532 3,000 3,000 -

Total Expenses

  273,186 300,139 293,514 316,476

Net Surplus / (Deficit)

  6,962 (700) (700) (600)

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2009#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 302009 - Conservation
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Balance at 1 July

         
General funds   301,306 309,773 309,773 332,327
Revaluation reserve   85,743 113,412 113,412 113,412
Other reserves   - - - -

Taxpayers' Funds Opening Balance

  387,049 423,185 423,185 445,739

Changes in Taxpayers' Funds

         

Income and Expense for the Period

         
Net surplus / (deficit) for the year   6,962 (700) (700) (600)
Total gains / (losses) taken to equity   28,398 - - -

Total Income and Expense for the Period

  35,360 (700) (700) (600)

Other Changes

         
Repayment of surplus   (6,333) - - -
Capital contribution   7,274 23,254 23,254 105,920
Capital withdrawal   (165) - - -
Other   - - - -

Total Changes in Taxpayers' Funds

  36,136 22,554 22,554 105,320

Balance at 30 June

         
General funds   309,773 332,327 332,327 437,647
Revaluation reserve   113,412 113,412 113,412 113,412
Other reserves   - - - -

Taxpayers' Funds Closing Balance

  423,185 445,739 445,739 551,059

 

Forecast Statement of Financial Position as at 30 June 2009#

 

Forecast Statement of Financial Position as at 30 June 2009 - Conservation
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   25,305 16,205 24,103 21,422
Debtors and other receivables   55,682 46,543 52,647 49,459
Prepayments   1,270 1,270 1,270 1,270
Inventories   1,184 1,185 1,185 1,185
Other current assets   - - - -

Total Current Assets

  83,441 65,203 79,205 73,336

Non-current Assets

         
Property, plant and equipment 1 383,526 415,077 401,800 510,296
Intangible assets 2 2,741 3,864 3,752 5,202
Other non-current assets   - - - -

Total Non- current Assets

  386,267 418,941 405,552 515,498

Total Assets

  469,708 484,144 484,757 588,834

Liabilities

         

Current Liabilities

         
Creditors and other payables   17,501 15,716 16,329 15,086
Repayment of surplus   6,332 - - -
Employee entitlements   10,556 10,556 10,556 10,556
Other current liabilities   2,235 2,234 2,234 2,234

Total Current Liabilities

  36,624 28,506 29,119 27,876

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   9,899 9,899 9,899 9,899
Other non-current liabilities   - - -- -

Total Non-current Liabilities

  9,899 9,899 9,899 9,899

Total Liabilities

  46,523 38,405 39,018 37,775

Taxpayers' Funds

         
General funds   309,773 332,327 332,327 437,647
Revaluation reserve   113,412 113,412 113,412 113,412
Other reserves   - - - -

Total Taxpayers' Funds

  423,185 445,739 445,739 551,059

Total Liabilities and Taxpayers' Funds

  469,708 484,144 484,757 588,834

 

Statement of Forecast Cash Flows for the year ending 30 June 2009#

 

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2009 - Conservation
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   253,322 274,047 261,318 284,720
Department(s)   1,727 3,818 3,818 2,959
Other   26,849 30,712 30,712 31,385
Interest   - - - -

Payments to:

         
Suppliers   (95,808) (115,284) (112,608) (120,344)
Employees   (123,129) (128,705) (128,705) (128,938)
Capital charge   (29,460) (31,723) (31,723) (38,214)
Goods and services tax (net)   (330) (1,733) (782) (2,273)
Other operating activities   - - - -

Net Cash from Operating Activities

3 33,171 31,132 22,030 29,295

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   815 - - -
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (31,526) (52,154) (35,154) (50,615)
Intangible assets   - - - -
Other non-current assets   - - - -

Net Cash from Investing Activities

  (30,711) (52,154) (35,154) (50,615)

Cash Flow from Financing Activities

         
Capital contribution   7,274 18,254 18,254 18,639
Other financing cash inflows   - - - -
Repayment of surplus   (6,264) (6,332) (6,332) -
Capital withdrawal   (165) - - -
Other financing cash outflows   - - - -

Net Cash from Financing Activities

  845 11,922 11,922 18,639

Net Increase / (Decrease) in Cash

  3,305 (9,100) (1,202) (2,681)
Cash at the beginning of the year   22,000 25,305 25,305 24,103
Cash at the end of the year   25,305 16,205 24,103 21,422

 

Statement of Significant Assumptions#

 

These forecast financial statements have been compiled on the basis of Government policies and the Estimates of Appropriation relating to Vote Conservation presented by the Government. They reflect decisions made by the Government during the 2008/09 budget process up to April 2008.

The primary underlying assumption upon which this financial information has been prepared is that the department's activities will remain substantially the same as for the previous year.

Personnel and operating costs are based on historical experience. The general historical pattern is expected to continue and the estimated year end information for 2007/08 is used as the opening position for the 2008/09 forecasts.

Department-Specific Accounting Policies#

The Department of Conservation has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Department of Conservation, prepared in accordance with section 38 of the Public Finance Act 1989.

Department of Conservation is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Department of Conservation is a public benefit entity.

Statement of Entity-Specific Accounting Policies

Property, plant and equipment

Capitalisation thresholds applied are set out below:

Capitalisation Thresholds for PPE - Conservation
Capital Item Threshold amount
IT Equipment / Hardware $5,000
All other Property, Plant and Equipment $5,000

The estimated useful lives of property, plant and equipment are set out below:

The estimated useful live of PPE - Conservation
Capital Item Estimated useful life
Buildings 20-40 years
Furniture, computers, other office equipment 5 years
Vehicles 6 years and 8 months (With a 30% salvage value)

Other Categories

 

Visitor Assets

 
Amenity areas 10-25 years
Signs 5-10 years
Tracks 6-25 years
Roads (surface only) 10-22 years
Campsites 10-20 years
Toilets 20-50 years
Structures 25-50 years
Other buildings 35-50 years
Plant and field equipment 10 years
Radio equipment 5-10 years

Vessels

 
Engines 10 years
Hulls 15 years

Infrastructure

 
Industrial fire equipment 45 years
Landscaping 44 years
Roads 10-100 years
Sewerage works 64 years
Solid waste works 38 years
Stream control 98 years
Water supply 60 years

Intangible assets

Capitalisation thresholds applied are:

Capitalisation threshold for intangible assets - Conservation
Capital Item Threshold amount
Purchased software $5,000
Internally developed software $5,000

The estimated useful lives of intangible assets are set out below:

The estimated useful live of intangible assets - Conservation
Capital Item Estimated useful life
Purchased software 5-10 years
Internally developed software 5-10 years

Notes to the Financial Statements#

Note 1 - Property, Plant and Equipment
Note 1 - Property, Plant and Equipment - Conservation
  Land
$000
Buildings
$000
Leasehold improvements
$000
Furniture/office equipment
$000
Other
$000
Total
$000
Cost or revaluationBalance as at 1 July 2008 17,447 135,353 - 62,392 604,972 820,164
Additions by purchase - 4,158 - 9,004 34,580 47,742
Additions internally developed - - - - - -
Revaluation increase 5,000   - - - 5,000
Transfer from Crown - Fencing Assets - - - 82,281 - 82,281
Disposals - - - - - -
Balance as at 30 June 2009 22,447 139,511 - 153,677 639,552 955,187
Accumulated depreciation and impairment losses
Balance as at 1 July 2008
- 77,056 - 28,444 312,864 418,364
Depreciation expense - 2,567 - 8,416 15,544 26,527
Eliminate on disposal - - - - - -
Eliminate on revaluation - - - - - -
Transfers between classes - - - - - -
Impairment losses - - - - - -
Balance as at 30 June 2009 - 79,623 - 36,860 328,408 444,891
Carrying amount as at 30 June 2009 22,447 59,888 - 116,817 311,144 510,296

Note - Other is mostly made up of Visitor Assets.

 

Note 2 - Intangible Assets#

 

Note 2 - Intangible Assets - Conservation
  Acquired software
$000
Internally
generated software
$000
Other
$000
Total
$000
Cost        
Balance as at 1 July 2008 8,605 - - 8,605
Additions by purchase 2,873 - - 2,873
Additions internally developed - - - -
Disposals - - - -
Balance as at 30 June 2009 11,478 - - 11,478

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2008 4,853 - - 4,853
Amortisation expense 1,423 - - 1,423
Disposals - - - -
Impairment losses - - - -
Balance as at 30 June 2009 6,276  - - 6,276
Carrying amount as at 30 June 2009 5,202 - - 5,202

 

Note 3 - Reconciliation of Net Surplus to Net Cash Flows#

 

Note 3 - Reconciliation of Net Surplus to Net Cash Flows - Conservation
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Net surplus / (deficit) 6,962 (700) (700) (600)
Add/ (less) non-cash items        
Depreciation and amortisation expense 18,758 21,480 17,869 27,950
Asset write-offs 273 - - -
Total non-cash items 19,031 21,480 17,869 27,950
Add/ (less) items classified as investing or financing activities        
(Gains)/ losses on disposal property, plant and equipment 2,259 3,000 3,000 -
Total items classified as investing or financing activities 2,259 3,000 3,000 -
Add/ (less) movements in working capital items        
(Inc)/ Dec in receivables and prepayments 1,594 9,139 3,035 3,188
(Inc)/ Dec in inventories 156 (1) (1) -
Inc/ (Dec) in creditors and other payables 2,187 (2,583) (1,970) (1,243)
Inc/ (Dec) in provisions 982 797 797 -
Net movements in working capital items 4,919 7,352 1,861 1,945
Net cash from operating activities 33,171 31,132 22,030 29,295

 

Note 4 - Capital Expenditure#

 

Note 4 - Capital Expenditure - Conservation
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Capital Expenditure $000 $000 $000 $000
Buildings 6,564 882 882 4,158
Plant and Equipment 3,538 16,249 9,249 8,828

Other

       
Visitor Assets 15,795 28,000 18,000 28,400
Motor vehicles and vessels 1,858 5,838 5,838 6,180
Furniture and office equipment 488 62 62 176
Total other 18,141 33,900 23,900 34,756
Software and licences purchased 3,283 1,123 1,123 2,873
Total capital expenditure 31,526 52,154 35,154 50,615

 

Forecast Financial Statements Parliamentary Commissioner for the Environment#

 

Statement of Forecast Financial Performance for the year ending 30 June 2009#

Statement of Forecast Financial Performance for the year ending 30 June 2009 - Parliamentary Commissioner for the Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Income

         
Crown   2,922 2,286 2,286 2,736
Department(s)   - - - -
Other revenue   - 3 3 3
Gains   - - - -
Interest   - - - -

Total Income

  2,922 2,289 2,289 2,739

Expenses

         
Personnel   1,597 1,288 1,104 1,481
Operating   1,131 916 1,111 1,094
Depreciation and amortisation   63 72 61 117
Capital charge   13 13 13 47
Finance costs   - - - -
Other   - - - -

Total Expenses

  2,804 2,289 2,289 2,739

Net Surplus / (Deficit)

  118 - - -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2009#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 302009 - Parliamentary Commissioner for the Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Balance at 1 July

         
General funds   172 172 172 622
Revaluation reserve   - - - -
Other reserves   - - - -

Taxpayers' Funds Opening Balance

  172 172 172 622

Changes in Taxpayers' Funds

         

Income and Expense for the Period

         
Net surplus / (deficit) for the year   118 - - -
Total gains / (losses) taken to equity   - - - -

Total Income and Expense for the Period

  118 - - -

Other Changes

         
Repayment of surplus   (118) - - -
Capital contribution   - 450 450 -
Capital withdrawal   - - - -
Other   - - - -

Total Changes in Taxpayers' Funds

  - 450 450 -

Balance at 30 June

         
General funds   172 622 622 622
Revaluation reserve   - - - -
Other reserves   - - - -

Taxpayers' Funds Closing Balance

  172 622 622 622

 

Forecast Statement of Financial Position as at 30 June 2009#

 

Forecast Statement of Financial Position as at 30 June 2009 - Parliamentary Commissioner for the Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   459 788 599 186
Debtors and other receivables   - - - -
Prepayments   16 - - -
Inventories   - - - -
Other current assets   - - - -

Total Current Assets

  475 788 599 186

Non-current Assets

         
Property, plant and equipment   115 142 163 561
Intangible assets   44 14 - -
Other non-current assets   - - - -

Total Non- current Assets

  159 156 163 561

Total Assets

  634 944 762 747

Liabilities

         

Current Liabilities

         
Creditors and other payables   151 205 84 69
Repayment of surplus   118 - - -
Employee entitlements   193 117 56 56
Other current liabilities   - - - -

Total Current Liabilities

  462 322 140 125

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   - - - -
Other non-current liabilities   - - -- -

Total Non-current Liabilities

  - - - -

Total Liabilities

  462 322 140 125

Taxpayers' Funds

         
General funds   172 622 622 622
Revaluation reserve   - - - -
Other reserves   - - - -

Total Taxpayers' Funds

  172 622 622 622

Total Liabilities and Taxpayers' Funds

  634 944 762 747

 

Statement of Forecast Cash Flows for the year ending 30 June 2009#

 

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2009 - Parliamentary Commissioner for the Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   2,922 3,054 2,723 2,723
Department(s)   - - - -
Other   - 3 3 3
Interest   - - - -

Payments to:

         
Suppliers   (1,251) (1,367) (1,381) (1,105)
Employees   (1,603) (1,281) (1,100) (1,472)
Capital charge   (13) (13) (13) (47)
Goods and services tax (net)   5 - (25) -
Other operating activities   - - - -

Net Cash from Operating Activities

  60 396 207 102

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   - - - -
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (28) (67) (67) (515)
Intangible assets   (31) - - -
Other non-current assets   - - - -

Net Cash from Investing Activities

  (59) (67) (67) (515)

Cash Flow from Financing Activities

         
Capital contribution   - - - -
Other financing cash inflows   - - - -
Repayment of surplus   (93) - - -
Capital withdrawal   - - - -
Other financing cash outflows   - - - -

Net Cash from Financing Activities

  (93) - - -

Net Increase / (Decrease) in Cash

  (92) 329 140 (413)
Cash at the beginning of the year   551 459 459 599
Cash at the end of the year   459 788 599 186

 

Statement of Significant Assumptions#

 

These forecast financial statements have been compiled on the basis of outputs agreed with the Speaker of the House of Representatives at the time the statements were finalised.

The main assumptions are as follows:

  • The office activities will remain substantially the same as for last year.
  • Personnel costs are based on 18 staff positions (15 full time equivalents).
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimate year end information for 2007/08 is used as the opening position for the 2008/09 forecasts.

These assumptions are adopted as at 16 April 2008.

Factors that could lead to material differences between the forecast financial statements and the 2008/09 actual financial statements include:

  • Changes to the baseline budget through new initiatives, or technical adjustments.
  • Changes to the Permanent Legislative Authority.

Department-Specific Accounting Policies#

The Office of the Parliamentary Commissioner for the Environment has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Office of the Parliamentary Commissioner for the Environment, prepared in accordance with section 38 of the Public Finance Act 1989.

Office of the Parliamentary Commissioner for the Environment is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Office of the Parliamentary Commissioner for the Environment is a public benefit entity.

Statement of Entity-Specific Accounting Policies

The Parliamentary Commissioner for the Environment has applied the accounting policies set out in the Statement of Common Accounting Policies in this document, except as stated below.

Property, plant and equipment

Capitalisation thresholds applied are set out below.

  • IT Equipment/Hardware $1,000.
  • All other property, plant and equipment $1,000.
Depreciation

The estimated useful lives of property, plant and equipment are set out below.

  • Leasehold improvements (office fit-out) 10 years (10%).
  • IT Equipment/Hardware 4 years (25%).
  • Furniture, fittings and fixtures 10 years (10%).
  • Other office equipment 5 years (20%).
Intangible assets

Capitalisation thresholds applied are:

  • Purchased software $1,000.

The estimated useful lives of intangible assets are set out below.

  • Purchased software 4 years (25%).
Cost allocation

The Parliamentary Commissioner for the Environment has one output only. All costs are allocated directly to that output.

 

Introduction#

 

Purpose of Information Supporting the Estimates#

The Information Supporting the Estimates provides members of Parliament with additional performance information in order 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 the Crown and individual departments and Offices 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 House of Representatives. 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
  • National Identity Sector
  • Primary Sector
  • Social Development and Housing Sector.

Votes and departments included in each sector are listed in the following table.

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 Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector)  
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)  
Votes by Sector Departments by Sector
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Parliamentary Service Parliamentary Service
Vote Audit Controller and Auditor-General
Vote Ombudsmen Office of the Ombudsmen
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
National Identity 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 also 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 usually 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 and 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; 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.

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 or other unrequited expenses, or borrowing expenses.

Other expenses is the residual expense 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 sum; and an output expense appropriation can cover more than one class of outputs.

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

Standard Output Expense Appropriation

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

Departmental or non-departmental:  Authorises 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 New Zealand 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 Appropriation (MCOA)

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

Departmental or non-departmental:  Authorises 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 New Zealand 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 Appropriation (RDA)

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

Departmental only:  Authorises a department or an Office of Parliament to incur expenses in supplying a specified 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 to the 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:  Authorises 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 otherwise required to obtain or 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 together 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 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 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. 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.

Sector Overview#

The first component of the Information Supporting the Estimates may include a statement, agreed by all Ministers responsible for appropriations in Votes 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 on future operating intentions of departments in the sector.

Performance Information for Appropriations in Each Vote#

The second component of the Information Supporting the Estimates presents performance information relating to each appropriation, ordered by Vote and appropriation type.

The title page for each Vote specifies the Minister(s) responsible for existing and proposed appropriations in the Vote, the administering department for the Vote, and the Responsible Minister for that 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 a 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 between the appropriations and high-level priorities and outcomes to which they contribute. Where applicable, priorities and outcomes are drawn from the Government's themes and sub-themes, and published strategy documents. Links may also be made to specific Government objectives.
  • Part 1.3 - Trends in the Vote - A presentation of 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 (Budget) year and the following three years (estimated) for types of appropriations and Crown revenue and capital receipts.
    • Budget Policy Initiatives - A table showing how new initiatives (and 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 of Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, with graphical presentations and explanations of significant changes.
  • Part 1.4 - Reconciliation of Changes in Appropriation Structure - A table providing a reconciliation and explanation of 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 or 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 between revenue from 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 the 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 where the relationships are direct or involve a small number of output expenses. Where the relationships are more complex, this information will be included in high-level objectives of the Vote outlined in Part 1.2. Conditions of use include administrative criteria and processes contained in legislation, regulations and Government decisions, which may be referenced in scope statements or performance measures. The current and past policy initiatives table provides a five-year history of announced initiatives that impact on the Budget year, the preceding year and the following three years.

