Information supporting the estimates of appropriations

External Sector - Information Supporting the Estimates 2010/11 - Budget 2010

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

 

Chapters of the Economic Development and Infrastructure Sector volume of the Information Supporting the Estimates 2010/11 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

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

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Customs
  • Vote Defence
  • Vote Defence Force
  • Vote Foreign Affairs and Trade
  • Vote Official Development Assistance
  • Vote Veterans' Affairs - Defence Force

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • New Zealand Customs Service
  • Ministry of Defence
  • New Zealand Defence Force
  • Ministry of Foreign Affairs and Trade

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

Purpose of Information Supporting the Estimates#

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

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

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

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

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

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

 

Votes and Departments in Each Sector#

Votes and Departments in Each Sector
Votes by Sector Departments by Sector

Economic Development and Infrastructure Sector - B.5A Vol.1

Vote Economic Development Ministry of Economic Development
Vote Commerce
Vote Communications
Vote Consumer Affairs
Vote Energy
Vote Tourism
Vote Transport Ministry of Transport
Vote Labour Department of Labour
Vote ACC
Vote Employment
Vote Immigration

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 Ministry for the Environment
Vote Climate Change
Vote Conservation Department of Conservation
Vote Local Government (this Vote is administered by the Department of Internal Affairs, which is in the Māori, Other Populations and Cultural Sector)
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment

External Sector - B.5A Vol.4

Vote Foreign Affairs and Trade Ministry of Foreign Affairs and Trade
Vote Official Development Assistance
Vote Defence Ministry of Defence
Vote Defence Force New Zealand Defence Force
Vote Veterans' Affairs - 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 The Treasury
Vote State-Owned Enterprises
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the Māori, Other Populations and Cultural Sector)  
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Ombudsmen Office of the Ombudsmen
Vote Parliamentary Service Parliamentary Service
Vote Audit Office of the Auditor-General

Health Sector - B.5A Vol.6

Vote Health Ministry of Health

Justice Sector - B.5A Vol.7

Vote Justice Ministry of Justice
Vote Courts
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office

Māori, Other Populations and Cultural Sector - B.5A Vol.8

Vote Arts, Culture and Heritage Ministry for Culture and Heritage
Vote Sport and Recreation
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 Department of Internal Affairs
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing

Primary Sector - B.5A Vol.9

Vote Agriculture and Forestry Ministry of Agriculture and Forestry
Vote Biosecurity
Vote Food Safety
Vote Fisheries Ministry of Fisheries
Vote Lands Land Information New Zealand

Social Development and Housing Sector - B.5A Vol.10

Vote Social Development Ministry of Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth 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.

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

Limits Created by Appropriations#

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

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

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

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

Responsibility for Appropriations#

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

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

 

Types of Appropriation#

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

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

Types of Appropriation
Appropriation Type Transaction Status Description

Output Expenses

Departmental

Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).

Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.

Benefits and Other Unrequited Expenses

Non-Departmental

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

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

Borrowing Expenses

Departmental

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

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

Non-Departmental

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

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

Other Expenses

Departmental

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

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

Non-Departmental

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

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

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

Capital expenditure

Departmental

Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.

Non-Departmental

Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.

Expenses or Capital expenditure Incurred by an Intelligence and Security Department

Departmental

Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.

Types of Output Expense Appropriations#

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

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

Standard Output Expense Appropriations

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

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

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

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

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

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

Multi-Class Output Expense Appropriations (MCOA)

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

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

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

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

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

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

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

Revenue-Dependent Appropriations (RDA)

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

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

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

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

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

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

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

Department-to-Department Appropriation (DDA)

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

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

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

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

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

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

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

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

Appropriation Period#

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

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

Guide to Reading Information Supporting theEstimates#

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

1 Sector Overview Information

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

2 Performance Information Relating to Appropriations in Each Vote#

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

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

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

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

Part 2 - Details and Expected Performance for Output Expenses#

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

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

Part 4 - Details for Borrowing Expenses#

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

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

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

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

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

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

3 Statement of Forecast Service Performance of Departments#

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

4 Forecast Financial Statements of Departments#

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

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

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

5 Statements of Intent of Departments#

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

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

Terms and Definitions
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Crown revenue Revenue earned on behalf of the Crown. These flows are accounted for as revenue to the Crown rather than as departmental revenue.
DDA Department-to-department appropriations, which are authorised by section 20(2) of the Public Finance Act 1989.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the Public Finance Act 1989.
Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year. [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 - the traditional term for an appropriation authorised for an indefinite period by legislation other than an Appropriation Act (also known as a permanent appropriation).
Minister The Minister responsible for specific appropriations being sought within a Vote. As several Ministers may now hold appropriations within a single Vote, each appropriation will have a tag (M1, M2 etc) identifying the Minister responsible for that line item.
RDA Revenue-dependent appropriations, which are 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 2010 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2010. 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.

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 External 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 Murray McCully
Responsible Minister for the Ministry of Foreign Affairs and Trade

19 April 2010

Hon Dr Wayne Mapp
Responsible Minister for the Ministry of Defence
Responsible Minister for the New Zealand Defence Force

19 April 2010

Hon Maurice Williamson
Responsible Minister for the New Zealand Customs Service

27 April 2010

 

Chief Executive Statements of Responsibility#

Ministry of Foreign Affairs and Trade

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the Ministry of Foreign Affairs and Trade and for the Votes for which the Ministry of Foreign Affairs and Trade is the administering department. Specifically, this information is contained in the Ministry of Foreign Affairs and Trade'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 (2010/11 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.

John Allen
Secretary of Foreign Affairs and Trade
Ministry of Foreign Affairs and Trade

16 April 2010

Paul Laplanche
Director of Finance
Ministry of Foreign Affairs and Trade

16 April 2010

Ministry of Defence

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the Ministry of Defence and for the Vote for which the Ministry of Defence is the administering department. Specifically, this information is contained in the Ministry of Defence'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 (2010/11 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.

John McKinnon
Secretary of Defence
Ministry of Defence

16 April 2010

Bryan Westbury
Deputy Secretary (Finance)/Chief Financial Officer
Ministry of Defence

16 April 2010

New Zealand Defence Force

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the New Zealand Defence Force and for the Votes for which the New Zealand Defence Force is the administering department. Specifically, this information is contained in the New Zealand Defence Force'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 (2010/11 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.

J. Mateparae Lieutenant General
Chief of Defence Force
New Zealand Defence Force

16 April 2010

M. Horner
Chief Financial Officer
New Zealand Defence Force

16 April 2010

New Zealand Customs Service

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the New Zealand Customs Service and for the Vote for which the New Zealand Customs Service is the administering department. Specifically, this information is contained in the New Zealand Customs Service'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 (2010/11 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.

Martyn Dunne
Comptroller of Customs
New Zealand Customs Service

27 April 2010

John Kyne
Chief Financial Officer
New Zealand Customs Service

27 April 2010

Performance Information for Appropriations Vote Customs#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Customs (M21)

ADMINISTERING DEPARTMENT: New Zealand Customs Service

MINISTER RESPONSIBLE FOR NEW ZEALAND CUSTOMS SERVICE: Minister of Customs

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Customs is responsible for the efficient and timely collection of Crown revenue forecast to be $10,823 million in the 2010/11 financial year.

The Minister of Customs is also responsible for the appropriations in the Vote for the 2010/11 financial year covering the following:

  • a total of over $47 million on clearance and enforcement services related to passengers and crew
  • a total of nearly $60 million on clearance and enforcement services related to goods
  • a total of over $7 million on clearance and enforcement services related to craft
  • a total of nearly $7 million on information and intelligence services
  • a total of over $5 million on revenue collection
  • a total of nearly $8 million on Policy advice and international services.

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

Part 1.2 - High-Level Objectives of the Vote#

The New Zealand Customs Service (Customs) contributes to the Government's aim to raise New Zealand's international competitiveness and lift productivity through the Government's goal to grow the New Zealand economy in order to deliver greater prosperity, security and opportunities for all New Zealand.

Customs is critical to advancing New Zealand's international competitiveness, productivity, and security. Customs facilitates legitimate trade and travel; manages border and revenue risks; provides significant infrastructure at the border; has a voice on customs, trade and border security through our policy and international services; and collects 15 percent of total Crown revenue.

Customs supports the objectives of a number of government agencies at the border, and works with groups of agencies towards shared objectives, in addition to working closely with industry. Customs currently chairs the Border Sector Governance Group, which is advancing the border sector work programme and the border sector's end outcomes of protection and facilitation. As the agency with the most significant presence at the border and focus on these outcomes, Customs makes a major contribution to this work.

Customs also works with other agencies on a variety of objectives, including support for New Zealand's expanding programme of trade agreements with the Ministry of Foreign Affairs and Trade, and working with the New Zealand Police to contribute to the whole-of-government response to illicit drugs.

From 2010/11, Customs will contribute to the Government's goals through a focus on three priorities agreed with the Minister of Customs and Prime Minister:

  • improve competitiveness, security, and productivity at the border, by modernising New Zealand's border management system (Joint Border Management System/Trade Single Window - an electronic portal that provides an interface between industry and government agencies)
  • increase disruption of supply chains for illicit drugs entering New Zealand, particularly methamphetamine and its precursors, through targeted operational activity
  • enhance border agency coordination to reduce duplication and improve the experience for traders and travellers.

The following table shows how the day-to-day delivery of Customs' outputs, for which appropriations are sought, are linked and contribute to the Government's priorities and the Government outcomes relevant to Customs.

Contribution of Appropriations to Government Priorities and Outcomes

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Customs
Appropriations Government Priorities Government Outcomes
Clearance and enforcement services relating to passengers and crew.
Clearance and enforcement services relating to craft.
Clearance and enforcement services relating to goods.
Policy advice and international services.
Improve competitiveness, security, and productivity at the border, by modernising New Zealand's border management system (Joint Border Management System/Trade Single Window).
Enhance border agency coordination to reduce duplication and improve the experience for traders and travellers.
Increase disruption of supply chains for illicit drugs entering New Zealand, particularly methamphetamine and its precursors, through targeted operational activity.
Greater prosperity:
  • Grow the economy
  • Reduce regulatory and compliance demands.
Greater security:
  • Make communities safer
  • Clamp down on criminal gangs and the 'P' trade
  • Reduce violent crime.
Greater opportunities:
  • Investment in infrastructure.
Revenue collection. Improve competitiveness, security, and productivity at the border, by modernising New Zealand's border management system (Joint Border Management System/Trade Single Window).
Enhance border agency coordination to reduce duplication and improve the experience for traders and travellers.
Greater prosperity:
  • Grow the economy
  • Reduce regulatory and compliance demands.
Greater opportunities:
  • Investment in infrastructure.
Information and intelligence services. Increase disruption of supply chains for illicit drugs entering New Zealand, particularly methamphetamine and its precursors, through targeted operational activity. Greater security:
  • Make communities safer
  • Clamp down on criminal gangs and the 'P' trade
  • Reduce violent crime.

Summary of Financial Activity

Summary of Financial Activity - Customs
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 105,623 110,411 118,306 122,799 127,059 125,659 133,746 - 133,746 147,655 155,275 156,028
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - 52 536 63 2,088 2,088 - 2,088 2,088 2,088 2,088 2,088
Capital Expenditure - - 5,153 6,726 17,449 17,449 48,536 - 48,536 41,098 9,700 5,598
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

105,623 110,463 123,995 129,588 146,596 145,196 182,282 2,088 184,370 190,841 167,063 163,714

Crown Revenue and Capital Receipts

                       
Tax Revenue 8,395,111 8,870,885 9,255,680 9,540,235 8,942,000 8,942,000 N/A 10,823,000 10,823,000 12,251,000 13,337,000 14,451,000
Non-Tax Revenue 104 132 270 110 80 80 N/A 80 80 80 80 80
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

8,395,215 8,871,017 9,255,950 9,540,345 8,942,080 8,942,080 N/A 10,823,080 10,823,080 12,251,080 13,337,080 14,451,080

New Policy Initiatives

Budget Policy Intiatives - Customs
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Customs Contribution to the Establishment of the New Zealand Productivity Commission Clearance and Enforcement Services Related to Passengers and Crew
Departmental Output Expenses
- (15) (29) (31) (31)
  Clearance and Enforcement Services Related to Goods
Departmental Output Expenses
- (14) (28) (30) (30)
  Clearance and Enforcement Services Related to Craft
Departmental Output Expenses
- (2) (4) (4) (4)
  Information and Intelligence Services
Departmental Output Expenses
- (1) (3) (4) (4)
  Revenue Collection
Departmental Output Expenses
- (1) (3) (3) (3)
  Policy Advice and International Services
Departmental Output Expenses
- (2) (3) (3) (3)
Joint Border Management System (Stage Two Business Case) Clearance and Enforcement Services Related to Passengers and Crew
Departmental Output Expenses
- 249 1,777 2,640 2,750
  Clearance and Enforcement Services Related to Goods
Departmental Output Expenses
- 680 4,854 7,209 7,511
  Clearance and Enforcement Services Related to Craft
Departmental Output Expenses
- 44 314 466 485
  Information and Intelligence Services
Departmental Output Expenses
- 1,308 8,001 11,921 12,148
  Policy Advice and International Services
Departmental Output Expenses
2,136 - - - -
  Departmental Capital Investment - 27,929 35,505 5,200 598
Disrupting 'P' Supply and Dismantling Criminal Networks Clearance and Enforcement Services Related to Goods
Departmental Output Expenses
- 1,172 1,779 2,110 2,095
  Departmental Capital Investment - 4,907 993 - -
Total Initiatives   2,136 36,254 53,153 29,471 25,512

Analysis of Significant Trends

Crown Revenue

Crown revenue is collected through customs duties and GST on imports and excise on alcoholic beverages, tobacco, and petroleum products. Figure 1 notes the proportion of collections by category of Crown revenue forecast to be collected in 2010/11.

2010/11 Crown revenue by category
The 2010/11 Crown revenue by category chart is a Pie chart. Sourced from New Zealand Customs Service. There are 3 series or segments. The first series is GST and its value is 64%, the second series is CUSTOMS and its value is 19%, the third series is EXCISE and its value is 17%.
Source: New Zealand Customs Service

Figure 2 illustrates growth in actual and forecast Crown revenue collected by category.

Crown revenue collections by category 2005/06 - 2013/14
The Crown revenue collections by category 2005/06 - 2013/14 chart is a Line chart. Sourced from New Zealand Customs Service. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Customs Duty and its values are: 2005 2006 1083 million, 2006 2007 1837 million, 2007 2008 1857 million, 2008 2009 1883 million, 2009 2010  Estimated Actual 1933 million, 2010 2011  Budget 2060 million, 2011 2012  Estimated 2170 million, 2012 2013  Estimated 2215 million, 2013 2014  Estimated 2231 million. The second series is EXCISE and its values are: 2005 2006 2234 million, 2006 2007 1643 million, 2007 2008 1586 million, 2008 2009 1632 million, 2009 2010  Estimated Actual 1709 million, 2010 2011  Budget 1811 million, 2011 2012  Estimated 1938 million, 2012 2013  Estimated 1991 million, 2013 2014  Estimated 2047 million. The third series is GST and its values are: 2005 2006 5079 million, 2006 2007 5391 million, 2007 2008 5812 million, 2008 2009 6056 million, 2009 2010  Estimated Actual 5300 million, 2010 2011  Budget 6952 million, 2011 2012  Estimated 8143 million, 2012 2013  Estimated 9131 million, 2013 2014  Estimated 10173 million.
Source: New Zealand Customs Service

Departmental Output Expenses

Annual appropriations for the purchase of departmental outputs are expected to increase by
$6.687 million for 2010/11 compared with 2009/10. The net change in the total appropriation is a combination of adjustments to savings requirements between 2009/10 and 2010/11 and additional operating funding in 2010/11 to advance the implementation of the automated passenger processing technology, the Joint Border Management System and digital tracking and surveillance technology. This is offset by one-off funding provided in 2009/10 for border management systems scoping and overseas aid projects that is not required in 2010/11.

Trends in comparative actual and estimated expenses for Output Expense appropriations under this Vote are shown in Figure 3 below.

Trends in total actual and estimated output expenses
The Trends in total actual and estimated output expenses chart is a Bar chart. Sourced from New Zealand Customs Service. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Expenditure and its values are: 2005 2006  Actual 105623 million, 2006 2007  Actual 110411 million, 2007 2008  Actual 118306 million, 2008 2009  Actual 122799 million, 2009 2010  Estimated Actual 125659 million, 2010 2011  Main Estimated 133746 million, 2011 2012  Estimated 147655 million, 2012 2013  Estimated 155275 million, 2013 2014  Estimated 156028 million.
Source: New Zealand Customs Service

The increase in output expenses in 2010/11 and future years is primarily as a result of the development of the Joint Border Management System and the implementation of automated passenger processing and digital tracking and surveillance technologies.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Customs
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Clearance of Import, Export and Excise Transactions 44,568 Transferred to Clearance and Enforcement Services Related to Goods 43,068 Clearance and Enforcement Services Related to Goods 53,256 59,592
    Transferred to Revenue Collection 1,500      
    Transferred from Clearance of Import, Export and Excise Transactions (44,568)      
Clearance of International Passengers, Crew and Craft 42,529 Transferred to Clearance and Enforcement Services Related to Passengers and Crew 36,059 Clearance and Enforcement Services Related to Passengers and Crew 42,532 47,478
    Transferred to Clearance and Enforcement Services Related to Craft 6,470      
    Transferred from Clearance of International Passengers, Crew and Craft (42,529)      
Intelligence and Risk Assessment Services 4,390 Transferred to Information and Intelligence Services 4,390 Clearance and Enforcement Services Related to Craft 9,970 7,132
    Transferred from Intelligence and Risk Assessment Services (4,390)      
Investigation of Offences 10,323 Transferred to Clearance and Enforcement Services Related to Goods 5,162 Information and Intelligence Services 5,112 6,569
    Transferred to Clearance and Enforcement Services Related to Passengers and Crew 5,161      
    Transferred from Investigation of Offences (10,323)      
National Maritime Coordination Centre 722 Transferred to Information and Intelligence Services 722 Policy Advice and International Services 11,069 7,676
    Transferred from National Maritime Coordination Centre (722)      
Policy Advice 11,069 Transferred to Policy Advice and International Services 11,069 Revenue Collection 5,120 5,299
    Transferred from Policy Advice (11,069)      
Prosecutions and Civil Proceedings 1,094 Transferred to Clearance and Enforcement Services Related to Goods 547      
    Transferred to Clearance and Enforcement Services Related to Passengers and Crew 547      
    Transferred from Prosecutions and Civil Proceedings (1,094)      
Revenue Collection, Accounting and Debt Management 3,620 Transferred to Revenue Collection 3,620      
    Transferred from Revenue Collection, Accounting and Debt Management (3,620)      
Surveillance, Search and Containment 7,000 Transferred to Clearance and Enforcement Services Related to Goods 3,500      
    Transferred to Clearance and Enforcement Services Related to Craft 3,500      
    Transferred from Surveillance, Search and Containment (7,000)      
Technical Advisory Services 1,744 Transferred to Clearance and Enforcement Services Related to Goods 979      
    Transferred to Clearance and Enforcement Services Related to Passengers and Crew 765      
    Transferred from Technical Advisory Services (1,744)      

Total changes in appropriations

127,059   -   127,059 133,746

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 - Customs
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Protection
New Zealand is protected, at the border, from the entry, or exit, of people, goods, craft, Maori taonga and other treasured items, where the entry or exit may pose a material risk to our national interests.
  • Clearance and enforcement services related to passengers and crew
  • Clearance and enforcement services related to craft
  • Clearance and enforcement services related to goods
  • Information and intelligence services
  • Policy advice and international services
Outcome: Facilitation
New Zealand's economic, social, environmental, and cultural interests are sustained and enhanced by facilitating the flow of legitimate trade, travel, goods, Maori taonga and other treasured items, across the border.
  • Clearance and enforcement services related to passengers and crew
  • Clearance and enforcement services related to craft
  • Clearance and enforcement services related to goods
  • Information and intelligence services
  • Revenue collection
  • Policy advice and international services
Outcome: Revenue
Due Customs revenue is collected to support the Government's social, economic and fiscal objectives.
  • Clearance and enforcement services related to goods
  • Revenue collection
  • Policy advice and international services

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see the Statement of Intent for the New Zealand Customs Service.

Clearance and Enforcement Services Related to Craft (M21)

Scope of Appropriation

This appropriation is limited to the provision of services relating to craft arriving in and departing from New Zealand, including clearance of craft, and protection of New Zealand's interests through interventions, investigations and enforcement.

Expenses and Revenue

Expenses and Revenue - Clearance and Enforcement Services Related to Craft (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 7,132
Revenue from Crown - - 6,958
Revenue from Other - - 174

Reasons for Change in Appropriation

This is a new appropriation resulting from a review of Vote Customs output classes. From 2010/11 outputs of the New Zealand Customs Service will be provided from within six newly defined output classes. In 2010/11 there is no material change to the outputs being delivered by the New Zealand Customs Service.

Output Performance Measures and Standards

Output Performance Measures and Standards - Clearance and Enforcement Services Related to Craft (M21) - Customs
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of marine craft arriving (estimated 2,000-2,300 commercial craft and 625-690 small craft) that are boarded at first port of arrival 100% 100% 100%
Percentage of marine craft assessed as high or very high risk (estimated 30-50 craft) that are subject to a targeted response (see Note 1) ≥95% 92% ≥95%
Percentage of all arriving commercial marine craft that are not assessed as high or very high risk that will be subject to Customs secondary interaction (see Note 2) N/A 3% ≥3%

Note 1 - On occasions, the number of high and very high risk craft, and the number of other incidents requiring Customs' response teams, exceeds response team availability. When this occurs, allocation of response teams is prioritised in accordance with risk. Each such decision is subject to an internal report.

Note 2 - Secondary intervention may range from talking to the crew to a full rummage. This output maintains high levels of compliance, and acts as a check on risk assessments.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Clearance and Enforcement Services Related to Craft (M21) - Customs
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Joint Border Management System (Stage Two Business Case) 2010/11 - 44 314 466 485
Contribution to the Establishment of the New Zealand Productivity Commission. 2010/11 - (2) (4) (4) (4)
Savings from rationalisation of support functions and rephasing expenditure across financial years 2009/10 (236) (72) (72) (72) (72)
Automated Passenger Clearance 2009/10 278 656 656 656 656

Previous Government

           
Passenger Processing Facilities at Auckland International Airport 2008/09 31 31 31 31 31
Customs Border Management Systems Replacement Programme 2007/08 62 62 62 62 62
Customs Wellington Head Office Relocation and Modernisation 2007/08 143 143 143 143 143

Scope of Appropriation

This appropriation is limited to the provision of services relating to goods crossing the border, including clearance of goods, assessment and audit of revenue, trade compliance and supply chain security assurance, and protection of New Zealand's interests through interventions, audits, investigations and enforcement.

Expenses and Revenue

Expenses and Revenue - Clearance and Enforcement Services Related to Goods (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 59,592
Revenue from Crown - - 20,268
Revenue from Other - - 39,324

Reasons for Change in Appropriation

This is a new appropriation resulting from a review of Vote Customs output classes. From 2010/11 outputs of the New Zealand Customs Service will be provided from within six newly defined output classes. In 2010/11 there is no material change to the outputs being delivered by the New Zealand Customs Service.

Output Performance Measures and Standards

Output Performance Measures and Standards - Clearance and Enforcement Services Related to Goods (M21) - Customs
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of trade transactions (other than those referred for compliance checks) processed (including assessment against business rules and intelligence alerts) within 30 minutes (of an estimated between 3.9-4.8 million import transactions, and 2.8-3.1 million export transactions, and 4,588-5,070 excise returns) 95% 99.7% ≥95%
Percentage of import transactions that are deemed compliant based on risk assessment and proceed without further interventions (see Note 1) 95% 96.5% ≥95%
Percentage of export transactions that are deemed compliant based on risk assessment and proceed without further interventions (see Note 1) 99% 99.3% ≥99%
Average percentage of international commercial customers satisfied or very satisfied with Customs' service (as measured biennially by Customs' stakeholder survey) N/A 75% ≥75%
Percentage of international commercial customers rating the quality of the working relationship with Customs as good or very good (as measured biennially by Customs' stakeholder survey) N/A 80% ≥80%
Percentage of international commercial customers rating Customs' responsiveness to commercial needs as good or very good (as measured biennially by Customs' stakeholder survey) N/A 70% ≥70%
Percentage of mail items (of an estimated between 59-62 million incoming mail items) that are referred for secondary screening 310-000-370,000 items 137,894 items ≥0.2%
Percentage of mail items subjected to secondary screening that result in an enforcement consequence (see Note 2) 10%-14% 34% ≥30%
Number of trade compliance field audit activities undertaken (see Note 3) 1,000-1,100 1,000 >1,100
Number of transactional audit activities undertaken 20,000-40,000 25,080 >20,000
Percentage of investigation cases (estimated between 400-600 cases) finalised within 12 months of commencement (see Note 4) ≥75% 74% ≥75%
Percentage of serious investigation cases (see Note 5) that lead to punitive action N/A 95% ≥95%

Note 1 - The percentage of import transactions deemed compliant is lower than the percentage of export items deemed compliant because the nature of the risk is different between imports and exports, the nature of the traders involved is different, and risk for many exports is managed under the Secure Exports Scheme.

Note 2 - This is a measure of the quality of Customs' intelligence targeting. If this is working well, it is expected that a moderate proportion of mail that is inspected will require some further Customs intervention. This may include identification of wrong declarations, seizures of goods, forfeit of goods, administrative penalties, referrals to other agencies, and the collection of intelligence information.

The total of this plus the previous measure relating to mail items referred for secondary screening should neither be very high (which would suggest that Customs' net is not cast widely enough to be sure of capturing illicit activity) nor very low (which would suggest that too much mail is being inspected).

Note 3 - Measures for trade assurance and compliance are under development for inclusion in the 2011/12 performance measures.

Note 4 - Investigations measures apply to all investigations cases. The 25 percent of investigations cases that take more than 12 months are particularly complex, and may be connected to subsequent investigations. They may be open for a number of years.

Note 5 - A serious investigation case involves, or has the potential to involve, serious community harm. Examples of serious investigation cases would include those that involve more than $250,000 drug harm (as calculated using the New Zealand Drug Harm Index), Class A or B drugs for supply, objectionable material involving child exploitation, or the importation of counterfeit medicines.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Clearance and Enforcement Services Related to Goods (M21) - Customs
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Disrupting 'P' Supply and Dismantling Criminal Networks 2010/11 - 1,172 1,779 2,110 2,095
Joint Border Management System (Stage Two Business Case) 2010/11 - 680 4,854 7,209 7,511
Contribution to the Establishment of the New Zealand Productivity Commission 2010/11 - (14) (28) (30) (30)
Savings from rationalisation of support functions and rephasing expenditure across financial years 2009/10 (922) (83) (83) (83) (83)

Previous Government

           
Customs' Border Management Systems Replacement Programme 2007/08 747 747 747 747 747
Customs Wellington Head Office Relocation and Modernisation 2007/08 1,049 1,049 1,049 1,049 1,049

Scope of Appropriation

This appropriation is limited to the provision of services relating to passengers and crew crossing the border, including collecting information, clearance of people and their possessions, and protection of New Zealand's interests through interventions, investigations and enforcement.

Expenses and Revenue

Expenses and Revenue - Clearance and Enforcement Services Related to Passengers and Crew (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 47,478
Revenue from Crown - - 46,316
Revenue from Other - - 1,162

Reasons for Change in Appropriation

This is a new appropriation resulting from a review of Vote Customs output classes. From 2010/11 outputs of the New Zealand Customs Service will be provided from within six newly defined output classes. In 2010/11 there is no material change to the outputs being delivered by the New Zealand Customs Service.

Output Performance Measures and Standards

Output Performance Measures and Standards - Clearance and Enforcement Services Related to Passengers and Crew (M21) - Customs
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of arriving international air passengers (estimated 4.6-5.1 million passengers) who exit Customs Primary processing points within 45 minutes of arrival (see Note 1) ≥90% 97% ≥90%
Percentage of arriving international air passengers and crew who are deemed compliant based on risk assessment and facilitated without further intervention ≥98% 98.5% ≥98%
Average percentage of international travellers satisfied that Customs processes passengers quickly and conveniently (as measured biennially by Customs' stakeholder survey) N/A 70% ≥70%
Percentage of eligible arriving Trans-Tasman passengers who use SmartGate N/A 40% ≥40%
Average percentage of international travellers satisfied that Customs provides a friendly welcome to New Zealand (as measured biennially by Customs' stakeholder survey) N/A 65% ≥65%
Percentage of arriving international air passengers and crew who are selected for further risk assessment at Customs' secondary areas (see Note 2) 1.1%-1.5% 1.5% 1.1%-1.5%
Percentage of arriving international air passengers and crew who were selected for further risk assessment who were subsequently subject to a full or partial baggage examination (see Note 3) 30%-40% 29% 25%-35%

Note 1 - All passengers are provided with an information pamphlet to assist them with completing their Customs declaration. All passengers and crew are assessed for risk, including screening against advance passenger information. Information is collected from all passengers and crew as part of the facilitation process. All passengers and crew are subject to dog and x-ray screening, and may also be referred from Ministry of Agriculture and Forestry screening.