For MCOAs, 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. Data 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 actual 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 Unrequited 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.

 

Guide to Reading Information Supporting the Estimates (continued)#

 

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 for these appropriations is the same as that for non-departmental benefits and other unrequited expenses, except that conditions on use of an appropriation are not 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 used. 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 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.

Overview of Performance Information

The following table summarises the performance information sought for a ‘standard’ appropriation in each sub-part.

Standard Appropriations Part 2.1 Part 2.2 Part 3.2 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
Expenses N/A N/A N/A
Capital expenditure 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
Expected results N/A N/A N/A N/A
Conditions on use of appropriation N/A N/A
Memorandum account 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
Reporting mechanism N/A N/A N/A N/A N/A N/A

Information on reasons for change, conditions of 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.

Guide to Reading Information Supporting the Estimates (continued)#

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 of each department included in the sector, by reference to performance information set out in Part 2.1 of Votes containing appropriations proposed to be used by the department. This Statement is of particular importance for those departments proposing to use appropriations in more than one Vote.

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 Financial Performance
  • Statement of Forecast Changes in Taxpayers' Funds
  • Statement of Forecast 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.

Statements of Intent of Departments#

The final component of the Information Supporting the Estimates presents the Statements of Intent of departments included in each sector. These Statements contain 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.
  • Additional information and 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 Estimates and the Information Supporting the Estimates.

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.
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 hold appropriations within a single Vote, each appropriation has 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 one department.

 

The suite of Budget 2008 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2008. 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 - Environment Sector#

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 Environment Sector is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

Hon Steve Chadwick
Responsible Minister for the Department of Conservation
16 April 2008

Hon Trevor Mallard
Responsible Minister for the Ministry for the Environment
16 April 2008

 

Chief Executive Statements of Responsibility#

Ministry for the Environment#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Environment Sector relating to the Ministry for the Environment and for the Vote/Votes for which the Ministry for the Environment is the administering department. Specifically, this information is contained in the Ministry for the Environment'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 (2008/09 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.

Rochelle Davis
Chief Financial Officer
Ministry for the Environment
16 April 2008
Counter-signed

Howard Fancy
Acting Chief Executive
Ministry for the Environment
16 April 2008

 

Department of Conservation#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Environment Sector relating to the Department of Conservation and for the Vote/Votes for which the Department of Conservation is the administering department. Specifically, this information is contained in the Department of Conservation'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 (2008/09 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.

Andrew Gavriel
Chief Financial Officer
Department of Conservation
16 April 2008
Counter-signed

Alastair Morrison
Director-General
Department of Conservation
16 April 2008

 

Parliamentary Commissioner for the Environment#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Environment Sector relating to the Parliamentary Commissioner for the Environment and for the Vote/Votes for which the Parliamentary Commissioner for the Environment is the administering department. Specifically, this information is contained in the Parliamentary Commissioner for the Environment'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 (2008/09 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.

Kay Baxter
Relationship Manager
Parliamentary Commissioner for the Environment
16 April 2008
Counter-signed

Dr Jan Wright
Parliamentary Commissioner for the Environment
16 April 2008

 

Performance Information for Appropriations Vote Environment#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for the Environment (M29)

ADMINISTERING DEPARTMENT: Ministry for the Environment

MINISTER RESPONSIBLE FOR MINISTRY FOR THE ENVIRONMENT: Minister for the Environment

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister for the Environment is responsible for appropriations in Vote Environment for the 2008/09 financial year covering the following:

  • a total of nearly $40 million for advice on environmental policies, issues and the implementation of government decisions to achieve a healthy environment, which sustains nature and people
  • a total of over $1 million for supporting the effective operation of the Bioethics Council comprising advice, research, public dialogue, provision of information and administration
  • a total of over $1 million for the contracting, managing and auditing of a range of environmental management programmes delivered by third parties
  • a total of $198,000 for the environmental clean-up of Pacific Island sites
  • a total of $464,000 for the public notification process for considering nationally significant applications under the Resource Management Act, where the Minister for the Environment exercises the call-in powers under the legislation, and where necessary, providing support to Boards of Inquiry
  • a total of over $3 million for the purchase or development of assets by and for the use of the Ministry for the Environment
  • a total of over $11 million for the investigation, management and remediation of contaminated sites
  • a total of $500,000 for the funding of grants to assist regional councils and unitary authorities in aquaculture planning
  • a total of over $10 million for the administration of the HSNO Act by the Environmental Risk Management Authority, to protect the environment and the health and safety of people and communities by preventing or managing the adverse effects of hazardous substances and new organisms
  • a total of $400,000 for the promotion of sustainable land management practices through a national network of coordinators
  • a total of nearly $4 million for projects that support and strengthen proactive partnerships between the community, industry, iwi and local government and a wide range of practical environmental initiatives that involve the community in practically focused "action for the environment"
  • a total of $117,000 for subscriptions to international environmental agreements
  • a total of over $1 million for funding and grant schemes to help remove some of the barriers to public participation in resource management processes, particularly in the legal environment, and to support the work of the environment centres in raising awareness of environmental issues and actions
  • a total of $336,000 for New Zealand's membership to the United Nations Environment Programme
  • a total of over $1 million for Crown's contribution to assist with installation of clean and energy efficient heating with a particular focus on the homes of low income earners
  • a total of $525,000 for grants to local councils to assist with the purchase and installation of suitably signed recycling infrastructure
  • a total of $9 million for funding to Environment Bay of Plenty and the Rotorua District Council to maintain and improve the water quality of Rotorua Lakes.

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 - Environment
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme - Economic transformation
Sub-theme - Environmental sustainability
Build a sustainable future for New Zealand over the long term (Budget Speech 2007) Environmental Policy Advice (M29)
Bioethics Council (M29)
Legal and Environment Centre Grants (M29)
Resource Management Act Call-Ins (M29)
Delivery of Environmental Management Programmes (M29)
Rotorua Lakes Restoration Programme (M29)
Contaminated Sites Remediation Fund (M29)
Sustainable Management Fund (M29)
Hazardous Substances and New Organisms Assessment and Management (M29)
Promotion of Sustainable Land Management (M29)
Contestable Aquaculture Planning Fund (M29)
Recycling in Public Places (M29)
Theme - Economic transformation
Sub-theme - Environmental sustainability
Strengthen the presence of New Zealand in the world (Budget Speech 2007) Environmental assistance to the Pacific Islands (M29)
International Subscriptions (M29)
United Nations Environment Programme (M29)
Theme: Families Young and Old Improve living standards and the services our families young and old need(Prime Minister's Statement to Parliament 2008) Environmental Policy Advice (M29)
Warm Homes Grants and Assistance (M29)
Theme: National Identity Progressive, outward looking, inclusive and sustainable nation(Prime Minister's Statement to Parliament 2008) Environmental Policy Advice (M29)
Environmental assistance to the Pacific Islands (M29)
International Subscriptions (M29)
United Nations Environment Programme (M29)

 

 

Summary of Financial Activity#

Summary of Financial Activity - Environment
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  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 48,061 48,363 51,023 53,274 63,892 60,149 43,365 26,034 69,399 53,408 49,358 48,658
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 15,673 1,631 1,558 1,630 3,061 3,061 - 12,456 12,456 10,681 12,131 21,431
Capital Expenditure 297 1,763 1,036 1,440 1,416 1,416 3,430 - 3,430 640 690 690
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

64,031 51,757 53,617 56,344 68,369 64,626 46,795 38,490 85,285 64,729 62,179 70,779

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 609 878 469 727 400 400 N/A N/A 400 400 400 400
Capital Receipts 671 675 645 643 642 642 N/A N/A - - - -

Total Crown Revenue and Receipts

1,280 1,553 1,114 1,370 1,042 1,042 N/A N/A 400 400 400 400

Budget Policy Initiatives#

Budget Policy initiatives - Environment
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Waste Minimisation and Resource Recovery Bill Implementation Environmental Policy AdviceDepartmental Output Expenses - 3,043 - - -
Plan Changes for Aquaculture Environmental Policy AdviceDepartmental Output Expenses - 900 700 600 400
Improving Capacity and Capability in the HSNO Act Hazardous Substances Regime Environmental Policy AdviceDepartmental Output Expenses - 158 - - -
Improving Capacity and Capability in the HSNO Act Hazardous Substances Regime Hazardous Substances and New Organisms Assessment and ManagementNon-Departmental Output Expenses - 1,000 1,158 1,158 1,158
Inter-Agency needs to Trade Agreements Environmental Policy AdviceDepartmental Output Expenses - 490 - - -
Rotorua Lakes Protection Restoration Action Programme Rotorua Lakes Restoration ProgrammeNon-Departmental Other Expenses - 9,000 7,200 9,200 18,500

Total Vote: All Appropriations

Trends in comparative actual and estimated total expenses and capital expenditure are shown in Figure 1 below, including budgeted and estimated actual figures for the preceding year.

Figure 1 -Trends in total actual and estimated expenses and capital expenditure

Figure 1 Trends in total actual and estimated expenses and capital expenditure
Figure 1 Trends in total actual and estimated expenses and capital expenditure
Source: Ministry for the Environment

The movements in the appropriations in Vote Environment, which are detailed in the summary of Financial Activity table above, are largely driven by a significant one-off increase in Non-Departmental Other Expenses in 2003/04 and a steadily rising increase in Departmental Expenses from 2005/06 to 2007/08. The increase in the total Vote in 2008/09 reflects the funding for the Lake Rotorua Restoration Programme within Non-Departmental Other Expenses.

Details of significant movements within each appropriation and category are detailed below.

Departmental Output Expenses

Figure 2 -Trends in departmental output expenses

Figure 2 trends in Departmental Output Expenses
Figure 2 trends in Departmental Output Expenses
Source: Ministry for the Environment

The increase in baseline from 2003/04 to 2004/05 of $1 million was primarily due to approved funding for managing water allocation issues in the Waitaki Catchment. Additional appropriation from 2004/05 to 2005/06 was for new work on Sustainable Industry (leveraging business growth from improved environmental management) and the RMA review implementation. Funding was also approved for remedial works to improve the water quality in Lake Rotoiti, however this was transferred to 2006/07 and accounts for the majority of the increase in that year.

The baseline increases by $8 million from 2006/07 to 2007/08 due to short-term funding received for the Sustainable Households Project and other sustainability related initiatives; funding for World Environment Day; funding for RMA Call-Ins and funding for the clean up of Tui Mine. In 2009/10, funding decreases by $6 million as 2007/08 funding received for a number of initiatives stops or significantly decreases and the 2008/09 funding received for the Waste Minimisation and Resource Recovery Bill Implementation ends.

Non-Departmental Output Expenses

Figure 3 -Trends in non-departmental output expenses

Figure 3 Trends in Non Departmental Output Expenses
Figure 3 Trends in Non Departmental Output Expenses
Source: Ministry for the Environment

In 2003/04 the baseline included $3 million carried forward from the prior year for the clean up of contaminated sites. Expenditure increased in 2008/09 by $11 million as delays relating to the clean up of Tui mine has resulted in the full funding for the clean up of $8 million expected to be incurred to 2008/09.

Non-Departmental Other Expenses

Figure 4 -Trends in non-departmental other expenses

Figure 4 Trends in Non Departmental Other Expenses
Figure 4 Trends in Non Departmental Other Expenses
Source: Ministry for the Environment

The appropriation increased significantly in 2003/04 due to the 'one-off' loss on disposal of Crown land arising from the write down of river control reserve and soil conservation reserve land. There is also a significant increase in funding in 2008/09 for the Rotorua Lakes Restoration Programme. Changes in the appropriation from 2008/09 onwards also relate to movements between years in the funding for this programme.

 

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

 

Reconciliation of Changes in Appropriation Structure - Environment
2007/08Structure -
Appropriations that have been
Changed
2007/08
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been
Transferred
Amount
Moved
$000
2008/09Structure -
Appropriations affected by the
Changes in Appropriation
Structure
2007/08
(Restated)
$000
2008/09
$000
Departmental Output Expenses            
Administration of the Sustainable Management Fund 1,100 Transferred to: Delivery of Environmental Management Programmes (change in title only)   Delivery of Environmental Management Programmes 1,100 1,100
Environmental Policy Advice 38,845 Transferred to: Delivery of Environmental Management Programmes 438 Environmental Policy Advice 38,845 40,264
Non-Departmental Output Expenses            
Clean-up of Crown Contaminated Sites 3,278 Transferred to: Contaminated Sites Remediation Fund (change in title only)   Contaminated Sites Remediation Fund 3,278 11,278
Implementation of Sustainable Management 3,294 Transferred to: Sustainable Management Fund (change in title only)   Sustainable Management Fund 3,294 3,844
Sustainable Land Management - Promotion and Training 400 Transferred to: Promotion of Sustainable Land Management (change in title only)   Promotion of Sustainable Land Management 400 400

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-6.

 

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 - Environment
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - The Bioethics Council is supported in delivering its responsibilities on biotechnology Bioethics Council (M29)
Objective - To effectively and efficiently allocate funds to community-driven projects that have positive environmental benefits Delivery of Environment Management Programmes (M29)
Outcome - Waste in the Cook Islands is minimised and managed Environmental assistance to the Pacific Islands (M29)
Outcome - Good environmental governance and a sustainable future for New Zealand over the long term Environmental Policy Advice (M29)
Outcome - Projects of national significance under the Resource Management Act are processed efficiently and effectively Resource Management Act Call-ins (M29)

Bioethics Council (M29)

Scope of Appropriation

This appropriation is limited to supporting the effective operation of the Bioethics Council comprising advice, research, public dialogue, provision of information and administration.

Expenses and Revenue

Expenses and Revenue - Bioethics Council (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,339 1,339 1,339
Revenue from the Crown 1,333 1,333 1,333
Revenue from Others 6 6 6

Reasons for Change in Appropriation

There is no change in appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Bioethics Council (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Bioethics Council provides information to, and interacts effectively with, its stakeholders 100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Bioethics Council (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Bioethics Council 2002/03 1,333 1,333 1,333 1,333 1,333

 

Delivery of Environmental Management Programmes (M29)#

 

Scope of Appropriation#

This appropriation is limited to the contracting, managing, monitoring, and auditing of a range of environmental management programmes delivered by third parties.

Expenses and Revenue#

Expenses and Revenue - Delivery of Environmental Management Programmes (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,100 1,100 1,100
Revenue from the Crown 1,100 1,100 1,100
Revenue from Others - - -

Output Performance Measures and Standards#

Output Performance Measures and Standards - Delivery of Environmental Management Programmes (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All funding is allocated according to fund criteria; all contracted environmental programmes delivered by third parties are managed and monitored 100% 100% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Delivery of Environmental Management Programmes (M29) - Environment
Reference Conditions
Fund criteria

Fund criteria vary according to the fund. The criteria for each fund are explained below.
Aquaculture Planning Fund: Applications should show outcomes and their fit with the purpose of the fund, demonstrate partnerships, explain Council commitment, explain Maori participation and whether the projects help deliver on obligations of the Maori aquaculture settlement, explain other financial contributions and ways that experience with the project can be shared.
Sustainable Management Fund: Applications should show outcomes, project deliverables, define community actions and partnerships, and the wider benefits.
Contaminated Sites Remediation Fund: Applications should show the contamination poses a health risk, or is close to areas of cultural or national significance; they should show the capability and capacity of the project team and the practicality of the proposed solution; partnerships between parties are reflected; and cost effectiveness is demonstrated.
Environmental Legal Assistance Fund: An independent panel assesses groups' applications for reimbursement of certain legal costs for cases and makes recommendations to the Ministry for the Environment. The panel supports groups where (inter alia) the matter is of environmental public interest; it affects the wider community; it focuses on the protection or enhancement of environmental qualities; there is an imbalance between the level or quality of evidence and case management because of a lack of financial resources, and the group has shown why financial assistance is needed.
Environment Centre Fund: Funds are allocated every three years. Funding is subject to the Centre facilitating, motivating and informing existing and new groups in the community to take action that materially improves environmental quality; providing information and education services for the community and acting as a focus and meeting place for community action on environmental issues.
Resource Management Act Education and Advisory Services Fund: Funds are allocated to service providers that have relevant qualifications, skills and experience in providing comprehensive Resource Management Act advisory services, have skills and experience in producing educational resources for adults, can be easily identified by the community as a key provider of this service, can provide informed, up-to-date and consistent advice and support to all on the Resource Management Act in a fair and equitable way, are independent (and have no conflicts of interest, or can manage them), provide value for money, and can provide advice through a variety of media.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Delivery of Environmental Management Programmes (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Administration of Sustainable Management Fund Pre 2003/04 662 662 662 662 662

 

Environmental assistance to the Pacific Islands (M29)#

 

Scope of Appropriation#

Environmental clean-up of Pacific Island sites.

Expenses and Revenue#

Expenses and Revenue - Environmental assistance to the Pacific Islands (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 121 121 198
Revenue from the Crown - - -
Revenue from Others 121 121 198

Reasons for Change in Appropriation#

The increase in appropriation is due to an expense transfer from 2007/08 to 2008/09 of $198,000.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Environmental assistance to the Pacific Islands (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Volume of scrap metal removed from the Cook Islands 2,500 tonnes 1,700 tonnes 800 tonnes

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Environmental assistance to the Pacific Islands (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
ODA Contestable Funding from NZAID 2006/07 319 - - - -

 

Environmental Policy Advice (M29)#

 

Scope of Appropriation#

Advice on environmental policies, issues and the implementation of government decisions to achieve a healthy environment, which sustains nature and people.