Note 2 - 1.1 to 1.5 percent of passengers and crew are selected for further risk assessment, and directed to secondary areas for further intervention. From this point on, passengers and crew are no longer being facilitated, and Customs is carrying out an enforcement role.

Note 3 - All passengers who are searched produce either intelligence information, or discovery of prohibited, restricted, or dutiable items, or both. A measure is in development to identify the interventions that result in finding undeclared restricted or prohibited items or dutiable goods.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Clearance and Enforcement Services Related to Passengers and Crew (M21) - Customs
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Joint Border Management System (Stage Two Business Case) 2010/11 - 249 1,777 2,640 2,750
Contribution to the Establishment of the New Zealand Productivity Commission 2010/11 - (15) (29) (31) (31)
Savings from rationalisation of support functions and rephasing expenditure across financial years 2009/10 (1,250) (430) (430) (430) (430)
Automated Passenger Clearance 2009/10 1,576 3,719 3,719 3,719 3,719

Previous Government

           
Passenger Processing Facilities at Auckland International Airport 2008/09 179 179 179 179 179
Customs Border Management Systems Replacement Programme 2007/08 353 353 353 353 353
Customs Wellington Head Office Relocation and Modernisation 2007/08 733 733 733 733 733

Information and Intelligence Services (M21)#

Scope of Appropriation

This appropriation is limited to the provision of information, intelligence and risk assessment services to external clients, and the operation of the National Maritime Coordination Centre.

Expenses and Revenue

Expenses and Revenue - Information and Intelligence Services (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 6,569
Revenue from Crown - - 5,583
Revenue from Other - - 986

Reasons for Change in Appropriation

This is a new appropriation resulting from a review of Vote Customs output classes. From 2010/11 outputs of the New Zealand Customs Service will be provided from within six newly defined output classes. In 2010/11 there is no material change to the outputs being delivered by the New Zealand Customs Service.

Output Performance Measures and Standards

Output Performance Measures and Standards - Information and Intelligence Services (M21) - Customs
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of external clients who are satisfied with intelligence and risk products (estimated between 1,600-1,800) disseminated by Customs (see Note 1) ≥80% 80% ≥80%
Percentage of external clients who are satisfied with Customs management of alerts created by their agency (estimated between 28,000-32,000 alerts) ≥80% 80% ≥80%
Percentage of civilian demand that is met where patrol and surveillance assets (10 assets managed) are available (see Note 2) 100% 100% 100%
Percentage of requesting agencies and assets providers satisfied with National Maritime Coordination Centre's responsiveness, transparency, and prioritisation in coordination of tasking ≥90% 90% ≥90%

Note 1 - Further measures around information services are in development.

Note 2 - The National Maritime Coordination Centre prioritises and matches available maritime surveillance craft to the demand for maritime surveillance from civilian agencies. This ensures optimal use of the craft of all agencies.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Information and Intelligence Services (M21) - Customs
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Joint Border Management System (Stage Two Business Case) 2010/11 - 1,308 8,001 11,921 12,148
Contribution to the Establishment of the New Zealand Productivity Commission 2010/11 - (1) (3) (4) (4)
Savings from rationalisation of support functions and rephasing expenditure across financial years 2009/10 (150) (6) (6) (6) (6)

Previous Government

           
National Maritime Coordination Centre (NMCC) Staff and Information Systems 2008/09 399 456 446 446 446
Customs Wellington Head Office Relocation and Modernisation 2007/08 96 96 96 96 96
Customs' People Capability 2007/08 6 6 6 6 6
Implementing a Data Match for Student Loans 2006/07 98 98 98 98 98

Policy Advice and International Services (M21)#

Scope of Appropriation

This appropriation is limited to the provision of ministerial support, policy advice and international services, obligations and assistance.

Expenses and Revenue

Expenses and Revenue - Policy Advice and International Services (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 7,676
Revenue from Crown - - 7,363
Revenue from Other - - 313

Reasons for Change in Appropriation

This is a new appropriation resulting from a review of Vote Customs output classes. From 2010/11 outputs of the New Zealand Customs Service will be provided from within six newly defined output classes. In 2010/11 there is no material change to the outputs being delivered by the New Zealand Customs Service.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and International Services (M21) - Customs
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of draft replies to ministerial correspondence (estimated between 50-70 items) that are provided within 20 working days or as agreed with the Minister 90% 91.5% ≥90%
Percentage of draft responses to parliamentary questions (estimated less than 150 items) that are provided to the Minister's office so that answers can meet the timeframe set in Parliamentary Standing Orders N/A 100% 100%
Minister's assessment of his satisfaction that the policy advice provided conforms to the quality characteristics (see Note 1) Meets and sometimes exceeds expectations Meets and sometimes exceeds expectations Meets expectations
Median score (out of 10) for policy papers as assessed by the external reviewer (NZIER) ≥7.5 ≥7.5 ≥7.5
Minister's satisfaction with advice and support in relation to international services and assistance provided N/A Meets expectations Meets expectations

Note 1 - The quality characteristics for policy advice (dimension followed by relevant standard) are:

  • Purpose - the aim of the advice is clearly stated and it answers the questions set.
  • Logic - assumptions behind the advice are explicit and the argument is logical and supported by the facts.
  • Accuracy - facts in the papers are accurate and all material facts are included.
  • Evaluation - advice provided includes, where appropriate and relevant, the outcomes to be achieved by the recommended course of action and the means by which that achievement will be evaluated.
  • Options - an adequate range of options is presented and the benefits, costs and consequences of each option to the Government and the community are assessed.
  • Consultation - consultation has occurred: with other government agencies and other affected parties and possible objections to proposals were identified; and with the Maori community on all relevant policy developments as required.
  • Practicality - problems of implementation, technical feasibility, timing, and consistency with other policies have been considered.
  • Presentation - the format meets Cabinet Office and ministerial requirements; the material is effectively, concisely, and clearly presented, has short sentences in plain English, and is free of spelling or grammatical errors.
  • Timeliness - papers are provided in time to meet Cabinet Office and ministerial requirements, or as otherwise agreed.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice and International Services (M21) - Customs
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Contribution to the Establishment of the New Zealand Productivity Commission 2010/11 - (2) (3) (3) (3)
Joint Border Management System (Stage Two Business Case) 2009/10 2,136 - - - -
Savings from rationalisation of support functions and rephasing expenditure across financial years 2009/10 (232) (204) (204) (204) (204)

Previous Government

           
Customs Wellington Head Office Relocation and Modernisation 2007/08 242 242 242 242 242

Revenue Collection (M21)#

Scope of Appropriation

This appropriation is limited to the provision of services relating to receipt and processing of revenues owing to the Crown and other agencies, revenue assurance, credit and debt management.

Expenses and Revenue

Expenses and Revenue - Revenue Collection (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 5,299
Revenue from Crown - - 4,993
Revenue from Other - - 306

Reasons for Change in Appropriation

This is a new appropriation resulting from a review of Vote Customs output classes. From 2010/11 outputs of the New Zealand Customs Service will be provided from within six newly defined output classes. In 2010/11 there is no material change to the outputs being delivered by the New Zealand Customs Service.

Output Performance Measures and Standards

Output Performance Measures and Standards - Revenue Collection (M21) - Customs
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Revenue collected on behalf of the Crown, as advised by Treasury $8,942 million $8,942 million $10,823 million
Revenue collected for other agencies, as advised by the agencies involved $335-350 million $375 million $375-400 million
Percentage of revenue that is collected electronically >95% 97.5% >95%
Percentage of revenue that is collected by the due date >98% 99.9% >98%
Number of clients that meet credit criteria and have access to the deferred payment scheme (see Note 1) >8,000 8,100 >8,000
Debt write-offs as a percentage of total revenue collected in that year ≤0.02% 0.02% ≤0.02%
Additional revenue owed that is identified through the trade compliance programme >$15 million >$60 million >$15 million

Note 1 - Deferred payment benefits both Customs and traders: eligible traders gain flexibility, and this assists their revenue compliance.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Revenue Collection (M21) - Customs
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Contribution to the Establishment of the New Zealand Productivity Commission 2010/11 - (1) (3) (3) (3)
Savings from rationalisation of support functions and rephasing expenditure across financial years 2009/10 (60) (5) (5) (5) (5)

Previous Government

           
Customs Wellington Head Office Relocation and Modernisation 2007/08 115 115 115 115 115
Customs' Border Management Systems Replacement Programme 2007/08 23 23 23 23 23

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 - Customs
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: To manage debts owed to the Crown and to minimise the impact on Crown Revenue of debts owed to the Crown. Change in Doubtful Debt Provision
Objective: To meet international obligations and participate in, and contribute to, the international customs community. World Customs Organisation

Change in Doubtful Debt Provision (M21)

Scope of Appropriation

Provisioning of Doubtful Debts on Customs Crown Revenue.

Expenses

Expenses - Change in Doubtful Debt Provision (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,000 2,000 2,000

World Customs Organisation (M21)#

Scope of Appropriation

New Zealand's contribution to the operating budget of the WCO.

Expenses

Expenses - World Customs Organisation (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 88 88 88

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Customs
Appropriation Reporting Mechanism
Change in Doubtful Debt Provision Annual Report of New Zealand Customs Service
World Customs Organisation Annual Report of New Zealand Customs Service

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 - Customs
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: To maintain and upgrade capability through the maintenance and replacement
of assets.
New Zealand Customs Service - Capital Expenditure PLA

New Zealand Customs Service - Capital Expenditure PLA (M21)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - New Zealand Customs Service Capital Expenditure PLA (M21) - Customs
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 15,946 15,946 18,575
Intangibles 1,503 1,503 29,961
Other - - -

Total Appropriation

17,449 17,449 48,536
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 15,946 15,946 18,575
Intangibles 1,503 1,503 29,961
Other - - -

Total Appropriation

17,449 17,449 48,536

Reasons for Change in Appropriation

The 2010/11 budgeted capital expenditure includes funding provision to:

  • implement the first tranche of the Joint Border Management System-Trade Single Window
  • introduce advanced tracking and surveillance technology
  • complete the programme to install self service border clearance technology for eligible travellers flying trans-Tasman routes
  • establish a new National Targeting Centre
  • complete the consolidation and relocation of Customs' air and sea cargo inspection activities in Auckland.

The move of the Wellington Customhouse to new premises is programmed for the first half of 2010/11.

Performance Information for Appropriations Vote Defence#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)

ADMINISTERING DEPARTMENT: Ministry of Defence

MINISTER RESPONSIBLE FOR MINISTRY OF DEFENCE: Minister of Defence

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Defence is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

  • a total of just over $1.900 million for audits and assessments of the New Zealand Defence Force and Ministry of Defence
  • a total of just over $3.900 million for managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force
  • a total of just under $4 million for policy advice, management of international defence relations and services to the Minister
  • a total of just under $229 million for the purchase, modification, or refurbishment of major items of defence equipment for the New Zealand Defence Force.

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

Part 1.2 - High-Level Objectives of the Vote#

Link to Government Priorities

The completion and implementation of the Defence Review: The Ministry of Defence is undertaking a "deep" Review. This means the Government is critically examining how the Defence Force, in the future, can best meet New Zealand's security needs. As a "deep" Review it will provide the basis for defence policy both in the medium term, but also over the longer term, taking into account the major capabilities that will be reaching the end of their lives within the next 20 years. The Review will establish a clear policy framework based on an assessment of our current and future security environment. This is critical to determining a capability mix and force structure that provides the Government with an appropriate set of options for meeting its security obligations, as well as delivering value for money.

Ensuring that the New Zealand Defence Force (NZDF) remains effective and responsive: The Government expects the Defence Force to be able to undertake a range of key tasks - from providing assistance to New Zealanders when required, to meeting obligations to our near neighbours in the South Pacific (for example responding to emergencies such as the recent natural disasters in Samoa, Tonga, and the Cook Islands), and to undertaking peacekeeping and nation building such as that in the Solomons, Timor Leste and Afghanistan.

Consolidating the ANZAC relationship: New Zealand's close relationship with Australia is creating new opportunities to work with Australia and develop genuinely complementary capabilities. There will be particularly focus in the following areas:

  • Air transport.
  • Response forces in the South Pacific.
  • Closer capability development cooperation.
  • Defence industry capability.

The Ministry of Defence will play a central role in developing and leading the implementation of closer ANZAC cooperation.

Confirming a sound and balanced capital acquisition strategy for defence equipment within financial guidelines: Past procurements have been expensive, problematic and subject to lengthy delays. This has created unplanned operating implications. The overall effect has been to lessen confidence in the procurement system and increase risk through programmes that do not deliver on time. The Ministry of Defence will implement changes to improve this.

Putting in place an approach to defence management which ensures that the defence capabilities the Government needs are delivered: It is clear that for the next few years New Zealand will be under considerable fiscal restraint. Defence needs to review the way they operate and ensure it provides best value for money. The Ministry of Defence will work in concert with the Defence Force and central agencies in this regard.

In addition, there would be the continuing provision to the Minister of Defence, by the Secretary of Defence, of reports of assessments and audits of the New Zealand Defence Force and the procurement activities of the Ministry of Defence, in accordance with the Defence Act.

Contribution of Appropriations to Government Priorities and Outcomes

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Defence
Appropriations Government Priorities Government Outcomes
Departmental Output Expenses
Audit and Assessment of Performance
Management of Equipment Procurement
Policy Advice
Policy Theme: NZ is secure High Level Outcome New Zealand is secure and the security of other nations is enhanced by New Zealand's efforts.
Intermediate Level Outcomes New Zealand identifies all credible military threats to its security environment. New Zealand's military capabilities are aligned with our requirements. New Zealand's defence relationships are aligned with our security interests and foreign policy goals. New Zealand's military deployments support our regional and wider international objectives.
Non-Departmental Capital Expenditure
Defence Equipment
Policy Theme: NZ is secure High Level Outcome New Zealand is secure and the security of other nations is enhanced by New Zealand's efforts.
Intermediate Level Outcomes New Zealand identifies all credible military threats to its security environment. New Zealand's military capabilities are aligned with our requirements. New Zealand's defence relationships are aligned with our security interests and foreign policy goals. New Zealand's military deployments support our regional and wider international objectives.

Summary of Financial Activity

Summary of Financial Activity - Defence
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 8,450 9,006 9,476 12,192 11,708 11,408 9,791 - 9,791 9,791 9,795 9,795
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 415,478 471,597 279,995 144,949 313,319 313,319 315 228,753 229,068 162,326 72,003 197
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

423,928 480,603 289,471 157,141 325,027 324,727 10,106 228,753 238,859 172,117 81,798 9,992

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 570 754 578 152 200 200 N/A 200 200 100 100 -
Capital Receipts 395,882 509,267 253,230 228,583 174,118 174,118 N/A 328,722 328,722 177,808 60,441 5,515

Total Crown Revenue and Capital Receipts

396,452 510,021 253,808 228,735 174,318 174,318 N/A 328,922 328,922 177,908 60,541 5,515

New Policy Initiatives

Budget Policy Intiatives - Defence
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
IFRS & foreign exchange adjustment Non-Departmental Capital Expenditure 18759 2163      
Defence Review 09 Policy Advice 710 - - - -
Acquisition resources Management of Equipment Procurement 200 200 200 200 -
Training Light Utility Project Non-Departmental Capital Expenditure 5,604 48,100 3,496 - -
Defence Command and Control System Non-Departmental Capital Expenditure 7,000 1,469 461 3,632 -
ANZAC Platform System Upgrade Non-Departmental Capital Expenditure 3,965 1,146 1,743 - -

Analysis of Significant Trends

The departmental appropriations in Vote Ministry of Defence, which are detailed in the Summary of Financial Activity table in Part 1.3 above, show the significant changes discussed below.

Departmental Output Expense Appropriations

Significant movements over this time period are:

  • The increase of $556,000 between 2005/06 and 2006/07 is mainly due to an increase of $158,000 in depreciation and capital charge on the Aitken Street building and expenditure of $396,000 on the Defence Capability Resourcing Review.
  • The increase of $470,000 between 2006/07 and 2007/08 is mainly due to an increase of $448,000 in expenditure on the Defence Capability Resourcing Review.
  • The increase of $2.716 million between 2007/08 and 2008/09 is mainly due to contract mediation relating to warranty issues of a acquisition project.
  • The decrease of $984,000 between 2008/09 and 2009/10 is mainly due to an increase of $200,000 for additional project management resources, a further $420,000 to total $710,000 on the Defence Review 2009, and a reduction of $1.600 million in contact warranty issues.
  • The reduction of $1,917 million in funding between 2009/10 and 2010/11 is due to the cessation of associated one-off funding of $710,000 for Defence Review 09, and the $1,200 million relating to contact warranty issues and pre-acquisition cost in the 2009/10 financial year.
  • The small movement in the appropriation currently planned for years 2011/12 to 2013/14 is due to the reduced contribution to communications inter-operability project in its latter years.

Departmental Capital Expenditure

The majority of the capital expenditure over the years relates to the Ministry of Defence's contribution towards the construction of the new Defence House in Aitken Street in Wellington. Other capital expenditure relates primarily IT software and equipment identified as new and replacement items required by the Ministry to deliver its stated outcomes and outputs.

Non-Departmental Capital Expenditure

The movements in capital expenditure in each of the years 2005/06 to 2013/14 relates to the volume of projects underway in each financial year and changes in the forecast timing of achievement of project milestones and associated changes in the timing of payments for those milestones.

Capital Receipts

The Ministry of Defence receives Capital Receipts from the New Zealand Defence Force from the sale of defence equipment. Changes in Capital Receipts during the years 2005/06 to 2009/10 reflect the number, structure and scope of the projects undertaken on behalf of the Crown during the same time period. Years 2010/11 to 2013/14 reflect the anticipated number, structure and scope of the projects to be undertaken on behalf of the Crown during the same time 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 - Defence
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
An approved schedule of audits and assessments is satisfactorily completed, and other audits and assessments are conducted as required by the Minister of Defence. Audit and Assessment of Performance
Military assets are procured on behalf of the Crown and transferred to the New Zealand Defence Force.
Warranty issues which arise from the procurement of assets are well managed.
Industry receives advice on defence requirements facilitating effective communication to enable opportunities for New Zealand industry to provide goods and services as required and receive opportunities to compete for work consistent with government procurement policies.
Management of Equipment Procurement
Government receives advice on significant issues that have an impact on defence policy and international relations.
Capability reviews in cooperation with the New Zealand Defence Force identify options for achieving the Government's defence policy goals.
International defence relationships with Australia and other regional countries and participation in regional multilateral security dialogues contribute to New Zealand's security.
Policy Advice

Audit and Assessment of Performance (M22)

Scope of Appropriation

This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.

Expenses and Revenue

Expenses and Revenue - Audit and Assessment of Performance (M22) - Defence
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,906 1,906 1,906
Revenue from Crown 1,839 1,839 1,839
Revenue from Other 67 67 67

Reasons for Change in Appropriation

A small amount of cost savings have been identified within Audit and Assessment of Performance.

Output Performance Measures and Standards

Output Performance Measures and Standards - Audit and Assessment of Performance (M22) - Defence
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Delivery to the Minister of Defence of reports of audits and assessments, as required by s.24(2)(e) of the Defence Act 1990 and s.3(6) of the Hazardous Substances and New Organisms Act 1996. The audits and assessments to be undertaken are approved by the Secretary of Defence and Chief of Defence Force on behalf of the Minister. An average of between 16 and 17 reports has been completed annually over the past five years. 15 -18 20 15-18
Reports will be of quality, timeliness and effectiveness that is acceptable to key stakeholders. Key stakeholders are the Minister of Defence, the Secretary of Defence and the Chief of Defence Force. Quality, timeliness and effectiveness is assessed by obtaining the views of the chief executives at each six-monthly meeting of the Defence Evaluation Board. The Board receives Evaluation Reports on behalf of the Minister under delegated authority. Achieved Achieved Achieved
Audits will be performed in accordance with the Ministry's standards for audits and assessments of performance (see Conditions on Use of Appropriation, below). This is monitored by managerial oversight and direction. Achieved Achieved Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Audit and Assessment of Performance (M22) - Defence
Reference Conditions
Auditing Standards for Audits and Assessments of Performance  
Scope and Objectives The audit or assessment will have clear scope and objectives.
Relevance The audit or assessment will be selected on the basis of relevance and risk to the Minister and the New Zealand Defence Force or the Ministry.
Focus The audit or assessment will have suitable criteria that focus the work and provide a basis for developing observations and conclusions.
Evidence The audit or assessment will have sufficient appropriate evidence to support the content of the report.
Objectivity The audit or assessment will involve objective evaluation of the evidence against criteria to develop observations and conclusions.
Recommendations The audit or assessment will include recommendations that will, if implemented, add value, improve efficiency and effectiveness, or ameliorate risk.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Audit and Assessment of Performance (M22) - Defence
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Communication inter-operability project (3) (3) (3) (3) (2) (2)

Management of Equipment Procurement (M22)#

Scope of Appropriation

Managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force.

Expenses and Revenue

Expenses and Revenue - Management of Equipment Procurement (M22) - Defence
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,937 4,637 3,930
Revenue from Crown 4,662 4,362 3,862
Revenue from Other 275 275 68

Reasons for Change in Appropriation

There will be no costs incurred in the 2010/11 year associated with the Protector procurement project. The appropriation in 2010/11 reduces by $1.007 million due to the one off costs included in 2009/10 of Protector mediation costs $800,000 and pre-acquisition costs of $207,000.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Equipment Procurement (M22) - Defence
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
New equipment procurement or refurbishment projects will be managed within the approved budget, and Achieved Achieved Achieved
New equipment procurement or refurbishment projects will be managed to the quality standards negotiated for each project in accordance with the agreed Statement of Compliance issued on completion. This is measured by test, evaluation, independent audit, and measurements as prescribed in contractual documents. Achieved Achieved Achieved
To reduce the average project schedule overrun. 10% Not Achieved 10%
Confirmation by the Defence Industry Committee of New Zealand that the Ministry of Defence and its agent, the Industry Capability Network, has adequately promoted domestic suppliers capabilities to overseas based prime contractors. Confirmation Received Confirmation Received Confirmation Received

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Equipment Procurement (M22) - Defence
Reference Conditions

Quality Standards for Equipment Procurement

 
Recommendations Recommendations are clear, and logical.
They are sufficient to enable a decision to be made on a proposal or move to the next decision/action point.
Options A range of options is presented that provide clearly differentiated choices and these are rigorously evaluated against the analytical framework. Costs, benefits, consequences, and risks/opportunities of the options are assessed as part of the analysis. Where it is not possible to use a range of options the reasons are clearly stated.
Consultation Consultation Evidence of thorough and timely consultation with other government departments and interested parties is presented, and their views, including objections, incorporated as appropriate.

Quality Standards for the promotion of domestic suppliers capabilities

 
Consultation Evidence of thorough and timely consultation with other government departments and interest parties is presented.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Equipment Procurement (M22) - Defence
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Pre Acquisition Costs 2009/10 207 - - - -
Additional Project Management Resources 2008/09 200 200 200 200 200
Protector Mediation Costs 2009/10 500 - - - -
Protector Mediation Costs-additional costs 2009/10 500 - - - -
Communications inter-operability project 2009/10 (3) (3) (3) (2) (2)
Improved Value for Money Review 2009/10 (200)        

Policy Advice (M22)#

Scope of Appropriation

Policy advice, management of international defence relations and services to the Minister.

Expenses and Revenue

Expenses and Revenue - Policy Advice (M22) - Defence
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,865 4,865 3,955
Revenue from Crown 4,797 4,797 3,887
Revenue from Other 68 68 68

Reasons for Change in Appropriation

The appropriation reduces by $910,000 due to one off costs in 2009/10 for the Defence and Improved Value for Money reviews.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice (M22) - Defence
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The supply of individual policy papers will be of high quality, which will be assessed by the percentage of first drafts of all policy papers accepted by the Minister. 90% 90% N/A
Submission of policy papers for the Ministers including Cabinet papers which will be of high quality and which will be assessed by the percentage of all policy papers substantially meeting the Minister and Associate Ministers requirements. 90% 90% N/A
Prepare answers to Select Committee questions for the Minister which will be of high quality and which will be assessed by the percentage of first drafts of all answers accepted by the Minister. 90% 90% N/A
The supply of all other responses will be of high quality, which will be assessed by the percentage of responses accepted without substantive amendment. 95% 95% N/A
All reports and oral advice will be delivered within the agreed or statutory time frame. Ministerials within 14 working days of receipt of the request, replies to Parliamentary Questions for Written Answer provided by the due date, and replies to Parliamentary Questions for oral answer provided by midday on the day that the reply is due in the House. Achieved Achieved N/A
Prepare policy papers for the Minister, Including Cabinet papers      
Quantity (number of items) N/A N/A 24-30
Quality as assessed by the quality ratings assigned by the Minister and Associate Minister on a scale from 1 (best) to 5 (worst). N/A N/A >50% graded 1
Timeliness, as assessed by the percentage of papers that were submitted by the directed deadline. N/A N/A >95% of papers submitted by deadline
Prepare Ministerial correspondence for the Minister      
Quantity (number of items) N/A N/A 35-55
Prepare Ministerial correspondence for the Minister which will be of high quality and which will be assessed by the percentage of first drafts of all correspondence accepted by the Ministers. 90% 90% 90%
Timeliness, as assessed by the percentage of draft replies that were not submitted by the directed deadline. N/A N/A >95% of papers submitted by deadline
Prepare answers to Parliamentary questions for the Minister      
Quantity (number of items) N/A N/A 90-100
Prepare answers to Parliamentary questions for the Ministers which will be of high quality and which will be assessed by the percentage of first drafts of all questions accepted by the Ministers. 90% 90% 90%
Timeliness, as assessed by the percentage of draft replies that were submitted to the Minister within the time specified in Standing Orders. There are three categories - (A) questions for oral answer, (B) questions for written answer and (C) questions of the day. N/A N/A >95% of papers submitted by deadline
Prepare answers to Select Committee questions for the Minister      
Quantity (number of items) N/A N/A 20-30
Quality as assessed by the quality ratings assigned by the Minister and Associate Minister on a scale from 1 (best) to 5 (worst). N/A N/A >50% graded 1
Timeliness, as assessed by the percentage of draft replies that were not submitted by the deadline requested by the Select Committee. N/A N/A >95% of papers submitted by deadline
Prepare responses to Official Information Act requests      
Quantity (number of items)     60-80
Quality as assessed by the number of replies that generate further correspondence, including the involvement of the Ombudsman N/A N/A 0
Timeliness, as assessed by the percentage of replies that were completed within the time set by statutory requirement (20 working days). N/A N/A >95% of papers submitted by deadline

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Policy Advice (M22) - Defence
Reference Conditions
Quality Standards for Analysis and Advice  
Purpose The objective for the advice is clearly stated, it answers any defence and security issues raised by the Minister and demonstrates a clear understanding of the desired outcome(s) of the Government and/or the Minister.
Problem definition Any public policy problem, including the underlying causes, size and materiality of issue, is identified and supported by data or other evidence.
Context It is clear where the advice stands in the context of the wider policy process, including what has already been undertaken and what is expected to occur in the future.
Logic An appropriate analytical framework is used. Assumptions behind the advice are explicit and the argument is logical and supported by facts.
Accuracy All material facts are present and accurate. Known gaps that could significantly affect the conclusions are identified and the range of uncertainty stated.
Options A range of options is presented that provides clearly differentiated choices and these are rigorously evaluated against the analytical framework. Costs, benefits, consequences, and risks/opportunities of the options are assessed as part of the analysis. Where it is not possible to use a range of options the reasons are clearly stated.
Recommendations Recommendations are clear, logical and action oriented and can stand alone from the rest of the advice. They are sufficient to enable a decision to be made on the proposal or to move to the next decision/action point.
Consultation Evidence of thorough and timely consultation with other government departments and interested parties is presented and their views, including objections, incorporated as appropriate.
Practicality Issues of implementation, technical feasibility, practicality and timing are considered and budgetary implications identified.
Presentation Material is presented to suit the target audience and:
  • is concise and structured in a way which assists others to understand the aim of the advice, key features of the information, analysis and recommendations, and their key implications
  • uses appropriate language and style
  • is consistent with departmental and Cabinet Office presentation requirements.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice (M22) - Defence
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Defence Capability and Resourcing Review - Improved Organisational Capability 2005/06 844 844 844 844 844
Defence Review 09 and white paper 2008/09 710 - - - -
Communications inter-operability project 2009/10 (4) (4) (4) (2) (2)
Improved Value for Money Review 2009/10 200        

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 - Defence
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Maintain and upgrade capability through routine replacement of the Ministry's information technology and office equipment. Ministry of Defence - Capital Expenditure PLA (M22)

Ministry of Defence - Capital Expenditure PLA (M22)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry of Defence Capital Expenditure PLA (M22) - Defence
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 277 277 195
Intangibles 75 75 120
Other - - -

Total Appropriation

352 352 315
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 277 277 195
Intangibles 75 75 120
Other - - -

Total Appropriation

352 352 315

Reasons for Change in Appropriation

The decrease in appropriation for 2010/11 is due to the timing for upgrades and replacement of information technology infrastructure.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Defence
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Maintain and/or upgrade military capability through upgrades or procurement of new defence equipment for the New Zealand Defence Force. Defence Equipment

Defence Equipment (M22)

Scope of Appropriation

This appropriation is limited to the purchase, modification or refurbishment of major items of defence equipment for the New Zealand Defence Force.

Capital Expenditure

Capital Expenditure - Defence Equipment (M22) - Defence
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 312,967 312,967 228,753

Reasons for Change in Appropriation

The appropriation for Defence Equipment varies depending upon the number and scope of projects.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Defence Equipment (M22) - Defence
Reference Conditions
Defence Act 1990 Section 24
Quality Standards for Defence Equipment  
Effective Management Equipment procurement, modification and refurbishment projects will be managed within the approved budget and to the quality standards negotiated for each project.
Options A range of options are considered that provides clearly differentiated choices and these are rigorously evaluated.
Costs, benefits, consequences, and risks/opportunities of the options are assessed as part of the analysis.
Practicality Issues of implementation, technical feasibility, practicality and timing are accurately identified and addressed.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Defence Equipment (M22) - Defence
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
IFRS & foreign exchange adjustment 2009/10 18,759 2,163 - - -
ANZAC Platform Systems Upgrade 2008/09 480 286 1,323 - -
Defence Control and Command System 2008/09 10,692 2,400 900 3,632 -
Training Light Utility Helicopter 2008/09 39,803 32,390 20,159 - -
ANZAC Close in Weapon System 2006/07 7,943 2,836 - - -
C-130 Life Extension 2006/07 32,879 15,236 9,993 3,290 -
Medium Utility Helicopter Capability 2006/07 226,783 151,648 305 - -
B757 Acquisition and Modification 2005/06 - - - - -
P-3 Mission Management, Communication and Navigation Systems Upgrade 2004/05 68,067 41,829 12,234 - -
Project Protector 2004/05 35,865 - - - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Defence
Appropriation Reporting Mechanism
Defence Equipment Annual Report of the Ministry of Defence

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

Performance Information for Appropriations Vote Defence Force#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)

ADMINISTERING DEPARTMENT: New Zealand Defence Force

MINISTER RESPONSIBLE FOR NEW ZEALAND DEFENCE FORCE: Minister of Defence

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Defence is responsible for appropriations in Vote Defence Force, totalling just over $2,852 million, for the 2010/11 financial year.

This includes just over $2,279 million for departmental output expenses and a capital expenditure appropriation of just under $573 million for the purchase of assets. The $2,279 million amount covers the following:

  • a total of just over $2,159 million on the Navy, Army, and Air Force to provide the Government with a range of military forces to protect and advance the security and interests of New Zealand. These forces are held at appropriate levels of capability and preparedness to protect New Zealand's territorial sovereignty and to contribute to regional and global security efforts. Most of these forces will also contribute a range of services to other government departments and the New Zealand community when not committed to operations overseas. The breakdown of appropriations, by Service, is as follows:
    • Navy: just under $673 million
    • Army: just over $843 million
    • Air Force: just over $643 million
  • a total of just over $78 million on Operationally Deployed Forces
  • a total of just under $26 million on a Multi-Class Output Appropriation (MCOA), Miscellaneous Support Activities, that includes New Zealand Defence Force support to the Mutual Assistance Programme, the New Zealand Cadet Forces, Government-initiated Youth Development Schemes (Limited Service Volunteer courses, Service Academies and Military-style Activity Camps), and Service Military Museums
  • a total of just over $16 million on military policy development, coordination and advice to the Government.

Of the total appropriation, the New Zealand Defence Force expects to recognise about $33 million in third-party revenue (Revenue Department and Revenue Other) in 2010/11. The remainder is funded from Revenue Crown.

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

Part 1.2 - High-Level Objectives of the Vote#

Defence Act 1990

Under the Defence Act 1990, New Zealand's Armed Forces are raised and maintained for:

  • the defence of New Zealand and the protection of its interests, whether in New Zealand or elsewhere
  • the contribution of forces under collective security treaties, agreements or arrangements
  • the contribution of forces to the UN or other organisations or States for operations in accordance with the principles of the charter of the UN.

The Defence Act 1990 also allows the Armed Forces to be made available for the performance of public services and assistance to the civil power in time of emergency, either in New Zealand or elsewhere.

Primary Mission of the New Zealand Defence Force

The primary mission of the NZDF remains:

"To secure New Zealand against external threat, to protect our sovereign interests, including in the Exclusive Economic Zone, and to be able to take action to meet likely contingencies in our strategic area of interest."

The following table shows how the day-to-day delivery of NZDF Output Expenses, for which appropriations are sought, are linked and contribute to the Government's priorities and outcomes for Defence.

Contribution of Appropriations to Government Priorities and Outcomes

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Defence Force
Appropriations Government Priorities Government Outcomes
Departmental Appropriations:
Military Policy Development, Coordination and Advice
For Navy:
Naval Combat Forces (the two ANZAC class frigates)
Naval Support Forces (Amphibious Sealift Ship and Fleet Replenishment Ship)
Mine Counter Measure (MCM) and MCM Diving Forces (MCM Vessel and Operational Diving Team)
Naval Patrol Forces (the two Offshore and four Inshore Patrol Vessels)
Military Hydrography, and Hydrographic Data Collection and Processing for Land Information New Zealand
For Army:
Land Combat Forces [command and control, intelligence and manoeuvre force elements (infantry and reconnaissance)]
Land Combat Support Forces (artillery, engineers, communications and military police)
Land Combat Service Support Forces (transport, medical, supply, repair and movements)
Special Operations Forces (special land operations, counter-terrorist operations, and forces to deal with chemical, biological, radiological and explosive improvised explosive devices)
For Air Force:
Naval Helicopter Forces (five Seasprite SH-2G maritime helicopters)
Maritime Patrol Forces (six P-3K Orion surveillance aircraft)
Fixed Wing Transport Forces (two Boeing 757 and five C-130 Hercules aircraft)
Rotary Wing Transport Forces (14 UH-1H Iroquois helicopters)
Key Priorities: The key priorities for Defence for 2010/11, with contributions from the NZDF as applicable, are:
  • Completion of the Defence Review. The focus is on "how well the NZDF meets the tasks that are expected of it by the Government." The objective is that the NZDF be capable of doing more with current funding.
  • Ensuring the NZDF remains Effective and Responsive. Ensure that, in concert with capability management, current operations, both international and domestic, are effective and sustainable.
  • Consolidating the ANZAC Relationship. Creating new opportunities with Australia in developing complementary military capabilities, particularly in the areas of air transport, response forces for the South Pacific, and the defence industry.
  • A Sound and Balanced Acquisition Strategy. Ensure effective management of acquisitions by raising the capability of procurement agencies, ensuring that a whole-of-life approach is taken, and looking for solutions that meet reasonable expectations.
  • New Resource Management Methods. Ensure that value for money is evident in and pervades Defence and identifying opportunities for greater efficiencies in the management of assets and infrastructure.
Main Outcome: New Zealand secure and protected from external threats now and in the future.
Intermediate Outcomes:
  • Secure New Zealand, including its people, land, territorial waters, exclusive economic zone, natural resources and critical infrastructure.
  • Reduced risks to New Zealand from regional and global insecurity.
  • New Zealand values and interests advanced through participation in regional and international security systems.
  • New Zealand is able to meet future national security challenges.
   
Others:
Operations
Operationally Deployed Forces (operational commitments as approved by the Government)
   
Miscellaneous Support Activities:
New Zealand Defence Force Support to:
   
  • The Mutual Assistance Programme
  • Strengthen New Zealand's key bilateral relationships to support our security and economic aspirations, and
  • Intensify efforts to secure the long-term security and economic growth of the South Pacific and key partner countries in the region.
New Zealand's security and economic interests safeguarded through its security and economic relationships.
  • New Zealand Cadet Forces
Investment in young people and the promotion of an appreciation among members of the cadet forces of the functions and operation of the Armed Forces. Good citizenship among members of the cadet forces.
  • Support to Youth Development (Limited Service Volunteer courses, Service Academies and Military-style Activity Camps)
Increase investment in young people during the economic downturn by implementing the Government's programme on "Fresh Start for Young People." The lives of young people at risk of poor outcomes are improved.
  • Military Museums
Increasing audiences and the appreciation of New Zealand culture and cultural resources (including our rich military heritage). New Zealanders valuing access and opportunities to participate in cultural/heritage experiences.

Summary of Financial Activity

Summary of Financial Activity - Defence Force
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 1,657,820 1,814,698 1,879,436 2,101,301 2,222,367 2,222,367 2,279,461 - 2,279,461 2,241,763 2,236,671 2,236,671
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - 1,665 - 337 93,300 93,300 - - - - - -
Capital Expenditure 428,827 611,993 356,586 365,530 520,000 389,830 572,914 - 572,914 490,160 254,869 254,869
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

2,086,647 2,428,356 2,236,022 2,467,168 2,835,667 2,705,497 2,852,375 - 2,852,375 2,731,923 2,491,540 2,491,540

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

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

New Policy Initiatives

Budget Policy Intiatives - Defence Force
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
To provide recognition of NZDF funding pressures in 2010/11 and outyears as a result of increased depreciation arising from upgraded and new major equipment. Military Policy Development, Coordination and Advice
Departmental Output Expense
- 3,456 3,456 3,456 3,456
  Naval Combat Forces
Departmental Output Expense
- (6,784) (6,784) (6,784) (6,784)
Naval Support Forces
Departmental Output Expense
- 2,366 2,366 2,366 2,366
  Mine Countermeasures (MCM) and MCM Diving Forces
Departmental Output Expense
- (1,432) (1,432) (1,432) (1,432)
Naval Patrol Forces
Departmental Output Expense
- 13,961 14,332 14,332 14,332
  Military Hydrography, and Hydrographic Data Collection and Processing for LINZ
Departmental Output Expense
- (299) (299) (299) (299)
Land Combat Forces
Departmental Output Expense
- 10,589 10,589 10,589 10,589
  Land Combat Support Forces
Departmental Output Expense
- 2,007 2,007 2,007 2,007
Land Combat Service Support Forces
Departmental Output Expense
- (3,918) (3,918) (3,918) (3,918)
Special Operations Forces
Departmental Output Expense
- 5,501 5,501 5,501 5,501
Naval Helicopter Forces
Departmental Output Expense
- 1,231 1,231 1,231 1,231
Maritime Patrol Forces
Departmental Output Expense
- 5,025 5,025 5,025 5,025
Fixed Wing Transport Forces
Departmental Output Expense
- 10,472 10,472 10,472 10,472
Rotary Wing Transport Forces
Departmental Output Expense
- (6,369) (6,369) (6,369) (6,369)
Miscellaneous Support Activities
Departmental MCOA
- (1,177) (1,177) (1,177) (1,177)
Operationally Deployed Forces
Departmental Output Expense
- 371 - - -
Sub Total   - 35,000 35,000 35,000 35,000
Funding for Operationally Deployed Forces Operationally Deployed Forces
Departmental Output Expense
- 14,048 - - -
Sub Total   - 14,048 - - -
Total Initiatives   - 49,048 35,000 35,000 35,000

Analysis of Significant Trends

Total Vote: All Appropriations

The departmental appropriations in Vote Defence Force, which are detailed in the Summary of Financial Activity table in Part 1.3 above, show the significant changes recorded below.

Departmental output expense appropriations

The following changes are noted:

  • The total increase in annually appropriated output expenses of almost $157 million between 2005/06 and 2006/07 is shown in the following table:
Changes in Output Expense Appropriations between 2005/06 and 2006/07 - Defence Force
Item $ million
DSI Funding Package (2006/07) 73
Project Protector funding 26
New Defence House funding 5
Expense Transfer from 2004/05 to 2005/06 (19)
Operation Enduring Freedom funding transfer to MYA (11)
Capital Charge adjustments for 2006/07, including rate reduction to 7.5% (3)
2006/07 Capital Charge savings (rate-related) 2
Depreciation Impact of 30 June 2006 Asset Revaluation 42
Gross Capital Charge Impact of 20 June 2006 Asset Revaluation 33
Absorb 0.001% Capital Charge savings ex Rate Change 2006 March Baseline Update (5)
Reinstate prior transfers from MYA 10
Transfer Depreciation savings to 2007/08 Capital Injection (10)
Operationally Deployed Forces - MYA phasing difference 13
Miscellaneous 1
Total 157
  • The total increase in annually appropriated output expenses of $65 million between 2006/07 and 2007/08 is shown in the following table:
Change in Output Expense Appropriations Between 2006/07 and 2007/08 - Defence Force
Item $ million
2006/07 Surplus 6
DSI Funding Package (2007/08) 58
Project Protector increment 29
Transfer Depreciation Savings 10
Technical Adjustment (mainly Capital Charge) 2
Expense Transfer to 2008/09 from 2007/08 (68)
Operationally Deployed Forces (Phasing Differences) 34
2007/08 Surplus on Outputs (6)
Total 65
  • The major items that contributed to the $222 million increase in annual departmental output expense appropriations between 2007/08 and 2008/09 are shown in the following table:
Changes in Output Expense appropriations between 2007/08 and 2008/09 - Defence Force
Item $ million
DSI Funding Package (2008/09) 69
Expense Transfer (comparative) 2007/08 decrease 68
Expense Transfer (comparative) 2008/09 increase 68
Project Protector increment 8
2007/08 Output Surplus 7
Capital Charge - historic technical changes 6
Response to Joint Working Group - Concerns of Vietnam Veterans - in 2007/08 only (1)
Historic Transfers to MYA (Operationally Deployed Forces) from Annual Expenses (2)
Operationally Deployed Forces - Difference between MYA ($71 million) in 2007/08 and Annual in 2008/09 ($79 million) 8
Project KiwImage (All of Government Imagery Purchase) 1
Capital Charge for 30 June 2008 Asset Revaluation 33
Expense Transfer from 2008/09 to 2009/10 (10)
Return of 2008/09 Savings to the Crown (40)
Revised Tax Treatment for 2008/09 1
Miscellaneous differences 6
Total 222
  • The major items that contributed to the $121 million increase in annual departmental output expense appropriations between 2008/09 and 2009/10 are shown in the following table:
Increase in Output Expense Appropriations between 2008/09 and 2009/10 - Defence Force
Item $ million
Expense Transfer (comparative) from 2007/08 into 2008/09 only (68)
Verification Service Levy Transfer in 2009/10 (1)
Transfer Residual MYA from 2007/08 into 2008/09 only for Operationally Deployed Forces (7)
2008/09 Savings returned to the Crown 40
Expense Transfer (2008/09 decrease) 10
Expense Transfer (2009/10 increase) 23
Revised Tax Treatment increase over 2008/09 5
Supplementary Operationally Deployed Forces funding 21
Defence Funding Package (Budget 2009) 52
Capital Charge for 30 June 2009 Asset Revaluation 32
Depreciation for 30 June 2009 Asset Revaluation 20
Expense Transfer to 2010/11 (10)
Enhance Youth Development 5
Miscellaneous Vote Transfers (1)
Total 121

Other expenses

  • The Other Expense appropriation of $1.665 million in 2006/07, by way of a write-off, was a technical adjustment to provide for asset-related costs held on the NZDF balance sheet to be written off by 30 June 2007, in accordance with Audit New Zealand advice.
  • An Other Expense of $2.700 million, for expensing by 30 June 2008, related to the disposal cost of items included in the NZDF Statement of Financial Position, in accordance with Audit New Zealand advice.
  • An Other Expense of $3 million, for expensing by 30 June 2009, of costs included in the NZDF Statement of Financial Position.

Comparison: 2009/10 with 2010/11

Departmental output expenses

Appropriations for the purchase of NZDF outputs for the year ending 30 June 2011 include the following Cabinet-agreed departmental output expense funding changes that were considered during the 2010 Budget process:

  • An increase in 2010/11 and outyears of $35 million for depreciation.
  • An expense transfer of $10 million from 2009/10 to 2010/11.
  • An increase in Operationally Deployed Forces in 2010/11 of $14.048 million.

The annual departmental output expense appropriations sought for Vote Defence Force in 2010/11 exceed those for 2009/10 by $57 million. The major items and values that contribute to this increase are shown in the following table:

Increase in Output Expense Appropriations between 2009/10 and 2010/11 - Defence Force
Item $ million
Expense transfer from 2008/09 for 2009/10 only (10)
2010/11 increase previously agreed through Budget 2009 34
Technical increase - Capital Charge 4
Transfer of 2008/09 surplus for 2009/10 only (13)
Committed cost of Operationally Deployed Forces (18)
Full-year impact of enhanced Youth Development 5
Expense Transfer from 2009/10 for 2010/11 only 20
New 2010/11 Funding - Budget 2010 35
Total 57

Other expenses

An Other Expense of $3.300 million for expensing by 30 June 2010 of costs included in the Statement of Financial Position.

An Other Expense of $90 million to provide for a write down in the value of the Royal New Zealand Navy Project Protector vessels before 30 June 2010.

Capital expenditure

The Capital Expenditure appropriations shown in the trends table between 2005/06 and 2012/13 disclose the annual payments for equipment purchases to be made to the Ministry of Defence, and for NZDF managed capital projects.

Outyears: 2011/12 - 2013/14

Subject to the outcomes of the current Defence Review, including the Value for Money Review, there are no significant forecast changes for the outyears 2011/12 - 2013/14.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Most of the NZDF's day-to-day activities in New Zealand, and for which it is funded, are designed to prepare the force elements of the Navy, Army and Air Force to contribute to operations as approved by the Government of the day. Coupled with the unavoidable uncertainty of security events, competing priorities, and the relative irreversibility of many major acquisition decisions, this makes the NZDF complex and unique compared to most other government departments. Those departments, in their day-to-day activities, are actually delivering their "end product" (their services), whereas the NZDF's ultimate "end product" is the effective contribution of NZDF force elements to operational missions. This is achieved through the NZDF Output Expense "Operationally Deployed Forces" and, in the New Zealand environment, "Multi-Agency Operations and Tasks (MAO&T)." The focus of what the NZDF does, therefore, is primarily geared to the preparation of forces and delivery of this ultimate "end product" or goal. The impacts the NZDF is striving to achieve through the delivery of current NZDF Outputs are shown in the following table:

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Defence Force
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
A better informed government and public, as appropriate, in the areas of:
  • Military Intelligence
  • Military Policy
  • Operational Military Policy Advice
  • Ministerial Correspondence and Parliamentary Questions
Military Policy Development, Coordination and Advice
A Defence Force that has the capacity to deliver an appropriate range of military response options to the Government for deployment on operations. (This is achieved through the generation of levels of capability preparedness of the force elements of the Navy, Army and Air Force.)
A Defence Force that has the capacity to deliver the required levels of support to other government departments and agencies for Multi-Agency Operations and Tasks, and community support, when not otherwise committed to operations.
Naval Combat Forces, Naval Support Forces, Mine Countermeasures (MCM) and MCM Diving Forces, Naval Patrol Forces, Military Hydrography and Hydrographic Data Collection and Processing for LINZ, Land Combat Forces, Land Combat Support Forces, Land Combat Service Support Forces, Special Operations Forces, Naval Helicopter Forces, Maritime Patrol Forces, Fixed Wing Transport Forces, Rotary Wing Transport Forces
A Defence Force that has the capacity to deliver high quality support to a range of programmes and services within and outside the NZDF. Multi-Class Output Appropriation - Miscellaneous Support Activities:
  • Support to Mutual Assistance Programme (MAP)
  • Support to NZ Cadet Forces
  • Support to Youth Development (Limited Service Volunteer Scheme, Youth Life Skills Programme and Military-style Activity Camps)
  • Support to Service Military Museums
Government military contributions to United Nations missions and other government-supported multi-national force operations are valued and seen as New Zealand being a good international citizen.
Defence Force contributions to government-approved operational missions and deployments are of a high standard in terms of personnel and equipment; personnel and equipment that is Ready, Combat Capable, Deployable and Sustainable.
Operationally Deployed Forces

NZDF Performance Information

Prior to detailing the expected performance of each of the NZDF's Output Expenses for which appropriations are sought, it is necessary to provide information on three essential elements of the NZDF's performance measurement process. This information is necessary for a proper understanding of the performance indicators and performance rating scale, used under the NZDF's Operational Preparedness and Reporting System (OPRES), and Employment Contexts which, together, form the basis against which 13 of the NZDF's 16 Output Expenses are assessed. Rather than repeating this information against every one of the relevant 13 Output Expenses, it is recorded here to refer back to, as required. The information is contained under the next few headings.

Indicative Key Performance Indicators and Performance Measures

The table that follows shows the indicative Key Performance Indicators (KPIs) and Performance Measures used for all Force Elements of the Navy, Army and Air Force. These are applicable to all NZDF Output Expenses relating to the Navy, Army and Air Force, which appear later in this part of the Information Supporting the Estimates of Appropriations. The table is "indicative" as the actual measures used by each of the Services do vary slightly; reflecting that the Navy and Air Force are primarily based on platforms, whereas the Army is based more on personnel. The Service-specific KPIs are detailed in appropriate NZDF directives.

Within OPRES, the performance of all force elements is assessed against four elements of preparedness - Readiness, Combat Viability, Deployability and Sustainability. Within each of these elements, measures are applied to, predominately, personnel, equipment and training - as shown in the following table:

Key Performance Indicators and Performance Measures - Defence Force
Key Performance Indicators Performance Measures

Readiness:

 
Directed Level of Capability (DLOC) Establishment Filled % of Unit's DLOC Establishment that is filled
Personnel Continuity % of personnel turnover (quarterly basis)
Key Personnel Appointments Filled Over Time % of key appointments filled by qualified personnel
Equipment Serviceability % of Unit Establishment platforms/equipments that are serviceable
Individual and Unit Level Training Completed % of individual/unit Readiness Training Activities (RTA) completed within reporting period
Mission Critical Platform/Combat System/DLOC Aircraft Availability % of programmed operating time in which the ship's platform/combat systems were available/ % of DLOC aircraft available
Sufficiency of Readiness Training Activities (RTA) Equipment, Expendable Stocks and Munitions % of stocks and live/practice munitions available for required Readiness Training Activities

Combat Viability:

 
Adequacy of Tactics, Techniques and Procedures % mission success and element survivability enabled by tactics, techniques and procedures
Collective Proficiency in Employment Context (EC) Tasks % of collective/joint/ combined exercises covering EC essential tasks completed
Standardisation The degrees of interoperability allowed by the level of standardisation with international friendly forces for the EC Mission Essential Tasks (METs). [Measured as defined by the North Atlantic Treaty Organisation (NATO), Air Standardisation Interoperability Council (ASIC) and American, British, Canadian, Australian (ABCA) Armies Standardisation Programme]
Mission Critical Equipment Operational Viability or Suitability % mission success enabled (or restrictions on mission) by technology or equipment performance
Equipment Reliability for Mission Critical Systems % degradation of EC essential tasks at OLOC operating tempo due to equipment reliability

Deployability:

 
EC Specific Operational Level of Capability (OLOC) Generation and Contingency Plans Plans distributed, reviewed and validated as current (annually)
Critical Equipment Deficiency Correction within Response Time % of Critical Deficiencies that can be corrected within Response Time (RT)
Sufficiency of Deployment Expendable Stocks and Munitions % of live/practice munitions and stocks available for OLOC generation and retention, including the Operational Viability Period (OVP)
Serviceability and Availability of OLOC Generation Equipments % of OLOC generation equipments serviceable and available
Availability of OLOC Generation Personnel % of Personnel available for OLOC generation

Sustainability:

 
Availability of Replacement Personnel % of Service personnel to provide for sustainment
Key Equipment Repairability % of operating time during which Force Element availability is degraded at OLOC operating tempo by repair times
Availability of Sustainment Equipment, Stocks and Munitions % of sustainment equipment, stocks and munitions available or obtainable within RT + OVP
Availability of Replacement Equipment % of replacement equipment available or obtainable within RT + OVP
Material Supply Times % of operating time during which Force Element availability is degraded at OLOC operating tempo by supply times.
Ability to Achieve and Sustain Operating Tempo to Achieve Tactical Objectives % operating tempo able to sustain throughout duration of deployment (due to aircraft/equipment serviceability and availability).

NZDF Operational Preparedness and Reporting System (OPRES) Performance Rating Scale

The following Performance Rating Scale is used, within OPRES and in the Statement of Service Performance (SSP) tables that follow, to quantify Force Element performance standards in achieving preparedness relative to the Directed Level of Capability (DLOC). A performance rating ('P' rating) for a Force Element represents the distillation of a vast amount of underlying performance assessment at varying levels of the NZDF - from units to headquarters. In particular, it involves assessment against each of the key performance indicators, as in the table above, against all applicable Employment Contexts. The 'P' rating standards also reflect the NZDF's priorities for each force element for the financial year. For example all P1 rating standards represent priority one, all P2 rating standards represent priority two, and so on.

OPRES Performance Rating Definitions - Defence Force
Rating Meaning
P1 Fully Prepared. It means that the standards required for all measurement areas, under OPRES, have been achieved by between 90 to 100%. Response Time does not require extending from that specified in the NZDF Output Plan.
P2 Substantially Prepared. The force element requires minimal resource input such that the Response Time is projected to be extended by up to the order of 33% in the applicable Employment Context (EC). It means the standards required for all measurement areas, under OPRES, have been achieved by between 80 and 89%.
P3 Partially Prepared. The force element requires a substantial resource input such that the Response Time is projected to be extended by a period in the order of between 34% and 50% in the applicable EC. It means the standards required for all measurement areas, under OPRES, have been achieved by between 70 to 79%.
P4 Not Prepared. The force element requires a level of resource input such that the Response Time for the applicable EC could be expected to be extended by more than 50%. It means the standards required for all measurement areas, under OPRES, have been achieved by less than 70%.
P5 Unavailable for Assessment - The force element/capability is unavailable for assessment. This could be as a result of a capability being deployed, commissioned, or introduced.

Note - DLOC should be seen as a band within which there are five ratings (P1 to P5). A force element that has been set a P1 rating standard is at DLOC if it achieves a P1 rating. If that force element only achieves a P2 rating, it is below its DLOC. Similarly, a force element that has been set a P2 rating standard for the year is at DLOC if it achieves a P2 rating - even though it is not "fully prepared." For reporting purposes, if a force element is below its stated "P" rating, an explanation as to why that situation has occurred, as well as what is required to return it to its stated "P" rating must be provided; this will include one or more of time, personnel, equipment or training.

External audit of the NZDF's performance

It should also be noted that, other than the NZDF's internal mechanisms for measuring performance, the following agencies also have a major role to play in evaluating the performance of the NZDF, including output performance:

  • the Evaluation Division of the Ministry of Defence
  • the Office of the Controller and Auditor General, and
  • Audit New Zealand.
Employment contexts

Strategic guidance provides information on the circumstances in which the Government may choose to use military forces. The NZDF uses this guidance to develop geographically grouped Employment Contexts (ECs). ECs are descriptions of representative and illustrative security events for which there is a likelihood that a New Zealand Government would expect to make a military response should they occur. ECs are selected through assessment of New Zealand's geo-strategic situation and international security trends.

The ECs are chosen on the basis of their likelihood of occurrence in the near and longer terms and the consequences for New Zealand's Defence Outcomes if the NZDF was unable to provide an appropriate response. ECs include high level Operational Concepts which, in turn, drive Services' and Joint Mission Essential Tasks (JMETs), that is, those tasks that the deployed forces must be able to perform. The JMETs drive the priorities for the Services' and joint annual training activities and which determine the output parameters that need to be delivered in order to meet the Government's requirements. The ECs also designate the anticipated time (known as the Response Time) available for the final preparation of force elements for their operational deployment; this affects the level of capability that must be maintained on an annual basis. Concepts for Operations and Contingency Plans can then be developed for relevant ECs. Current EC Operational Concepts list the most likely force elements that would be involved in each security event.

These force element lists are a guide only and are not exhaustive; each security event may require the addition or deletion of some force elements. ECs provide the detail that ensures the NZDF output quality dimension is consistent with defence policy. The ECs, which are covered in more detail in the NZDF Output Plan and other NZDF-internal documents, are as listed below. The 'bolded' ECs (such as EC 1D, 2B, 4A, etc.,) are those that have been fully developed and against which the Force Elements of the NZDF, as applicable, are assessed for preparedness - as shown in the Output Expense tables that follow.

EC 1 - Security Challenges and Defence Tasks in New Zealand and its environs:

  • EC 1A - Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty.
  • EC 1B - Natural and manmade disasters.
  • EC 1C - Support to the delivery and maintenance of essential services in exceptional circumstances, including the hosting of major events.
  • EC 1D - Terrorist and Asymmetric Threats.
  • EC 1E - Support for Antarctic presence.

EC 2 - Security Challenges to New Zealand's Interests in the South Pacific:

  • EC 2A - Illegal exploitation of marine resources within South Pacific EEZs, and other low-level threats to South Pacific nations' territorial sovereignty.
  • EC 2B - Natural and manmade disasters.
  • EC 2C - State failure or fragility leading to internal conflict and/or humanitarian crisis.
  • EC 2D - Terrorist Threats.
  • EC 2E - Challenges to legitimate governments, including civil war and secessionist conflict.

EC 3 - Challenges to New Zealand and Australia Common Security Interests:

  • EC 3A - Illegal exploitation of marine resources within Australia's EEZ, and other low-level threats to Australia's territorial sovereignty.
  • EC 3B - Natural or manmade disasters.
  • EC 3C - External aggression against Australia.
  • EC 3D - Terrorist or Asymmetric Threats.