Expenses and Revenue#

Expenses and Revenue - Environmental Policy Advice (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 38,845 36,302 40,264
Revenue from the Crown 38,473 35,930 39,892
Revenue from Others 372 372 372

Reasons for Change in Appropriation#

The increase in appropriation is largely due to new budget initiative funding for the Waste Minimisation and Resource Recovery Bill implementation of $3.043 million in 2008/09. This is offset by a reduction in funding for several initiatives as outlined in the table below on Current and Past Policy Initiatives.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Environmental Policy Advice (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Waste minimisation: Develop, provide, and implement regulatory and non-regulatory tools to measure and minimise waste Achieved Achieved Achieved
Environmental sustainability in key sectors: Collect information from government agencies showing progress on sustainability indicators and targets, develop measures for the business sustainability programme, and monitor and measure changes in trends and awareness on sustainability for households N/A N/A Achieved
Freshwater: The Sustainable Water Programme is implemented and local government has appropriate tools to manage freshwater Develop three national instruments Achieved Implement three national instruments
Oceans: Prepare a bill for introduction into the House of Representatives and support the bill through all stages of the House, which establishes new environmental controls to fill gaps for the regulation of environmental effects of activities in New Zealand's Exclusive Economic Zone N/A N/A Achieved
Urban design and development: National guidance is provided on quality urban design Implement Urban Design Protocol Ongoing Develop national guidance on urban design
Environmental governance: National environmental standards and national policy statements are developed and implemented N/A N/A Three national environmental standards and three national policy statements
Environmental reporting: Produce regular updates for the core set of national environmental indicators from the State of the Environment report Achieved Achieved Achieved
Compliance with the Quality Standards for Analysis and Advice (refer to conditions on Use of Appropriation), as assessed by the Minister through satisfactory completion of Cabinet's Regulatory Impact Assessment requirements, and as assessed through an annual independent external policy quality audit, review and benchmarking process N/A N/A 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Environmental Policy Advice (M29) - Environment
Reference Conditions
Quality Standards for Analysis and Advice
  • Identifies the problem, relevant options, costs and benefits, and risks.
  • Is rigorous, logical, factually accurate and provides supporting evidence.
  • Demonstrates that it is based on appropriate consultation and engagement across government and with affected parties.
  • Is practical, action-oriented and considers implementation.
  • Demonstrates an understanding of the needs of the target audience.
  • Is clear, concise, professional and presented in plain language.
  • Is provided within agreed timeframes and budgets.
Note: All aspects of the standards may not apply to specific pieces of policy advice, given considerations of urgency or the particular nature of the advice to be provided. For instance, some of our work is second-opinion advice on other departments' proposals often undertaken under tight time pressures.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Environmental Policy Advice (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Waste Minimisation and Resource Recovery Bill Implementation 2008/09 - 3,043 - - -
Plan Changes for Aquaculture 2008/09 - 900 700 600 600
Improving Capacity and Capability in the HSNO Act Hazardous Substances Regime 2008/09 - 158 - - -
Inter-Agency needs to Trade Agreements 2008/09 - 490 - - -
Options for Foreshore and Seabed Negotiations Capacity 2007/08 90 150 150 150 150
Resource Management Act/Coastal Marine Area (RMA/CMA) Contingency Fund for Resource Management Initiatives 2007/08 1,000 - - - -
Sustainable NZ - Supporting Government's Leadership Role 2007/08 650 - - - -
Implementing the Sustainable Water Programme of Action 2007/08 1,000 - - - -
Public Space Recycling 2007/08 1,000 1,000 1,000 - -
Households Sustainable Living Programme 2007/08 2,500 2,000 2,000 - -
EnergyWise Package: Warm Homes 2007/08 100 - - - -
Cleanup of Tui Mine 2007/08 940 940 - - -
Sustainable Procurement and Business Partnerships for Sustainable Procurement 2007/08 1,438 1,580 1,364 414 414
Maximising trade negotiations 2005/06 269 239 239 239 239
Resource Management Act (RMA) Review Implementation 2005/06 3,111 3,111 3,111 3,111 3,1111
Develop the NZ Oceans Policy 2005/06 889 - - - -
Implementation of the Fiordland Marine Management Bill and associated management regime 2005/06 98 98 98 98 98
Sustainable Industry: Leveraging business growth from approved environmental management 2005/06 3,111 3,111 3,111 3,111 3,111
Resource Management Act/Coastal Marine Area Funding Package for 2004/05 2004/05 1,244 1,244 1,244 1,244 1,244
Protecting Lake Taupo water quality 2004/05 2,667 2,667 2,667 2,667 2,667
WTO Negotiations (Cross Vote) 2003/04 67 67 67 67 67

 

Resource Management Act Call-ins (M29)#

 

Scope of Appropriation#

This appropriation is limited to the public notification process for considering nationally significant applications under the Resource Management Act, where the Minister for the Environment exercises the call-in powers under the legislation, and where necessary, providing support to Boards of Inquiry.

Expenses and Revenue#

Expenses and Revenue - Resource Management Act Callins (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,343 2,343 464
Revenue from the Crown - - -
Revenue from Others 2,343 2,343 464

Reasons for Change in Appropriation#

The decrease in appropriation is due to the Transpower's North Island Grid Upgrade call-in budgeted to be substantially completed in 2007/08.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Resource Management Act Callins (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Applications are processed in accordance with statutory requirements 100% 100% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Resource Management Act Callins (M29) - Environment
Reference Conditions
Sections 140 to 150AA of the Resource Management Act 1991 Timelines vary from "without delay" to "as soon as practicable after 20 working days" according to the section of the Act

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Resource Management Act Callins (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Transpower's North Island Grid Upgrade: Appropriation for Call-In 2007/08 1,858 246 - - -
Te Mihi Geothermal Call-In 2007/08 367 218 - - -
Te Waka Wind Farm Call-In 2007/08 118 - - - -

 

World Environment Day (M29)#

 

Scope of Appropriation#

To promote and facilitate action for the environment, and host international celebrations for World Environment Day 2008 in partnership with the United Nations Environment Programme.

Expenses and Revenue#

Expenses and Revenue - World Environment Day (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,660 3,660 -
Revenue from the Crown 3,160 3,160 -
Revenue from Others 500 500 -

Reasons for Change in Appropriation#

The decrease in appropriation is due to the hosting of the World Environment Day in 2008 by New Zealand.

Output Performance Measures and Standards#

Output Performance Measures and Standards - World Environment Day (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Host World Environment Day Achieved Achieved N/A

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - World Environment Day (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Funding for World Environment Day 2008 2007/08 3,660 - - - -

 

Part 2.2 - Non-Departmental Output Expenses#

 

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Environment
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - New Zealand's priority contaminated sites are investigated and remediated Contaminated Sites Remediation Fund (M29)
Outcome - Regional councils and unitary authorities are supported in information, consultation and planning for regional aquaculture reforms Contestable Aquaculture Planning Fund (M29)
Outcome - ERMA New Zealand meets its responsibilities for protecting the environment and people's health and safety, by mitigating risks posed by hazardous substances and new organisms Hazardous Substances and New Organisms Assessment and Management (M29)
Outcome - Sustainable land management practices are supported and promoted Promotion of Sustainable Land Management (M29)
Outcome - Community-driven projects with positive environmental benefits are supported Sustainable Management Fund (M29)

Contaminated Sites Remediation Fund (M29)#

Scope of Appropriation

This appropriation is limited to the investigation, management and remediation of contaminated sites.

Expenses

Expenses - Contaminated Sites Remediation Fund (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,278 2,078 11,278

Reasons for Change in Appropriation

The increase in appropriation is due to an expense transfer to 2008/09 because of delays in the clean up of Tui Mine. $8 million is now expected to be incurred in 2008/09 for this initiative.

Output Performance Measures and Standards

Output Performance Measures and Standards - Contaminated Sites Remediation Fund (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Remediation plans in place for New Zealand's priority contaminated sites N/A Four remediation plans in place Six additional sites have remediation plans in place

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Contaminated Sites Remediation Fund (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Cleanup of Tui Mine 2007/08 4,000 4,000 - - -
Addressing NZ's legacy of contaminated land 2006/07 1,500 1,500 - - -
Contaminated Sites 1993/94 1,778 1,778 1,778 1,778 1,778

 

Contestable Aquaculture Planning Fund (M29)#

 

Scope of Appropriation and Expenses#

Multi-Year Appropriations - Environment
Type, Title, Scope and Period of Appropriations Appropriation $000

Non-Departmental Output Expenses

   

Contestable Aquaculture Planning Fund (M29)

Funding of grants to assist regional councils and unitary authorities in aquaculture planning.

Commences: 1 July 2006

Expires: 30 June 2011

Original Appropriation 2,000
Adjustments for 2006/07 -
Adjustments to 2007/08 -
Adjusted Appropriation 2,000
Actual to 2006/07 Year End -
Estimated Actual for 2007/08 500
Estimated Actual for 2008/09 500
Estimated Appropriation Remaining 1,000

Reasons for Change in Appropriation#

The reasons for the changes in appropriations are:

  • $500,000 in 2007/08 for funding of grants in aquaculture planning
  • $500,000 in 2008/09 for funding of grants in aquaculture planning
  • $500,000 for 2009/10 for funding of grants in aquaculture planning
  • $500,000 for 2010/11 for funding of grants in aquaculture planning.

 

Hazardous Substances and New Organisms Assessment and Management (M29)#

 

Scope of Appropriation#

Administration of the HSNO Act by the Environmental Risk Management Authority, to protect the environment and the health and safety of people and communities by preventing or managing the adverse effects of hazardous substances and new organisms.

Expenses#

Expenses - Hazardous Substances and New Organisms Assessment and Management (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,012 9,012 10,012

Reasons for Change in Appropriation#

The increase in appropriation is due to new budget initiative funding for Improving Capacity and Capability in the HSNO Act Hazardous Substances Regime of $1.000 million in 2008/09.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Hazardous Substances and New Organisms Assessment and Management (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
ERMA New Zealand processes all applications to import or use hazardous substances or new organisms according to statutory processes and within statutory timeframes (as prescribed by sections 52 and 59 of the HSNO Act) 100% 100% 100%
ERMA New Zealand provides compliance reports to the Minister within timeframes specified in the monitoring agreement agreed with the Ministry for the Environment 100% Mostly achieved 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Hazardous Substances and New Organisms Assessment and Management (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Improving Capacity and Capability in the HSNO Act Hazardous Substances Regime 2008/09 - 1,000 1,158 1,158 1,158
Funding for the ERMA Authority to enhance the administration of the HSNO Act 2004/05 1,503 1,503 1,503 1,503 1,503
RC Gen Mod - Capability ERMA 2003/04 10 10 10 10 10
RC Gen Mod - Treaty Relations ERMA 2003/04 280 280 280 280 280
Review of Cost Recovery ERMA 2003/04 752 752 752 752 752
HSNO Assessment & Management 1998/99 6,467 6,467 6,467 6,467 6,467

 

Promotion of Sustainable Land Management (M29)#

 

Scope of Appropriation#

This appropriation is limited to the promotion and coordination of sustainable land management practice through a national network of coordinators.

Expenses#

Expenses - Promotion of Sustainable Land Management (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 400 400 400

Output Performance Measures and Standards#

Output Performance Measures and Standards - Promotion of Sustainable Land Management (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Landcare Trust undertakes work in line with its contractual obligations 100% 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Promotion of Sustainable Land Management (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Sustainable Land Management (Landcare Trust) 1996/97 400 400 400 400 400

 

Sustainable Management Fund (M29)#

 

Scope of Appropriation#

Projects that support and strengthen proactive partnerships between the community, industry, iwi and local government and a wide range of practical environmental initiatives and involve the community in practically focused "action for the environment".

Expenses#

Expenses - Sustainable Management Fund (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,294 3,294 3,844

Reasons for Change in Appropriation#

The increase in appropriation is due to Fiscally Neutral Transfers totalling $550,000 to Departmental Output Expense: Environmental Policy Advice in 2007/08. Funds were re-prioritised to support sustainability initiatives, ($250,000) and to help fund the World Environment Day 2008, ($300,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Sustainable Management Fund (M29) - Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Community groups, iwi, businesses and local government are supported in taking practical actions that produce long-term environmental benefits N/A 45 groups supported 53 groups supported

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Sustainable Management Fund (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Sustainable Management Fund 1997/98 3,844 3,844 3,844 3,844 3,844

 

Summary of Service Providers#

 

Summary of Service Providers - Summary of Service Providers - Environment
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown Entities

         

ERMA

         
Hazardous Substances and New Organisms Assessment and Management 9,012 9,012 10,012 ERMA's Annual Report -

Non-government organisations (types)

         
Non-government organisations and local government that receive funding to assist in the clean up of contaminated land within New Zealand. 3,278 2,078 11,278 Section 32A Report -
Community, industry, iwi and/or local government that receive funding for projects which result in practical action that produces long-term environmental benefit. 3,294 3,294 3,844 Section 32A Report -

The above table summarises funding to be allocated through Vote Environment 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 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 - Environment
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - To fulfil financial and participatory requirements for subscriptions to International Environment Agreements International Subscriptions (M29)
Outcome - Action in the community is supported Legal and Environment Centre Grants (M29)
Outcome - Waste is minimised by providing recycling infrastructure in public places for the general public and tourists Recycling in Public Places (M29)
Outcome - The water quality of Rotorua lakes is maintained and improved Rotorua Lakes Restoration Programme (M29)
Outcome - New Zealand's sustainable development interests are informed, supported and advanced through our international connections United Nations Environment Programme (M29)
Outcome -  Clean, energy efficient heating is installed in homes of low income earners in areas of poor air quality Warm Homes Grants and Assistance (M29)

International Subscriptions (M29)

Scope of Appropriation

This appropriation is limited to subscriptions to International Environmental Agreements.

Expenses

Expenses - International Subscriptions (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 117 117 117

Expected Results

Expected Results - International Subscriptions (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
New Zealand's financial and participatory requirements for subscriptions to International Environmental Agreements are fulfilled 100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - International Subscriptions (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Multilateral environmental agreements: Rotterdam and Stockholm conventions and Waigani and Cartagena Protocol 2004/05 83 83 83 83 83

 

 

Scope of Appropriation#

Funding and grant schemes to help remove some of the barriers to public participation in resource management processes, particularly in the legal environment, and to support the work of environment centres in raising awareness of environmental issues and actions.

Expenses#

Expenses - Legal and Environment Centre Grants (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,128 1,128 1,378

Reasons for Change in Appropriation#

The increase in appropriation is due to a Fiscally Neutral Transfer of $250,000 to Departmental Output Expense: Environmental Policy Advice in 2007/08 to support sustainability initiatives.

Expected Results#

Expected Results - Legal and Environment Centre Grants (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding is distributed to groups to help remove some of the barriers to public participation in resource management processes, particularly in the legal environment, and to support the work of the environment centres in raising awareness of environmental issues and actions 100% 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Legal and Environment Centre Grants (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Legal and Environment Centres Grants 2000/01 1,128 1,378 1,378 1,378 1,378

 

Recycling in Public Places (M29)#

 

Scope of Appropriation#

This appropriation is limited to grants to local councils to assist with the purchase and installation of suitably signed recycling infrastructure.

Expenses#

Expenses - Recycling in Public Places (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 525

Reasons for Change in Appropriation#

The change in appropriation is in line with the increased output for 2008/09.

Expected Results#

Expected Results - Recycling in Public Places (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Fund (through partnership agreements) local government to purchase and install Recycling in Public Places Initiative recycling bins 200 bins 200 bins 210 bins

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Recycling in Public Places (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Recycling in Public Places 2007/08 500 525 550 - -

 

Rotorua Lakes Restoration Programme (M29)#

 

Scope of Appropriation#

This appropriation is limited to funding to Environment Bay of Plenty and the Rotorua District Council to maintain and improve the water quality of the Rotorua Lakes.

Expenses#

Expenses - Rotorua Lakes Restoration Programme (M29) - Environment
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation - - 9,000 7,200 9,200 18,500

Reasons for Change in Appropriation#

This increase in appropriation is due to the establishment of a new Other Expense to be incurred by the Crown to proceed with funding for the Rotorua Lakes Restoration Programme.

Expected Results#

Expected Results - Rotorua Lakes Restoration Programme (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding is distributed to Environment Bay of Plenty and Rotorua District Council to maintain and improve the water quality of Rotorua lakes in line with their contractual agreements N/A N/A All works undertaken as agreed and funding is fully allocated

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Rotorua Lakes Restoration Programme (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Rotorua Lakes Protection and Restoration Action Programme 2008/09 - 9,000 7,200 9,200 18,500

 

United Nations Environment Programme (M29)#

 

Scope of Appropriation#

New Zealand's membership of the United Nations Environment Programme.

Expenses#

Expenses - United Nations Environment Programme (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 216 216 336

Reasons for Change in Appropriation#

The increase in appropriation is due to a $120,000 transfer in 2007/08 to Departmental Output Expense: Environmental Policy Advice to help fund the World Environment Day 2008.

Expected Results#

Expected Results - United Nations Environment Programme (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
New Zealand's financial and participatory requirements for membership of the United Nations Environment Programme are fulfilled 100% 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - United Nations Environment Programme (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
United Nations Environment Programme 1993/94 336 336 336 336 336

 

Warm Homes Grants and Assistance (M29)#

 

Scope of Appropriation#

Crown's contribution to assist with installation of clean and energy efficient heating with a particular focus on the homes of low income earners.

Expenses#

Expenses - Warm Homes Grants and Assistance (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,100 1,100 1,100

Expected Results#

Expected Results - Warm Homes Grants and Assistance (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
EECA will deliver Clean Heat grants to homeowners on low incomes in areas of poor air quality so that they can upgrade to cleaner, more energy-efficient, heating devices 700-800 homes Achieved 700-800 homes

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Warm Homes Grants and Assistance (M29) - Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
EnergyWise Package: Warm Homes Programme 2007/08 1,100 1,100 1,100 1,100 1,100

 

Reporting Mechanisms#

 

Reporting Mechanisms - Reporting Mechanisms - Environment
Appropriation Reporting Mechanism
International Subscriptions Not required
Legal and Environment Centre Grants Annual Report of the Ministry for the Environment
Recycling in Public Places Not required
Rotorua Lakes Restoration Programme Annual Report of the Ministry for the Environment
United Nations Environment Programme Not required
Warm Homes Grants and Assistance Annual Report of the Energy Efficiency and Conservation Authority

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 - Environment
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome : The Ministry has the capability with which to deliver its services Ministry for the Environment Capital Expenditure

Ministry for the Environment - Capital Expenditure PLA (M29)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry for the Environment Capital Expenditure PLA (M29) - Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 422 422 390
Intangibles 994 994 3,040
Other - - -
Total Appropriation 1,416 1,416 3,430
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 422 422 390
Intangibles 994 994 3,040
Other - - -
Total Appropriation 1,416 1,416 3,430

Reasons for Change in Appropriation

The increase in appropriation in 2008/09 is largely due to the development and implementation of the New Zealand Carbon Accounting System.