EC 4 - Security Challenges to New Zealand's Interests in the Asia-Pacific Region:

  • EC 4A - Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation.
  • EC 4B - Natural or manmade disasters.
  • EC 4C - State failure or fragility leading to internal conflict and/or humanitarian crisis.
  • EC 4D - Terrorist Threats.
  • EC 4E - Weapons of Mass Destruction (WMD) proliferation.
  • EC 4F - Inter-State conflict.
  • EC 4G - Acts of piracy and people smuggling.

EC 5 - Security Challenges to New Zealand's Interests in Global Peace and Security:

  • EC 5A - Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation.
  • EC 5B - Unresolved conflict or conflict resolution process where protagonists have sought third party resolution assistance.
  • EC 5C - State failure or fragility leading to internal conflict and/or humanitarian crisis.
  • EC 5D - Terrorist Threats (the "War against Terrorism").
  • EC 5E - WMD proliferation.
  • EC 5F - Contravention of international norms that triggers a multi-national response.
  • EC 5G - Major breakdown in international security leading to wide-scale war.
Services in Support of the Community - including Multi-Agency Operations and Tasks (MAO&T)
General

The NZDF has the capacity to deliver a range of services in support of other government departments, the community, and foreign and defence policy objectives, while conducting the training activities needed to maintain the DLOC for operational employment.

Approval levels for the provision of these services range from Cabinet/Ministerial level for significant events to unit commanders for minor local support tasks. Generally, tasks will be approved on the direction of the Chief of Defence Force, a Service Chief (Navy/Army/Air Force), or the Commander Joint Forces NZ. Details are contained in Defence Force Orders 1 (DFO 1), Chapter 13 - Assistance to Community Organisations.

Some general services are pre-planned or are, at least, reasonably predictable. Such tasks include ceremonial support, and planned assistance to the NZ Antarctic Programme, the NZ Police and other government departments. The frequency of other tasks, primarily of an emergency nature such as search and rescue, assistance to civil defence and fire fighting, are, obviously, less predictable. The NZDF maintains elements at specified degrees of notice (DON) for response to such emergencies.

The main NZDF elements that are to be available for emergency tasks, listed by Service, are shown in the following table:

NZDF Elements Available for Emergency Tasks - Defence Force
Service Elements Available for Emergency Tasks [with Degree of Notice (DON) where applicable]
Navy
  • One frigate (or alternative vessel) at 8 hours' DON for emergency tasks, including Search and Rescue (SAR) and Medical Assistance/Evacuation.
  • One Inshore Patrol Vessel (IPV) at 8 hours' DON for emergency tasks, including SAR.
  • One Diving Team at six hours' DON for emergency tasks, including under-water search and Explosive Ordnance Disposal (EOD) (see Note 1) and 12 hours' DON when embarked.
  • One 25-person Civil Defence Response Group.
  • On-shore personnel for fire fighting, as available.
Army
  • Personnel in the North Island and South Island at 48 hours' DON for emergency tasks, including SAR, Fire Fighting, and Casualty/Medical Evacuation.
  • HQ elements on call for Civil Defence in the North Island and South Island to support a Civil Defence HQ.
  • Four 25-person Civil Defence Response Groups.
  • Two 100-person Civil Defence Response National Reserve Groups.
  • One 500-person Reserve for Civil Defence.
  • EOD Teams in North Island and South Island at 12 hours' DON (see Note 1).
  • In-camp personnel for fire fighting, as available.
Air Force
  • One Iroquois helicopter at 2 hours' DON for emergency tasks, including SAR, Fire Fighting and Casualty Evacuation.
  • One Orion (or one Hercules if an Orion is not available) at 2 hours' DON for emergency tasks, including SAR and Aeromedical Evacuation.
  • One Hercules at 14 hours' DON for emergency tasks.
  • One 25-person Civil Defence Response Group at each Air Base, and elements to support a Civil Defence HQ.
  • On-base personnel for fire fighting, as available.

Note 1 - EOD only as Improvised Explosive Device Disposal (IEDD) comes under Output Expense: Special Operations Forces.

Multi-Agency Operations and Tasks (MAO&T)

The term Multi-Agency Operations and Tasks (MAO&T) is used in many of the NZDF output performance tables contained in this document. The term is used within the relevant tables to draw a clear distinction between "general support" to the community and the more formal, pre-planned support to specific government departments and agencies, under the whole of government approach to, for example, protection of the New Zealand EEZ and border security.

MAO&T refers to the formal operational support and training for such operations and tasks that the NZDF (Navy, Army and Air Force) provides, and that are being developed, with other government departments and agencies - such as the Ministry of Fisheries, NZ Customs Service, NZ Police, Ministry of Foreign Affairs and Trade, Department of Conservation, Maritime New Zealand (MNZ), and related agencies. The Navy and Air Force, in particular, work closely, individually and/or collectively, with such agencies. The National Maritime Coordination Centre (NMCC), sponsored by the NZ Customs Service (host agency), coordinates the maritime-related MAO&T. The Government continues to emphasise the general direction and increased importance of the civilian/military requirements associated with the NZ EEZ and border control.

The NZDF continues to work closely with other government departments and agencies to plan formal arrangements for these requirements. Also, work is progressing on developing more robust measures to assess the quality of NZDF assistance on MAO&T. The reporting of MAO&T, such as in the NZDF Annual Report, will be, by exception, against the table below.

A list of indicative NZDF MAO&T, general support to the government and the community, and tasks in support of foreign and defence policy objectives are listed in the following table. The scale and frequency of such tasks, unless pre-programmed, are not forecast. However, a summary of actual support provided is required for reporting purposes, and will be included in the Annual Report of the NZDF.

List of indicative MAO&T and general support
Indicative MAO&T and General Support - Defence Force
NZDF Support to: Indicative Support Details / Remarks
NZ Police (excluding Search and Rescue) Typically involves:
  • MAO&T (including up to 400 pre-planned Iroquois helicopter flying hours support).
  • RNZN ships (sea days).
  • Diving support.
  • Other general and "one-off" support and assistance.
  • Explosive Ordnance Disposal (EOD). Involves the provision of specialist EOD Team/s to render stray military ordnance safe. Requests for assistance are normally channelled through Regional or Local police direct to appropriate NZDF agencies. This does not include Chemical, Biological, Radiological Explosive Improvised Explosive Device Disposal (CBRE / IEDD) that comes under Output Expense: Special Operations Forces.
Land, Sea and Air SAR (in support of NZ Police, Rescue Coordination Centre New Zealand (RCCNZ), NadiRCC, SuvaMCC, or other requesting agency) Typically involves:
  • Orion / Hercules / Iroquois (flying hours). For planning purposes, given the difficulty in predicting the exact requirement, flying hours provided for SAR are 85 Orion hours, 16 Hercules hours, and 60 Iroquois hours. Hours will be flown as required with aircraft and crews maintaining specified readiness.
  • RNZN ships (sea days).
  • Diving support.
  • Land search teams (man days).
  • Land transport (km).
  • Medical assistance (as required).
  • Rescue Coordination Centre New Zealand (RCCNZ) staffing support.
  • Logistic and other support (as required).
Ministry of Civil Defence and Emergency Management Typically involves assistance, as requested, to declared national, regional or local Civil Defence emergencies (Details in DFO 91(1) NZJSP 102) and may involve:
  • Sea transport (sea days).
  • Fixed and rotary wing aircraft (flying hours).
  • Road transport (km).
  • Manpower (man days).
  • Logistic and other support.
Reporting (for Quarterly and Annual reporting purposes) is to be provided on:
  • Actual support provided for specific Civil Defence emergencies during the period.
  • Other general support (including manning of various CD HQs for training exercises).
Department of Conservation (DOC) Typically involves:
  • Sea or air transport to off-shore islands (sea days/flying hours).
  • Manpower assistance on land (man days).
  • MAO&T.
  • Other general support and assistance.
For planning purposes, 400 x P-3K Orion flying hours are planned to enable the National Maritime Coordination Centre (NMCC) to provide support for the Ministry of Fisheries, NZ Customs Service, Department of Conservation, and other agencies.
Department of Corrections Various support and assistance.
Environmental Risk Management Authority Various support and assistance.
NZ Fire Service and National Rural Fire Authority Typically involves:
  • Fire fighting assistance, mainly in rural areas.
  • Support for specific fire-fighting operations (includes 20 Iroquois flying hours).
  • Other general support and assistance, including training.
Ministry of Fisheries
  • MAO&T (including RNZN ships and RNZAF aircraft - sea days and air flying hours).
  • Any other general support and assistance.
For planning purposes, 400 x P-3K Orion flying hours are planned to enable the National Maritime Coordination Centre (NMCC) to provide support for the Ministry of Fisheries, NZ Customs Service, Department of Conservation, and other agencies.
Ministry of Foreign Affairs and Trade (MFAT)
  • Port visits, in support of MFAT. Typically involves 10 to 14 visits per year by major RNZN ships.
  • Surveillance patrols by RNZAF Orion aircraft in support of Pacific Island nations.
  • Disaster Relief (South Pacific). Typically involves: Air reconnaissance (flying hours); Air and sea transport (flying hours and sea days); Helicopter support (flying hours); Land manpower support (man days); and Logistic and other support (as required). For planning purposes, flying hours provided for Disaster Relief Support are 50 Hercules hours and 15 Orion hours.
  • Support for any specific events.
  • Any other general support and assistance.
Government House Any major support for specific events/activities. (It does not include routine, on-going NZDF staff support and Aides-De-Camp assistance).
Ministry of Health Support for any specific events (such as health surveys or assistance in hospitals).
Department of Internal Affairs Typically involves:
  • Waitangi Guard ship.
  • Provision of ceremonial guards for visiting dignitaries.
  • Support to anniversaries, such as Anzac Day.
  • Provision of national military contingents to overseas commemorations as directed.
  • Other ceremonial support, including logistic support, as required.
Maritime New Zealand (MNZ)
  • MAO&T (including RNZN ships and RNZAF aircraft - sea days and air flying hours).
  • Professional maritime advice.
  • Detection of Pollution (involves the detection and reporting of pollution, and any NZDF response / assistance as may be requested).
  • Any other support.
New Zealand Customs Service
  • MAO&T (including RNZN ships and RNZAF aircraft - sea days and air flying hours).
  • Any other support.
For planning purposes, 400 x P-3K Orion flying hours are planned to enable the National Maritime Coordination Centre (NMCC) to provide support for the Ministry of Fisheries, NZ Customs Service, Department of Conservation, and other agencies.
Department of Prime Minister and Cabinet (DPMC) Typically involves:
  • Air transport (flying hours), including VIP flying.
  • Sea transport (sea days / hours).
  • Road transport (km).
  • Logistic and administrative support as required (man days).
For planning purposes, flying hours provided for VIP flying are: 70 Boeing 757 hours, 25 Iroquois hours, and 100 King Air hours.
Support to the NZ Antarctic Programme (NZAP) Involves NZDF support in accordance with an annual NZAP/NZDF agreed plan. Typically involves:
  • Hercules tasks to McMurdo Sound as agreed between the NZDF and Antarctic NZ.
  • Freight movement, terminal operations and training assistance.
  • Other assistance, on an annual basis, such as engineer support.
General Medical Assistance/Support Typically involves:
  • Medical / mercy flights (flying hours).
  • Medical rescue by RNZN ship (sea days).
  • Hospital assistance, including ambulance support.
  • Hyperbaric treatment (number of treatments).
General Community Support Typically involves assistance to significant national and community events and could involve provision of:
  • Manpower (man days).
  • Sea, land and air transport (sea days / km / flying hours).
  • Logistic and other support.
General Training Courses Typically involves the provision of training courses to other government departments and the community (schools / community groups):
  • Number of courses.
  • Manpower (man days).
This does not include NZDF support to the Limited Service Volunteer (LSV) Scheme or Mutual Assistance Programme (MAP) that is reported separately under the Multi-Class Output Appropriation (MCOA) Miscellaneous Support Activities.

Fixed Wing Transport Forces (M22)

Scope of Appropriation

Provision of the capabilities of No 40 Squadron RNZAF (Boeing 757-200 and C-130 Hercules aircraft) prepared to conduct strategic and tactical air transport operations, including aeromedical evacuation, in accordance with NZDF Output Plan specifications, and to contribute support services to the community.

Expenses and Revenue

Expenses and Revenue - Fixed Wing Transport Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 228,014 228,014 244,441
Revenue from Crown 226,369 226,369 242,811
Revenue from Other 1,645 1,645 1,630

Reasons for Change in Appropriation

This appropriation will increase by $16.427 million to $244.441 million in 2010/11. This increase relates to the introduction into service of the upgraded C-130 Hercules aircraft.

Output Performance Measures and Standards

Fixed Wing Transport Forces: Performance Measures and Standards: - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of B757-200 available for strategic military transport tasks (from a total fleet of two aircraft). 1 Aircraft 1 Aircraft 2 Aircraft
Number of C-130 aircraft available for deployed military tasks (from a total fleet of five aircraft). 2 Aircraft 2 Aircraft 2 Aircraft
Number of additional C-130 aircraft available for EC 1D and emergency tasks, as required.
The number of C-130 Hercules aircraft available during 2010/11 (through to 20011/12) will be affected by the on-going project to upgrade the fleet and will reduce the full capacity of this output. At least two aircraft will be removed from service at any one time during the upgrade programme. While the number of aircraft required by the NZDF Output Plan for OLOC should be maintained for the period, there will be periods where aircraft availability will be reduced - given the need to continue to cycle aircraft through group and phase servicing requirements. The reduced fleet size will have an impact on the duration of any operational deployments and the ability to rotate any such deployments. The requirement to sustain core and DLOC training will also affect the nature and extent of tasking that can be undertaken by the C-130 fleet during the period.
1 Aircraft 1 Aircraft 1 Aircraft
An Aeromedical Evacuation (AME) element for strategic and tactical AME in support of land operations.
The RNZAF is required to provide forward, tactical and strategic AME services, including responsibility for the provision of AME-qualified personnel and associated AME equipment. For fixed wing tactical and strategic AME it is likely that, for high-dependency cases, specialist support would be sought from other Services of the NZDF and/or non-defence resources.
Note: While the RNZAF is currently capable of conducting AME for low-dependency cases, the capability to conduct AME for high-dependency cases is currently being developed as resources permit.
AME element available AME element available AME element available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Total Air Flying Hours:      
Boeing 757 (target range in hours). 1,330 - 1,470 1,253 1,190 - 1,316
Hercules C-130 (target range in hours). 1,995 - 2,205 1,993 2,043 - 2,257
The total C-130 annual flying hours allocation has been adjusted to reflect the reduction in the number of C-130 aircraft available and the total number of hours that can be generated and supported by the fleet during the period.      

Preparedness - Fixed Wing Transport Forces: Employment Context

     
Security Challenges and Defence Tasks in New Zealand and its environs      
Terrorist and Asymmetric Threats (EC 1D)      
B757 Transport Force Fully Prepared Substantially Prepared Fully Prepared
C-130 Transport Force Fully Prepared Substantially Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the South Pacific      
Natural and manmade disasters (EC 2B)      
B757 Transport Force Fully Prepared Substantially Prepared Fully Prepared
C-130 Transport Force Fully Prepared Substantially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
B757 Transport Force Fully Prepared Substantially Prepared Fully Prepared
C-130 Transport Force Fully Prepared Substantially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
B757 Transport Force Fully Prepared Substantially Prepared Fully Prepared
C-130 Transport Force Fully Prepared Substantially Prepared Substantially Prepared
Security Challenges to New Zealand's Interests in the Asia-Pacific Region      
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A)      
B757 Transport Force Substantially Prepared Substantially Prepared Substantially Prepared
C-130 Transport Force Substantially Prepared Substantially Prepared Substantially Prepared
Inter-State conflict (EC 4F)      
B757 Transport Force Substantially Prepared Substantially Prepared Substantially Prepared
C-130 Transport Force Substantially Prepared Substantially Prepared Substantially Prepared
Security Challenges to New Zealand's Interests in Global Peace and Security      
Terrorist Threats (EC 5D)      
B757 Transport Force Substantially Prepared Substantially Prepared Substantially Prepared
C-130 Transport Force Substantially Prepared Substantially Prepared Substantially Prepared

Land Combat Forces (M22)#

Scope of Appropriation

Provision of the capabilities of the Land Combat Forces (command, control, intelligence and manoeuvre force elements) prepared to conduct land operations and to contribute support services to the community, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Land Combat Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 385,711 385,711 405,762
Revenue from Crown 382,962 382,962 402,870
Revenue from Other 2,749 2,749 2,892

Reasons for Change in Appropriation

This appropriation will increase by $20.051 million to $405.762 million in 2010/11. This increase mainly relates to a redistribution of overhead costs based on asset values.

Output Performance Measures and Standards

Land Combat Forces: Output Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Army, drawing on Headquarters 2 Land Force Group (HQ 2 LFG), HQ 3 LFG, 1 RNZIR, 2/1 RNZIR, QAMR and 1 NZ Military Intelligence Company, and with supplementation from the Territorial Force, as required, will provide the initial and rotation land combat force elements to constitute, generally:      
  • One sustainable Light Task Group (LTG) for tasks under ECs 1 to 5 (inclusive). (See Note 1 for definition of a LTG).
or
N/A (see Note 2) Company Group available for tasks under ECs 1 and 2 Available
  • One non-sustainable Combined Arms Task Group (CATG) for tasks under ECs 2 to 5 (inclusive). (See Note 1 for definition of a CATG).
N/A (see Note 2) Battalion Group partially available for tasks under ECs 2 to 5 Available
Army will also provide:      
  • an appropriate headquarters for simulation and Command Post Exercise-based combined-arms training.
Available Delivered Available
  • an appropriate headquarters (including intelligence and communications support) for command and control of a deployed force.
Available Delivered Available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency

Preparedness - Land Combat Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Terrorist and Asymmetric Threats (EC 1D)      
Command, Control and Intelligence Fully Prepared Fully Prepared Fully Prepared
Manoeuvre Elements (Light Infantry and Motorised):      
  • Up to a LTG (for Cordon duties)
N/A (see Note 2) Fully Prepared for a Company Group Fully Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B)      
Command, Control and Intelligence Fully Prepared Substantially Prepared Fully Prepared
Manoeuvre Elements (Light Infantry and Motorised):      
  • Up to a LTG
N/A (see Note 2) Fully Prepared for a Company Group Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
Command, Control and Intelligence Fully Prepared Substantially Prepared Substantially Prepared
Manoeuvre Elements (Light Infantry and Motorised):      
  • Up to a LTG
or
N/A (see Note 2) Fully Prepared for a Company Group Fully Prepared
  • Up to a CATG
N/A (see Note 2) Partially Prepared for a Battalion Group Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
Command, Control and Intelligence Fully Prepared Substantially Prepared Substantially Prepared
Manoeuvre Elements (Light Infantry and Motorised):      
  • Up to a LTG
or
N/A (see Note 2) Fully Prepared for a Company Group Substantially Prepared
  • Up to a CATG
N/A (see Note 2) Partially Prepared for a Battalion Group Substantially Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Inter-State conflict (EC 4F)      
Command, Control and Intelligence Partially Prepared Partially Prepared Partially Prepared
Manoeuvre Elements (Light Infantry and Motorised):      
  • Up to a CATG
N/A (see Note 2) Not Prepared for a Battalion Group Substantially Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D)      
Command, Control and Intelligence Fully Prepared Partially Prepared Substantially Prepared
Manoeuvre Elements (Infantry and Reconnaissance):      
  • Up to a CATG
N/A (see Note 2) Not Prepared for a Battalion Group Substantially Prepared

Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Note 1 - Definitions of LTG and CATG:

  • A LTG is designed to have a deployed strength of up to 260 personnel to conduct primarily humanitarian and disaster relief, and stability and support tasks. It can include combat, combat service support (CSS) and limited combat support (CS) elements. If manoeuvre based, it may be light infantry, motorised or composite. The LTG is supported by Information Operations (IO) and enhanced communications, intelligence and Geospatial Information Systems (GIS) capabilities. The LTG will be available for operations across Employment Contexts 1 to 5 (inclusive), however, it is designed primarily for the EC 1 and 2 environment. This task group is based around a single sub-unit sized element.
  • A CATG allows for a scaleable group of up to 560 personnel providing a range of combined arms capabilities, including combat, combat support (CS) and combat service support (CSS); it may be light infantry, motorised, or composite based. The scale of the deployed force will be dependent on the amount of local, coalition or contractor resources available in theatre to support the force. In a worst case, the CATG must be largely self-sufficient for independent operations. The CATG is based around two or more sub-unit sized elements. The CATG will be available for operations across Employment Contexts 1 to 5 (inclusive). The task group is based around two or more sub-unit sized elements.

Note 2 - Not Applicable (N/A) is recorded against the LTG and the CATG for 2009/10 as these elements, especially in terms of size/strength, were not applicable to that period.

Land Combat Service Support Forces (M22)#

Scope of Appropriation

Provision of the capabilities of the Land Combat Service Support Forces (transport, medical, supply, repair and movements force elements) prepared to support land operations and to contribute support services to the community, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Land Combat Service Support Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 154,182 154,182 154,720
Revenue from Crown 153,141 153,141 153,617
Revenue from Other 1,041 1,041 1,103

Output Performance Measures and Standards

Land Combat Service Support Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Army, drawing on 2 Logistics Battalion, 3 Logistics Battalion, 2 Health Support Battalion and Logistic Executive, as part of, respectively, 2 LFG, 3 LFG and Army General Staff, with supplementation from the Territorial Force, as required, will provide the initial and rotation combat service support force elements to support, generally, as applicable:      
  • Up to a LTG for tasks under ECs 1 to 5 (inclusive)
or
Available Delivered Available
  • Up to a CATG for tasks under ECs 2 to 5 (inclusive)
Available Delivered Available
Army will also provide combat service support elements for simulation and Command Post Exercise-based combined-arms training; this will require supplementation by TF Battalion Groups. Available Delivered Available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency

Preparedness - Land Combat Service Support Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Terrorist and Asymmetric Threats (EC 1D)      
Transport Elements in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Medical Elements in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Supply Elements in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Repair Elements in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Movements Elements in support of a LTG Fully prepared Fully Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B)      
Transport Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Medical Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Supply Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Repair Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Movements Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
Transport Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Transport Elements in support of a CATG Substantially Prepared Substantially Prepared Fully Prepared
Medical Elements in support of a LTG Substantially prepared Substantially Prepared Substantially Prepared
Medical Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Supply Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Supply Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Repair Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Repair Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Movements Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Movements Elements in support of a CATG Substantially Prepared Substantially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
Transport Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Transport Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Medical Elements in support of a LTG Substantially prepared Substantially Prepared Substantially Prepared
Medical Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Supply Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Supply Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Repair Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Repair Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Movements Elements in support of a LTG Substantially Prepared Substantially Prepared Fully Prepared
Movements Elements in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Inter-State conflict (EC 4F)      
Transport Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Medical Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Supply Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Repair Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Movements Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D)      
Transport Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Medical Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Supply Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Repair Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Movements Elements in support of a CATG Partially Prepared Partially Prepared Partially Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Land Combat Support Forces (M22)#

Scope of Appropriation

Provision of the capabilities of the Land Combat Support Forces (artillery, engineers, communications and military police force elements) prepared to conduct land operations and to contribute support services to the community, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Land Combat Support Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 207,441 207,441 211,524
Revenue from Crown 205,995 205,995 210,007
Revenue from Other 1,446 1,446 1,517

Output Performance Measures and Standards

Land Combat Support Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Army, drawing on 2 Land Force Group (LFG) and 3 LFG Regular Force artillery, engineer, communications, and military police units [16 Field Regiment, 2 Engineer Regiment, 1 (NZ) Signals Regiment - including an Electronic Warfare element, and 1 (NZ) Military Police Company], and with supplementation from the Territorial Force, as required, will provide the initial and rotation land combat support force elements to support, generally, as applicable:      
  • Up to a LTG for tasks under ECs 1 to 5 (inclusive)
or
Available Delivered Available
  • Up to a CATG for tasks under ECs 2 to 5 (inclusive)
Available Delivered Available
Army will also provide artillery, engineer, communications and military police force elements for simulation and Command Post Exercise-based combined-arms training; this will require supplementation from the Territorial Force. Available Delivered Available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency

Preparedness - Land Combat Support Forces: Employment Context

     
Security Challenges and Defence Tasks in New Zealand and its environs      
Terrorist and Asymmetric Threats (EC 1D)      
Field Artillery (personnel only) - in support of a LTG for Cordon Duties) Fully Prepared Fully Prepared Fully Prepared
Engineers in support of a LTG Fully Prepared Substantially Prepared Fully Prepared
Communications in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Military Police in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the South Pacific      
Natural and manmade disasters (EC 2B)      
Field Artillery (personnel only) - in support of a LTG for Cordon Duties) Fully Prepared Fully Prepared Fully Prepared
Engineers in support of a LTG Fully Prepared Fully Prepared Fully Prepared
Communications in support of a LTG Fully Prepared Substantially Prepared Substantially Prepared
Military Police in support of a LTG Fully Prepared Fully Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
Field Artillery (personnel only) in support of a LTG Fully Prepared Substantially Prepared Fully Prepared
Field Artillery (personnel only) in support of a CATG Fully Prepared Substantially Prepared Fully prepared
Engineers in support of a LTG Fully prepared Fully Prepared Fully Prepared
Engineers in support of a CATG Substantially Prepared Fully Prepared Fully Prepared
Communications in support of a LTG Fully Prepared Substantially Prepared Substantially Prepared
Communications in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Military Police in support of LTG Fully Prepared Fully Prepared Fully Prepared
Military Police in support of a CATG Fully Prepared Fully Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
Field Artillery (personnel only) in support of a LTG Fully Prepared Substantially Prepared Fully Prepared
Field Artillery in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Engineers in support of a LTG Fully Prepared Substantially Prepared Substantially Prepared
Engineers in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Communications in support of a LTG Fully Prepared Substantially Prepared Substantially Prepared
Communications in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Military Police in support of LTG Fully Prepared Fully Prepared Fully Prepared
Military Police in support of a CATG Substantially Prepared Fully Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the Asia-Pacific Region      
Inter-State conflict (EC 4F)      
Field Artillery in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Engineers in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Communications in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Military Police in support of a CATG Substantially Prepared Substantially Prepared Fully Prepared
Security Challenges to New Zealand's Interests in Global Peace and Security      
Terrorist Threats (EC 5D)      
Field Artillery in support of a CATG Substantially Prepared Substantially Prepared Substantially Prepared
Engineers in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Communications in support of a CATG Partially Prepared Partially Prepared Partially Prepared
Military Police in support of a CATG Substantially Prepared Substantially Prepared Fully Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Maritime Patrol Forces (M22)#

Scope of Appropriation

Provision of the capabilities of No 5 Squadron RNZAF (P-3K Orion aircraft) prepared to conduct maritime surveillance of New Zealand's EEZ, the Pacific region and the Southern Ocean, to conduct search and rescue missions, and to conduct maritime air operations, in accordance with NZDF Output Plan specifications. This output expense also includes some support services to the community.

Expenses and Revenue

Expenses and Revenue - Maritime Patrol Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 173,995 173,995 178,708
Revenue from Crown 172,964 172,964 177,689
Revenue from Other 1,031 1,031 1,019

Output Performance Measures and Standards

Maritime Patrol Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of P-3K2 Orion aircraft available for military tasks - from a total fleet of six aircraft.
The number of P-3K2 Orion aircraft available during 2010/11 (through to 2011/12) will be affected by the rolling programme to upgrade the Orion fleet and will reduce the full capacity of this output expense. The reduced fleet size will have an impact on the duration of any operational deployments and the ability to rotate any such deployments. The requirement to sustain core and Directed Level of Capability (DLOC) training will also affect the nature and extent of tasking that can be undertaken by the fleet during the period.
2 Aircraft 2 Aircraft 2 Aircraft
Number of additional P-3K2 Orion aircraft available for maritime Search and Rescue and other emergency tasks, as required. 1 Aircraft 1 Aircraft 1 Aircraft
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Total P-3K2 Orion Flying Hours (target range in hours).
The total Orion annual flying hours allocation has been adjusted to reflect the reduction in the number of aircraft available and the total number of hours that can be generated and supported by the Orion fleet during FY 2010/11.
2,232 - 2,468 2,323 2,138 - 2,362

Preparedness - Maritime Patrol Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A) Fully Prepared Substantially Prepared Fully Prepared
Terrorist and Asymmetric Threats (EC 1D) Fully Prepared Substantially Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the South Pacific      
Natural and manmade disasters (EC 2B) Fully Prepared Substantially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) Fully Prepared Substantially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) Fully Prepared Partially Prepared Partially Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A) Substantially Prepared Partially Prepared Partially Prepared
Inter-State conflict (EC 4F) Substantially Prepared Partially Prepared Partially Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D) Substantially Prepared Partially Prepared Partially Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Military Hydrography, and Hydrographic Data Collection and Processing for LINZ (M22)#

Scope of Appropriation

Provision of the capabilities of the hydrographic and oceanographic survey vessel, HMNZS RESOLUTION, specialist personnel and support infrastructure to conduct military hydrography in accordance with NZDF Output Plan specifications, and hydrographic data collection and processing that meets contractual commitments to Land Information New Zealand (LINZ). This output expense is supported by the Hydrographic Business Unit.