Expected Results

Expected Results - Ministry for the Environment Capital Expenditure PLA (M29) - Environment
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Maintain Ministry capability for ongoing delivery of services 100% 100% 100%
The Land-Use and Carbon Analysis System database is developed N/A System requirements and prototype completed in October 2007 Database implemented by 30 June 2009

 

Performance Information for Appropriations Vote Climate Change#

 

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for Climate Change Issues (M12), Minister of Energy (M28)

ADMINISTERING DEPARTMENT: Ministry for the Environment

MINISTER RESPONSIBLE FOR MINISTRY FOR THE ENVIRONMENT: Minister for the Environment

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister Responsible for Climate Change Issues is responsible for appropriations in Vote Climate Change for the 2008/09 financial year covering the following:

  • a total of over $12 million for the development of a national Carbon Accounting System
  • a total of $749 million for the allocation of New Zealand emission units to the NZ economy
  • a total of over $19 million for international negotiations under the Kyoto Protocol, development and implementation of the Emissions Trading Scheme and other climate change policy measures
  • a total of $300,000 for policy advice on energy efficiency and conservation issues
  • a total of $102,000 for New Zealand's contribution to the United Nations Framework Convention on Climate Change
  • a total of $300,000 for New Zealand's contribution to the Climate Change Development Fund to support international projects addressing climate change impacts
  • a total of nearly $4 million for the purchase of Projects to Reduce Emissions (PRE) emission units by the Crown from the PRE portfolio.

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

 

Part 1.2 - High-Level Objectives of the Vote#

 

The output expenses in Vote Climate Change will contribute to the Government's overarching goal of economic transformation with a strong focus on environmental sustainability. This vote supports Government's engagement with businesses and community groups and aims to reduce New Zealand's Greenhouse Gas emissions and meet international obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and Kyoto Protocol.

Government Priorities and Outcomes - Links to Appropriations - Climate Change
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme: Economic Transformation
Sub theme: Environmental Sustainability
Develop an emissions trading scheme (Prime Ministers Statement to Parliament, February 2008) Policy Advice - Climate Change (M12)
Carbon Monitoring Programme (M12)
Policy Advice - Energy Efficiency and Conservation (M12)
Contribution to Climate Change Development Fund (M12)
Theme: Economic Transformation
Sub theme: Environmental Sustainability
A comprehensive, post 2012 agreement on climate change
(Prime Ministers Statement to Parliament, February 2008)
Kyoto Protocol - Forecast Liability (M12)
Kyoto Units (M12)
Purchase of Projects to Reduce Emissions (PRE) Units (M12)
Allocation of New Zealand Units (M12)
Framework Convention on Climate Change (M12)
Theme: Families young and old Adapting to a Changing Climate (Prime Ministers Statement to Parliament, February 2008) Policy Advice - Climate Change (M28)
Policy Advice - Energy Efficiency and Conservation (M28)
Theme: National Identity Strengthen the presence of New Zealand in the world (Budget Speech 2007) Policy Advice - Climate Change (M28)
Contribution to Climate Change Development Fund (M28)
Framework Convention on Climate Change (M28)

 

 

Summary of Financial Activity#

Summary of Financial Activity - Climate Change
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  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 21,322 23,702 24,458 28,489 42,260 40,410 31,657 - 31,657 19,521 18,503 18,092
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 2,293 313,733 117,640 6,132 15,878 15,878 - 749,387 749,387 356,766 523,084 523,084
Capital Expenditure 1,652 2,000 1,242 1,221 2,000 2,000 - 3,500 3,500 3,500 3,500 -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

25,267 339,435 143,340 35,842 60,138 58,288 31,657 752,887 784,544 379,787 545,087 541,176

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue - - - - 368,103 368,103 N/A N/A 308,320 644,127 892,662 893,937
Capital Receipts 824 1,088 1,226 1,252 1,749 1,749 N/A N/A - - - -

Total Crown Revenue and Receipts

824 1,088 1,226 1,252 369,852 369,852 N/A N/A 308,320 644,127 892,662 893,937

Budget Policy Initiatives#

Budget Policy initiatives - Climate Change
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Further the New Zealand Emissions Trading Scheme Policy Development Policy Advice - Climate ChangeDepartmental Output Expenses - 2,725 - - -
International Negotiations and Linkages to the New Zealand Emissions Trading Scheme Policy Advice - Climate ChangeDepartmental Output Expenses - 1,000 - - -
Implementation of Climate Change Adaptation Measures Policy Advice - Climate ChangeDepartmental Output Expenses - 250 250 250 250
Total Initiatives   - 24,475 250 250 250

Total Vote: All Appropriations

Trends in comparative actual and estimated total expenses and capital expenditure are shown in Figure 1 below, including budgeted and estimated actual figures for the preceding year.

Figure 1 - Trends in total actual and estimated expenses and capital expenditure

Figure 1 Trends in total actual and estimated total expenses and capital expenditure
Figure 1 Trends in total actual and estimated total expenses and capital expenditure
Source: Ministry for the Environment

The movements in departmental and non-departmental appropriations in Vote Climate Change, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in Non-Departmental Other Expenses.

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

Departmental Output Expenses

Figure 2Trends in departmental output expenses

Figure 2 Trends in Departmental Output Expenses
Figure 2 Trends in Departmental Output Expenses
Source: Ministry for the Environment

The baseline increases by $7 million in 2007/08 and $12 million in 2008/09. This is due mainly to significant, short-term initiatives for the Carbon Neutral Public Service and the development of the New Zealand Emissions Trading Scheme as well as an increase in the appropriation for the Carbon Monitoring Programme.

Non-Departmental Output Expenses

This represents operational and policy outputs from the Energy Efficiency and Conservation Authority (EECA) in accordance with EECA's statutory functions under the Energy Efficiency and Conservation Act 2000 and applicable Government policies.

Figure 3Trends in non-departmental output expenses

Figure 3 Trends in Non-Departmental Output Expenses
Figure 3 Trends in Non-Departmental Output Expenses
Source: Ministry for the Environment

The appropriation ends in 2008/09 as responsibility for EECA was transferred to the Ministry for Economic Development effective from 1 July 2008 as part of the transfer of energy efficiency appropriations to Vote Energy.

Non-Departmental Other Expenses

Figure 4-Trends in non-departmental other expenses

Figure 4 Trends in Non Departmental Other Expenses
Figure 4 Trends in Non Departmental Other Expenses
Source: Ministry for the Environment

In 2004/05, the baseline increased by $311 million as the Kyoto Protocol Liability was recognised in the Ministry's accounts. The significant increase in 2008/09 reflects the $749 million received for the allocation of New Zealand Units as part of the New Zealand Emissions Trading Scheme, with $357 million allocated in 2009/10 and $523 million in both 2010/11 and 2011/12.

Non-Departmental Capital Expenditure

This comprises the purchase of PRE Emission units and the Crown Energy Efficiency loan scheme.

Non-Tax Revenue

In 2007/08, Non-Tax Revenue represents the reduction in forecast carbon unit emissions under the Kyoto Protocol. In 2008/09 onwards, Non-Tax Revenues represents the surrender of emission units from participating sectors of the New Zealand Emissions Trading Scheme.

 

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 - Climate Change
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - New Zealand meets its reporting requirements. Carbon Monitoring Programme (M12)
Outcome - New Zealand's greenhouse gas emissions and the risks from the physical impacts of climate change are reduced. Policy Advice - Climate Change (M12)
Outcome - More energy efficient homes. Policy Advice - Energy Efficiency and Conservation (M12)

Carbon Monitoring Programme (M12)

Scope of Appropriation

Development of a national carbon accounting system that will contribute to the meeting of New Zealand's greenhouse gas reporting obligations under the Kyoto Protocol and the UNFCCC.

Expenses and Revenue

Expenses and Revenue - Carbon Monitoring Programme (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,037 6,237 12,238
Revenue from the Crown 7,037 6,237 12,238
Revenue from Others - - -

Reasons for Change in Appropriation

The increase in appropriation is due to a $4.386 million expense transfer from 2007/08 to 2008/09 in relation to the Implementation of the New Zealand Carbon Accounting System (NZCAS).

This transfer was necessary due to delays with the 1990 land use mapping, natural forests and soils work programme.

Output Performance Measures and Standards

Output Performance Measures and Standards - Carbon Monitoring Programme (M12) - Climate Change
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Meet the UNFCCC reporting requirements and pass the Good Practice Guidance review. Achieved Achieved Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Carbon Monitoring Programme (M12) - Climate Change
Reference Conditions
Good Practice Guidance for Land Use, Land-Use Change and Forestry (GPG-LULUCF) The guidance is the response to the invitation by the United Nations Framework Convention on Climate Change (UNFCCC) to the Intergovernmental Panel on Climate Change (IPCC) to develop good practice guidance for land use, land-use change and forestry (LULUCF).GPG-LULUCF provides supplementary methods and good practice guidance for estimating, measuring, monitoring and reporting on carbon stock changes and greenhouse gas emissions from LULUCF activities under Article 3, paragraphs 3 and 4, and Articles 6 and 12 of the Kyoto Protocol.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Carbon Monitoring Programme (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Complete development of the NZCAS to meet the Kyoto Protocol requirements 2005/06 7,309 4,452 5,427 6,509 6,098
Carbon Monitoring Inventory System 2003/04 2,778 2,778 2,778 2,778 2,778
Carbon Monitoring Programme 2003/04 622 622 622 622 622

 

Policy Advice - Climate Change (M12)#

 

Scope of Appropriation#

Policy advice and implementation, operational costs and fulfilling international obligations to support the Government's commitment on Climate Change under the Kyoto Protocol.

Expenses and Revenue#

Expenses and Revenue - Policy Advice Climate Change (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,125 13,075 19,619
Revenue from the Crown 14,070 13,020 19,564
Revenue from Others 55 55 55

Reasons for Change in Appropriation#

The increase in appropriation in 2008/09 is largely due to an increase in baseline for the Carbon Neutral Public Service work programme. New budget initiative funding received of $2.725 million to further the New Zealand Emissions Trading Scheme (NZETS) policy development and $1.000 million for international negotiations and linkages to the NZETS also contribute to this change.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice Climate Change (M12) - Climate Change
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Compliance with the Quality Standards for Analysis and Advice (refer to conditions on Use of Appropriation), as assessed by the Minister through satisfactory completion of Cabinet's Regulatory Impact Assessment requirements, and as assessed through an annual independent external policy quality audit, review and benchmarking process. N/A N/A 100%
Engage with sectors on Climate Change adaptation policies and implementation. N/A N/A 100% of planned sectors
International submission and negotiating timelines for New Zealand's position on Climate Change are met. 100% of deadlines 100% of deadlines 100% of deadlines
New Zealand Emissions Trading Scheme implemented for pre-1990 forestry and liquid fossil fuels sectors, and planned milestones met for allocation of pre-1990 forestry units and inclusion of remaining sectors in 2010 (stationary energy and industrial processes) and 2013 (agriculture, waste and other). Achieved Achieved Achieved
Emissions inventories and reduction plans are developed and monitored annually. 34 Agencies 34 Agencies 34 Agencies

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Policy Advice Climate Change (M12) - Climate Change
Reference Conditions
Quality Standards for Analysis and Advice
  • Identifies the problem, relevant options, costs and benefits, and risks.
  • Is rigorous, logical, factually accurate and provides supporting evidence.
  • Demonstrates that it is based on appropriate consultation and engagement across government and with affected parties.
  • Is practical, action-oriented and considers implementation.
  • Demonstrates an understanding of the needs of the target audience.
  • Is clear, concise, professional and presented in plain language.
  • Is provided within agreed timeframes and budgets.
Note: All aspects of the standards may not apply to specific pieces of policy advice, given considerations of urgency or the particular nature of the advice to be provided. For instance, some of our work is second-opinion advice on other departments' proposals often undertaken under tight time pressures

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice Climate Change (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Further the New Zealand Emissions Trading Scheme Policy Development 2008/09 - 2,725 - - -
International Negotiations and Linkages to the New Zealand Emissions Trading Scheme 2008/09 - 1,000 - - -
Implementation of Climate Change Adaptation Measures 2008/09 - 250 250 250 250
Development and Implementation of proposed NZ Emissions Trading Scheme 2007/08 4,777 - - - -
Moving the Public Sector towards Carbon Neutrality 2007/08 1,200 7,100 2,100 - -
Improved energy efficiency and reduced greenhouse gas emissions by energy-intensive businesses 2005/06 104 - - - -
Establishment of a climate change service industry in NZ 2004/05 133 133 133 133 133
Contracted NZ Scientists as authors for Intergovernmental Panel on Climate Change 2004/05 178 178 178 178 178
Inventive Programmes Climate Change 2003/04 533 533 533 533 533
Advice and Implementation Climate Change 2003/04 4,469 4,469 4,469 4,469 4,469
Policy Advice - Climate Change 2003/04 2,676 2,676 2,676 2,676 2,676

 

Policy Advice - Energy Efficiency and Conservation (M12)#

 

Scope of Appropriation#

Policy advice from the Ministry for the Environment on energy efficiency and conservation issues. Monitoring of EECA services provided by the Ministry for the Environment.

Expenses and Revenue#

Expenses and Revenue - Policy Advice Energy Efficiency and Conservation (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 516 516 300
Revenue from the Crown 516 516 300
Revenue from Others - - -

Reasons for Change in Appropriation#

This decrease in appropriation is due to the transfer of energy efficiency appropriations to Vote Energy effective from 1 July 2008.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice Energy Efficiency and Conservation (M12) - Climate Change
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Case studies to assist councils to implement energy efficiency in households N/A N/A 3 Case Studies
Partnerships with industry to develop business opportunities relating to provision of energy efficient products and services to households. N/A N/A Develop up to 3 business partnerships

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice Energy Efficiency and Conservation (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
EnergyWise Package: Vote Climate Change and Energy Efficiency Components 2007/08 300 300 300 300 300

 

Part 2.2 - Non-Departmental Output Expenses#

 

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Climate Change
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - A protected environment by supporting the use of renewable sources of energy and the uptake of energy efficient initiatives. Energy Efficiency and Conservation (M28)

Energy Efficiency and Conservation (M28)#

Scope of Appropriation

Operational and policy outputs in accordance with the EECA's statutory functions under the Energy Efficiency and Conservation Act (2000) and applicable Government policies.

Expenses

Expenses - Energy Efficiency and Conservation (M28) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20,582 20,582 -

Reasons for Change in Appropriation

This decrease in appropriation is due to the transfer of energy efficiency appropriations to Vote Energy effective from1 July 2008.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Energy Efficiency and Conservation (M28) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
EnergyWise Clean Heating Programme 2007/08 250 - - - -
EnergyWise Rebranding and Information Campaigns 2007/08 900 - - - -
EnergyWise Research and Sector Development 2007/08 650 - - - -
Fridge Retirement Pilot 2007/08 400 - - - -
Energy Efficiency Training for Industry 2007/08 100 - - - -
Emprove Business Programme Expansion 2007/08 300   - - -
Energy Domain Plan 2007/08 360 - - - -
Interest-Free Loans for Residential Energy Efficiency and Heating 2007/08 300 - - - -
EnergyWise Package: Home Energy Rating Scheme Policy Development 2007/08 250 - - - -
Implementation of a 5 year solar water heating programme 2006/07 3,168 - - - -
Home Energy Rating Scheme 2006/07 1,300 - - - -
Improved energy efficiency and reduced greenhouse gas emissions by energy-intensive businesses 2005/06 1,378 - - - -
Energy Efficient Products Programme 2005/06 667 - - - -
Electricity Demand-side participation - Commercial/Industrial end users 2005/06 533 - - - -
Solar Water Heating 2004/05 178 - - - -
Improving the Energy Efficiency of Homes 2004/05 329 - - - -
Bio-energy 2004/05 222 - - - -
GIF Funding Renewable Energy 2003/04 700 - - - -
Energywise Grant Scheme 2003/04 89 - - - -

 

Summary of Service Providers#

 

Summary of Service Providers - Summary of Service Providers - Climate Change
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown Entities

         

EECA

         
Energy Efficiency and Conservation 20,582 20,582 - EECA's Annual Report 2007/08
Energy Efficiency and Renewable Energy Grants and Assistance 15,476 15,476 - EECA's Annual Report 2007/08
Crown Energy Efficiency 2,000 2,000 - EECA's Annual Report 2007/08

The above table summarises funding to be allocated through Vote Climate Change 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 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 - Climate Change
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - To allocate emission units to New Zealand sectors. Allocation of New Zealand Units (M12)
Objective - To support international projects addressing Climate Change. Contribution to Climate Change Development Fund (M12)
Outcome - Improved energy efficiency of New Zealand businesses and homes. Energy Efficiency and Renewable Energy Grants and Assistance (M28)
Objective - To fulfil financial and participatory requirements for subscriptions to the United Nations Framework Convention on Climate Change. Framework Convention on Climate Change (M12)
Outcome - New Zealand's liability arising from the adoption of the Kyoto Protocol is minimised. Kyoto Protocol - Forecast Liability (M12)

Allocation of New Zealand Units (M12)

Scope of Appropriation

This appropriation is limited to the granting of New Zealand Units to sectors of the New Zealand Economy

Expenses

Expenses - Allocation of New Zealand Units (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 748,985

Reasons for Change in Appropriation

This increase in appropriation is due to the introduction of a new appropriation  in 2008/09 for the granting of New Zealand Units to sectors of the New Zealand economy. This appropriation was re-forecast to be in line with the preliminary Projected balance of emissions units during the first commitment period of the Kyoto Protocol for 2008 (also known as the net position report) which included accounting for the impact of the Emissions Trading Scheme.