Expenses and Revenue

Expenses and Revenue - Military Hydrography, and Hydrographic Data Collection and Processing for LINZ (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,628 16,628 16,360
Revenue from Crown 10,307 10,307 9,926
Revenue from Other 6,321 6,321 6,434

Output Performance Measures and Standards

Military Hydrography, and Hydrographic Data Collection and Processing for LINZ: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
HMNZS RESOLUTION available to conduct military hydrography. Available Vessel available Vessel available
The ability for HMNZS RESOLUTION and the Deployable Hydrographic Support Unit (DHSU) to leverage opportunities to help achieve the Ocean Survey 20/20 Vision and also provide Output Expense Mine Countermeasures (MCM) and MCM Diving Forces products (predominantly Q route surveys) will continue to be explored, commensurate with this primary output expense tasking.
This Output Expense is being run at a level sufficient to meet commercial (LINZ) and operational requirements, thus allowing the allocation of some personnel for Output Expense Operationally Deployed Forces.
     
The DHSU available to conduct military hydrography either independently or in support of other NZDF force elements. Available DHSU available DSHU available
HMNZS RESOLUTION available to conduct hydrographic tasks for LINZ under contract. The Hydrographic Business Unit (HBU) available to support the collection and processing programmes. Available Vessel and HBU available Vessel and HBU available
Deliver LINZ Contract performance standards. The emphasis is on meeting the contract requirements for hydrographic survey to the satisfaction of LINZ and the delivery of hydrographic data that meets international standards. Other measures include:
  • formal feedback on "quality" aspects from LINZ
  • completion of the contracted hydrographic programme for LINZ
  • products will be subjected to continual evaluation by the maritime community
  • the provision of hydrographic data through completion of contracted and other programmes
  • delivery within budget.
Deliver Delivered Deliver
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. As required Delivered As Required
HMNZS RESOLUTION Mission Availability Days / Sea Days for the year: 303 / 31 to 51 287 / 147 217 / 136 to 147
HMNZS RESOLUTION Survey Line Miles in support of the LINZ Contract.
(Note: For 2010/11, the performance measure will revert back to sea days.)
4,675 4,545 70 - 90 days
Days of coastal survey tasking completed by DHSU in support of the LINZ contract. N/A (New measure introduced in 2009/10) 194 days 60 - 80 days

Preparedness - Military Hydrography: Employment Context (only applicable to the Military Hydrography part of this Output Expense)

     

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B) Fully Prepared Partially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) Substantially Prepared Partially Prepared Substantially Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) Substantially Prepared Partially Prepared Substantially Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Military Policy Development, Coordination and Advice (M22)#

Scope of Appropriation

Provision of advice to the Minister of Defence on military contributions to New Zealand's foreign policy and military responses to contingencies, in accordance with NZDF Output Plan specifications. This output expense also includes military intelligence, responses to ministerial correspondence, select committee and parliamentary questions, Official Information Act inquiries, and Ombudsmen correspondence.

Expenses and Revenue

Expenses and Revenue - Military Policy Development, Coordination and Advice (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,340 14,340 16,334
Revenue from Crown 14,305 14,305 16,299
Revenue from Other 35 35 35

Reasons for Change in Appropriation

This appropriation will increase by $1.994 million to $16.334 in 2010/11. This increase is due mainly to a military intelligence initiative met from NZDF resource reprioritisation.

Output Performance Measures and Standards

Military Policy Development, Coordination and Advice: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Range of key submissions anticipated as follows:      
  • Number of Statutory Reports to Parliament (Statement of Intent and Annual Report).
2 2 2
  • Number of Submissions to Cabinet (in conjunction with the Ministry of Defence).
30-50 30 20-40
  • Number of Reports and Briefing Papers to Minister (in conjunction with the Ministry of Defence).
350-450 380 350-450
  • Numbers of Ministerial Correspondence ("Ministerials").
300-400 350 300-400
  • Numbers of Parliamentary Questions (for Written and Oral answer).
350-450 150 200-300
  • Numbers of Select Committee Reports.
2-8 4 2-8
  • Numbers of Select Committee Questions (Foreign Affairs Defence & Trade, and Finance and Expenditure Committees).
380-480 380 380-480
The supply of individual products, as above, of high quality - defined by the characteristics of quality advice. Meet Met Meet
All reports and oral advice will be delivered within the agreed or statutory time frame:      
  • Percentage of replies to Ministerials will be provided within 20 days of receipt of request.
95% Greater than 95% 95%
  • Percentage of replies to Parliamentary Questions for Written Answer will be provided by due date.
95% Greater than 95% 95%
  • Percentage of replies to Parliamentary Questions for Oral Answer will be provided by midday on the day that the reply is due in the House.
95% Greater than 95% 95%
Percentage of the first drafts of all policy papers accepted by the Minister 95% Greater than 95% 95%
Percentage of other responses accepted without substantive amendment 95% Greater than 95% 95%
Degree of satisfaction expressed by the Minister, appropriate committee or agency (feedback from those for whom policy products have been produced) High Satisfaction High Satisfaction High Satisfaction

Note 1 - Characteristics of "quality advice":

  • Purpose. The aims of papers are clearly stated and answers the questions the Minister has raised.
  • Logic. The assumptions behind the advice are explicit, the argument is logical and supported by facts.
  • Accuracy. The facts in the paper are accurate and all material facts have been included.
  • Options. An adequate range of options has been presented and each is assessed for benefits, costs and consequences to the government and the community.
  • Consultation. Evidence of adequate consultation with interested parties and possible objections to proposals have been identified.
  • Practicality. The format meets Cabinet Office requirement, the material is effectively and concisely summarised, has short sentences in plain English, and is free from spelling and grammatical errors.

Mine Countermeasures (MCM) and MCM Diving Forces (M22)#

Scope of Appropriation

Provision of the capabilities of the Mine Countermeasures (MCM) Forces, HMNZS MANAWANUI, prepared to conduct route surveys and conditioning of selected New Zealand ports, and the provision of the Operational Diving Team prepared to support MCM operations and to conduct independent diving tasks, in accordance with NZDF Output Plan specifications. This output expense also includes some support services to the community.

Expenses and Revenue

Expenses and Revenue - Mine Countermeasures (MCM) and MCM Diving Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26,491 26,491 24,854
Revenue from Crown 26,268 26,268 24,607
Revenue from Other 223 223 247

Reasons for Change in Appropriation

This appropriation will decrease by $1.637 million to $24.854 million for 2010/11. The decrease relates to the decommissioning of HMNZS KAHU and a change in the maintenance plan for HMNZS MANAWANUI.

Output Performance Measures and Standards

Mine Countermeasures (MCM) and MCM Diving Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
MCM Support Vessel (HMNZS MANAWANUI) available for military tasks. Vessel available Vessel available Vessel available
Operational Diving Team (ODT) available for military tasks. ODT available ODT available ODT available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
HMNZS MANAWANUI Mission Availability Days / Sea Days for the year: 234 / 82 to 102 267/157 234 / 136 to 147
HMNZS KAHU Mission Availability Days / Sea Days for the year. (HMNZS KAHU was formally decommissioned on 29 October 2009.) 225 / 88 to 108 138 / 42
(Actual up until time of decommissioning)
(Not applicable)
Operational Diving Team time (range in hours) spent on operational dive training and MCM readiness training in diving techniques for the disposal of mines and other explosive devices. (The diving hours refer to actual time in the water.) 327 to 347 hours 290 hours 327 to 347 hours

Preparedness - Naval Support Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Terrorist and Asymmetric Threats (EC 1D)      
HMNZS MANAWANUI Fully Prepared Substantially Prepared Fully Prepared
ODT Fully Prepared Partially Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B)      
HMNZS MANAWANUI Fully Prepared Substantially Prepared Fully Prepared
ODT Fully Prepared Partially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
HMNZS MANAWANUI Fully Prepared Fully Prepared Fully Prepared
ODT Fully Prepared Partially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
HMNZS MANAWANUI Fully Prepared Substantially Prepared Fully Prepared
ODT Fully Prepared Partially Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A)      
HMNZS MANAWANUI Substantially Prepared Substantially Prepared Substantially Prepared
ODT Substantially Prepared Partially Prepared Substantially Prepared
Inter-State conflict (EC 4F)      
HMNZS MANAWANUI Substantially Prepared Substantially Prepared Substantially Prepared
ODT Partially Prepared Partially Prepared Partially Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D)      
HMNZS MANAWANUI Substantially Prepared Substantially Prepared Substantially Prepared
ODT Substantially Prepared Partially Prepared Substantially Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Miscellaneous Support Activities MCOA (M22)#

Scope of Appropriation

Support to Limited Service Volunteer Scheme
This output class is limited to the conduct of Limited Service Volunteer courses for unemployed or disadvantaged youth, selected by the Ministry of Social Development, to encourage these youth towards employment.
Support to Mutual Assistance Programme (MAP)
This output class is limited to the provision of training, technical advice and resources to the defence forces and law enforcement agencies of participant countries under the Mutual Assistance Programme (MAP), both in New Zealand and in MAP countries.
Support to New Zealand Cadet Forces
This output class is limited to the provision of leadership and skills training for all approved New Zealand Cadet Force (NZCF) units.
Support to Service Military Museums
This output class is limited to collection development, collection management and exhibits related to New Zealand's military history.
Support to Youth Development
This output class is limited to New Zealand Defence Force support to government initiated youth development schemes in New Zealand, being the conduct of Limited Service Volunteer courses and contributions to Youth Life Skills programmes (Service Academies and Military-style Activity Camps).

Explanation for Use of Multi-Class Output Expense Appropriation

Outputs of a miscellaneous and disparate nature that do not individually justify separate Departmental Output Expense recognition have been grouped to provide for improved transparency and accountability.

Expenses and Revenue

Expenses and Revenue - Miscellaneous Support Activities MCOA (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

21,712 21,712 25,517
Support to Limited Service Volunteer Scheme 1,691 1,691 -
Support to Mutual Assistance Programme (MAP) 2,046 2,046 2,388
Support to New Zealand Cadet Forces 3,586 3,586 3,399
Support to Service Military Museums 7,297 7,297 6,260
Support to Youth Development 7,092 7,092 13,470

Revenue from Crown

14,731 14,731 14,605
Support to Limited Service Volunteer Scheme 666 666 -
Support to Mutual Assistance Programme (MAP) 2,046 2,046 2,388
Support to New Zealand Cadet Forces 3,586 3,586 3,399
Support to Service Military Museums 7,297 7,297 6,260
Support to Youth Development 1,136 1,136 2,558

Revenue from Other

6,981 6,981 10,912
Support to Limited Service Volunteer Scheme 1,025 1,025 -
Support to Mutual Assistance Programme (MAP) - - -
Support to New Zealand Cadet Forces - - -
Support to Service Military Museums - - -
Support to Youth Development 5,956 5,956 10,912

Reasons for Change in Appropriation

This appropriation will increase by $3.805 million to $25.517 million in 2010/11.

The increase relates to:

  • a decrease of $1.691 million in Support to Limited Service Volunteer Scheme due to a decision to transfer activities to a new Support to Youth Development appropriation
  • an increase of $342,000 to $2.388 million in Support to Mutual Assistance Programme (MAP) input costs
  • a decrease of $187,000 to $3.399 million in Support to Cadet Forces input costs
  • a decrease of $1.037 million to $6.260 million in Support to Military Museums reflects a technical reallocation of the NZDF capital charge, and
  • an increase of $6.378 million to $13.470 million for the Support to Youth Development appropriation as a result of a transfer from the Support to Limited Service Volunteer Scheme and new baseline funding.

Output Performance Measures and Standards

Miscellaneous Support Activities MCOA: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Generally for this MCOA:

     
Training and administrative support will be provided in accordance with NZDF training quality standards as modified with senior staff from the requesting organisation:      
  • The degree of satisfaction expressed by the authorities requesting assistance - in accordance with their annual programmes.
Satisfied Delivered Satisfied
  • Regular evaluation of significant issues, the capacity to react to requests for assistance and the provision of adequate support from the limited resources available.
Deliver Delivered Deliver

Support to Mutual Assistance Programme (MAP):

     
  • Range of anticipated training and technical assistance for the MAP. Each activity could include formal training, on-the-job training, specialist advice, attachments, in-country Technical Advisers, Mutual Assistance Training Teams, and exchanges - both in New Zealand and in MAP countries overseas, as applicable.
140 - 180 145 130 - 160
  • Complete the MAP country programmes and activities - consistent with the MAP policy objectives and outcomes agreed with the participant defence forces or law enforcement agencies (where appropriate), and that are also consistent with NZDF practices.
Deliver Delivered Deliver
  • Monitor and analyse MAP activities within each country programme through various processes, including post-activity reports, evaluation of the training outcomes against identified need and feedback from annual talks.
Monitor and Analyse Monitored and Analysed Monitor and Analyse

Support to New Zealand Cadet Forces (NZCF)

     

General:

     
The NZCF comprises 421 NZCF officers and 3,864 cadets within 101 Cadet Force Units across New Zealand. The personnel figures fluctuate from month to month, especially at the end of the school year. Permanent staff includes 27 Tri-Service, Regular Force training and support staff, and five civilian administrative staff.      
  • Number of courses conducted for NZCF officers / (representing the number of officer training days).
37 / (3,131) 32 / (2,600) 31 / (2,960)
  • Number of courses conducted for NZCF cadets / (representing the number of cadet training days). (Training days do not include community projects completed at the local level).
41 / (11,213) 43 / (10,600) 48 / (11,447)
  • All courses conducted will meet the requirements of the NZ Qualifications Authority (NZQA) framework, where appropriate.
Meet Met Meet
  • Meet the training, course and exercise objectives of the NZ Cadet Forces.
Meet Met Meet
  • Positive feedback/reports from Area Coordinators, Cadet Unit Commanders and the public and overall evaluation by the Commandant NZCF.
Positive Feedback Positive Feedback Positive Feedback

Support to Youth Development:

     
  • Number of Limited Service Volunteer (LSV) Scheme training courses (Auckland, Wellington and Burnham) conducted per year for unemployed and/or disadvantaged youth, each course of six weeks duration, and conducted on behalf of the Ministry of Social Development (MSD).
5 courses 6 courses at Burnham and 1 in Wellington 16 courses
(Increase over 2009/10 reflects the full implementation of the Government-initiated Youth Opportunities Package)
  • Number of trainees (selected by the MSD and between the ages of 17 and 25 years) trained on LSV courses.
Up to 720 trainees 542 at Burnham and Wellington Up to 1,875 trainees across the three centres (Auckland, Wellington and Burnham)
  • Number of Service Academies in high schools supported per year in support of the Ministry of Education.
Not Specified 11 Service Academies 19 Service Academies
(Increase over 2009/10 reflects the Government initiated Youth Opportunities Package).
  • Number of youth passing through the Service Academies per year.
Not Specified Around 220 Around 380
  • Number of Military-style Activity Camps supported per year in support of the MSD (Child, Youth and Family) under the Government's Fresh Start for Young People programme.
Not Specified A Concept Trial Camp was conducted at Te Puna Wai Child, Youth and Family facility near Burnham in September/October 2009. A second trial will be conducted during April 2010 3 Camps will be supported.
  • Number of youth passing through the Military-style Activity Camps per year.
Not Specified 8 youths attended the first trial camp in the South Island. It is anticipated 10 youths will attend the second trial course Up to 40 youths per year
  • Total number of NZDF staff (military and civilian) involved in direct support of all Youth Development Schemes over the year.
37 military and 4 civilian staff 37 and 4, plus 25 recruited during Jan - Jun 10 135 military and 23 civilian staff (8 civilian staff will be NZDF employees and 15 will be provided by MSD)

Support to Service Military Museums:

     
  • Maintain current Service Museums at Devonport (Navy), Waiouru (Army), and Wigram (Air Force).
Maintain Maintained Maintain
  • Provide staff, infrastructure and resources to Service Museums to ensure the collection development, collection management and exhibits of New Zealand's significant military history to the people of New Zealand, her Armed Forces and visitors to our nation, to sector best practice. ("Collection Management" includes 'preservation').
Provide Provided Provide
  • Museum services provided in accordance with the relevant Trust Deeds and the Memorandums of Understanding between each of the Services and the individual museum trust boards.
Meet Met Meet
  • Each museum is subject to an annual review against Service Museum benchmarks and periodic reviews against the New Zealand Museum Standards Scheme.
Review Reviewed Review
  • Performance assessment will be based on feedback from the individual museum trust boards and NZDF command, 'public satisfaction' surveys, annual and periodic reviews, and the number of military and civilian visitors per financial year.
Yes Yes Yes

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Miscellaneous Support Activities MCOA (M22) - Defence Force
Reference Conditions
Defence Act 1990 Part VII Details regarding the responsibilities of the Minister of Defence and the Chief of Defence, relating to the New Zealand Cadet Forces, and about those forces generally, are contained in Sections 74 - 80 of the Defence Act 1990.

Scope of Appropriation

Provision of the capabilities of the frigates, HMNZ Ships TE KAHA and TE MANA, prepared to conduct maritime operations and to contribute support services to the community, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Naval Combat Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 406,876 406,876 398,139
Revenue from Crown 403,420 403,420 394,539
Revenue from Other 3,456 3,456 3,600

Output Performance Measures and Standards

Naval Combat Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of ANZAC frigates, capable of embarking a Seasprite helicopter as required, available for military tasks (from a total fleet of two ANZAC frigates).
(Details on the Seasprite Helicopters are recorded under Output Expense Naval Helicopter Forces).
2 Frigates 1 Frigate only for part of the year (HMNZS TE KAHA was undergoing a Platform Systems Upgrade) 1 Frigate only for part of the year (HMNZS TE MANA will be undergoing a Platform Systems Upgrade)
The Offshore Patrol Vessels (OPVs) will be available for low-level security challenges in New Zealand or South Pacific waters role once they have been fully accepted into service (mid-2010).      
Deployment Impact:      
The Naval Combat Forces will not be able to reach a higher performance grading for the higher-end/combat-related tasks (under Employment Contexts 3 - 5) unless the Self Defence Upgrade proceeds. Decisions on this will be included in the Defence Review process.      
Undertake Multi-Agency Operations and Tasks (MAO&T), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details, see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. As required Delivered As required
HMNZS TE KAHA Mission Availability Days / Sea Days for the year (range in days). 161 / 95 to 115 119 / 92 241 / 140 to 150
HMNZS TE MANA Mission Availability Days / Sea Days for the year (range in days). 115 / 72 to 92 188 / 118 170 / 123 to 133

Preparedness - Naval Combat Forces: Employment Context

     
Security Challenges and Defence Tasks in New Zealand and its environs      
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A) Fully Prepared Substantially Prepared Fully Prepared
Terrorist and Asymmetric Threats (EC 1D) Fully Prepared Substantially Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the South Pacific      
Natural and manmade disasters (EC 2B) Fully Prepared Substantially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) Fully Prepared Substantially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) Fully Prepared Substantially Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the Asia-Pacific Region      
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A) Substantially Prepared Partially Prepared Substantially Prepared
Inter-State conflict (EC 4F) Substantially Prepared Partially Prepared Substantially Prepared
Security Challenges to New Zealand's Interests in Global Peace and Security      
Terrorist Threats (EC 5D) Substantially Prepared Partially Prepared Substantially Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Scope of Appropriation

Provision of the capabilities of No 6 Squadron RNZAF (Seasprite SH-2G helicopters) prepared to conduct maritime operations in support of other Output Expenses, especially the Naval Combat Forces, Naval Support Forces and Naval Patrol Forces, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Naval Helicopter Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 83,921 83,921 87,939
Revenue from Crown 83,459 83,459 87,484
Revenue from Other 462 462 455

Output Performance Measures and Standards

Naval Helicopter Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of SH-2G(NZ) Seasprite helicopters available for military tasks - from a total fleet of five Seasprite helicopters. While the priority is availability for Naval Combat Force operations, a Seasprite may not be available within response times for all three vessels (a frigate, an Offshore Patrol Vessel and the Multi-Role Vessel) concurrently.
Management of this Output Expense is governed by the RNZAF/RNZN Joint Agreement on Naval Aviation.
No 6 Squadron, RNZAF will remain under the full command of the Chief of Air Force. Operational command will be exercised through the Air Component Commander (ACC) and Officer Commanding 485 Wing for shore-based activities. When ships' flights are required to embark, operational command will be assigned by ACC to the Maritime Component Commander (MCC), who will in turn assign operational control to the ship's Commanding Officer. The RNZAF is responsible for the training of RNZN Seasprite helicopter aircrew and the provision and training of Ship's Flights maintenance personnel, for operational employment by the RNZN.
3 Helicopters 3 Helicopters 3 Helicopters
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
In conjunction with the Naval Combat Forces, undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. As required Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Total Seasprite Air Flying Hours (target range in hours). 1,240 - 1,370 1,182 1,264 - 1,396

Preparedness - Naval Helicopter Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A) Fully Prepared Substantially Prepared Fully Prepared
Terrorist and Asymmetric Threats (EC 1D) Fully Prepared Substantially Prepared Fully Prepared
Security Challenges to New Zealand's Interests in the South Pacific      
Natural and manmade disasters (EC 2B) Fully Prepared Substantially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) Fully Prepared Substantially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) Fully Prepared Substantially Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A) Substantially Prepared Partially Prepared Partially Prepared
Inter-State conflict (EC 4F) Substantially Prepared Partially Prepared Partially Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D) Substantially Prepared Partially Prepared Partially Prepared

Note 1 - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Scope of Appropriation

Provision of the capabilities of the Offshore and Inshore Patrol Vessels (OPVs, IPVs) prepared for the conduct of maritime operations in support of Multi-Agency Operations and Tasks (MAO&T), and for the security and protection of New Zealand's economic border and EEZ, in accordance with NZDF Output Plan specifications. Once in service the OPVs will also be prepared to conduct sovereignty and resource protection patrol operations in the Southern Ocean, Ross Dependency, South Pacific region and further afield when directed.

Expenses and Revenue

Expenses and Revenue - Naval Patrol Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 102,196 102,196 127,452
Revenue from Crown 101,493 101,493 126,657
Revenue from Other 703 703 795

Reasons for Change in Appropriation

This appropriation will increase by $25.256 million to $127.452 million in 2010/11. The increase reflects the reflects the introduction into service of the offshore patrol vessels for the Navy and to provide for enhanced Multi-Agency Operations and Tasks.

Output Performance Measures and Standards

Naval Patrol Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The OPVs, HMNZ Ships OTAGO and WELLINGTON, with embarked Seasprite or other helicopter/s as required, available for military tasks once fully accepted into service with the Navy.
Subject to availability and the Government's requirements, tasking of the OPVs may take place in ECs other than those listed below.
Available Not available
Expect delivery by mid 2010
Both vessels available - once delivered
The IPVs, HMNZ Ships ROTOITI, HAWEA, PUKAKI and TAUPO, available for military tasks.
Subject to availability and the Government's requirements, tasking of the IPVs may take place in ECs other than those listed below.
Available All vessels delivered and available Four vessels available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency. (Where required, other vessels delivered in lieu of the OPVs) Deliver to the satisfaction of supported department/agency
OPV HMNZS OTAGO Mission Availability / Sea Days for the year: 273 / 93 to 113 Nil - Vessel not fully accepted into service 248 / 137 to 148
OPV HMNZS WELLINGTON Mission Availability / Sea Days for the year: 312 / 3 to 6 Nil - Vessel not fully accepted into service 244 / 136 to 146
IPV HMNZS ROTOITI Mission Availability / Sea Days for the year: 256 / 108 to 128 254 / 95 281 / 135 to 145
IPV HMNZS HAWEA Mission Availability / Sea Days for the year: 226 / 109 to 129 271 / 129 244 / 145 to 155
IPV HMNZS PUKAKI Mission Availability (days) for the year: 272 / 118 to 138 259 / 118 274 / 137 to 147
IPV HMNZS TAUPO Mission Availability (days) for the year: 247 / 103 to 123 259 / 112 269 / 135 to 145

Preparedness - Naval Patrol Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A)      
Offshore Patrol Forces Fully Prepared Not assessed Fully Prepared
Inshore Patrol Forces Fully Prepared Fully Prepared Fully Prepared
Terrorist and Asymmetric Threats (EC 1D)      
Offshore Patrol Forces Fully Prepared Not assessed Fully Prepared
Inshore Patrol Forces Fully Prepared Fully Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B)      
Offshore Patrol Forces Fully Prepared Not assessed Fully Prepared
Inshore Patrol Forces Substantially Prepared Fully Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
Offshore Patrol Forces Substantially Prepared Not assessed Substantially Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
Offshore Patrol Forces Substantially Prepared Not assessed Substantially Prepared

Scope of Appropriation

Provision of the capabilities of the Fleet Replenishment Ship, HMNZS ENDEAVOUR, and the Multi-Role Vessel, HMNZS CANTERBURY, prepared to conduct maritime logistic support and amphibious sealift operations for deployed military forces, in accordance with NZDF Output Plan specifications. This output expense also includes contributions to a range of services provided to Government and the community.

Expenses and Revenue

Expenses and Revenue - Naval Support Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 108,386 108,386 106,026
Revenue from Crown 107,528 107,528 105,120
Revenue from Other 858 858 906

Output Performance Measures and Standards

Naval Support Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
HMNZS ENDEAVOUR available for military tasks. Available Available Available
HMNZS CANTERBURY, with the capability to embark Seasprite helicopter/s and NH-90 helicopters, as required, once fully accepted into service, available for military tasks.
HMNZS CANTERBURY will be capable of embarking four NH-90 medium utility helicopters - to be acquired by the NZDF in 2011/12 - on completion of ship/aircraft integration trials and First of Class Flight Trials (FOCFT).
Available Partially Available Available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Both vessels undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. As required Delivered As required
HMNZS ENDEAVOUR Mission Availability Days / Sea Days for the year: 239 / 141 to 161 247 / 156 183 / 125 to 135
HMNZS CANTERBURY Mission Availability Days / Sea Days for the year: 279 / 135 to 155 270 / 138 239 / 137 to 148

Preparedness - Naval Support Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A)      
HMNZS CANTERBURY Fully Prepared Substantially Prepared Substantially Prepared

Terrorist and Asymmetric Threats (EC 1D)

     
HMNZS ENDEAVOUR Not applicable Substantially Prepared Fully Prepared
HMNZS CANTERBURY Fully Prepared Substantially Prepared Substantially Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B)      
HMNZS ENDEAVOUR Fully Prepared Substantially Prepared Fully Prepared
HMNZS CANTERBURY Fully Prepared by end of 2009 Substantially Prepared Substantially Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
HMNZS ENDEAVOUR Fully Prepared Substantially Prepared Fully Prepared
HMNZS CANTERBURY Fully Prepared by end of 2009 Substantially Prepared Substantially Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
HMNZS ENDEAVOUR Fully Prepared Substantially Prepared Fully Prepared
HMNZS CANTERBURY Fully Prepared by end of 2009 Substantially Prepared Substantially Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A)      
HMNZS ENDEAVOUR Substantially Prepared Substantially Prepared Substantially Prepared
HMNZS CANTERBURY Substantially Prepared Substantially Prepared Substantially Prepared
Inter-State conflict (EC 4F)      
HMNZS ENDEAVOUR Substantially Prepared Substantially Prepared Substantially Prepared
HMNZS CANTERBURY Substantially Prepared Substantially Prepared Substantially Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D)      
HMNZS ENDEAVOUR Substantially Prepared Substantially Prepared Substantially Prepared
HMNZS CANTERBURY Substantially Prepared Substantially Prepared Substantially Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Operationally Deployed Forces Annual (M22)#

Scope of Appropriation

The provision of deployed force elements on military tasks, including the commitments agreed by Government under which the NZDF contributes to peace support and other operations conducted in support of the United Nations and other international agencies. It includes the provision of individuals, observers, advisers, instructors, headquarters staff, and complete force elements and contingents.

Expenses and Revenue

Expenses and Revenue - Operationally Deployed Forces Annual (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 95,626 95,626 78,446
Revenue from Crown 95,041 95,041 77,861
Revenue from Other 585 585 585

Reasons for Change in Appropriation

This appropriation will decrease by $17.180 million to $78.446 million for 2010/11. The decrease reflects the impact of both planned draw down and for some missions, that a commitment to continue has yet to be confirmed.

Output Performance Measures and Standards

Operationally Deployed Forces Annual: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The performance of NZDF Force Elements deployed on government-approved operational missions is assessed against the following:      
  • Individuals and the Force Element, as applicable, to meet the Operational Level of Capability (OLOC) requirements for the applicable operational mission prior to deployment.
Meet Met Meet
  • Mission tasks, however generated (assigned or implied), are met to the satisfaction of the force commander.
Meet Met Meet
  • Degree of satisfaction of performance on mission is expressed both formally and informally by the Force Commander (United Nations, Coalition, or other), to the New Zealand senior officer on the mission, to visiting NZ politicians (such as the Minister of Defence), to visiting senior NZ officers (such as CDF, Service Chiefs or COMJFNZ), and others.
Satisfy Satisfied Satisfy
  • Timely replacement of individuals, force elements or units when requested, as specified, and as approved by the NZ Government.
Meet Met Meet
  • Maintain the ability to sustain the contributions to deployments in accordance with the government's requirements.
Maintain Maintained Maintain
  • Financial and logistic controls and accountabilities meet the standards required for reliable reporting.
Meet Met Meet

Operational Commitments:

     
Maintain the Government-approved deployments / operational commitments (number of personnel deployed), as at 1 April 2010, as shown below.      
The numbers of personnel operationally deployed fluctuate from month to month during the year. These fluctuations result from missions closing and opening, short term deployments, seasonal variations to the numbers involved in specific missions, and so on. It is therefore not particularly relevant to compare the budgeted numbers at the start of the financial year with the estimated numbers at the end of the financial year. However, a year-on-year comparison provides an indicator of the trend of personnel deployed (more or less), but still does not capture short-term deployments that at the start of the year were not known.      
  • OP KORU (Timor Leste) All Task Groups
155 75 75
  • UNTSO (Middle East) [OP SCORIA]
8 8 8
  • MFO (Sinai) [OP FARAD]
26 28 28
  • UNAMI (Iraq) [OP HAVEN, Task Group IRON]
1 1 1
  • OP ARIKI (Afghanistan) [Task Group CRIB]
139 130 72
  • NZ SAS contingent (Afghanistan)
Not Applicable 82 82
  • OP ARIKI (Afghanistan) [Task Group KEA]
5 5 5
  • OP ARIKI (Tampa, Florida, USA) [Task Group SPEAK]
3 2 2
  • OP ARIKI (Afghanistan) [Task Group AFFIRM]
1 1 1
  • OP ARIKI (Afghanistan) [Task Group RUA]
2 2 2
  • OP ARIKI (Afghanistan) [Task Group MANAAKI]
2 Nil Nil
  • OP ARIKI (Arabian Sea area) [Task Group TROY]
6 5 5
  • UNMIS [OP SUDDEN] (Sudan)
3 3 3
  • OP RATA II (Solomon Islands)
44 45 45
  • UNCMAC (Republic of Korea) [OP MONITOR]
3 3 3
  • USCENTCOM Staff Officer
1 1 1
Total NZDF personnel deployed: 399 391 333

Rotary Wing Transport Forces (M22)#

Scope of Appropriation

Provision of the capabilities of No 3 Squadron RNZAF (Iroquois helicopters) prepared to conduct tactical air transport, including aeromedical evacuation, and counter-terrorist operations, and to contribute support services to the community, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Rotary Wing Transport Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 129,734 129,734 131,988
Revenue from Crown 129,016 129,016 131,271
Revenue from Other 718 718 717

Output Performance Measures and Standards

Rotary Wing Transport Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of UH-1H Iroquois helicopters available for military tasks - from a total fleet of 14 helicopters.
The introduction into service of the NH-90 and A-109 helicopter fleets in mid-2011 onwards and the current reduction in the Iroquois fleet will continue to impact on the availability of operationally cleared helicopters for operational deployment; principally as a consequence of a reduction in qualified crews and maintenance personnel. More detail will be provided in the 2011/12 documentation.
(The Seasprite naval helicopters are provided under a different Output Expense - Naval Helicopter Forces.)
6 Helicopters 6 Helicopters 6 Helicopters
Number of additional helicopters on standby for rapid response tasks in New Zealand (under EC 1), such as Counter-Terrorist Operations and for Search and Rescue Missions. 2 Helicopters 2 Helicopters 2 Helicopters
A Forward and Tactical Aeromedical Evacuation (AME) element for the support of land operations.
(The RNZAF is required to provide forward and tactical Rotary Wing AME services, including responsibility for the provision of AME-qualified personnel and associated AME equipment.)
AME element available AME element available AME element available
Undertake MAO&T (Multi-Agency Operations and Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1). Deliver to the satisfaction of supported department/agency Delivered to the satisfaction of supported department/agency Deliver to the satisfaction of supported department/agency
Total Iroquois Air Flying Hours (target range in hours). 3,952 - 4,368 4,160 3,477 - 3,843

Preparedness - Rotary Wing Helicopter Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Terrorist and Asymmetric Threats (EC 1D) Fully Prepared Fully Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
Natural and manmade disasters (EC 2B) Fully Prepared Substantially Prepared Fully Prepared
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) Fully Prepared Substantially Prepared Fully Prepared
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) Fully Prepared Substantially Prepared Substantially Prepared

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Inter-State conflict (EC 4F)
Operational tasks in high threat environments, which are likely to be encountered under ECs 4 and 5, are beyond the current capabilities of the Iroquois helicopter. This situation will not improve until the NH-90 helicopters have been fully introduced into service.
Partially Prepared Not Prepared Not Prepared

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D)
(See note under EC 4F above)
Partially Prepared Not Prepared Not Prepared

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Special Operations Forces (M22)#

Scope of Appropriation

Provision of the capabilities of the Special Operations Forces prepared to conduct special forces operations in support of land operations, counter-terrorist operations, and the provision of Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests, in accordance with NZDF Output Plan specifications.

Expenses and Revenue

Expenses and Revenue - Special Operations Forces (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 67,114 67,114 71,251
Revenue from Crown 66,526 66,526 70,656
Revenue from Other 588 588 595

Reasons for Change in Appropriation

This appropriation will increase by $4.137 million to $71.251 million in 2010/11. This increase relates to increased input costs for Special Operations Forces.

Output Performance Measures and Standards

Special Operations Forces: Performance Measures and Standards - Defence Force
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Army, drawing on 1st NZ Special Air Service Group (1 NZ SAS Gp), 1st NZ Explosive Ordnance Disposal (EOD) Squadron (1 NZ EOD Sqn), and Army/NZDF-wide resources, will provide:      
  • The initial and rotation elements of up to a SAS Squadron to conduct special operations in support of land combat operations under Employment Contexts 1 - 5, and to provide elements, as appropriate, in support of a LTG or CATG.
Available Delivered Available
  • A Counter-Terrorist Group to assist the NZ Police in Counter-Terrorist operations, including Maritime CT, under Employment Contexts 1D and 2D.
Available Delivered Available
  • A CBRE IEDD/EOD organisation of squadron strength which has the ability to provide three IEDD Response Teams (one each based at Auckland, Wellington and Christchurch) and a specialist CBR Response Team to undertake emergency national IEDD/CBRE tasks.
Available Delivered Available
CBRE IEDD Organisation - Cabinet approved the formation of an independent and separately funded organisation for the conduct of CBRE IEDD and Explosive Ordnance Disposal (EOD). [CAB Min (05) 27/4 dated 25 Jul 05]. Although CBRE IEDD is a NZDF responsibility directed by Government, Army has been designated the "lead Service". Navy and Air Force will provide trained manpower and specialist support for CBRE IEDD/EOD, as required.      
Deployment Impacts:      
  • If a high proportion of the Special Forces capability was deployed on actual operations, any other concurrent contribution from this output would be very limited. This does not, however, affect the ability of the NZDF to continue to fully deliver force elements for the Counter-Terrorist capability.
     
  • The number of personnel qualified and available to deliver CBRE is currently limited. The deployment of any personnel from this output to Output Expense Operationally Deployed Forces would have a major impact on training and the ability of the NZDF to deliver CBRE.
     

Preparedness - Special Operations Forces: Employment Context

     

Security Challenges and Defence Tasks in New Zealand and its environs

     
Terrorist and Asymmetric Threats (EC 1D)      
Special Forces Fully Prepared Fully prepared (but limited capacity since deployment to Afghanistan) Fully prepared (but limited capacity until completion of Afghanistan deployment)
Counter-Terrorist Forces Fully Prepared Fully Prepared Fully Prepared
CBRE / IEDD Fully Prepared Fully Prepared Fully Prepared

Security Challenges to New Zealand's Interests in the South Pacific

     
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C)      
Special Forces Fully Prepared Fully prepared (but limited capacity since deployment to Afghanistan) Fully prepared (but limited capacity until completion of Afghanistan deployment)
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E)      
Special Forces Fully Prepared Fully prepared (but limited capacity since deployment to Afghanistan) Fully prepared (but limited capacity until completion of Afghanistan deployment)

Security Challenges to New Zealand's Interests in the Asia-Pacific Region

     
Interstate Conflict (EC 4F)      
Special Forces Fully Prepared Fully prepared (but limited capacity since deployment to Afghanistan) Fully prepared (but limited capacity until completion of Afghanistan deployment)

Security Challenges to New Zealand's Interests in Global Peace and Security

     
Terrorist Threats (EC 5D)      
Special Forces Fully Prepared Fully Prepared (for future rotations to Afghanistan) Fully Prepared (for future rotations to Afghanistan)

Note - Details of the Key Performance Indicators (KPIs) that underlie the performance standards, the Performance Rating Scale, and Employment Contexts (ECs) are explained earlier in this part.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

New Zealand Defence Force - Capital Expenditure PLA (M22)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - New Zealand Defence Force Capital Expenditure PLA (M22) - Defence Force
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 513,717 383,547 569,914
Intangibles 6,283 6,283 3,000
Other - - -

Total Appropriation

520,000 389,830 572,914
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 513,717 383,547 569,914
Intangibles 6,283 6,283 3,000
Other - - -

Total Appropriation

520,000 389,830 572,914

Reasons for Change in Appropriation

Capital expenditure costs are unique according to year. This appropriation will recognise a $183.084 million increase over the final 2009/10 estimate, mainly as a result of payments made to the Ministry of Defence (MoD) for Specialist Military Equipment (SME) purchases.

Expected Results

Expected Results - New Zealand Defence Force Capital Expenditure PLA (M22) - Defence Force
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Improved Military Capability and Infrastructure $520 million $390 million $573 million

Performance Information for Appropriations Vote Foreign Affairs and Trade#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Foreign Affairs (M34)

ADMINISTERING DEPARTMENT: Ministry of Foreign Affairs and Trade

MINISTER RESPONSIBLE FOR MINISTRY OF FOREIGN AFFAIRS AND TRADE: Minister of Foreign Affairs

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Foreign Affairs is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

  • a total of nearly $358 million on purchasing services in the spheres of foreign affairs and trade from the Ministry of Foreign Affairs and Trade
  • a total of over $13 million on purchasing Antarctic research and support from the New Zealand Antarctic Institute
  • a total of $4 million to the Asia New Zealand Foundation for the promotion of Asian skills and relationships
  • a total of over $1 million to the Pacific Cooperation Foundation for the promotion of mutual understanding and constructive linkages between New Zealanders and other countries and people of the Pacific
  • a total of nearly $57 million on subscriptions to international organisations
  • a total of over $1 million on payments in accordance with the Diplomatic Privileges and Immunities Act 1968
  • a total of over $66 million on departmental capital expenditure.

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

Part 1.2 - High-Level Objectives of the Vote#

Vote Foreign Affairs and Trade provides the Government with policy advice, advocacy, representation and other services directed at managing, advancing and protecting New Zealand's foreign affairs and trade interests in its relations with other countries and groups of countries and in its membership of international institutions. The Vote contributes in key ways to the achievement of the Government's driving goal to grow the economy in order to deliver greater prosperity, security and opportunities to all New Zealanders.

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Foreign Affairs and Trade
Government Priorities Government Outcomes Appropriations
Work towards free trade agreements with the United States, India, and Korea Economic growth and international competitiveness advanced through New Zealand's international connections. Policy Advice and Representation - Other Countries.
Strive for conclusion of the WTO Doha Round Economic growth and international competitiveness advanced through New Zealand's international connections. Policy Advice and Representation - International Institutions.
Push the Single Economic Market with Australia New Zealand's security and economic interests safeguarded through its security and economic relationships.
Economic growth and international competitiveness advanced through New Zealand's international connections.
Policy Advice and Representation - Other Countries.
Drive domestic and international research into agricultural greenhouse gas emissions Transboundary solutions and effective international rules promoted. Policy Advice and Representation - International Institutions.
Work with Pacific nations to grow their economies New Zealand's security and economic interests safeguarded through its security and economic relationships. Pacific Security Fund.
Policy Advice and Representation - Other Countries.

Summary of Financial Activity

Summary of Financial Activity - Foreign Affairs and Trade
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 212,935 260,106 276,691 318,594 364,353 354,353 357,629 18,568 376,197 380,769 385,663 385,663
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 37,040 39,604 42,703 50,795 52,438 52,438 - 57,838 57,838 56,894 57,151 56,983
Capital Expenditure 23,327 19,474 26,563 32,463 32,759 32,759 66,098 - 66,098 70,869 48,323 35,561
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

273,302 319,184 345,957 401,852 449,550 439,550 423,727 76,406 500,133 508,532 491,137 478,207

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 373 346 1,488 174 - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

373 346 1,488 174 - - N/A - - - - -

New Policy Initiatives

Budget Policy Intiatives - Foreign Affairs and Trade
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Asia New Zealand Foundation: Increase in Baseline Funding Promotion of Asian Skills and Relationships (M34) 453 2,453 2,453 2,453 2,453
  Non-Departmental Output Expenses          
Capability Review to Support Organisational Change and Government Priorities Administration of Diplomatic Privileges and Immunities (M34) - (30) (30) (14) (8)
  Departmental Output Expenses          
  Consular Services (M34) - (35) (30) 31 32
  Departmental Output Expenses          
  Pacific Security Fund (M34) - (7) (8) (4) (2)
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) - (257) (335) (146) (112)
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) - 329 403 133 90
  Departmental Output Expenses          
Global Alliance on Agricultural Greenhouse Gas Mitigation Research Policy Advice and Representation - International Institutions (M34) (3,500) - - - -
  Departmental Output Expenses          
New Zealand Productivity Commission Policy Advice and Representation - International Institutions (M34) - (70) (140) (150) (150)
  Departmental Output Expenses          
Review of NZ Inc's Offshore Network Administration of Diplomatic Privileges and Immunities (M34) (3) - - - -
  Departmental Output Expenses          
  Consular Services (M34) 160 (491) (385) (376) (349)
  Departmental Output Expenses          
  Pacific Security Fund (M34) (19) - - - -
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) (1,092) (29) (37) (37) (21)
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) 961 520 422 413 370
  Departmental Output Expenses          
  Promotional Activities - Other Countries (M34) (7) - - - -
  Departmental Output Expenses          
Rugby World Cup 2011 Office Administration of Diplomatic Privileges and Immunities (M34) (2) - - - -
  Departmental Output Expenses          
  Consular Services (M34) (103) - - - -
  Departmental Output Expenses          
  Pacific Security Fund (M34) (9) - - - -
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) (500) - - - -
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) (1,683) - - - -
  Departmental Output Expenses          
  Promotional Activities - Other Countries (M34) (3) - - - -
  Departmental Output Expenses          
Total Initiatives   (5,347) 2,383 2,313 2,303 2,303

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Foreign Affairs and Trade are discussed briefly below.

Trends in total voted and actual expenses and capital expenditure
The Trends in total voted and actual expenses and capital expenditure chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Figure 1 - Trends in total voted and actual expenses and capital expenditure and its values are: 2005 2006  Actual 273302 million, 2006 2007  Actual 319184 million, 2007 2008  Actual 345955 million, 2008 2009  Actual 401852 million, 2009 2010  Estimated 439550 million, 2010 2011  Estimated 500133 million, 2011 2012  Estimated 508532 million, 2012 2013  Estimated 491137 million, 2013 2014  Estimated 478207 million.
Source: MFAT

The table of departmental and non-departmental flows reflects the impact of periodic property revaluations; and one-off capital contributions. The underlying trend, however, is an overall increase in the amount appropriated for outputs and other expenses mainly reflecting capability funding, higher property values, the introduction of tax on overseas terms and conditions of service in 2006/07 and approved new initiatives.

Departmental Output Expenses

Departmental OutputExpenses
The Trends in departmental output expenses chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Figure 2 - Trends in departmental output expenses and its values are: 2005 2006  Actual 223729 million, 2006 2007  Actual 271335 million, 2007 2008  Actual 259801 million, 2008 2009  Actual 300774 million, 2009 2010  Estimated 338485 million, 2010 2011  Estimated 357629 million, 2011 2012  Estimated 362201 million, 2012 2013  Estimated 367345 million, 2013 2014  Estimated 367345 million.
Source: MFAT

The key changes from 2005/06 to 2010/11 are as follows:

  • Funding Increases: total $111.092 million mainly for additional resources to deepen the Ministry's capability and capacity through additional staff, increases in support infrastructure and cost increases ($91.030 million), a new post in Cairo in 2005/06 ($2.785 million), a new post in Dili in 2006/07 ($1.963 million), a new post in Warsaw ($663,000) in 2004/05, and implementing security enhancements to ensure staff and their families and property are safe, secure and protected ($5.620 million).
  • Fiscally Neutral Changes: the main changes since 2005/06 include: decrease in foreign exchange rate movements ($1.018 million), decrease arising from the rate of capital charge lowered from 8.0% to 7.5% ($1.683 million), higher capital charge and depreciation following revaluation of properties ($7.896 million), higher capital charge arising from retention of surplus on unrealised derivative gain ($752,000), increase arising from the introduction of tax on overseas terms and conditions ($32.676 million) in 2006/07 and transfer of chanceries and residences back to the Ministry from the Treasury in 2005/06 ($8.009 million).

Performance Improvement Actions

There are two Performance Improvement Actions for this Vote. They are:

1. Offshore Review

During 2009/10 the Ministry of Foreign Affairs and Trade led a Review of NZ Inc's Offshore Network. The Review was conducted on the basis that any changes proposed should be fiscally neutral and within the overall funding available to NZ Inc for offshore representation and activities for the forecast period. The proposed changes impacting on Vote Foreign Affairs and Trade are reflected in the New Policy Initiatives table and are fiscally neutral. They comprise both reallocations of resources to take advantage of any new trade and economic opportunities and improvements to the way that NZ Inc works onshore and offshore. Any significant adjustments to New Zealand's representation at specific locations will be announced by the Government in due course once partner governments have been informed.

During 2010/11 a detailed plan to implement the decisions on the Review will be developed and started, and benchmarks established for measuring improved performance and service delivery over time.

2. Organisational Transformation

The Ministry of Foreign Affairs and Trade is undertaking a comprehensive organisational change programme, covering strategy, performance measures, people, technology and knowledge management, culture and values and structure. This programme affects both the organisation's votes and its results are expected to be medium term in nature. It is therefore covered in detail in the Ministry's SOI.

Non-Departmental Other Expenses

Non-Departmental Other Expenses
The Trends in non-departmental other expenses chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Figure 3 - Trends in non-departmental other expenses and its values are: 2005 2006  Actual 37040 million, 2006 2007  Actual 39604 million, 2007 2008  Actual 42703 million, 2008 2009  Actual 50795 million, 2009 2010  Estimated 52438 million, 2010 2011  Estimated 57838 million, 2011 2012  Estimated 56894 million, 2012 2013  Estimated 57151 million, 2013 2014  Estimated 56983 million.
Source: MFAT

Non-departmental other expenses have increased by $19.943 million from 2005/06 to 2010/11. The key changes have been:

  • The cost of New Zealand's membership to international organisations has increased by $22.470 million, from $34.198 million in 2005/06 to $56.668 million in 2010/11. This increase mainly reflects higher assessed contributions to UN peacekeeping activities, partially offset by exchange rate movements.
  • A decrease of $2 million arising from a one-off funding payment in 2005/06 to victims of Hurricane Katrina.

Departmental Capital Expenditure

Departmental Capital Expenditure
The Trends in departmental capital expenditure chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Figure 4 - Trends in departmental capital expenditure and its values are: 2005 2006  Actual 23327 million, 2006 2007  Actual 17974 million, 2007 2008  Actual 24161 million, 2008 2009  Actual 31663 million, 2009 2010  Estimated 32459 million, 2010 2011  Estimated 66098 million, 2011 2012  Estimated 70869 million, 2012 2013  Estimated 48323 million, 2013 2014  Estimated 35561 million.
Source: MFAT
  • In 2005/06 the Ministry received $2.834 million for the establishment of a new post in Cairo, Egypt, $2.751 million for capital expenditure in chanceries and residences previously rented from Treasury, $2.379 million to fit-out new chanceries in Los Angeles and Shanghai, $1.993 million to design and implement a global Emergency Response and Consular Management Information System and $10.023 million to implement the capital recommendations of security assessments of New Zealand Government owned and leased properties offshore driven by security and safety needs.
  • In 2006/07 the Ministry received $3.429 million to upgrade the New Zealand Consulate-General in Dili to an Embassy, $7 million first tranche for capital expenditure to construct chanceries in Ankara, Honiara and Suva and establish a lower classified Local Area Network (LAN) alongside the Ministry's current single Confidential LAN, and $1 million for capital expenditure to implement the capital plan in chanceries and residences previously rented from Treasury.
  • In 2007/08 the Ministry received $750,000 for Apia Chancery agency accommodation, a further $3.169 million to upgrade the New Zealand Embassy in Dili, $14.550 million second tranche for capital expenditure to construct chanceries in Ankara, Honiara and Suva and establish a lower classified Local Area Network (LAN) alongside the Ministry's current single Confidential LAN, and $1 million for capital expenditure to implement the capital plan in chanceries and residences previously rented from Treasury.
  • Refer to Part 6.1 for details of the capital expenditure the Ministry will receive in 2010/11.

Non-Departmental Capital Expenditure

Non-DepartmentalCapital Expenditure
The Trends in non-departmental capital expenditure chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 1 series: Figure 5 - Trends in non-departmental capital expenditure covering the 2006 2007  Actual to 2009 2010  Estimated Financial Year. The values for the Figure 5 - Trends in non-departmental capital expenditure series are: 2006 2007  Actual 1500 million, 2007 2008  Actual 2400 million, 2008 2009  Actual 800 million, 2009 2010  Estimated 300 million.
Source: MFAT
  • The New Zealand Antarctic Institute received $1.500 million in 2006/07, $2.400 million in 2007/08, $800,000 in 2008/09 and $300,000 in 2009/10 to maintain the Scott Base buildings and services infrastructure.

Crown Revenue and Receipts Trends

Crown Revenue and Receipts Trends
The Trends in Crown revenue chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 1 series: Figure 6 - Trends in Crown revenue covering the 2005 2006  Actual to 2008 2009  Actual Financial Year. The values for the Figure 6 - Trends in Crown revenue series are: 2005 2006  Actual 373 million, 2006 2007  Actual 346 million, 2007 2008  Actual 1488 million, 2008 2009  Actual 174 million.
Source: MFAT
  • In 2007/08 the Ministry received a refund of $1.466 million for fringe benefit tax overpaid in a previous financial year.
  • The decrease in Crown revenue and receipts reflects a reduction in the number and value of payments Tokelau is asking the Ministry to process on its behalf.

Analysis by Appropriation Type: 2010/11 and 2009/10 Compared

Departmental output expenses

Annual appropriations are expected to increase by $9.144 million (2.6%) in 2010/11 relative to 2009/10. The increase is mainly attributable to an increase in baseline resources to deepen the Ministry's capacity through additional staff, increases in support infrastructure and increases in contributions to various funds ($8.977 million), lower overseas costs caused by the depreciation of the New Zealand dollar ($7.595 million), increases arising from the FEALAC Science and Technology Working Group ($188,000), one-off contribution to global alliance on agriculture greenhouse gas mitigation research ($3.500 million), one-off contribution to the Rugby World Cup 20111 Office ($2.300 million), one-off contribution to the Global Environment Facility ($500,000), one-off transfer to Vote State Services to fund the Identity Verification Service ($593,000) and a decrease by $157,000 for market access forestry.

Non-departmental other expenses

Annual appropriations are expected to increase by $2.700 million (17.0%) in 2010/11 relative to 2009/10. New Zealand Antarctic Institute funding has increased by $750,000 for the International Trans-Antarctic Scientific Experiment partly offset by a decrease of $50,000 for vacating the Chair of the Antarctic Treaty's Committee for Environmental Protection. Asia New Zealand Foundation's baseline funding has increased by $2 million to restore funding to previous levels.

Non-departmental other expenses

The annual appropriation is expected to increase by $5.400 million (10.5%) in 2010/11 relative to 2009/10 reflecting increased payments for Subscriptions to International Organisations due to increases in payments to the United Nations for its regular budget assessment and for UN peacekeeping missions mandated by the Security Council.

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 - Foreign Affairs and Trade
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: New Zealand's security and economic interests safeguarded through its security and economic relationships  
Impact: Australia: A relationship where New Zealand fully engages Australia, and advances New Zealand's interests Policy Advice and Representation - Other Countries
Impact: Pacific: Improved security, governance, economic growth and sustainable development in Pacific Island Countries Pacific Security Fund
  Policy Advice and Representation - Other Countries
Impact: United States: Improved bilateral relationship leveraged into enhanced business-as-usual Policy Advice and Representation - Other Countries
Impact: Asia: New Zealand positioned to capitalise on economic growth and development in Asia including through participation in regional architecture and active development of key bilateral relationships Policy Advice and Representation - Other Countries
Impact: Europe: More influential relationship with the European Union, taking into account European Commission changeover and impact of the Lisbon Treaty Policy Advice and Representation - Other Countries
Impact: Selected other relationships: Expanded engagement with countries rising in influence, to safeguard New Zealand's economic and security interests Policy Advice and Representation - Other Countries
Outcome: Economic growth and international competitiveness advanced through New Zealand's international connections  
Impact: WTO: Maximum benefits for New Zealand from a successful WTO Doha Round Policy Advice and Representation - International Institutions
Impact: Bilateral and regional agreements: Greater competitiveness and opportunities for New Zealand exporters through the negotiation of FTAs, and improved existing trade and economic frameworks Policy Advice and Representation - Other Countries
Impact: New Zealand's existing trade access: Minimal impact on exports of trade access problems Policy Advice and Representation - Other Countries
Impact: New Zealand economic performance: Improved economic growth and productivity in New Zealand Policy Advice and Representation - Other Countries
Promotional Activities - Other Countries
Impact: Global Economic Environment: International responses to the global crisis to accommodate New Zealand's interests Policy Advice and Representation - Other Countries
Outcome: Transboundary solutions and effective international rules promoted.  
Impact: Security: More effective responses to international and regional security challenges, including proliferation, terrorism and radicalisation Policy Advice and Representation - Other Countries
Impact: Environment and Resource agenda: An international environmental and natural resource agenda that advances New Zealand interests and supports New Zealand economic competitiveness Policy Advice and Representation - International Institutions
Impact: United Nations: A more effective and accountable United Nations Policy Advice and Representation - International Institutions
Impact: Commonwealth: A relevant and effective Commonwealth Policy Advice and Representation - International Institutions
Outcome: The rights of New Zealanders abroad protected  
Impact: Consular management and operational capability, including for emergency response, meets public expectations Consular Services
Objective: To administer the Government's responsibilities and obligations under the Vienna Conventions on Diplomatic and Consular Relations. Administration of Diplomatic Privileges and Immunities
Objective: To provide services for other New Zealand agencies with overseas interests Services for Other New Zealand Agencies Overseas

Administration of Diplomatic Privileges and Immunities (M34)

Scope of Appropriation

This appropriation is limited to the administration of diplomatic and consular privileges and immunities under the Diplomatic Privileges and Immunities Act 1968 and the Consular Privileges and Immunities Act 1971.

Expenses and Revenue

Expenses and Revenue - Administration of Diplomatic Privileges and Immunities (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 459 459 1,971
Revenue from Crown 459 459 1,971
Revenue from Other - - -

Reasons for Change in Appropriation

This appropriation will increase by $1.512 million to $1.971 million for 2010/11. The movement arises from:

  • an increase by $18,000 from a funding package for response to foreign and trade policy changes
  • a decrease by $3,000 as a result of decisions arising from the baseline review
  • an increase by $1.522 million from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • a one-off transfer of $2,000 in 2009/10 to the Ministry of Economic Development for the Rugby World Cup 2011 Office
  • a decrease by $3,000 from a review of NZ Inc's Offshore Network
  • a decrease by $30,000 from a Capability Review to support organisational change and Government priorities.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Diplomatic Privileges and Immunities (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Diplomatic and consular staff of foreign missions in New Zealand at 30 June (see Note 1) - 500 500-520
Policy papers produced for Ministers or Cabinet under this output expense class (see Note 2) - 9 6-10
Quality      
All documentation prepared in compliance with the Diplomatic Privileges and Immunities Act 1968 and Consular Privileges and Immunities Act 1971 and the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations - 100% 100%
Percentage of policy advice rated as 4 or better on a scale of 1-5 by external review against the Ministry's quality standard for analysis and advice (see Note 3) - See Note 1 80%
Timeliness      
All arrival and departure documentation for foreign diplomats in New Zealand completed within 10 working days 100% 100% 95% (see Note 4)
All programmes of calls requested by foreign Heads of Mission processed within 10 working days 100% 100% 95% (see Note 4)
All documentation for New Zealand Head of Mission appointments processed within a timeframe of three weeks 100% 100% 95% (see Note 4)
Ministerial Services (see Note 5)      
Number of Ministerial letters prepared - 1500-1600 1500-1600
Number of Official Information Act request (OIA) responses provided - 180-200 180-200
Number of Parliamentary Question responses provided - 200-250 150-300
Percentage of ministerial correspondence completed within 10 working days 100% 30% 90% (see Note 4)
Percentage of ministerial correspondence accepted without amendments - 97% 95%
Percentage of OIA requests completed within 20 working days (see Note 6) - 58% 70%
Percentage of OIA requests completed within 40 working days (see Note 6) - 81% 95%

Note 1 - This measure of quantity is demand driven.

Note 2 - This measure could be considered to be demand driven. Estimates for the 2009/10 financial year are based on the assumption that the quantity of advice will be relatively constant in the absence of reliable trend information to the contrary.