Expected Results

Expected Results - Allocation of New Zealand Units (M12) - Climate Change
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Sector allocation plans delivered N/A N/A 3 sectors delivered by 30 June 2009

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Allocation of New Zealand Units (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
A New Zealand Emission Trading Scheme: 2007 Decisions 2008/09 - 597,000 477,000 477,000 477,000

 

Contribution to Climate Change Development Fund (M12)#

 

Scope of Appropriation#

New Zealand's contribution to the Climate Change Development Fund to support international projects addressing climate change impacts.

Expenses#

Expenses - Contribution to Climate Change Development Fund (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 300 300 300

Reasons for Change in Appropriation#

There is no change in appropriation.

Expected Results#

Expected Results - Contribution to Climate Change Development Fund (M12) - Climate Change
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Developing countries are supported by the Climate Change Development Fund 3 Countries 3 Countries 3 Countries

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Contribution to Climate Change Development Fund (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Contribution to the Climate Change Development Fund 2005/06 300 300 300 300 300

 

Energy Efficiency and Renewable Energy Grants and Assistance (M28)#

 

Scope of Appropriation#

Crown's contribution to fund improvements to the energy efficiency of New Zealand businesses and homes (with a particular focus on the homes of low income earners); and to develop the solar hot water industry.

Expenses#

Expenses - Energy Efficiency and Renewable Energy Grants and Assistance (M28) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,476 15,476 -

Reasons for Change in Appropriation#

This decrease in appropriation is due to the transfer of energy efficiency appropriations to Vote Energy effective from 1 July 2008.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Energy Efficiency and Renewable Energy Grants and Assistance (M28) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Interest-Free Loans for Residential Energy Efficiency and Heating 2007/08 2,700 - - - -
EnergyWise Home Grants Scheme 2007/08 1,800 - - - -
EnergyWise Package: Maintain EnergyWise Home Grants 2007/08 1,400 - - - -
Implementation of a 5-year Solar water heating programme 2006/07 2,398 - - - -
Improving Energy Efficiency of NZ Housing 2004/05 1,956 - - - -
Energywise Grant Scheme 2003/04 1,067 - - - -
Improving the Energy Efficiency of Homes 2000/01 1,956 - - - -

 

Framework Convention on Climate Change (M12)#

 

Scope of Appropriation#

New Zealand's contribution to the United Nations Framework Convention on Climate Change.

Expenses#

Expenses - Framework Convention on Climate Change (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 102 102 102

Reasons for Change in Appropriation#

There is no change in appropriation.

Expected Results#

Expected Results - Framework Convention on Climate Change (M12) - Climate Change
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
New Zealand's financial commitment to the United Nations Framework Convention on Climate Change is met 100% 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Framework Convention on Climate Change (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Framework Convention Climate Change 2003/04 102 102 102 102 102

 

Reporting Mechanisms#

 

Reporting Mechanisms - Reporting Mechanisms - Climate Change
Appropriation Reporting Mechanism
Allocation of Units Kyoto Protocol, UNFCCC convention and Annual Report of the Ministry for the Environment
Contribution to Climate Change Development Fund Not required
Energy Efficiency and Renewable Energy Grants and Assistance Annual Report of EECA
Framework Convention on Climate Change Not required
Kyoto Protocol - Forecast Liability Annual Report of Ministry for the Environment

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 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Climate Change
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Improved energy efficiency of New Zealand businesses and homes Crown Energy Efficiency (M28)
Outcome - New Zealand's Kyoto obligations are met Kyoto Units (M12)
Outcome - New Zealand's Kyoto obligations are met Purchase of PRE Units (M12)

Crown Energy Efficiency (M28)

Scope of Appropriation

Capital expenditure for the Crown loan scheme.

Capital Expenditure

Capital Expenditure - Crown Energy Efficiency (M28) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,000 2,000 -

Reasons for Change in Appropriation

This decrease in appropriation is due to the transfer of energy efficiency appropriations to Vote Energy effective from1 July 2008.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Crown Energy Efficiency (M28) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increasing Public Sector Energy Saving 2003/04 1,000 - - - -

 

Purchase of PRE Units (M12)#

 

Scope of Appropriation#

Purchasing of PRE emission units by the Crown from the Projects to Reduce Emissions (PRE) portfolio.

Capital Expenditure#

Capital Expenditure - Purchase of PRE Units (M12) - Climate Change
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 3,500

Reasons for Change in Appropriation#

This increase in due to the introduction of a new appropriation in 2008/09 for the purchase of PRE emission units by the Crown from the Projects to Reduce Emissions (PRE) portfolio.

Expected Results#

Expected Results - Purchase of PRE Units (M12) - Climate Change
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A programme is developed to purchase emission units from Projects to Reduce Emissions (PRE) participants N/A N/A Up to 0.8 Million units

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Purchase of PRE Units (M12) - Climate Change
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Purchase of up to 0.8 million PRE Emission Units 2008/09 - 3,500 3,500 3,500 -

 

Reporting Mechanisms#

 

Reporting Mechanisms - Reporting Mechanisms - Climate Change
Appropriation Reporting Mechanism
Crown Energy Efficiency Annual Report of EECA
Kyoto Units Annual report of the Ministry for the Environment
Purchase of PRE Units Annual report of the Ministry for the Environment

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

 

Performance Information for Appropriations Vote Conservation#

 

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Conservation (M16)

ADMINISTERING DEPARTMENT: Department of Conservation

MINISTER RESPONSIBLE FOR DEPARTMENT OF CONSERVATION: Minister of Conservation

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister of Conservation is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

  • a total of nearly $167 million for the management of natural heritage including the maintenance, restoration and protection of ecosystems, habitats and species; the provision and conservation management of historic heritage; and services to control weed and animal pests on lands administered by the department
  • a sum of $128 million for the provision of recreational opportunities on land administered by the department
  • a total of over $21 million for the provision of policy advice and Ministerial servicing, and for working with communities to protect natural and historic resources
  • a sum of $600,000 for the cost of depreciation of surplus visitor assets and the write-offs that result from the recreational opportunities review project
  • a total of over $41 million for the identification and implementation of protection for natural and historic places, management services of natural and historic places, and funding for projects for the New Zealand Biodiversity funds
  • a total of $853,000 for funding assistance to the Southland District Council to meet the costs of additional community infrastructure arising from increased visitor numbers
  • a total of over $6 million for other expenses to be incurred by the Crown.

 

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

 

Part 1.2 - High-Level Objectives of the Vote#

 

Objectives of the Vote#

The Department of Conservation is the central government organisation charged with conserving the natural and historic heritage of New Zealand on behalf of, and for the benefit of, present and future New Zealanders. This role is reflected in the Department's Maori name - Te Papa Atawhai. Te Papa signifies a box or container (for the taonga or treasures) and atawhai the act of caring, nurturing or preserving.

Much of the Department's work takes place on the more than 8 million hectares of protected land and 31 marine reserves that it manages. The protected land includes national parks, forest parks, offshore and sub-antarctic islands and literally thousands of other places, such as historic sites and walkways.

The Department is responsible for fostering recreation opportunities on the lands and waters it manages. To that end, it provides and manages visitor facilities, including walking tracks, huts, campsites and visitor centres.

Government Priorities and Outcomes - Links to Appropriations - Conservation
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Economic Transformation/National Identity/Families - Young and Old Conserving and managing New Zealand's natural, historic and cultural heritage provides increasing benefit to New Zealanders. Management of Natural Heritage
Management of Historic Heritage
Regional Pest Management Strategy
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
Management of Recreational Opportunities
Recreational Opportunities Review
Conservation with Community
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning

 

 

Summary of Financial Activity#

Summary of Financial Activity - Conservation
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  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 268,087 256,244 274,925 290,217 330,697 316,212 316,476 41,274 357,750 338,318 345,934 349,754
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 2,375 6,198 8,852 11,197 19,596 10,874 - 6,418 6,418 5,566 5,566 5,566
Capital Expenditure 29,565 18,147 26,306 32,079 52,967 35,667 50,615 1,347 51,962 56,858 49,658 50,566
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

300,027 280,589 310,083 333,493 403,260 362,753 367,091 49,039 416,130 400,742 401,158 405,886

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 12,196 13,584 16,578 18,203 15,974 15,974 N/A N/A 16,124 15,874 15,624 15,624
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

12,196 13,584 16,578 18,203 15,974 15,974 N/A N/A 16,124 15,874 15,624 15,624

Budget Policy Initiatives#

Budget Policy Initiatives - Conservation
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Departmental Salary Funding Management of Natural Heritage - 1,775 1,775 1,775 1,775
Management of Recreational Opportunities - 1,484 1,484 1,484 1,484
Support for Regional Pest Management Strategies Crown Contribution to Regional Pest Management Strategies - 889 889 889 889
Community Biodiversity Funds NZ Biodiversity Funds - 2,000 2,000 - -

Total Vote: All Appropriations

Figure 1 - Total Vote/all appropriations

Trend Analysis: Total Vote/All Appropriations
Trend Analysis: Total Vote/All Appropriations
Source: Conservation

The departmental and non-departmental appropriations in Vote Conservation include the following significant changes.

There has been a general increase in gross output appropriations over the period 2003/04 to 2008/09, reflecting changes to both departmental and non-departmental outputs from Crown and other revenue. Significant changes have included:

Departmental output expenses:

  • The New Zealand Biodiversity Strategy (NZBS) was adopted by the Government in February 2000 (with a funding package approved in that year's budget to assist implementation). Its goal is halting the decline in New Zealand's indigenous Biodiversity by 2020. This package, which covers a number of Votes including Biosecurity, Conservation, Environment and Fisheries, increased each year over the first five years.
  • The funding in 2002 for the costs associated with the recognition of recreational and other assets that were previously undervalued or unrecognised in the departmental balance sheet.
  • In 2005/06 the transfer of funding within Vote Biosecurity - Conservation to Vote Conservation and Vote Biosecurity - Agriculture and Forestry.

Capital expenditure: Funding for the ongoing costs associated with the recognition of recreational and other assets that were previously undervalued or unrecognised in the Departmental balance sheet. These assets were brought onto the balance sheet by way of capital injection. The capital injections are scheduled from 2007/08 as a proxy for the amount of depreciation that the Department would have accumulated had it inherited the assets as at the start of their lifespan.

Crown revenue and receipts:  The increase in Concessions revenue has been primarily driven by increases in revenue from tourism concessions, reflecting the national increases in international visitor arrivals through the period.

 

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 - Conservation
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The ecological integrity of managed sites is maintained or restored. Management of Natural Heritage
Regional Pest Management Strategy
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
The security of threatened species unique to New Zealand, and most at risk of extinction, is improved. Management of Natural Heritage
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
Examples of the full range of New Zealand's ecosystems are conserved. Management of Natural Heritage
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
A representative range of historic and cultural heritage is protected, restored and interpreted. Management of Historic Heritage
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
New Zealanders increasingly engage in conservation. Conservation with Community
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
New Zealanders have increased opportunities for recreation and outdoor activities. Management of Recreational Opportunities
Recreational Opportunities Review
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning
Business opportunities consistent with conservation outcomes are enabled. Management of Recreational Opportunities
Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning

Conservation with the Community (M16)

Scope of Appropriation

This class of outputs covers building partnerships with tangata whenua, provision of public information, community participation and public awareness.

Expenses and Revenue

Expenses and Revenue - Conservation with the Community (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,791 14,791 14,360
Revenue from the Crown 13,415 13,415 13,057
Revenue from Others 1,376 1,376 1,303

Output Performance Measures and Standards

Output Performance Measures and Standards - Conservation with the Community (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Participation

     
Number of workday equivalents contributed by people volunteering 16,000 20,400 20,602
Number of partnerships run during the year 450 486 442
Number of partners surveyed who rate their contribution to conservation as moderate or significant with a target of 80% Greater than 80% of those surveyed 94% 173(80% of 216)
Number of partnerships that involve tangata whenua with a target of greater than 30% 135(30% of total partnerships run) 135 133(30% of 442)

Education and Communication

     
Number of knowledge and skill sharing (education) initiatives to be provided during year 131 225 233
Number of participants surveyed who rate the initiative as partly effective or effective at meeting its objectives with a target of 70% Greater than 70% of those surveyed 95% 341(70% of 487)

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Conservation with the Community (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Department Capability 2007/08 15 160 224 289 289
Maintain Capability 2005/06 556 556 556 556 556
Project Hauraki: Restoration Trusts for Special Places at our Doorstep 2005/06 311 311 311 311 311
Treaty Settlements 2005/06 183 183 183 183 183

 

Crown Contribution to Regional Pest Management Strategies (M16)#

 

Scope of Appropriation#

This appropriation is limited to controlling weed and animal pests on lands administered by the Department of Conservation to meet negotiated outcomes of regional pest management strategies.

Expenses and Revenue#

Expenses and Revenue - Crown Contribution to Regional Pest Management Strategies (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,059 2,059 3,049
Revenue from the Crown - - -
Revenue from Others - - -

Reasons for Change in Appropriation#

The increase in appropriation is due to the new funding initiative to control weed and animal pests on Crown land to support regional pest management strategies.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Crown Contribution to Regional Pest Management Strategies (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Crown Pest/Weed Exacerbator Costs

     
Number of regional pest management strategies with completed Crown exacerbator weed and pest programs. 17 16 16

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Crown Contribution to Regional Pest Management Strategies (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Support for Regional Pest Management Strategies 2008/09 - 889 889 889 889
Maintain Capability 2007/08 2 23 32 41 41

 

Management of Historic Heritage (M16)#

 

Scope of Appropriation#

This appropriation is limited to the protection and conservation management of historic heritage, including obtaining heritage orders and designations under the Resource Management Act 1991.

Expenses and Revenue#

Expenses and Revenue - Management of Historic Heritage (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,376 6,376 6,031
Revenue from the Crown 5,899 5,899 5,554
Revenue from Others 477 477 477

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Historic Heritage (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Historic and Cultural Heritage Restoration

     
No. of historic heritage assets for which remedial work is completed to standard during the year 36 35 40
No. of historic heritage assets for which regular maintenance work is on track to standard during the year 640 561 706
No. of historic or cultural heritage assessment reports completed to standard during the year 100 95 124

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of Historic Heritage (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Department Capability 2007/08 6 63 88 113 113
Maintain Capability 2005/06 200 200 200 200 200
Preserving Icon Historic Sites 2005/06 47 47 47 47 47
Sustainable long term and active management of 500 historic sites 2003/04 889 889 889 889 889

 

Management of Natural Heritage (M16)#

 

Scope of Appropriation#

This appropriation is limited to maintaining, restoring and protecting ecosystems, habitats and species.

Expenses and Revenue#

Expenses and Revenue - Management of Natural Heritage (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 146,265 143,251 157,681
Revenue from the Crown 133,716 130,702 145,399
Revenue from Others 12,549 12,549 12,282

Reasons for Change in Appropriation#

Fencing assets have been transferred to the Department from the Crown balance sheet for 2008/09. The increase in appropriation is mainly due to the transfer of the related depreciation and recognition of the impact of capital charge. Also contributing to the increase is the Budget initiative for Departmental salary funding.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Natural Heritage (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Fire Control

     
Number of Conservancies operating within a fire response/action plan published in accordance with National Departmental Fire Plan. 11 11 11
Number of Conservancies operating within the Fire Plan of a Rural Fire District. 2 2 2

Conservation Services Programme

     
The Conservation Services programme will meet its agreed performance criteria and milestones. Agreed performance criteria and milestones Agreed performance criteria and milestones Agreed performance criteria and milestones

Restoration

     
Number restoration programmes undertaken that met the criteria for success set out in their programme plan. 50 of 56(89%) 43 of 51(84%) 51 of 52(>95%)

Pest and Weed Control

     
Hectares of land under sustained possum control. 1,074,000 1,078,400 1,078,100
Hectares of land receiving treatment for possums. 264,000 268,800 244,400
Number of possum operations undertaken that met their targets for operational success. 101 of 112(90%) 111 of 113(>95%) 112 of 114(>95%)
Hectares of land under sustained deer control. 681,000 684,300 681,900
Hectares of land receiving treatment for deer. 339,000 341,600 339,900
Hectares of land under sustained goat control. 2,348,000 2,349,000 2,381,500
Hectares of land receiving treatment for goat. 1,465,000 1,459,000 1,489,000
Number other terrestrial animal pest operations undertaken that met the criteria for success set out in their programme plan (number that meet their criteria for success set out in their programme plan will be reported at year end). 37(Number operations undertaken) 36(Number operations undertaken) 44(Number operations undertaken)
Number aquatic animal pest eradication operations undertaken in treatable sites that met the criteria for success set out in their programme plan (success criteria is measured 2 years after operation is run). 18(Number operations undertaken) 18(Number operations undertaken) 7(Number operations undertaken)
Number of island biosecurity programmes where a pest-free status has been maintained. 82 83 84
Number Weed-led weed control projects undertaken (number that meet their criteria for success set out in their programme plan will be reported at year end). 107(Number operations undertaken) 99(Number operations undertaken) 103(Number operations undertaken)
Hectares of land under sustained weed control using a Site-led approach. 1,385,000 1,388,500 1,474,240
Hectares of land receiving treatment for weeds using a Site-led approach. 416,000 446,000 481,000

Legal Protection of Areas and Sites: Marine Protection

     
Hectares of terrestrial environment legally protected during the year. 45,000 84,800 37,544
Hectares of marine areas legally protected during the year:      
  • application with Department of Conservation
- - 930
  • consideration by Minister of Conservation
681,577 681,577 -
  • concurrence sought from Minister of Fisheries
51,047 51,047 49,500
  • fully Approved - yet to be gazetted.
- - -
Hectares of marine areas gazetted and under sustained management during the year. 1,276,372 1,276,372 1,278,774

Species Management

     
Number of 'acutely threatened', species or subspecies that will have improved security for one or more populations as a result of active species conservation programmes. 148 160 164
Number of 'chronically threatened', species or subspecies that will have improved security for one or more populations as a result of active species conservation programmes. 53 60 60
Number of 'at risk', species or subspecies that will have improved security for one or more populations as a result of active species conservation programmes. 23 26 24
Number of 'acutely threatened' species or subspecies that will have achieved improved understanding of status and threats through survey, monitoring and research. 182 195 195
Number of 'chronically threatened' species or subspecies that will have achieved improved understanding of status and threats through survey, monitoring and research. 61 70 68
Number of 'at risk' species or subspecies that will have achieved improved understanding of status and threats through survey, monitoring and research. 26 27 26

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of Natural Heritage (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Departmental Salary Funding 2008/09 - 1,775 1,775 1,775 1,775
Intensive Integrated Biodiversity Management 2007/08 2,000 2,000 2,000 2,000 2,000
Meeting Treaty Settlement Objectives 2007/08 500 500 500 500 500
Department Capability 2007/08 146 1,522 2,122 2,739 2,739
Maintain Capability 2005/06 3,809 3,809 3,809 3,809 3,809
Foreshore and Seabed 2005/06 2,222 2,222 2,222 2,222 2,222
Implementation of the Fiordland Marine Management Bill 2005/06 307 320 320 320 320
Thames Coast Flood Risk Mitigation 2005/06 636 636 636 636 636
South Island High Country Objectives 2005/062004/05 1834,713 1674,713 1674,713 1674,713 1674,713
Wilding Pine Control 2004/05 638 638 638 638 638
Crater Lake 2004/05 174 174 174 174 174
Fire Control 2004/05 1,000 1,000 1,000 1,000 1,000
Southern Island Pest Eradication 2004/05 1,860 1,448 1,188 849 619
High Country National Parks and Reserves (South Island) 2003/04 133 133 133 133 133

 

Management of Recreational Opportunities (M16)#

 

Scope of Appropriation#

This appropriation is limited to providing facilities and services on land administered by the Department for people to enjoy recreational opportunities, and the management of recreational and other business concessions.

Expenses and Revenue#

Expenses and Revenue - Management of Recreational Opportunities (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 122,267 118,656 128,006
Revenue from the Crown 101,710 98,099 107,449
Revenue from Others 20,557 20,557 20,557

Reasons for Change in Appropriation#

The increase in this appropriation is due to increases in funding for visitor asset maintenance and from the Budget initiative for Departmental salaries.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Recreational Opportunities (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Asset Management

     
Number of huts meeting required service standard with a target of 90% to standard. 769(80% to standard) 819 852 of 944(90% to standard)
Kilometres of tracks meeting required service standard in each Visitor Group with a target of 40% to standard. 6,425(50% to standard) 7,063 6,498 of 12,850(50% to standard)
Number of structures meeting the required service standard with a target of 98%. 13,370(100%) 13,088 13,398(>95%)

Recreation Opportunities Management

     
Number of visitor recreation and interpretation publications meeting publication standard with a target of 90%. 359(90% of 399) 313 348(>90% of 375)

Recreation Concessions

     
Number of one-off recreation concessions managed. 600 574 575
Number of longer term recreation concession permits, licences, leases and easements managed. 978 982 1,039
Number of recreation longer-term concession permits, licenses, leases, easements monitored annually with a target of 15% of the number managed. 146(15% of number managed) 336 393
Number of one-off other resource use concessions managed. 97 109 163
Number of longer-term other resource use concession permits, licences, leases and easements managed. 2,640 2,716 2,670
Number of other longer-term resource use concessions monitored annually with a target of 15% of the number managed. 396(15% of number managed) 446 481

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of Recreational Opportunities (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Departmental Salary Funding 2008/09 - 1,484 1,484 1,484 1,484
Te Araroa Track Development 2007/08 - 146 510 875  
Department Capability 2007/08 122 1,276 1,778 2,295 2,295
Maintain Capability 2005/06 2,227 2,227 2,227 2,227 2,227
Icon Visitor Centres: New Zealand's Most Important Visitor Sites 2005/06 222 222 222 222 222

 

Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16)#

 

Scope of Appropriation#

This appropriation is limited to providing policy advice and ministerial servicing to the Minister of Conservation. It also includes servicing statutory bodies and statutory planning under the Conservation Act 1987 and the National Parks Act.1980.

Expenses and Revenue#

Expenses and Revenue - Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,681 7,681 6,749
Revenue from the Crown 7,151 7,151 6,219
Revenue from Others 530 530 530

Reasons for Change in Appropriation#

The decrease in appropriation is due to a one off increase in appropriation in 2007/08 from over-achievement in Crown Concessions Revenue.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice

     
Policy advice will be provided in accordance with the work programme and to the quality standards agreed with the Minister. As agreed with the Minister As agreed with the Minister As agreed with the Minister

Ministerial Services

     
Number of departmental submissions sent to the Minister. 350-400 350-400 350-400
Number of ministerial Official Information Act requests received (range). 60-70 60-70 60-70
Number of Parliamentary Questions received (range) with 100% meeting the ministerial deadline. 300-350 300-350 300-350

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Meeting Treaty Settlement Objectives 2007/08 500 500 500 500 500
Department CapabilityMaintain Capability 2007/082005/06 6147 62147 87147 112147 112147

 

Recreational Opportunities Review (M16)#

 

Scope of Appropriation#

The depreciation and write-off of Visitor Assets to be decommissioned following the review of recreational opportunities. Note this output expense is non-cash.

Expenses and Revenue#

Expenses and Revenue - Recreational Opportunities Review (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 700 700 600
Revenue from the Crown - - -
Revenue from Others - - -

 

Part 2.2 - Non-Departmental Output Expenses#

 

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Conservation
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Examples of the full range of New Zealand's ecosystems are conserved. Identification and Implementation of Protection for Natural and Historic Places
Management Services - Natural and Historic Places
NZ Biodiversity Funds
A representative range of historic and cultural heritage is protected, restored and interpreted. Identification and Implementation of Protection for Natural and Historic Places
Management Services - Natural and Historic Places
Moutoa Gardens/Pakaitorere
New Zealanders increasingly engage in conservation. NZ Biodiversity Funds
New Zealanders have increased opportunities for recreation and outdoor activities. Stewart Island Infrastructure

Identification and Implementation of Protection for Natural and Historic Places (M16)#

Scope of Appropriation

Purchasing identification, registration and associated promotion of the conservation, protection and care of historic places, implementation of legal protection of natural and historic resources on private or leasehold land; and the protection of indigenous ecosystems on private land or in Maori ownership through the use of contestable funds.

Expenses

Expenses - Identification and Implementation of Protection for Natural and Historic Places (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26,054 18,494 27,029

Reasons for Change in Appropriation

The increase in appropriation is due to expense transfers from 2007/08 to 2008/09 in relation to the Nature Heritage Fund and Ngā Whenua Rāhui.

Output Performance Measures and Standards

Output Performance Measures and Standards - Identification and Implementation of Protection for Natural and Historic Places (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Protection of indigenous ecosystems on private land

     
Number of successful purchases 7 purchases 7 purchases 6 purchases
Number of successful covenants 2 covenants 2 covenants 2 covenants
Hectares of indigenous ecosystem protected 2,000 2,000 2,500

Protection of indigenous ecosystems in Maori ownership on South Island Landless Natives Act (SILNA) land

     
Number of trusts and blocks approved for protection of indigenous ecosystems 3 trusts 3 trusts 3 trusts
Number of trusts and blocks approved for protection of indigenous ecosystems 47 blocks of SILNA land 47 blocks of SILNA land 11 blocks of SILNA land
Hectares of indigenous ecosystem protected - - 1,521

Ngā Whenua Rāhui

     
Number of Kawenata/Management Agreements signed off 18 10 18

Queen Elizabeth II National Trust

     

Recommended Areas for Protection or similar quality

     
Number of New Covenant approvals 240 240 200
Hectares for Covenant approvals 6,000 6,000 5,000
Number of Covenant registrations 200 200 200
Hectares for Covenant registrations 5,000 5,000 5,000

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Identification and Implementation of Protection for Natural and Historic Places (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
SILNA 2008/09 - 750 - - -

 

Management Services - Natural and Historic Places (M16)#

 

Scope of Appropriation#

This appropriation is limited to management services for properties with historical or natural significance, including maintenance work, access for the public and management advice on covenanted properties.

Expenses#

Expenses - Management Services Natural and Historic Places (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,506 1,506 1,506

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management Services Natural and Historic Places (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Queen Elizabeth the Second National Trust properties

     
Number properties managed in accordance with approved operative management plans 28 28 28
Area (hectares) 1,547 1,547 1,582

Perpetual trustee role for registered open space covenant

     
Number of monitoring visits to registered covenants (registered covenants monitored not less than once every 24 months 1,280 1,280 1,350
Area (hectares) 32,000 32,000 33,750

 

Moutoa Gardens/Pakaitorere (M16)#

 

Scope of Appropriation#

This appropriation is limited to the ongoing management and maintenance of the Moutoa Gardens Reserve.

Expenses#

Expenses - Moutoa Gardens/Pakaitorere (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 23 23 23

Output Performance Measures and Standards#

Output Performance Measures and Standards - Moutoa Gardens/Pakaitorere (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Maintain key assets of the reserve at a suitable standard Achieve Achieve Achieve

 

NZ Biodiversity Funds (M16)#

 

Scope of Appropriation#

This appropriation is limited to the payment of grants: to provide private land managers with information and advice, or assistance with costs of pest and weed control, fencing and other biodiversity management actions; and to support community biodiversity restoration initiatives.

Expenses#

Expenses - NZ Biodiversity Funds (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,975 2,975 11,863

Reasons for Change in Appropriation#

The increase in appropriation is due to: a new budget initiative to support community biodiversity restoration initiatives; and expense transfer from 2007/08 to 2008/09. There is some lag for biodiversity projects between committing to expenditure and their completion due to the timing of the funding rounds and private landowner and community group involvement.

Output Performance Measures and Standards#

Output Performance Measures and Standards - NZ Biodiversity Funds (M16) - Conservation
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Advice projects funded 40 26 30
Condition projects funded 120 107 70

Note - The reason for reduction in performance measures is due to high outyear commitments on the funds.

Current and Past Policy Initiatives - NZ Biodiversity Funds (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Community Biodiversity Funds 2008/09 - 2,000 2,000 - -

 

Stewart Island Infrastructure (M16)#

 

Scope of Appropriation#

Assistance to the Southland District Council to meet the costs of additional community infrastructure arising from increased visitor numbers.

Expenses#

Expenses - Stewart Island Infrastructure (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 853

Reasons for Change in Appropriation#

The change in appropriation is due to an expense transfer from 2007/08 to 2008/09.  There has been some delay over the transfer of land required for the construction of the Community Facility/Heritage Building.

 

Summary of Service Providers#

 

Summary of Service Providers - Summary of Service Providers - Conservation
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Queen Elizabeth II National Trust 2,874 2,874 2,874 Annual Report 30 June 2009
Nature Heritage Fund 17,226 14,726 20,217 Section 32A Report Ongoing

The above table summarises funding to be allocated through Vote Conservation 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 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 - Conservation
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To maintain heritage of historic buildings and to provide interpretation and allow access to the public. Depreciation - Crown Buildings
To maintain infrastructural assets on Conservation Estates. Depreciation Infrastructure
To meet Crown's legislative obligation when esplanade reserves are created under s289 of the Local Government Act 1974. Esplanade Compensation Reserve
To support initiatives to protect traditional Maori knowledge relating to New Zealand's indigenous biodiversity. Mātauranga Maori Fund
To meet Crown obligations for rates on conservation land. Payment of Rates on Properties for Concessionaires
To provide for bad debts against concessions revenue. Provision for Bad and Doubtful Debts
To protect indigenous ecosystems on private or leasehold land, through legal and physical protection. Purchase and Development of Reserves
To provide redress to local authorities for land vested in the Crown under the Foreshore & Seabed Act 2004. Redress payments under Foreshore and Seabed Act 2004
To further New Zealand's interests in international conservation issues. Subscriptions to International Organisations
To meet Crown's legislative obligation when coastal marine areas are vested. Vested Coastal Marine Areas Compensation
To provide access to Lake Waikaremoana for conservation purposes. Waikaremoana Lakebed Lease

Depreciation - Crown Buildings (M16)

Scope of Appropriation

This appropriation is limited to the depreciation on Crown Buildings: Old Government Building; Turnbull House; and the Dominion Observatory.

Expenses

Expenses - Depreciation Crown Buildings (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 800 800 800

Expected Results

Expected Results - Depreciation Crown Buildings (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Historic Buildings are maintained Achieved Achieved Achieved
Interpretation and public access of historic buildings is provided Achieved Achieved Achieved

 

Depreciation - Infrastructure (M16)#

 

Scope of Appropriation#

This appropriation is limited to Depreciation on Infrastructural Assets on the Conservation Estate.

Expenses#

Expenses - Depreciation Infrastructure (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 134 134 134

 

Esplanade Reserve Compensation (M16)#

 

Scope of Appropriation#

Obligatory compensatory payments made under section 289 of the Local Government Act 1974 when esplanade reserves are created.

Expenses#

Expenses - Esplanade Reserve Compensation (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 230 230 30

Reasons for Change in Appropriation#

The decrease in appropriation is due to expense transfer from 2006/07 to 2007/08.  Legal action in relation to the Esplanade Reserve Compensation continued in the 2007/08 financial year.

Expected Results#

Expected Results - Esplanade Reserve Compensation (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Compensation payments are met in accordance with the legislation Achieve Achieve Achieve

 

Matauranga Maori Fund (M16)#

 

Scope of Appropriation#

This appropriation is limited to making grants to support initiatives to protect traditional Maori knowledge relating to NZ's indigenous biodiversity.

Expenses#

Expenses - Matauranga Maori Fund (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 673 373 1,006

Reasons for Change in Appropriation#

The increase in appropriation is due to expense transfer from 2007/08 to 2008/09.  There was a lag between committing to expenditure and completion of projects due to the private landowner / community group involvement in projects.

Expected Results#

Expected Results - Matauranga Maori Fund (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Consider and approve grant applications that preserve, protect and promote the use of traditional Maori knowledge and practices in biodiversity management. Achieve Achieve Achieve

 

Payment of Rates on Properties for Concessionaires (M16)#

 

Scope of Appropriation#

This appropriation is limited to the payment of rates: on reserves; conservation areas that are used for private or commercial purposes; and for services provided by a local authority.

Expenses#

Expenses - Payment of Rates on Properties for Concessionaires (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,689 589 1,689

Expected Results#

Expected Results - Payment of Rates on Properties for Concessionaires (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Rates are paid to local authority in a timely manner Achieved Achieved Achieved

 

Provision for Bad and Doubtful Debts (M16)#

 

Scope of Appropriation#

This appropriation is limited to the write-off of debts relating to Concession Revenue.

Expenses#

Expenses - Provision for Bad and Doubtful Debts (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 100 100 100

Expected Results#

Expected Results - Provision for Bad and Doubtful Debts (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Debts related to Concession Revenue are reviewed and appropriate provision made. Achieved Achieved Achieved

 

Purchase and Development of Reserves (M16)#

 

Scope of Appropriation#

Provision for purchasing, taking on leases, managing, administering, maintaining, protecting, improving, and developing the reserves from the Reserves Trust Bank Account and Reserves Act Crown Bank Account. No net Crown impact as it is funded by proceeds of the disposal of reserve lands.

Expenses#

Expenses - Purchase and Development of Reserves (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,187 1,087 1,800

Reasons for Change in Appropriation#

There were expense transfers from 2006/07 to 2007/08 for the purchase of two properties and there was an adjustment in 2007/08 that represented the balance of the Reserve Trust account as at 30 June 2007.

Expected Results#

Expected Results - Purchase and Development of Reserves (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Purchase of property for conservation purposes Achieve Achieve Achieve

 

Redress payments under Foreshore and Seabed Act 2004 (M16)#

 

Scope of Appropriation#

This appropriation is limited to redress payments to local authorities under Section 25 of the Foreshore and Seabed Act 2004.

Expenses#

Expenses - Redress payments under Foreshore and Seabed Act 2004 (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 222 - 400

Reasons for Change in Appropriation#

The increase is due to an expense transfer from 2007/08 to 2008/09 arising from the need for local authorities to demonstrate that claims for redress meet the legislative requirements.

Expected Results - Redress payments under Foreshore and Seabed Act 2004 (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Redress payments are made in accordance with the Foreshore and Seabed Act 2004. Achieved Achieved Achieved

 

Subscriptions to International Organisations (M16)#

 

Scope of Appropriation#

This appropriation is limited to meeting annual subscriptions to international conservation organisations.

Expenses#

Expenses - Subscriptions to International Organisations (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 305 305 305

Expected Results#

Expected Results - Subscriptions to International Organisations (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Subscriptions are made to international conservation organisations Achieved Achieved Achieved

 

Vested Coastal Marine Areas Compensation (M16)#

 

Scope of Appropriation#

Obligatory compensation payable upon vesting of coastal marine areas in the Crown.

Expenses#

Expenses - Vested Coastal Marine Areas Compensation (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 30 30 30

Expected Results#

Expected Results - Vested Coastal Marine Areas Compensation (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Compensation payments are met in accordance with the relevant legislation Achieve Achieve Achieve

 

Waikaremoana Lakebed Lease (M16)#

 

Scope of Appropriation#

This appropriation is limited to payments made under the Lake Waikaremoana Act 1971 for the lease of the lakebed and foreshore for conservation purposes.

Expenses#

Expenses - Waikaremoana Lakebed Lease (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 124 124 124

Expected Results#

Expected Results - Waikaremoana Lakebed Lease (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Lease is paid in accordance with the lease agreement Achieved Achieved Achieved

 

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 - Conservation
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Effectively manage visitor assets through replacement, upgrade and maintenance. The capital expenditure supports the Department's production of agreed outputs. Department of Conservation - Capital Expenditure PLA

Department of Conservation - Capital Expenditure PLA (M16)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Department of Conservation Capital Expenditure PLA (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 51,031 34,031 47,742
Intangibles 1,123 1,123 2,873
Other - - -
Total Appropriation 52,154 35,154 50,615
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 51,031 34,031 47,742
Intangibles 1,123 1,123 2,873
Other - - -
Total Appropriation 52,154 35,154 50,615

Reasons for Change in Appropriation

The decrease in Property, Plant and Equipment appropriation 2008/09 compared to 2007/08 is due to one-off expenditure in 2007/08 on the new head office building in Wellington.