Note 3 - A detailed assessment tool for analysis and advice is yet to be fully developed. The percentage target is therefore nominal. The measure may need to be updated in supplementary information if it is not possible to develop an assessment model that produces a measure of this nature. Because the target is not based on an understanding of past performance or the performance of other entities against the same tool, it is not possible to provide an estimated actual standard for the 2009/10 financial year that is not potentially misleading.

Note 4 - The Ministry has lowered its standards for timeliness on these outputs, because we have judged that setting a 100% standard creates a perverse incentive to prioritise timeliness over other qualities, such as quality, or efficiency of service. There is also the potential for a 100% target to distort reporting, because any single failure represents a failure to achieve the target for the year.

Note 5 - The information on Ministerial services provided here is not disaggregated by output expense class. This performance information is not therefore repeated in each output expense class. Ministerial services can be provided under any of the Ministry's output expense classes. These quantity measures are demand driven. Quantity estimates are based on analysis of year to date information, and available trend data. Trends for Ministerial correspondence and Official Information Act requests are relatively stable. Parliamentary questions, however, fluctuate significantly from year to year. This results in the very large range provided.

Note 6 - Twenty working days is the statutory deadline for responding to requests for information under the Official Information Act. Requests can, however, be extended under Section 15A of the Act "for a reasonable period of time having regard to the circumstances". The 40 working day deadline (twice the statutory deadline) is an attempt to represent the potential for extensions to be notified.

Quality standard for analysis and advice
Quality standard for analysis and advice - Foreign Affairs and Trade
Quality Description
Analytically rigorous
Robust reasoning and logic Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. We come to a conclusion and give action-oriented recommendations.
Evidence-based Analysis is supported by relevant evidence. All material facts are present and accurate and based on reliable reporting, research, or other appropriate information. Known gaps that could significantly affect the conclusions are identified and the range of uncertainty stated. We draw on experience of current and past policy interventions and, where relevant, the experience of other countries. In-house experience harnessed.
Innovative Advice takes into account recent literature and thinking in the field. Advice does not rely on a stock set of responses to problems. Advice endeavours to contribute to intellectual leadership on the issue.
Free and frank Honest, impartial and politically neutral. We have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating.
Set in a wider strategic context
Strategic Advice is set in the context of the Ministry's medium term goals and government priorities, and informed by a strategic view about what is important. Connections across policy issues are made, including to areas of work undertaken by other agencies. Advice considers the long-term implications of decisions, and provides a perspective that goes beyond immediate impacts. Interactions with other foreign policy goals identified. Risks and where possible mitigation options are identified.
Engagement Evidence of thorough and timely engagement with other government departments and interested parties is presented, and their views, including objections, incorporated as appropriate.
Practical Issues of implementation, technical feasibility, practicality and timing are considered. Costs, including resource implications, of options are identified. Advice accurately identifies compliance, transitional, legal, machinery of government, political, legislative, Treaty of Waitangi, or other issues or risks that require management.
Perspectives of wider stakeholders We understand and advise Ministers on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate.
Customer-focused and persuasive
Presentation Material is presented to suit the target audience and:
  • is concise and structured in a way which assists others to understand the aim of the advice, key features of the information, analysis and recommendations, and their key implications
  • uses appropriate language and style
  • avoids cliches and technical jargon (or where the latter is not possible, it is used appropriately for a general audience), and
  • is consistent with departmental and Cabinet Office presentation requirements.
Timely Advice is provided with sufficient lead time to materially affect the issue advice is being provided on, even if that means at times providing advice that is not fully developed.
Politically aware Advice demonstrates awareness of the wider environment and political situation. Advice recognises choices and constraints Ministers face, and includes a range of options to address those.
Solutions-focused We are proactive, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forwards and includes a range of practical options.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Diplomatic Privileges and Immunities (M34) - Foreign Affairs and Trade
Reference Conditions
Diplomatic Privileges and Immunities Act 1968 and Consular Privileges and Immunities Act 1971 These Acts gave effect to the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations and set out New Zealand's rights and obligations under the Conventions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Administration of Diplomatic Privileges and Immunities (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Capability Review to Support Organisational Change and Government Priorities 2010/11 - (30) (30) (14) (8)
Review of NZ Inc's Offshore Network 2009/10 (3) - - - -
Baseline Savings 2008/09 (3) (6) (15) (14) (14)
Agreed by Previous Government            
Funding Package for Response to Foreign and Trade Policy Changes 2008/09 20 38 46 52 52
Remuneration: Flow-on Cost to Overseas Allowances 2005/06 27 27 27 27 27
Remuneration: Market Movement 2005/06 36 36 36 36 36
Tax on Overseas Conditions of Service 2005/06 16 16 16 16 16

Consular Services (M34)#

Scope of Appropriation

The purchase of consular policy advice, consular services for New Zealanders abroad and notarial services.

Expenses and Revenue

Expenses and Revenue - Consular Services (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,816 16,816 24,114
Revenue from Crown 16,466 16,466 23,764
Revenue from Other 350 350 350

Reasons for Change in Appropriation

This appropriation will increase by $7.298 million to $24.114 million for 2010/11. The movement arises from:

  • an increase by $1.173 million from a funding package for response for foreign and trade policy changes
  • a decrease by $951,000 as a result of decisions arising from the baseline review
  • a decrease by $191,000 from foreign exchange and overseas inflation
  • an increase by $7.850 million from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • a one-off transfer of $103,000 in 2009/10 to the Ministry of Economic Development for the Rugby World Cup 2011 Office
  • a decrease by $651,000 from a review of NZ Inc's Offshore Network
  • a decrease by $35,000 from a Capability Review to support organisational change and Government priorities.

Output Performance Measures and Standards

Output Performance Measures and Standards - Consular Services (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Number of overseas locations where consular services are provided - 60 61
Distressed New Zealanders overseas who received consular services (see Note 1) 2,050 1,950 2,000-2,400
General consular advice enquiries responded to (see Note 1) 43,000 44,000 42,000-46,000
Notarial services provided (see Note 1) 9,700 9,200 8,800-9,600
Consular emergencies responded to (see Note 1) 3 3-5 3-6
Policy papers produced for Ministers or Cabinet under this output expense class (see Note 2)   10 7-12
Quality      
Survey of recipients of consular services rate the Ministry's service performance for consular services in the top quartile of departments using the State Services Commission's Common Measurement Tool to measure their service performance - See Note 3 Service performance in top quartile
Lessons learned reviews conducted on all consular emergencies - 100% 100%
Lessons learned incorporated into procedures or otherwise actioned within 6 months - See Note 4 95%
Percentage of policy advice rated as 4 or better on a scale of 1-5 by external review against the Ministry's quality standard for analysis and advice (see the output expense class Diplomatic Privileges and Immunities above for the Ministry's quality standard for analysis and advice, and related caveats for this measure) - See note to Diplomatic Privileges and Immunities above 80%

Note 1 - These quantity measures are demand driven. Because we do not hold a single long-term data set for consular services, the number of consular cases is difficult to forecast accurately. For notarial services and general consular advice, there is significant annual variance and no clear trend.

Note 2 - This measure could be considered to be demand driven. Estimates for the 2009/10 financial year are based on the assumption that the quantity of advice will be relatively constant in the absence of reliable trend information to the contrary.

Note 3 - It is not possible to provide an estimated actual standard of performance for the current calendar year, because no similar or comparable measure has been taken. The SSC's Common Measurement Tool allows for comparisons to be made across departments on responses to a set of 8 standard questions that can be applied to the performance of any government service. The target represents a service level the Ministry hopes it is already meeting.

Note 4 - The Ministry does not currently collect data on the timelines for incorporating lessons learned into emergency management procedures. It is not therefore possible to provide an estimate that is not potentially misleading.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Consular Services (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Capability Review to Support Organisational Change and Government Priorities 2010/11 - (35) (30) 31 32
Review of NZ Inc's Offshore Network 2009/10 160 (491) (385) (376) (349)
Baseline Savings 2008/09 (257) (1,208) (1,061) (2,107) (2,107)
Agreed by Previous Government            
Funding Package for Response to Foreign and Trade Policy Changes 2008/09 4,315 5,488 6,036 6,927 6,927
Consular Management Information System 2005/06 408 408 408 408 408
Crown Property Portfolio Transfer from Treasury 2005/06 190 190 190 190 190
Remuneration: Flow on Cost to Overseas Allowances 2005/06 108 108 108 108 108
Remuneration: Market Movement 2005/06 142 142 142 142 142
Tax on Overseas Conditions of Service 2005/06 1,430 1,430 1,430 1,430 1,430

Pacific Security Fund (M34)#

Scope of Appropriation

The purchase of activities and equipment to enhance Pacific Islands security that mutually reinforce New Zealand's security interests.

Expenses and Revenue

Expenses and Revenue - Pacific Security Fund (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,248 3,248 3,240
Revenue from Crown 3,248 3,248 3,240
Revenue from Other - - -

Reasons for Change in Appropriation

This appropriation will decrease by $8,000 to $3.240 million for 2010/11. This movement arises from :

  • a decrease by $29,000 from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • a one-off transfer of $9,000 in 2009/10 to the Ministry of Economic Development for the Rugby World Cup 2011 Office
  • a one-off decrease of $19,000 in 2009/10 from a review of NZ Inc's Offshore Network
  • a decrease by $7,000 from a Capability Review to support organisational change and Government priorities.

Output Performance Measures and Standards

Output Performance Measures and Standards - Pacific Security Fund (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All programmes and project bids are assessed as consistent with the Pacific Security Strategy, and this is confirmed by periodic audit. 100% 100% 100%
Funds are accessed, disbursed and monitored in accordance with the management process established by the Pacific Security Coordinating Committee. 100% 100% 100%
All activities assessed as being of high quality by internal review. 100% 100% 100%

Note - The Ministry has maintained these measures for the 2010/11 financial year. Development of a more robust measurement methodology will be part of ongoing efforts to further develop the Ministry's performance measures.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Pacific Security Fund (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Capability Review to Support Organisational Change and Government Priorities 2010/11 - (7) (8) (4) (2)
Review of NZ Inc's Offshore Network 2009/10 (19) - - - -
Baseline Savings 2008/09 (19) (381) 14 (178) (178)
Agreed by Previous Government            
Funding Package for Response to Foreign and Trade Policy Changes 2008/09 380 761 747 925 925
Remuneration: Market Movement 2005/06 4 4 4 4 4
Remuneration: Flow-on Cost to Overseas Allowances 2005/06 3 3 3 3 3

Policy Advice and Representation - International Institutions (M34)#

Scope of Appropriation

The purchase of policy advice and representation activities related to the management of New Zealand's membership of, and foreign and trade interests in, international institutions.

Expenses and Revenue

Expenses and Revenue - Policy Advice and Representation International Institutions (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 54,864 52,864 65,258
Revenue from Crown 54,864 54,864 65,258
Revenue from Other - - -

Reasons for Change in Appropriation

This appropriation will increase by $10.394 million to $65.258 million for 2010/11. This movement arises from:

  • an increase by $3.623 million from a funding package for response to foreign trade and policy changes
  • a decrease by $1.005 million as a result of decisions arising from the baseline review
  • a decrease by $857,000 from foreign exchange and overseas inflation movements
  • an increase by $7.327 million from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • a one-off transfer of $500,000 in 2009/10 to the Ministry of Economic Development for the Rugby World Cup 2011 Office
  • an increase by $1.063 million from a review of NZ Inc's Offshore Network
  • a decrease by $257,000 from a Capability Review to support organisational change and Government priorities.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and Representation International Institutions (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Active treaty negotiations serviced by the Ministry under this output expense class (see Note 1) - 44 44
Policy papers produced for Ministers or Cabinet under this output expense class - 330 300-350
Quality      
Percentage of peers rating the quality of the Ministry's negotiation of international agreements as 4 or better on a scale of 1-5 against the Ministry's quality standard for negotiation (see Note 3) - See Note 2 80%
Percentage of policy advice rated as 4 or better on a scale of 1-5 by external review against the Ministry's quality standard for analysis and advice (see the output expense class Diplomatic Privileges and Immunities above for the Ministry's quality standard for analysis and advice, and related caveats for this measure) - See note to Diplomatic Privileges and Immunities above 80%

Note 1 - As recorded in the Ministry's international treaties list. This list includes international agreements led by the Ministry as well as agreements led by other agencies. The Ministry is engaged in all these treaties at some point but the amount of work entailed varies from large multi-party agreements where the Ministry is the lead negotiator, to small-scale arrangements led by other departments. The figure also excludes the Ministry's ongoing involvement in the functioning of and decision-making in already established international organisations.

Note 2 - This measure could be considered to be demand driven. Estimates for the 2009/10 financial year are based on the assumption that the quantity of advice will be relatively constant in the absence of reliable trend information to the contrary.

Note 3 - The assessment tool will be a survey of peers from other government departments involved in negotiation of international agreements with the Ministry. The survey has yet to be designed in detail and therefore the percentage target is nominal. The measure may need to be updated in supplementary information if it is not possible to develop an assessment model that produces a measure of this nature. Because the target is not based on an understanding of past performance or the performance of other entities against the same tool, it is not possible to provide an estimated actual standard for the 2009/10 financial year that is not potentially misleading. The quality standard is set out below.

Quality Standard for Negotiation

Quality Standard for Negotiation - Foreign Affairs and Trade
Quality Description
Well prepared New Zealand's interests clearly identified
Clear objectives and priorities set
Objectives for ongoing negotiations reviewed regularly
Links to other objectives identified and managed appropriately
Other agencies with an interest consulted
Relevant stakeholders engaged
Likely positions of other parties to the negotiation identified in advance, and contributing factors to those positions understood
Proposals consulted with like-minded
Appropriate (Ministerial or Cabinet) approvals obtained
Clear structures around delegation roles
High quality presentation Written and oral presentation that is:
  • professional
  • appropriate
  • clear
  • logical, and
  • culturally aware
Tactical acumen The dynamic of the negotiation clearly understood and exploited
A range of tools and tactics used
Tactical choices are culturally aware
Presence of Ministers is effectively leveraged
Other outputs (eg, visits, public diplomacy, advocacy) effectively leveraged to support the negotiation
Possible trade-offs identified in advance, and applied within and between negotiations
Trade-offs chosen take into account precedents, and take into account the possible creation of new precedents
New Zealand's proposals identify innovative solutions and move the debate forward or allow for win-win solutions
Well reported Reporting is timely
Reporting records trade-offs and commitments
Reporting makes a robust assessment of achievement of objectives and considers implications for future effort
Records of proposals kept (where a treaty is being negotiated)
Opportunities to fully exploit the outcome of the negotiation identified, for instance through an implementation plan

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice and Representation International Institutions (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Capability Review to Support Organisational Change and Government Priorities 2010/11 - (257) (335) (146) (112)
Review of NZ Inc's Offshore Network 2009/10 (1,092) (29) (37) (37) (21)
Baseline Savings 2008/09 (1,318) (2,323) (4,510) (7,317) (7,317)
Agreed by Previous Government            
Funding Package for Response to Foreign and Trade Policy Changes 2007/08 12,790 16,413 18,742 21,836 21,836
Asia Security and Governance Fund 2006/07 700 700 700 700 700
Climate Change: Increase in Capacity 2006/07 378 378 378 378 378
Disarmament: NZ National Data Centre 2006/07 150 150 150 150 150
Tax on Overseas Conditions of Service 2005/06 5,442 5,442 5,442 5,442 5,442
Remuneration: Market Movement 2005/06 785 785 785 785 785
Remuneration: Flow-on Cost to Overseas Allowances 2005/06 596 596 596 596 596
Disarmament: G8 Global Partnership 2005/06 685 685 685 685 685
Crown Property Portfolio Transfer from Treasury 2005/06 415 415 415 415 415

Policy Advice and Representation - Other Countries (M34)#

Scope of Appropriation

This appropriation is limited to the purchase of policy advice and representation directed to the management of New Zealand's foreign trade relations with other countries, bilaterally and in regional organisations, including using New Zealand's international connections to facilitate the flow of trade, investment, skills, and technology and improving the competitiveness of New Zealand business.

Expenses and Revenue

Expenses and Revenue - Policy Advice and Representation Other Countries (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 258,294 250,294 248,926
Revenue from Crown 257,979 257,979 248,611
Revenue from Other 315 315 315

Reasons for Change in Appropriation

This appropriation will decrease by $9.368 million to $248.926 million for 2010/11. This movement arises from:

  • an increase by $17,000 for Dili upgrading to Embassy status
  • an increase by $17.406 million from a funding package for response to foreign and trade policy changes
  • a one-off transfer of $593,000 in 2009/10 to Vote State Services to fund the Identity Verification Service
  • a decrease by $11.322 million as a result of decisions arising from the baseline review
  • a one-off decrease of $500,000 in 2009/10 for the Ministry's contribution to the Global Environment Fund
  • a one-off increase of $157,000 in 2009/10 for Market Access Forestry
  • an increase by $19,000 from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • an increase by $1.077 million from resources for WTO, CEPs/FTAs
  • a decrease by $6.158 million from foreign exchange and overseas inflation movements
  • a decrease by $93,000 arising from a transfer to Vote Communication Security for the GCSB New Zealand Intelligence Community Network Enhancement (NZICNet) project
  • an increase by $188,000 arising from the FELAC Science and Technology working group
  • a decrease by $16.439 million from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • a one-off decrease of $3.500 million in 2009/10 for the global alliance on agricultural greenhouse gas mitigation research
  • a one-off transfer of $1.683 million in 2009/10 to the Ministry of Economic Development for the Rugby World Cup 2011 Office
  • a decrease by $441,000 from a review of NZ Inc's Offshore Network
  • an increase by $329,000 from a Capability Review to support organisational change and Government priorities
  • a decrease by $70,000 to establish and fund the NZ Productivity Commission.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and Representation Other Countries (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Active formal negotiations serviced by the Ministry under this output expense class (see Note 1) - 51 51
Inwards visits supported by the Ministry under this output expense class (see Note 2) - 150 130-180
Outwards visits by New Zealand Ministers supported by the Ministry under this output expense class (see Note 3) - 30-40 30-40
Policy papers produced for Ministers or Cabinet under this output expense class (see Note 4) - 1000 900-1100
Quality      
Percentage of peers rating the quality of the Ministry's negotiation of international agreements as 4 or better on a scale of 1-5 against the Ministry's quality standard for negotiation (see the output expense class Policy Advice and Representation - International Institutions above for the quality standard and caveats on this measure) - See note to Policy Advice and Representation - Other Countries above 80%
Percentage of visits rated as 4 or better on a scale of 1-5 by internal review against the Ministry's visits quality standard for visits management (see Note 5) - See Note 5 80%
Percentage of policy advice rated as 4 or better on a scale of 1-5 by external review against the Ministry's quality standard for analysis and advice (see Administration of Diplomatic Privileges and Immunities above for the quality standard and caveats on this measure). - See note to Diplomatic Privileges and Immunities above 80%

Note 1 - As recorded in the Ministry's international treaties list. This list includes international agreements led by the Ministry as well as agreements led by other agencies. The Ministry is engaged in all these treaties at some point but the amount of work entailed varies from large multi-party agreements where the Ministry is the lead negotiator, to small-scale arrangements led by other departments. The figure of 51 excludes 30 Double Taxation Agreements led by the Internal Revenue Department as these have the potential to distort the data in an area where the Ministry's involvement is light.

Note 2 - As recorded in the Ministry's inwards visits list. This list covers only major visits to New Zealand. It does not distinguish between visits for which Executive Government Support in the Department of Internal Affairs manages logistics and planning, and those supported wholly by the Ministry.

Note 3 - Includes travel supported by the Ministry of the Minister of Foreign Affairs and Trade, Minister of Trade and Prime Minister only. The Ministry also supports travel by other Ministers. This number represents trips taken, not countries visited. It counts visits by multiple Ministers separately (eg, travel by all three Ministers to APEC meetings in November 2009 is counted as three visits).

Note 4 - This measure could be considered to be demand driven. Estimates for the 2009/10 financial year are based on the assumption that the quantity of advice will be relatively constant in the absence of reliable trend information to the contrary.

Note 5 - The assessment tool will be a desktop review of a sample of visits managed by the Ministry. The measurement tool for the review is yet to be designed in detail and therefore the percentage target is nominal. The measure may need to be updated in supplementary information if it is not possible to develop an assessment model that produces a measure of this nature. Because the target is not based on an understanding of past performance or the performance of other entities against the same tool, it is not possible to provide an estimated actual standard for the 2009/10 financial year that is not potentially misleading. The quality standard is set out below.

Quality standard for visits management

Quality standard for visits management - Foreign Affairs and Trade
Quality Description
Policy Policy objectives for the visit clearly identified and expressed in concrete terms
Measurable results clearly identified before the visit
Objectives of the visit are consistent with the Ministry's strategic framework, or other relevant government priorities
High-level meetings have focused agendas structured around clear policy objectives
Interests of other agencies and, where relevant, other domestic stakeholders identified and provided for
High quality programme Good variety of events (not all meetings with government Ministers)
Level of access gained for calls is appropriate to the visitor
Programme includes well-targeted representational events
Accompanying groups (eg, business delegations) integrated into programme
The programme exploits opportunities to further broad NZ Inc interests
Programme leverages relationships with other organisations (eg civil society, diaspora groups)
Smooth logistics Logistical arrangements are planned in appropriate detail and are coherent
Execution of the logistics is effective, efficient, and consistent with the plan
Reasonable contingencies prepared for
Client-focused Visit arranged in accordance with Minister's preferences
Presentation of brief is consistent with Minister's preferences
Clear, succinct and well-structured brief
Brief contains all material likely to be required
Briefing opportunities provided for outgoing Ministers, both prior to and during the visit
Media and Communications Communications plan developed for the visit that maximises the broader impact of the visit
Risk management Risks around unexpected events are effectively prepared for both from a logistical perspective (eg, logistics failures) and a policy perspective (eg implications of cancellation on relationships)
Well reported Reporting is timely
Robust and objective assessment of visit against the desired results identified
Reporting covers all areas discussed (not necessarily in a single place)
Reporting format is appropriate and effective for the audience(s) it is aimed at
Reporting identifies opportunities to build on the outcomes of the visit

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice and Representation Other Countries (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
NZ Productivity Commission 2010/11 - (70) (140) (150) (150)
Capability Review to Support Organisational Change and Government Priorities 2010/11 - 329 403 133 90
Review of NZ Inc's Offshore Network 2009/10 961 520 422 413 370
Baseline Savings 2008/09 (4,890) (16,212) (26,239) (36,770) (36,770)
Agreed by Previous Government            
Funding Package for Response to Foreign Trade and Policy Changes 2007/08 67,131 84,537 98,086 113,633 113,633
Dili: Upgrading to Embassy Status 2007/08 1,946 1,963 1,963 1,963 1,963
Physical Security & Agency Accommodation 2007/08 (110) (110) (110) (110) (110)
Diplomatic Tools and Tradecraft 2006/07 1,324 1,324 1,324 1,324 1,324
Latin America Strategy Fund 2006/07 250 250 250 250 250
Security: Information Systems and Physical 2006/07 4,331 4,331 4,331 4,331 4,331
Cairo Post Operating Costs 2005/06 3,107 3,107 3,107 3,107 3,107
Chancery Costs: Other Government Agencies 2005/06 721 721 721 721 721
Crown Property Portfolio Transfer from Treasury 2005/06 8,409 8,409 8,409 8,409 8,409
Maximising Gains from Trade Negotiations 2005/06 2,494 2,494 2,494 2,494 2,494
Physical and Personnel Security Measures 2005/06 2,611 2,611 2,611 2,611 2,611
Regional Assistance Mission to the Solomon Islands Deputy Position 2005/06 287 287 287 287 287
Remuneration: Flow on Cost to Overseas Allowances 2005/06 1,903 1,903 1,903 1,903 1,903
Remuneration: Market Movement 2005/06 2,510 2,510 2,510 2,510 2,510
Tax on Overseas Conditions of Service 2005/06 32,471 32,471 32,471 32,471 32,471

Policy Advice and Representation - Other Countries PLA (M34)#

Scope of Appropriation

This appropriation is limited to meeting the costs, as set out in section 11 of the Foreign Affairs Act 1988, of superannuation for local staff employed by overseas posts to help with the management of New Zealand's foreign and trade relations with other countries.

Expenses and Revenue

Expenses and Revenue - Policy Advice and Representation Other Countries PLA (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 43 43 21
Revenue from Crown 43 43 21
Revenue from Other - - -

Reasons for Change in Appropriation

This appropriation will decrease by $22,000 to $21,000 for 2010/11. This decrease is the result of a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and Representation Other Countries PLA (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
New Zealand Government Superannuation Scheme for locally recruited staff in the United States of America financially viable. Fully funded Fully funded Fully funded

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Policy Advice and Representation Other Countries PLA (M34) - Foreign Affairs and Trade
Reference Conditions
Section 11 of the Foreign Affairs Act 1988. Limited to schemes approved by the Minister of Finance.

Promotional Activities - Other Countries (M34)#

Scope of Appropriation

The purchase of promoting New Zealand to other countries as an attractive market for trade and investment.

Expenses and Revenue

Expenses and Revenue - Promotional Activities Other Countries (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 680 680 500
Revenue from Crown 680 680 500
Revenue from Other - - -

Reasons for Change in Appropriation

This appropriation will decrease by $180,000 to $500,000 for 2010/11. The movement arises from:

  • an increase by $20,000 from a funding package for responses to foreign and trade policy changes
  • a decrease by $1,000 as a result of decisions arising from the baseline review
  • a decrease by $209,000 from a new structure for capturing direction of effort data and aligning this to departmental output expense appropriations
  • a one-off transfer of $3,000 in 2009/10 to the Ministry of Economic Development for the Rugby World Cup 2011 Office
  • an increase by $7,000 from a review of NZ Inc's Offshore Network

Output Performance Measures and Standards

Output Performance Measures and Standards - Promotional Activities Other Countries (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All activities are in conformity with Government objectives and criteria. 100% 100% 100%
All activities assessed as being of high quality by internal review 100% 100% 100%

Note - The Ministry has maintained these measures for the 2010/11 financial year. Development of a more robust measurement methodology will be part of ongoing efforts to further develop the Ministry's performance measures.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Promotional Activities Other Countries (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Review of NZ Inc's Offshore Network 2009/10 (7) - - - -
Baseline Savings 2008/09 (13) (14) (35) (45) (45)
Agreed by Previous Government            
Funding Package for Response to Foreign Trade and Policy Changes 2008/09 38 58 76 95 95
Remuneration: Flow on Cost to Overseas Allowances 2005/06 4 4 4 4 4
Remuneration: Market Movement 2005/06 5 5 5 5 5

Services for Other New Zealand Agencies Overseas (M34)#

Scope of Appropriation

The purchase of accommodation and support services by other New Zealand agencies.

Expenses and Revenue

Expenses and Revenue - Services for Other New Zealand Agencies Overseas (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,081 14,081 13,599
Revenue from Crown - - -
Revenue from Other 14,081 14,081 13,599

Reasons for Change in Appropriation

This appropriation will decrease by $482,000 to $13.599 million for 2010/11. This movement arises from:

  • a decrease by $389,000 from foreign exchange and overseas inflation movements
  • a decrease by $93,000 in the level of services purchased by other departments and agencies

Output Performance Measures and Standards

Output Performance Measures and Standards - Services for Other New Zealand Agencies Overseas (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of seconded staff from other government agencies collocated in Ministry posts offshore (see Note 1) - 94 96
Number of locations providing services on behalf of other government agencies (see Note 2) - 46 46
Percentage of respondents rating the Ministry's service performance as 4 or better on a scale of 1-5 (see Note 3)   See Note 80%

Note 1 - Other government agencies co-located at Ministry posts offshore are New Zealand Trade and Enterprise, the New Zealand Defence Force, Immigration New Zealand, Tourism New Zealand, Customs, Police, the Ministry of Education, the Ministry of Research, Science and Technology, the Ministry of Agriculture and Forestry, and Treasury.

Note 2 - The Ministry provides services directly for the Department of Internal Affairs, and for Immigration New Zealand.

Note 3 - The assessment tool will be a survey of partners who receive services from the Ministry. The survey has yet to be designed in detail and therefore the percentage target is nominal. The measure may need to be updated in supplementary information if it is not possible to develop an assessment model that produces a measure of this nature. Because the target is not based on an understanding of past performance or the performance of other entities against the same tool, it is not possible to provide an estimated actual standard for the 2009/10 financial year that is not potentially misleading.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Services for Other New Zealand Agencies Overseas (M34) - Foreign Affairs and Trade
Reference Conditions
Agency Agreements Agency agreements set out the services to be provided and any other conditions on their provision as agreed with the agency concerned.

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Foreign Affairs and Trade
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Enhanced New Zealand Antarctic scientific research and strategic programme of national Antarctic activities. Antarctic Research and Support.
Outcome: Mutual understanding and constructive linkages between New Zealanders and Pacific peoples. Pacific Cooperation Foundation.
Outcome: Improved knowledge among New Zealanders about Asian countries and the development of the necessary skills required by New Zealanders in their dealings with Asia. Promotion of Asian Skills and Relationships.

Antarctic Research and Support (M34)

Scope of Appropriation

Provision of management and logistic support for New Zealand activities in the Antarctic. The provider is the New Zealand Antarctic Institute.