 

Part 6.2 - Non-Departmental Capital Expenditure#

 

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Conservation
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To protect indigenous ecosystems on private or leasehold land, through legal and physical protection. Crown Land Acquisitions
To protect the current infrastructure at Milford Sound from flood damage and allow its redevelopment and expansion, to preserve and enhance its tourism value. Milford Flood Protection

Crown Land Acquisitions (M16)#

Scope of Appropriation

This appropriation is limited to the purchase of land for the Conservation Estate

Capital Expenditure

Capital Expenditure - Crown Land Acquisitions (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 476 476 500

Expected Results

Expected Results - Crown Land Acquisitions (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Purchase of property for conservation purposes - One property Three properties

 

Milford Flood Protection (M16)#

 

Scope of Appropriation#

This appropriation is limited to flood protection works on the Cleddau River at Milford Sound.

Capital Expenditure#

Capital Expenditure - Milford Flood Protection (M16) - Conservation
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 337 37 847

Expected Results#

Expected Results - Milford Flood Protection (M16) - Conservation
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Obtain Resource Consents Achieved Achieved Achieved
Set up the Quarry - - Achieved
Commence rock extraction - - Achieved

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Milford Flood Protection (M16) - Conservation
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Milford Flood Protection 2007/08 337 847 11,861 55 -

 

Performance Information for Appropriations Vote Local Government#

 

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Local Government (M49)

ADMINISTERING DEPARTMENT: Department of Internal Affairs

MINISTER RESPONSIBLE FOR DEPARTMENT OF INTERNAL AFFAIRS: Minister of Internal Affairs

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister of Local Government is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

Departmental Appropriations

  • a total of nearly $5.233 million (43% of total departmental appropriations in this Vote) for advisory, information, regulatory and support services including administration of statutes, providing information and advice about local government, supporting the Local Government Commission, local government services to offshore islands, providing Lake Taupo Harbourmaster functions, and administering the rates rebates scheme
  • $7.060 million (57% of total departmental appropriations in this Vote) on providing policy advice on, and information relating to, local government issues, including ministerial correspondence and questions.

Non-Departmental Appropriations

  • a total of nearly $76.565 million for assisting low-income residential ratepayers with rates rebates
  • a total of nearly $2.231 million contribution for the cost of Chatham Islands Council for meeting its statutory responsibilities
  • a total of nearly $127,000 for depreciation on Lake Taupo's Crown assets
  • a total of nearly $1.500 million grant for the use of Lake Taupo, based upon a 2007 agreement between the Crown and the Tuwharetoa iwi
  • a total of nearly $34,000 for upgrading boating facilities at Lake Taupo.

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

 

Part 1.2 - High-Level Objectives of the Vote#

 

Contribution of Appropriations to Government Priorities and Outcomes#

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Local Government
Appropriations Government Priorities - Themes / Sub-themes Government Outcomes
Capital Investment - Lake Taupo
Chatham Islands Council
Depreciation
Grants to Assist in Land Purchases
Rates Rebates Scheme
Services for Local Government
Tuwharetoa Maori Trust Board
Economic transformation - looking after the system of local government that makes a vital contribution to provision of infrastructure; environmental sustainability; and helping Auckland become a world-class city
Families - young and old - helping communities to identify and provide for enhanced social outcomes across the entire range of social, health and safety sub-themes
National identity - helping local communities and their councils to define and work towards their own visions, promoting participation in civil society and local decision-making
Strong, Sustainable Communities/Hapu/Iwi

 

 

Summary of Financial Activity#

Summary of Financial Activity - Local Government
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  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 5,838 8,015 9,739 11,987 12,764 12,328 12,293 - 12,293 11,363 10,793 10,793
Benefits and Other Unrequited Expenses 585 498 674 43,517 70,650 48,888 N/A 76,565 76,565 78,860 81,601 83,701
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 6,813 12,641 3,732 2,040 15,700 15,700 - 3,858 3,858 4,691 3,824 3,860
Capital Expenditure - 34 528 41 179 179 - 34 34 34 34 34
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

13,236 21,188 14,673 57,585 99,293 77,095 12,293 80,457 92,750 94,948 96,252 98,388

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue - - - 1,277 - - N/A N/A - - - -
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

- - - 1,277 - - N/A N/A - - - -

Budget Policy Initiatives#

Budget Policy initiatives - Local Government
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Optimising central government investment in local government Services for Local Government - 1,551 800 230 230
Optimising central government investment in local government Rates Rebate Scheme - 5,915 8,210 10,951 13,051
Chatham Islands Council Financial Assistance Programme Chatham Islands Council - 1,828 1,613 1,878 1,914
Settlement costs relating to property rights in Lake Taupo Tuwharetoa Maori Trust Board 12,674 1,331 1,331 1,331 1,331

Total Vote: All Appropriations

Trends in comparative actual and estimated total expenses and capital expenditure are shown in Figure 1 below, including budgeted and estimated actual figures for the preceding year.

Figure 1 - Trends in total actual and estimated expenses and capital expenditure

Total Appropriation
Total Appropriation
Source: Department of Internal Affairs

The movements in departmental and non-departmental appropriations in Vote Local Government, which are detailed in the Summary of Financial Activity table, are largely driven by one-off funding for specific purposes rather than on-going funding.

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

Departmental Output Expenses

Figure 2 - Trends in departmental output expenses

Departmental Output Expenses
Departmental Output Expenses
Source: Department of Internal Affairs

The baseline increased in 2004/05 to improve policy capability and capacity of the Department and to enable the Local Government Commission's review of the operation of the Local Government and Local Electoral Acts. Additional funding was provided in 2005/06 for the Upgrade of Information and Technology Capability. In 2006/07 funding was increased for the hosting of the 2007 Local Government Conference. The decrease in 2010/11 and outyears is largely due to a higher level of funding in 2008/09 and 2009/10 for the professional development of elected members of councils and Auckland governance.

Benefits and Other Unrequited Expenses

Figure 3 - Trends in benefits and other unrequited expenses

Benefits and Unrequited Expenses
Benefits and Unrequited Expenses
Source: Department of Internal Affairs

The baseline increased from 2006/07 onwards to allow for revised income thresholds for entitlements under the Rates Rebate Scheme. Additional funding was provided from 2008/09 for consumer price index adjustments to rates rebates claims.

Non-Departmental Other Expenses

Figure 4- Trends in non-departmental other expenses

Non-Departmental Other Expenses
Non-Departmental Other Expenses
Source: Department of Internal Affairs

Funding was provided in 2004/05 for a contribution to local authorities arising from the Bay of Plenty flooding, and to the Chatham Islands Council to enable it to meet its statutory responsibilities and to upgrade its water supply and sewerage systems. Funding was provided in 2005/06 for the purchase of land from Chelsea Estate Limited and part of Waitangarua Farm, and in 2007/08 for settlement costs relating to Lake Taupo property rights. Additional funding was provided in 2008/09 onwards to the Chatham Islands Council to enable it to continue to meet its statutory responsibilities.

Capital Expenditure

Figure 5 - Trends in capital expenditure

Capital Expenditure
Capital Expenditure
Source: Department of Internal Affairs

Expenditure increased in 2005/06 for the reparation of Crown-owned breastworks at Lake Taupo. One-off funding was provided in 2007/08 for the upgrade of boating facilities at Lake Taupo.

 

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 - Local Government
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome : Strong, Sustainable Communities/Hapu/Iwi
  • People engage with and participate in their communities
  • Communities are supported by fair and responsive local government and other local groups and organisations
Services for Local Government MCOA -
  • Information, Support and Regulatory Services - Local Government
  • Policy Advice - Local Government

Services for Local Government MCOA (M49)

Scope of Appropriation

Information, Support and Regulatory Services - Local Government
Providing advisory and support services to the Local Government Commission in respect of its statutory functions, providing information to and about local government, administering the Local Government Act 2002 and other statues, providing operational advice and support to the Minister of Local Government, administering the Local Electoral Act 2001, administering the Rates Rebates Scheme, providing regulatory and boating services for Lake Taupo, including providing the Harbourmaster and managing the Lake Taupo Landing Reserve, governance and management of the National Dog Control Information Database and education about dogs.

Policy Advice - Local Government
Provision of policy advice on, and information relating to, local government issues, including ministerial correspondence and questions.

Explanation for Use of Multi-Class Output Expense Appropriation

Both outputs contribute to the effective governance and support for New Zealand's Local Government sector.

Expenses and Revenue

Expenses and Revenue - Services for Local Government MCOA (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,764 12,328 12,293
Information, Support and Regulatory Services - Local Government 6,235 5,861 5,233
Policy Advice - Local Government 6,529 6,467 7,060
Revenue from the Crown 11,783 11,783 11,317
Information, Support and Regulatory Services - Local Government 5,325 5,325 4,327
Policy Advice - Local Government 6,458 6,458 6,990
Revenue from Others 955 954 955
Information, Support and Regulatory Services - Local Government 886 886 886
Policy Advice - Local Government 69 68 69

Output Performance Measures and Standards

Output Performance Measures and Standards - Services for Local Government MCOA (M49) - Local Government
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Information, Support and Regulatory Services - Local Government      
Local Government Commission Advice and Support      
Local Government Commission's satisfaction with the quality of advice and support services provided rated at 3 or above on a scale of 1 to 5 is no less than: 3 or above 3 or above 3 or above
Percentage of Local Government Commission decisions dispatched to parties within 10 working days of decision, or to such other timetable as instructed by the Commission is: 100% 100% 100%
Local Government Services      
Percentage of rates rebates claims processed accurately is no less than: 99% 99% 99%
Percentage of requests for information from the public about the rates rebates scheme responded to within 15 working days is no less than: 99% 99% 99%
Percentage of claims for rates rebates processed within 20 working days is no less than: 98% 98% 98%
Percentage of system availability for the National Dog Database is no less than: New measure New measure 99%
Activity Information**      
Number of responses to requests for information from the public about the rates rebates scheme. 300 - 600 350 300 - 600
Number of rates rebates claims received for processing. 100,000 - 140,000 120,000 100,000 - 140,000
Regulatory and Boating Services for Lake Taupo      
The Taupo Harbourmaster will implement a programme of facilities inspection and maintenance. Facilities managed in accordance with programme and standards Achieved Facilities managed in accordance with programme and standards
All boating facilities on Lake Taupo are maintained to an appropriate level of safety and usability. Facilities maintained to specified standards Achieved Facilities maintained to specified standards
Percentage of respondents to a survey of key stakeholders who rate their satisfaction with the quality of Lake Taupo regulatory services at 3 or above on a scale of 1-5 is no less than: 85% 100% 85%
Percentage of prosecutions taken under navigation safety legislation and regulations dismissed because a prima facie case has not been established is no more than: Revised measure Revised measure 10%
Policy Advice - Local Government      
Local Government Policy Advice      
Policy advice is delivered according to the Output Plan (and any subsequent amendments) as negotiated between the Minister and the Secretary for Local Government. 100% 100% 100%
Policy advice is delivered in accordance with agreed policy quality criteria (refer Conditions on Use of Appropriation) 100% 100% 100%
The Minister is requested to indicate his/her level of satisfaction with the quality of policy advice. Satisfied or better1 Satisfied or better1 Satisfied or better1
Policy advice is delivered according to the timeframes agreed. 100% 100% 100%
Ministerial Correspondence and Questions      
Percentage of first versions of replies to ministerial correspondence, Official Information Act 1982 requests, Ombudsman's inquiries and parliamentary questions accepted by the Minister is no less than: 95% 95% 95%
Percentage of draft responses to ministerial correspondence returned to the Minister's office for signature within 15 working days of receipt from the Minister's office or such other deadlines as may be specifically agreed is no less than: 95% 95% 95%
Percentage of draft responses to Official Information Act 1982 requests and Ombudsman's inquiries returned to the Minister's office for signature five days prior to the statutory deadline for reply is no less than: 100% 100% 100%
Percentage of draft replies to parliamentary questions completed within the time frames specified by the Minister is no less than: 100% 100% 100%
Activity Information2      
Number of replies to ministerial correspondence, Official Information Act 1982 requests and Ombudsman's inquiries, and answers to parliamentary questions. 500 - 750 700 600 - 700

Note 1 - Ratings used in all Ministerial Satisfaction Surveys are: Very Good, Good, Satisfied, Poor, Very Poor.

Note 2 - Activity information relates to output volume measures that are demand driven and therefore outside the Department's control.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Services for Local Government MCOA (M49) - Local Government
Reference Conditions
Policy Advice Quality Criteria  
Purpose Policy papers should be short (where practicable), succinct and clearly focused on decisions required from Ministers.
Consistency The advice takes account of other Government policies and decisions, and is consistent with the principles of the Treaty of Waitangi.
Logic The assumptions behind the advice are explicit and argument is logical and supported by the facts.
Accuracy The facts in the papers are legally and statistically accurate and all material facts and sources are included. Where appropriate, the advice includes sound legal opinion.
Options An appropriate range of options is presented; each option is assessed in terms of the benefits and costs for the Government, the economy, the community sector and all other relevant parties. The information provided has sufficient range and depth.
Consultation There is evidence of adequate consultation with other government agencies and other affected parties and possible objections to proposals are identified.
Practicality The problems of implementation, technical feasibility, timing and consistency with other policies have been considered. Where appropriate, the advice considers the impact on the lives of New Zealanders.
Presentation The length and format of Cabinet papers meet Ministerial and Cabinet Office requirements. All papers and briefings are in accordance with the Department's Policy Quality Assurance guidelines. All presentations to Ministers are in accordance with Ministerial preference for style and format. All key facts and recommendations are on the first page. All material is effectively, concisely and clearly presented, has short sentences in plain English, and is free of grammatical or numerical errors.
Impartiality The Department of Internal Affairs strives to provide professional, impartial and comprehensive advice to Ministers and to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with the Ministers' views.

Memorandum Account

Memorandum Account - Services for Local Government MCOA (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Use of facilities and access by Lake Taupo boat users

     
Opening Balance at 1 July 52 52 47
Revenue 345 345 345
Expenses 350 350 346
Transfers and Adjustments - - -
Closing Balance at 30 June 47 47 46

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services for Local Government MCOA (M49) - Local Government
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Optimising central government investment in local government 2008/09 - 1,551 800 230 230
Departmental Personnel Capability 2005/06 513 594 594 594 594
Facilitation of Central/Local Government Engagement in Community Outcome Process 2005/06 590 590 590 590 590
Funding to Implement a National Dog Database 2005/06 822 822 822 822 822
Increase in fees for use of Lake Taupo Facilities 2005/06 41 41 41 41 41
National Awards Scheme for Local Government 2005/06 44 44 44 44 44
Updating Thresholds for Entitlements under the Rates Rebate Scheme 2005/06 475 475 475 475 475
Update of Information and Technology Infrastructure 2005/06 1,350 1,406 1,406 1,406 1,406
Local Authority Comparative Data 2004/05 187 187 187 187 187
Local Government Commission - Legislative Reviews and Additional Functions 2004/05 1,113 1,113 1,113 1,113 1,113
Additional funding to improve the policy capability and capacity of the Department 2003/04 2,213 2,213 2,213 2,213 2,213

 

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 - Local Government
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Strong, sustainable communities/hapu/iwi
  • Communities are supported by fair and responsive local government and other local groups and organisations
Rates Rebate Scheme

Rates Rebate Scheme (M49)

Scope of Appropriation

Assistance with rates for low-income residential ratepayers.

Expenses

Expenses - Rates Rebate Scheme (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 70,650 48,888 86,565

Reasons for Change in Appropriation

The increase in this appropriation is due to additional funding for consumer price index adjustments for rates rebate claims.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Rates Rebate Scheme (M49) - Local Government
Reference Conditions
Rates Rebates Act 1973, section 3 Rebates are granted on the basis of a formula taking into account income, the number of dependants and the amount of rates owing.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Rates Rebate Scheme (M49) - Local Government
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Optimising central government investment in local government 2008/09 - 5,915 8,210 10,951 13,051
Updating Thresholds for Entitlements under the Rates Rebate Scheme 2006/07 49,700 49,700 49,700 49,700 49,700

 

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 - Local Government
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Strong, sustainable communities/hapu/iwi
  • Contribution to the cost of the Chatham Islands Council meeting its statutory responsibilities
Chatham Islands Council
Outcome: Strong, sustainable communities/hapu/iwi
  • Communities are supported by fair and responsive local government and other local groups and organisations
Depreciation
Outcome: Strong, sustainable communities/hapu/iwi
  • Communities are supported by fair and responsive local government and other local groups and organisations
Grants to Assist in Land Purchases
Outcome: Strong, sustainable communities/hapu/iwi
  • Communities are supported by fair and responsive local government and other local groups and organisations
Tuwharetoa Maori Trust Board

Chatham Islands Council (M49)

Scope of Appropriation

Contribution to the cost of the Chatham Island Council meeting its statutory responsibilities.

Expenses

Expenses - Chatham Islands Council (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,721 1,721 2,231

Reasons for Change in Appropriation

In 2008/09 additional funding was provided to enable the Chatham Islands Council to meet its statutory responsibilities.

Expected Results

Expected Results - Chatham Islands Council (M49) - Local Government
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Chatham Islands Council is well supported and financially solvent Achieved Achieved Achieved
The Chatham Islands Council complies with its responsibilities under the Local Government Act 2002 Achieved Achieved Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Chatham Islands Council (M49) - Local Government
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Chatham Islands Council Financial Assistance Programme 2008/09 - 1,828 1,613 1,878 1,914
Chatham Islands Council Waste Management Assistance 2006/07 558 403 1,451 319 319
Chatham Islands Council Crown Funding Assistance 2004/05 1,020 - - - -

 

Depreciation (M49)#

 

Scope of Appropriation#

Depreciation on Lake Taupo's Crown owned assets.

Expenses#

Expenses - Depreciation (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 136 136 127

 

Grants to Assist in Land Purchases (M49)#

 

Scope of Appropriation#

To provide funding to assist in the purchase of land by local authorities or local organisations.

Expenses#

Expenses - Grants to Assist in Land Purchases (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 -

Reasons for Change in Appropriation#

Funding was provided in 2007/08 for the purchase of land from Chelsea Estate Limited.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Grants to Assist in Land Purchases (M49) - Local Government
Reference Conditions
Cabinet decision Funding is restricted to a contribution to the purchase of land at the Chelsea Sugar Works

 

Tuwharetoa Maori Trust Board (M49)#

 

Scope of Appropriation#

A payment to ensure public access to Lake Taupo, based upon a 2007 agreement between the Crown and the Tuwharetoa Maori Trust Board.

Expenses#

Expenses - Tuwharetoa Maori Trust Board (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,843 12,843 1,500

Reasons for Change in Appropriation#

The decrease in this appropriation is largely due to one-off settlement costs in 2007/08 relating to Lake Taupo property rights.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Tuwharetoa Maori Trust Board (M49) - Local Government
Reference Conditions
Cabinet decision Deed between the Crown and the Tuwharetoa Maori Trust Board requires an annual payment of $1.500 million by the Crown to the Board for continued access by the people of New Zealand to Lake Taupo.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Tuwharetoa Maori Trust Board (M49) - Local Government
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Settlement costs relating to property rights in Lake Taupo 2007/08 12,674 1,331 1,331 1,331 1,331

 

Reporting Mechanisms#

 

Reporting Mechanisms - Reporting Mechanisms - Local Government
Appropriation Reporting Mechanism
Chatham Islands Council Annual Report of the Chatham Islands Council

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 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Local Government
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome:Strong, sustainable communities/hapu/iwi
  • Communities are supported by fair and responsive local government and other local groups and organisations
Capital Investment - Lake Taupo

Capital Investments - Lake Taupo (M49)

Scope of Appropriation

Upgrading of boating facilities at Lake Taupo. Provision of safety lighting and adequate warning of navigational hazards.

Capital Expenditure

Capital Expenditure - Capital Investments Lake Taupo (M49) - Local Government
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 179 179 34

Reasons for Change in Appropriation

The decrease in this appropriation is due to additional funding in 2007/08 for breastwork reparation at Lake Taupo.

 

Performance Information for Appropriations Vote Parliamentary Commissioner for the Environment#

 

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Speaker of the House of Representatives (M78)

ADMINISTERING DEPARTMENT: Parliamentary Commissioner for the Environment

MINISTER RESPONSIBLE FOR PARLIAMENTARY COMMISSIONER FOR THE ENVIRONMENT: Speaker of the House of Representatives

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Speaker of the House of Representatives is responsible for appropriations in Vote Parliamentary Commissioner for the Environment for the 2008/09 financial year covering the following:

  • a total of $2.700 million for providing reports and advice to the House of Representatives.

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

 

Part 1.2 - High-Level Objectives of the Vote#

 

Objectives of the Vote#

The objective of the Parliament Commissioner for the Environment is to contribute toward the maintenance and improvement of the natural and physical environment, by providing robust, independent advice that influences decisions.

As an Officer of Parliament, the Commissioner has a unique opportunity to provide Parliament with independent advice in its consideration of any matters that may impact on the quality of the environment.

The Commissioner is required to deliver one output, "Reports and Advice", which includes the following activities:

  • review and investigate
    • undertake environmental investigations initiated internally by the Office of the Commissioner
    • investigate complaints and make targeted inquiries in response to external requests
  • work with Parliament
    • provide assistance and advice to select committees and inquiries for the House of Representatives
    • undertake accountability reporting
  • communicate and inform
    • collect information and monitor environmental issues
    • engage with stakeholders other than Parliament through presentations, information dissemination and workshops.

 

 

Summary of Financial Activity#

Summary of Financial Activity - Parliamentary Commissioner for the Environment
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  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 2,098 2,220 2,477 2,804 2,040 2,040 2,490 - 2,490 2,490 2,490 2,490
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - 249 249 249 - 249 249 249 249
Capital Expenditure - - - - 67 67 515 - 515 66 71 72
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

2,098 2,220 2,477 2,804 2,356 2,356 3,254 - 3,254 2,805 2,810 2,811

Crown Revenue and Receipts

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

Total Crown Revenue and Receipts

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

The departmental appropriations in Vote Parliamentary Commissioner for the Environment, which are detailed in the Summary of Financial Activity above, show significant changes discussed briefly below.

A time series for Vote Parliamentary Commissioner for the Environment shows that in 2003, an increase of $57,000 for 2002/03, $325,000 for 2003/04 and $312,000 for 2004/05 and outyears was approved to undertake an electricity industry audit and further development of the audit framework, to employ a specialist writer to raise awareness of environmental sustainability issues and to fund a one-off Parliamentary Commissioner for the Environment study tour.

In 2004, an increase of $93,00 for 2003/04 and $103,000 for 2004/05 and outyears was approved for the increased cost of office accommodation. $44,000 was also approved for 2004/05 and out years for ongoing electricity audit functions. A capital contribution of $113,000 for 2003/04 was approved for costs associated with relocating the Commissioner's office.

In 2005, an increase of $73,000 for 2004/05 was approved to enable the Commissioner to undertake a study tour and to reprint two recent major investigation reports. $355,000 was approved for 2005/06 and outyears to support the restoration of investigative capacity and to further expand the Commissioner's communication capacity.

In 2006, an increase of $24,000 in 2005/06, $25,000 in 2006/07 and $26,000 from 2007/08 was approved to enable the Commissioner to cover the costs of a retirement scheme for office staff. $89,000 was approved to meet some of the costs in relation to a programme of events to mark the 20th anniversary of the Commissioner's establishments in 2006/07. Parliament also approved, for 2006/07 and outyears, $45,000 to improve capacity with respect to information and records management.

In 2007, an increase of $206,000 for 2006/07 was approved for costs towards the appointment of the new Commissioner; contracted background papers for a sustainable development project; a project arising from a Protected Disclosures Act enquiry; and a finance contractor. An increase of $100,000 was approved for 2007/08 and outyears to maintain the capability and capacity of the office's investigation team.

In 2008 there is no change.

 

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 - Parliamentary Commissioner for the Environment
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The objective of the Parliamentary Commissioner for the Environment is to contribute toward the maintenance and improvement of the natural and physical environment, by providing robust, independent advice that influences decisions. Reports and Advice

Reports and Advice (M78)

Scope of Appropriation

This appropriation is limited to reviewing, investigating, providing reports and advice on the legal and other systems governing management of the environment and the performance of central and local government agencies in maintaining and improving the quality of the environment.

Expenses and Revenue

Expenses and Revenue - Reports and Advice (M78) - Parliamentary Commissioner for the Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,289 2,289 2,739
Revenue from the Crown 2,286 2,286 2,736
Revenue from Others 3 3 3

Reasons for Change in Appropriation

There has been a movement of operating funding of $450,000 to capital in 2007/08 which will fund an office refit.

Output Performance Measures and Standards

Output Performance Measures and Standards - Reports and Advice (M78) - Parliamentary Commissioner for the Environment
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Proportion of Commissioner's recommendations adopted within the timeframe envisaged. This measure is new for 2008/09 NA NA 60%
Evaluate outcomes from projects NA NA 100% for major projects
Advice to Parliament delivered within the agreed timeframes NA NA 100%
Two-yearly survey of MPs on quality of advice NA NA 70% positive response on returned surveys
Internal peer review NA NA 100% of all reports, briefings and letters
External peer review NA NA 100% for major projects
All types of queries given an initial response within 10 working days NA NA 100%
Capability and Internal Processes Plans in place NA NA December 2008
Capability Plan externally reviewed and improved NA NA June 2009
Project management procedures externally reviewed and improved NA NA December 2009
Internal Procedures manual externally reviewed and improved NA NA June 2010
Benchmark of outputs to overheads and then increase ratio over next two years NA NA 2008/09 Benchmark then increase each year for two years.
% of supplier contracts consistent with procurement policy NA NA 100%
'Uptime' for IT systems NA NA 99%
Annual unplanned staff turnover NA NA Equal or better than public service average as reported by the State Services in their most recent "Human Resource Capability Survey of Public Service Departments"
Performance management plans in place and annual performance reviews undertaken NA NA 100%
Personal development plans in place and uptake of budgeted training and development activities NA NA 100%
Staff engagement survey NA NA Undertaken in 2009/10 with a 75% overall positive response

These are new performance measures for 2008/09

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Reports and Advice (M78) - Parliamentary Commissioner for the Environment
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Capacity and capability 2007/08 100 100 100 100 100
Information and records management 2006/07 45 45 45 45 45
Restore investigative and communications capacity 2005/06 355 355 355 355 355
Office accommodation cost 2004/05 103 103 103 103 103
Electricity industry audit 2004/05 44 44 44 44 44
Audit framework and writer 2003/04 312 312 312 312 312

 

Part 5 - Details and Expected Results for Other Expenses#

 

Part 5.1 - Departmental Other Expenses#

Remuneration of the Parliamentary Commissioner for the Environment PLA (M78)

Scope of Appropriation

This appropriation is limited to remuneration expenses for the Parliamentary Commissioner for the Environment as authorised by section 9 of the Environment Act 1986.

Expenses

Expenses - Remuneration of the Parliamentary Commissioner for the Environment PLA (M78) - Parliamentary Commissioner for the Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 249 249 249

 

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 - Parliamentary Commissioner for the Environment
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Office refit Departmental capital

Parliamentary Commissioner for the Environment - Capital Expenditure PLA (M78)

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the Parliamentary Commissioner for the Environment, as authorised by section 24(1) of the Public Finance Act 1989

Capital Expenditure

Capital Expenditure - Parliamentary Commissioner for the Environment Capital Expenditure PLA (M78) - Parliamentary Commissioner for the Environment
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 67 67 65
Intangibles - - -
Other - - 450
Total Appropriation 67 67 515
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 67 67 65
Intangibles - - -
Other - - 450
Total Appropriation 67 67 515

Reasons for Change in Appropriation

There has been a movement of operating funding of $450,000 to capital. The $450,000 will fund an office refit. The current arrangement of individual offices isolates staff and is not conducive to the collegial culture needed to produce high-quality reports and useful advice. The open plan arrangement proposed will be much more flexible, will improve staff management and communication, and use space and resources much more efficiently.

 

Statement of Forecast Service Performance of Departments#

 

Statement of Forecast Service Performance#

The Statement of Forecast Service Performance of departments included in the Environment Sector comprise the service performance information for all departmental output expense appropriations that are proposed to be used by those departments. In this context, service performance information comprises the scope, expenses and revenue, and output performance measures and standards for each class of outputs within those departmental appropriations, as set out in Part 2.1 of the Performance Information for Appropriations in Each Vote.

The following table identifies the classes of outputs incorporated in the Statement of Forecast Service Performance for each department in the Environment Sector. In some circumstances, this may include reference to classes of outputs within appropriations presented in Votes in other sectors.

Department Composition of Statement of Forecast Service Performance
Ministry for the Environment

The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in:

  • Vote Environment
  • Vote Climate Change.
Department of Conservation The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Conservation.
Parliamentary Commissioner for the Environment The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Parliamentary Commissioner for the Environment.

Forecast Financial Statements of Departments#

Statement of Common Accounting Policies#

These accounting policies have been applied in the forecast financial statements of all departments and Offices of Parliament except as outlined in the statement of entity-specific accounting policies for individual departments or Offices of Parliament.

These forecast financial statements are prepared in accordance with section 38 of the Public Finance Act 1989. The purpose of the forecast financial statements is to facilitate Parliament's consideration of appropriations for, and planned performance of, departments and Offices of Parliament. Use of this information for other purposes may not be appropriate. It is not intended that these forecast financial statements be updated subsequent to publication.

Statement of Compliance

These forecast financial statements for the year ended 30 June 2009 comply with FRS-42 Prospective Financial Statements.

Specific Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these statements. These statements have been prepared on a going-concern basis. The measurement base applied is historical cost modified by the revaluation of certain assets and liabilities as identified in this statement of accounting policies.

The accrual basis of accounting has been used unless otherwise stated. These financial statements are presented in New Zealand dollars, which is the entity's functional currency. All financial information presented has been rounded to the nearest thousand.

Judgements and Estimations

The preparation of forecast financial statements in conformity with FRS-42 requires judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates and these variations may be material.

Revenue

Revenue is derived through the provision of outputs to the Crown and to third parties. Revenue is recognised in the forecast statement of financial performance when earned.

Leases

Operating Leases

Where substantially all of the risks and rewards of ownership are retained by the lessor, leases are classified as operating leases.

Lease payments under operating leases are recognised as an expense on a straight-line basis over the lease term.

Finance Leases

Leases which effectively transfer to the lessee substantially all the risks and rewards incidental to ownership of the leased items are classified as finance leases. These are capitalised at the lower of the fair value of the asset or the present value of the minimum lease payments. The leased assets and the corresponding lease liabilities are recognised in the statement of financial position. The leased assets are depreciated over the period the entity is expected to benefit from their use. The interest expense component of finance lease payments is recognised in the statement of financial performance.

Borrowing Costs

Borrowing costs are recognised as an expense when incurred.

Property, Plant and Equipment

Property, plant and equipment, other than land and buildings, is stated at cost less accumulated depreciation and impairment losses. Land and buildings are stated at fair value as determined by an independent registered valuer. Fair value is determined using market-based evidence. Land and buildings are revalued with sufficient regularity to ensure that carrying value is not materially different from fair value at the end of the reporting period. Additions between revaluations are recorded at cost. Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

Depreciation

Depreciation is provided on a straight-line basis so as to allocate the cost [or valuation] of an item of property, plant and equipment, less any estimated residual value, over its estimated useful life.

The estimated useful lives are set out in the statement of entity-specific accounting policies.

Leasehold improvements are capitalised and the cost is amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is shorter.

Items under construction are not depreciated. The total cost of a capital project is transferred to the appropriate asset class on its completion and then depreciated.

Intangible Assets

Intangible assets with finite useful lives (such as computer software) are recorded at cost less accumulated amortisation and impairment losses.

Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

Amortisation is charged to the statement of financial performance on a straight-line basis over the estimated useful life of the asset.

The estimated useful lives are set out in the statement of entity-specific accounting policies.

Intangible assets with indefinite useful lives are not amortised, but are tested at least annually for impairment.

Where there is an active market for an intangible asset, the asset is recorded at a revalued amount, being fair value less any subsequent accumulated amortisation and accumulated impairment losses.

Cash and Cash Equivalents

Cash includes cash on hand and funds on deposit with banks with a maturity of 3 months or less from date of acquisition.

Debtors and Other Receivables

Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate, less impairment charges. Allowances for estimated irrecoverable amounts are recognised when there is objective evidence that the asset is impaired.

Inventories

Inventories held for sale or use in the production of goods and services on a commercial basis are recorded at the lower of cost and net realisable value. The cost of purchased inventory is determined using the weighted average cost method.

Inventories held for distribution for public benefit purposes are recorded at cost (calculated using the weighted average cost method) adjusted when applicable for any loss of service potential. Where inventories are acquired at no cost, or for nominal consideration, the cost is the current replacement cost at the date of acquisition.

Employee Entitlements

Pension Liabilities

Obligations for contributions to defined contribution retirement plans are recognised in the statement of financial performance as they fall due.

Other Employee Entitlements

Employee entitlements to salaries and wages, annual leave, sick leave, long service leave, retiring leave and other similar benefits are recognised in the statement of financial performance when they accrue to employees. Employee entitlements to be settled within 12 months are reported at the amount expected to be paid. Long-term employee entitlements are reported at the present value of the estimated future cash outflows.

Termination Benefits

Termination benefits are recognised in the statement of financial performance only when there is a demonstrable commitment to either terminate employment prior to normal retirement date or to provide such benefits as a result of an offer to encourage voluntary redundancy. Termination benefits to be settled within 12 months are reported at the amount expected to be paid. Other termination benefits are reported at the present value of the estimated future cash outflows.

Onerous Contracts

Where the benefits to be derived from a contract are lower than the unavoidable costs of meeting the obligation under the contract, a provision is recognised. The provision is stated at the present value of the future net cash outflows expected to be incurred in respect of the contract.

Foreign Currency

Foreign currency transactions are reported at the New Zealand dollar exchange rate at the date of the transaction.

Statement of Cash Flows

The following are definitions of the terms used in the statement of cash flows:

  • cash and cash equivalents include cash on hand, cash in transit, bank accounts and deposits with a maturity of no more than three months from date of acquisition
  • investing activities are those activities relating to the acquisition and disposal of non-current assets
  • financing activities comprise capital injections by, or repayment of capital to, the Crown, and
  • operating activities include all transactions and other events that are not investing or financing activities.

Taxation

Departments and Offices of Parliament are exempt from income tax as public authorities. Accordingly no charge for income tax has been provided for.

Goods and Services Tax

These forecast financial statements are GST exclusive, except for receivables and payables in the statement of financial position, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.

The net amount of GST owing to or from the Inland Revenue Department at balance date is included as part of receivables or payables (as appropriate) in the statement of financial position.

Commitments

Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments to the extent that there are equally unperformed obligations.

Contingent Liabilities and Contingent Assets

Contingent liabilities are disclosed if the possibility that they will crystallise is not remote. Contingent assets are disclosed if it is probable that the benefits will be realised.

Changes in Accounting Policies

Any changes in accounting policies since the date of the last audited financial statements (30 June 2007) are described in the statement of entity-specific accounting policies. The effect of the transition to NZ IFRS is explained in the 2007/08 Statement of Intent or Annual Plan of each department or Office of Parliament.

Forecast Financial Statements Ministry for the Environment#

Statement of Forecast Financial Performance for the year ending 30 June 2009#

Statement of Forecast Financial Performance for the year ending 30 June 2009 - Environment
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Income

         
Crown   49,503 61,296 61,296 78,320
Department(s)   467 428 428 428
Other revenue   281 2,969 2,969 667
Gains   6 5 5 5
Interest   - - - -

Total Income

  50,257 64,698 64,698 79,420

Expenses

         
Personnel   21,443 24,505 24,505 23,484
Operating 1 27,370 38,924 38,924 53,864
Depreciation and amortisation   582 1,036 1,036 1,789
Capital charge   177 228 228 278
Finance costs   - - - -
Other   9 - - -

Total Expenses

  49,581 64,693 64,693 79,415

Net Surplus / (Deficit)

  676 5 5 5