Expenses

Expenses - Antarctic Research and Support (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,468 12,468 13,168

Reasons for Change in Appropriation

This appropriation will increase by $700,000 to $13.168 million for 2010/11. This movement arises from:

  • a decrease of $50,000 for administrative support for Antarctica New Zealand's candidate vacating the Chair of the Antarctic Treaty's Committee for Environmental Protection
  • an increase of $750,000 from an expense transfer to fund the International Trans-Antarctic Scientific Experiment (ITASE).

Output Performance Measures and Standards

Output Performance Measures and Standards - Antarctic Research and Support (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Proportion of New Zealand's Antarctic programme allocated to science (based on numbers of people travelling to Antarctica with the Programme) 45% 45% 45%
Number of peer-reviewed scientific papers produced by Antarctica New Zealand supported researchers At least 70 publications At least 60 publications At least 70 publications
Number of times scientific papers published over past 6 years, produced by Antarctica New Zealand supported researchers, are cited in other scientific papers At least 900 citations At least 900 citations At least 900 citations

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Antarctic Research and Support (M34) - Foreign Affairs and Trade
Reference Conditions
Output Agreement between the Minister and NZAI Outputs delivered by agreed target dates and as specified in the Output Agreement between the Minister and NZAI

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Antarctic Research and Support (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Previous Government            
NZAI: Implementing Wind Energy Technology at Scott Base 2008/09 320 320 320 320 320
Maintaining Antarctic Logistics Support Capability 2007/08 1,600 1,600 1,600 1,600 1,600
Antarctic Aircraft and Helicopter Operations 2006/07 762 762 762 762 762
Capital Expenditure Programme Flow-on Costs for Antarctic Operations 2006/07 400 400 400 400 400
International Influence and Leadership 2006/07 50 - - - -
Logistical Support for ITASE Project 2006/07 500 500 500 500 500
Existing Output Cost Pressures 2005/06 880 880 880 880 880

Pacific Cooperation Foundation (M34)#

Scope of Appropriation

The promotion of mutual understanding and constructive linkages between New Zealanders and the other countries and people of the Pacific. The provider is the Pacific Cooperation Foundation of New Zealand.

Expenses

Expenses - Pacific Cooperation Foundation (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,400 1,400 1,400

Output Performance Measures and Standards

Output Performance Measures and Standards - Pacific Cooperation Foundation (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Promoting economic sustainability in the Pacific      
  • Market research including baseline consumer research on quality perceptions
N/A Increase in awareness of Pacific products and perceptions of quality to 16% Increase in awareness of Pacific products and perceptions of quality to 16%
  • Stakeholder engagement and scoping
N/A Increase in awareness of Pacific products and perceptions of quality to 16% Increase in awareness of Pacific products and perceptions of quality to 16%
  • Developing a quality assurance model for the Pacific brand
N/A Continued development of framework and specific measures developed in two sectors Continued development of framework and specific measures developed in two sectors
Fostering understanding of the Pacific      
  • Increased engagement with the Pacific including Track II, young leaders network and other linkages
N/A Continued development of programmes Continued development of programmes
  • Engaging and supporting communities and institutions in the region
N/A Continued development of programmes Continued development of programmes
  • Capacity building for labour mobility and Maori/Pacific connections
N/A Continued development of programmes Continued development of programmes

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Pacific Cooperation Foundation (M34) - Foreign Affairs and Trade
Reference Conditions
2009/10 Purchase Agreement Outputs delivered by agreed target dates and as specified in the Purchase Agreement between the Minister and Pacific Cooperation Foundation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Pacific Cooperation Foundation (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Previous Government            
Increase in Baseline Funding 2008/09 1,400 1,400 1,400 1,400 1,400

Promotion of Asian Skills and Relationships (M34)#

Scope of Appropriation

This appropriation is limited to the provision of services that build and sustain New Zealanders' knowledge and understanding of and relationships with Asia.

Expenses

Expenses - Promotion of Asian Skills and Relationships (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,000 2,000 4,000

Reasons for Change in Appropriation

This appropriation will increase by $2 million to $4 million for 2010/11. This movement arises from an increase in baseline funding for the Foundation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Promotion of Asian Skills and Relationships (M34) - Foreign Affairs and Trade
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Level of Asia literacy and engagement with Asia by Foundation constituents (Surveying). 74% >74% Increase on scale
Level of New Zealand public awareness of the importance of Asia to New Zealand (Social Research). 75% 81% Increase on scale
Greater focus on supporting New Zealand's trade and economic interests in Asia, including regional economic integration objectives. N/A Increased programme activity supporting trade and economic objectives Increased programme activity supporting trade and economic objectives
Government priorities in Asia supported through Foundation programmes (Stakeholder satisfaction with consultation processes and alignment of programmes in support of Government priorities on scale of 1 = not satisfactory to 5 = very satisfactory). Increase on scale Increase on scale Average of results 3 or higher

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Promotion of Asian Skills and Relationships (M34) - Foreign Affairs and Trade
Reference Conditions
Output Agreement between the Minister and Asia New Zealand Foundation. Outputs delivered by agreed target dates and as specified in the Output Agreement between the Minister and Asia New Zealand Foundation.
2007 Review. Continued monitoring by MFAT of Foundation progress in implementing review recommendations. Minister of Foreign Affairs to update Cabinet as necessary.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Promotion of Asian Skills and Relationships (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Increase in Baseline Funding 2009/10 453 2,453 2,453 2,453 2,453

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Foreign Affairs and Trade
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Crown entities          
New Zealand Antarctic Institute 12,468 12,468 13,168 Provider's annual report on-going
Other entities controlled by the Crown          
Asia New Zealand Foundation 2,000 2,000 4,000 Provider's statement of service performance on-going
Pacific Cooperation Foundation 1,400 1,400 1,400 Provider's statement of service performance on-going

The above table summarises funding to be allocated through Vote Foreign Affairs and Trade 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 - Foreign Affairs and Trade
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Transboundary solutions and effective international rules promoted.  
Impact: Meet New Zealand's obligations to contribute to the funding of international organisations and therefore encourage others to meet their similar obligations. Subscriptions to International Organisations.
Impact: To comply with New Zealand's legal obligations under the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations and therefore encourage others to meet their obligations to New Zealand. Disbursements Made and Exemptions from Taxation.

Disbursements Made and Exemptions from Taxation PLA (M34)

Scope of Appropriation

Refund of New Zealand local body rates for offices and residential premises of overseas diplomatic missions and consular posts pursuant to section 21 of the Diplomatic Privileges and Immunities Act 1968.

Expenses

Expenses - Disbursements Made and Exemptions from Taxation PLA (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,150 1,150 1,150

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Disbursements Made and Exemptions from Taxation PLA (M34) - Foreign Affairs and Trade
Reference Conditions
Diplomatic Privileges and Immunities Act 1968 Approval of Minister of Finance and Minister of Foreign Affairs.

Subscriptions to International Organisations (M34)#

Scope of Appropriation

This appropriation is limited to non-discretionary payments required as formal obligations arising from New Zealand's membership of international organisations, and as a signatory to international treaties and conventions.

Expenses

Expenses - Subscriptions to International Organisations (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 51,288 51,288 56,688
Comprising:      
  • Asia Pacific Economic Cooperation Business Advisory Council
16 16 17
  • Asia Pacific Economic Cooperation Pacific Economic Cooperation Council
65 65 63
  • Asia Pacific Economic Cooperation Secretariat
210 210 195
  • Biological Weapons Convention
5 5 4
  • Chemical Weapons Convention
348 348 367
  • Climate Change in Developing Countries
1,900 1,900 1,900
  • Commonwealth Foundation
195 195 166
  • Commonwealth Secretariat
855 855 724
  • Conservation of Antarctic Marine Living Resources
162 162 158
  • Comprehensive Test Ban Treaty
465 465 470
  • Conservation of Southern Hemisphere Albatross
26 26 26
  • Convention to Combat Desertification
38 38 27
  • Export Control for Arms & Ammunition
10 10 10
  • Global Environment Facility
3,312 3,312 3,312
  • Inhumane Weapons Convention
2 2 2
  • International Atomic Energy Agency
1,604 1,604 1,559
  • International Criminal Court
766 766 728
  • International Humanitarian Fact Finding Mission
2 2 2
  • International Seabed Authority
28 28 28
  • International Whaling Commission
62 62 61
  • Law of the Sea Conference
55 55 57
  • NZ/US Education Foundation
578 578 578
  • Organisation for Economic Cooperation and Development
2,072 2,072 2,234
  • Organisation of International Vinters
37 37 35
  • Ottawa Mine Ban Convention
3 3 3
  • Permanent Court of Arbitration
11 11 13
  • Secretariat for the Antarctic Treaty
60 60 60
  • South Pacific Regional Environment Programme Noumea Convention
9 9 9
  • Treaty on the Non-Proliferation of Nuclear Weapons
10 10 11
  • World Trade Organisation
637 637 704
  • United Nations Subscription
8,939 8,939 11,770
  • United Nations Peacekeeping Operations
28,806 28,806 31,395

Reasons for Change in Appropriation

This appropriation will increase by $5.400 million to $56.688 million for 2010/11. This movement arises from increased payments for Subscriptions to International Organisations due to increases in payments to the United Nations for its regular budget assessment and for UN peacekeeping missions mandated by the Security Council.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Subscriptions to International Organisations (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Global Environment Facility 2009/10 500 - - - -
Agreed by Previous Government            
Global Environment Fund 2006/07 1,215 1,215 1,215 1,215 1,215
Environment: Climate Change in Developing Countries 2005/06 1,900 1,900 1,900 1,900 1,900
US/NZ Education Foundation 2005/06 133 133 133 133 133

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Foreign Affairs and Trade
Appropriation Reporting Mechanism
Disbursements Made, Exemptions from Taxation, etc Not required
Subscriptions to International Organisations Not required

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 - Foreign Affairs and Trade
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: To maintain and upgrade capability through replacement and development of property, furniture & fittings, equipment, vehicles, computer hardware and software. Ministry of Foreign Affairs and Trade - Capital Expenditure

Ministry of Foreign Affairs and Trade - Capital Expenditure PLA (M34)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry of Foreign Affairs and Trade Capital Expenditure PLA (M34) - Foreign Affairs and Trade
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 27,659 27,659 58,769
Intangibles 4,800 4,800 7,329
Other - - -

Total Appropriation

32,459 32,459 66,098
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 27,659 27,659 58,769
Intangibles 4,800 4,800 7,329
Other - - -

Total Appropriation

32,459 32,459 66,098

Reasons for Change in Appropriation

This appropriation will increase by $33.639 million to $66.098 million for 2010/11. Capital spending has been re-phased to future years due to delays in starting, progressing and completing various capital projects.

Performance Information for Appropriations Vote Official Development Assistance#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Foreign Affairs (M34)

ADMINISTERING DEPARTMENT: Ministry of Foreign Affairs and Trade

MINISTER RESPONSIBLE FOR MINISTRY OF FOREIGN AFFAIRS AND TRADE: Minister of Foreign Affairs

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Foreign Affairs is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

  • A total of nearly $30 million for Management of the Official Development Assistance (ODA) Programme.
  • A total of nearly $10 million for Strategic Advice and Evaluation.
  • A total of $97 million for contributions to international organisations.
  • A total of nearly $33 million for contributions to non-government organisations.
  • A total of over $103 million from the multi-year appropriation for Global Development Assistance.
  • A total of nearly $252 million from the multi-year appropriation for Pacific Development Assistance.

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

Government Priorities and Outcomes - Links to Appropriations - Official Development Assistance
Government Priorities Government Outcomes Appropriations
Work with Pacific nations to grow their economies Sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world Management of ODA Programme
Strategic Advice and Evaluation
Global Development Assistance
International Agency Funding
Pacific Development Assistance
New Zealand Voluntary Agency Grants

Summary of Financial Activity

Summary of Financial Activity - Official Development Assistance
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 23,353 26,116 30,626 37,334 38,695 38,695 39,563 - 39,563 40,273 40,930 40,930
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 324,555 330,229 361,682 461,234 483,802 483,802 - 484,967 484,967 509,257 558,600 558,600
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

347,908 356,345 392,308 498,568 522,497 522,497 39,563 484,967 524,530 549,530 599,530 599,530

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

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

New Policy Initiatives

Budget Policy Intiatives - Official Development Assistance
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Capability Review to Support Organisational Change and Government Priorities Management of ODA Programme (M34) - 268 277 299 309
  Departmental Output Expenses          
  Strategic Evaluation and Advice(M34) - (268) (277) (299) (309)
  Departmental Output Expenses          
Funding for Development Advisor - Bamyan Province, Afghanistan Management of ODA Programme (M34) 156 513 463 - -
  Departmental Output Expenses          
  Strategic Evaluation and Advice (M34) 44 145 130 - -
  Departmental Output Expenses          
  Global Development Assistance MYA (M34) (200) (658) (593) - -
  Other Expenses to be Incurred by the Crown          
Total Initiatives   - - - - -

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote ODA are discussed briefly below:

Trends in total voted and actual expenses
The Trends in total voted and actual expenses chart is a Bar chart. Sourced from MFAT. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Figure 1 - Trends in total voted and Actual expenses and its values are: 2005 2006  Actual 347908 million, 2006 2007  Actual 356345 million, 2007 2008  Actual 392308 million, 2008 2009  Actual 498568 million, 2009 2010  Estimated 522497 million, 2010 2011  Estimated 524530 million, 2011 2012  Estimated 549530 million, 2012 2013  Estimated 599530 million, 2013 2014  Estimated 599530 million.
Source: MFAT

Total Vote expenses have increased from $347.908 million in 2005/06 to $524.530 million in 2010/11, an increase of $176.622 million. This is due to an increase of $160.412 million for Official Development Assistance programmes and an additional $16.210 million departmental output expense for managing the increased programmes.

Departmental Output Expenses

Departmental Output Expenses
The Trends in departmental output expenses chart is a Bar chart. Sourced from Ministry of Foreign Affairs and Trade. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Trends in departmental output expenses and its values are: 2005 2006  Actual 23353 million, 2006 2007  Actual 26116 million, 2007 2008  Actual 30626 million, 2008 2009  Actual 37334 million, 2009 2010  Estimated 38695 million, 2010 2011  Estimated 39563 million, 2011 2012  Estimated 40273 million, 2012 2013  Estimated 40930 million, 2013 2014  Estimated 40930 million.
Source: Ministry of Foreign Affairs and Trade

Output expenses have increased from $23.353 million in 2005/2006 to $39.563 million in 2010/11 providing additional capability to effectively manage the increased level of Official Development Assistance during this period. The rate of increase has now slowed with the expectation of reducing departmental output expenses as a percentage of ODA expenditure.

Performance Improvement Actions

The Ministry of Foreign Affairs and Trade's Performance Improvement Actions relevant to this Vote are aimed at improving the value for money and effectiveness of ODA. They are:

Short Term Deliverables:

  • Line by line review of departmental costs to verify the cost effectiveness of ODA delivery.
  • Opportunities identified to improve cost-effectiveness in planning, monitoring and evaluation.
  • Progressive shift in the ratio of ODA going from small, administratively expensive aid projects to larger, higher impact, more comprehensive initiatives.
  • Securing the services of sufficient suitably qualified staff and consultants with commercial management capabilities to manage the increasing number of aid activities requiring such expertise.

Medium Term Impact Measures:

  • The percentage of ODA required to administer aid activities reduces by at least 12% between 2009/10 and 2012/13 (a saving of at least $6 million per annum from 2012/13).
  • ODA activities show year on year increases in median size and year on year decreases in the number of activities managed.

Progress to date:

  • The number of activities managed through ODA has reduced by 9% from more than 854 in 2007/08 to around 776 in 2009/10 and the median size of activities has increased marginally over the same period by 18% from $114,000 to $135,000.
  • MFAT is in the first of a four year programme to reduce the percentage of ODA required to administer aid activities by 12%. To date, MFAT has achieved a reduction of 3%.
  • The reintegration of NZAID into the Ministry has seen a reduction in 'back office' corporate support costs for the International Development Group of the Ministry of around 23% on a budget of $2.04 million.
  • A line by line review of departmental costs will take place before 30 June 2010.
  • Options are currently being developed to grow commercial and economic development expertise within the International Development Group of the Ministry.

Non-Departmental Other Expenses to be Incurred by the Crown

Non-Departmental Other Expenses to be Incurred by the Crown
The Trends in non-departmental other expenses to be incurred by the Crown chart is a Bar chart. Sourced from Ministry of Foreign Affairs and Trade. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Trends in non-departmental other expenses to be incurred by the Crown and its values are: 2005 2006  Actual 324555 million, 2006 2007  Actual 330229 million, 2007 2008  Actual 361682 million, 2008 2009  Actual 461234 million, 2009 2010  Estimated 483802 million, 2010 2011  Estimated 484967 million, 2011 2012  Estimated 509257 million, 2012 2013  Estimated 558600 million, 2013 2014  Estimated 558600 million.
Source: Ministry of Foreign Affairs and Trade

The appropriations for other expenses consist of two multi-year appropriations and two annual appropriations. While both appropriation types have increased over recent years, the multi-year appropriations received greater increases as New Zealand increased Vote ODA progressively to achieve previously agreed ODA: GNI targets. From 2009/10 budget increases for Vote ODA are based on performance and delivery of outcomes, rather than ODA: GNI targets.

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 - Official Development Assistance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and just world
Impact: More prosperous, secure and equitable Pacific Island Countries
Impact: An effective NZ response to international emergencies in developing countries outside the Pacific, including social and economic recovery, with NZ's international relationships strengthened as a result of its ODA interventions
Impact: Enhanced sustainable development in Asia, Africa and Latin America, with NZ's international relationships strengthened as a result of its ODA interventions
Impact: A multilateral system which is able to effectively and accountably address global issues such as food security, global economic crisis and climate change
Impact: Effective contributions by NZ NGOs to sustainable development, reducing poverty and responding to humanitarian crises overseas
Management of ODA Programme
Strategic Advice and Evaluation

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see Part 5.2 "Non-Departmental Other Expenses"; and the Statement of Intent for the Ministry of Foreign Affairs and Trade.

Management of Official Development Assistance Programme (M34)

Scope of Appropriation

The purchase of the design and management of development assistance programmes, including the procurement, contract management and monitoring of development activities within programmes.

Expenses and Revenue

Expenses and Revenue - Management of Official Development Assistance Programme (M34) - Official Development Assistance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 29,307 29,307 29,859
Revenue from Crown 29,226 29,226 29,743
Revenue from Other 81 81 116

Reasons for Change in Appropriation

This appropriation increase of $552,000 is due to the reprioritisation of capability and the appointment of a development advisor in Afghanistan.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Official Development Assistance Programme (M34) - Official Development Assistance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Number of Programmes administered 33 33 30-32
Volume of Crown ODA resources administered $483.8m $483.8m $484.9m
Quality      
Percentage of activities rated 4 or higher on a scale of 1-5 by review against the Ministry's quality standard for programme management - (see Note 1) 80%
Feedback from programme partners on NZAID engagement Expectations met Expectations met 90% or more of partners report expectations met
Amount and proportion of sector-allocable ODA directed primarily to sustainable economic development (see Note 2) Increasing from $51.9m and 28% $74.4m and 29% $90.0m and 30%
Number of activities (see Note 3) Decreasing from 882 780 750 or less
Median annual activity expense (see Note 3) Increasing from $119,535 $135,000 $150,000 or more
Percentage of the value of ODA delivered using high order aid modalities (see Note 4) Increasing from 54% 48% 55% or more
Progress towards the Paris Declaration 2010 targets for aid effectiveness (see Note 4) Further progress Key targets will not be met Progress
Percentage of activity payments on time 100% 91% 95%

Note 1 - The quality standard for programme management (set out below) is new and is expected to undergo revision. It is not possible to provide an estimated actual standard of performance for the current year, because no similar or comparable measure has been taken. The target represents a service level the Ministry hopes it is already meeting.

Note 2 - The New Zealand aid programme received a new mandate in 2009 requiring a change of focus to sectors directly supporting sustainable economic development. The Ministry's ability to identify and manage new, effective and efficient ODA activities in these sectors is a significant indicator of the quality of this departmental output. From calendar year 2008 to 2009 the percentage increased from 24% to 29%.

Note 3 - A key threat to the effectiveness of ODA has been identified as "fragmentation" of the programme into a large number of small activities. The Ministry's ability to identify and manage a smaller number of larger activities is a key indicator of the quality of this departmental output. One of the Ministry's Performance Improvement Actions is to pursue a progressive shift in the ratio of ODA going from small, administratively expensive aid projects to larger, higher impact, more comprehensive initiatives.

Note 4 - Research internationally has shown that aid is most effective and has sustainable benefits when it can be delivered through long-term commitments to partner country programmes and priorities, using partner systems and priorities whenever possible. For example, research by the United Kingdom Department for International Development, and available on its website, has shown value for money improves by 20% when such approaches are used. Such approaches are described in MFAT as "high order aid modalities". A number of related indicators are specified in the Paris Declaration on Aid Effectiveness, to which all OECD donors and many other countries and institutions are committed. The Ministry's ability to manage ODA in accordance with this internationally agreed best practice is a key indicator of the quality of this departmental output. The Ministry is a world leader in systematically tracking these indicators, but data quality remains variable and for the first few years this indicator is used results should be used with caution. While the budget standard given above is for "progress" for the sake of space, a more detailed set of quantitative targets is provided in the Paris Declaration itself. These more detailed targets are used as the basis of reporting. For example, there is a target for the use of "programme-based approaches" to reach 66% of expenditure of bilateral aid to the public sector aid; and for use of partner financial and procurement systems to increase to around 80% (exact targets depending on the 2005 baseline).

Quality standard for programme management - programme level
Quality Standard for programme management - programme level - Official Development Assistance
Quality Description
Good programme strategic framework Programme strategy or framework is up to date or delayed for reasons outside MFAT control.
Strategy was developed in a fashion consistent with NZAID guidelines and standards, including adequate process and recognition of partner priorities.
Content of strategy is consistent with the guidelines eg context, rationale, alignment with partner plans, well defined objectives, process for monitoring and evaluation, links with higher level strategies, implementation of Paris Declaration, etc.
Strategy is consistent with latest NZ Government policy or there is a clear interim statement of strategy and policy that outlines necessary adjustments in focus and approach.
Programme is consistent with the strategy and Government policy Activities and policy engagement within the Programme form a coherent whole and are consistent with the Strategy (eg sectoral focus; use of aid modality; sticking to key policy messages), or evidence of sound reasons for divergence.
Programme annual plan is complete and being referred to by staff to guide actions and priorities.
Programme is flexible and responsive to changing circumstances and policy, without becoming ad hoc and unfocused.
Programme risk identified and managed.
Evidence-based decision-making that manages for results and uses monitoring and evaluation information for the programme as a whole Programme has a sound results framework or equivalent (eg monitoring and evaluation framework; mutual accountability arrangements) in place and it is being used.
Degree to which latest programme annual report is evidence-based and complete.
Evidence that action is being taken to address issues raised in monitoring and evaluation and reviews.
Involves partners well Evidence partners involved as appropriate in key programme decision-making (eg Forward Aid Programme, strategy development, activity planning, programme talks and consultations minuted).
Evidence of efforts towards improved co-ordination and harmonisation with other donors, where relevant.
Manages contracts and expenditure well at programme level Contract management spreadsheet is up to date and consistent with Contract Management Roles and Responsibilities Tool.
Expenditure is on track against plan.
Financial management deadlines are met.
Quality standard for programme management - activity level
Quality standard for programme management - activity level - Official Development Assistance
Quality Description
Well managed planning Evidence that the planning process met relevant guidelines including the Tools on Activity design and appraisal.
Evidence that the Activity met necessary quality standards before it was approved, or clear documentation why this wasn't necessary.
Adequate financial controls, documentation of business case and use of systems including contract management Authority to spend funds (PAA) is complete on the Activity Management System (AMS), expresses the business case well, and is consistent with the PAA Quality Standards Tool.
Contracting or grant arrangement was consistent with procurement, contracts and grants policies.
Payments are as per contracts; acquittals meet conditions; payments do not exceed authorisation.
Statistics fields in the AMS complete and consistent with guidance.
Evaluative approach that uses feedback and draws on knowledge Evidence the Ministry is taking action where necessary in response to issues raised by monitoring and evaluation.
The Ministry has a good understanding of "where the Activity is at" eg documentation on the file of the activity manager's assessment of activity progress and quality including information on relevance, effectiveness, efficiency and likely impact and sustainability.
Reporting from the partner meets the requirements in the Activity Reporting Tool; or evidence that the Ministry is actively managing the partner to meet those requirements.
Risks are being monitored and managed in accordance with current guidelines.
Evidence specialist expertise sought when necessary and advice taken into account in management.
Involves partners constructively Evidence the Ministry is working constructively with partners to improve the Activity outcomes, including other donors where relevant.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Official Development Assistance Programme (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Capability Review to Support Organisational Change and Government Priorities 2010/11 - 268 277 299 309
Funding for Development Advisor - Bamyan Province, Afghanistan 2009/10 156 513 463 - -
Changes to New Zealand's Official Development Assistance funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI 2009/10 (4,834) (5,021) (4,328) (3,391) (3,391)
Agreed by Previous Government            
Increase to New Zealand's Official Development Programme 2005/06 16,867 17,550 17,550 17,550 17,550

Strategic Evaluation and Advice (M34)#

Scope of Appropriation

This appropriation is limited to the work and advice necessary to improve the overall effectiveness of development assistance, comprising international development research, evaluation of Official Development Assistance (ODA) programmes and activities, analysis and consultation leading to the development of ODA strategies and policies, the provision of advice on international development issues, and Ministerial services.

Expenses and Revenue

Expenses and Revenue - Strategic Evaluation and Advice (M34) - Official Development Assistance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,388 9,388 9,704
Revenue from Crown 9,365 9,365 9,671
Revenue from Other 23 23 33

Reasons for Change in Appropriation

This appropriation increase of $316,000 is due to the appointment of a development advisor in Afghanistan and additional funding to monitor the increasing size of development assistance programmes arising from increased ODA.

Output Performance Measures and Standards

Output Performance Measures and Standards - Strategic Evaluation and Advice (M34) - Official Development Assistance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
Revision or development of programme strategies (see Note 1) At least 4 At least 4 At least 4
Policy papers and submissions produced for Ministers or Cabinet under this output expense class - 146 120-160
Evaluations or activity reviews (see Note 2) At least 20 Approximately 30 25-30
Quality      
Percentage of policy advice rated as 4 or better on a scale of 1-5 by external review against the Ministry's quality standard for analysis and advice (see Note 3) - (see Note 3) 80%
Reviews and evaluations comply with good practice guidelines 100% 50% (see Note 4) 70%
Programme strategies that are up to date as per the schedule of reviews and revisions (see Note 1) 100% (with numbers reported) 80% 100% (with numbers reported)
Ministerial Services (see Note 5)      
Number of Ministerial letters prepared - 162 As per demand - expect 150 - 200
Number of Official Information Act request (OIA) responses provided - 29 As per demand - expect 10 - 30
Number of Parliamentary Question responses provided - 18 As per demand - expect 20 - 40
Percentage of ministerial correspondence completed within 10 working days 100% 54% (see Note 6) 90%
Percentage of ministerial correspondence accepted without amendments - 98% 95%
Percentage of OIA requests completed within 20 working days - 65% 70%
Percentage of OIA requests completed within 40 working days - 100% 95%

Note 1 - Each of the 30-33 ODA programmes administered by the Ministry is governed by a strategic framework e.g. the "Samoa Country Strategy". Keeping these strategic frameworks up to date, reflecting New Zealand government policy and partner priorities is important for achieving development results and is an indicator of the quality of the Ministry's strategic evaluation and advice on the aid programme. The Ministry's 2008/09 Annual Report noted that 7 out of 33 programmes were overdue for new strategies and that the issue was being addressed urgently.

Note 2 - An important component of the Ministry's strategic evaluation and advice on ODA is the commissioning and management of reviews and evaluations of individual ODA activities and of thematic or sectoral issues. The results of these reviews and evaluations are used to improve programme management, and also inform the MFAT Annual Report. The Ministry's evaluation strategy includes intentions to increase the focus on monitoring while decreasing the number of reviews. The number of evaluations is expected to stay relatively static. Hence the number of reviews and evaluations, while a good indicator of the quantity of output, is not necessarily a "more is better" situation. Reviews and evaluations are available from the NZAID website.

Note 3 - A detailed assessment tool for policy advice is yet to be fully developed. The percentage target is therefore nominal. The measure may need to be updated in supplementary information if it is not possible to develop an assessment model that produces a measure of this nature. Because the target is not based on an understanding of past performance or the performance of other entities against the same tool, it is not possible to provide an estimated actual standard for the 2009/10 financial year that is not potentially misleading.

Note 4 - This indicator refers to the quality of the reviews and evaluations, commissioned by MFAT, of NZAID programmes and activities. Most reviews and evaluations are at the activity (eg project) level. Monitoring, review and evaluation of NZAID activities are vital sources of the information on contribution to outcomes and value for money in the Ministry's Annual Report. They are also essential for identifying and learning lessons and improving effectiveness and efficiency. Because of this, the quality of the Ministry's evaluation processes is an important indicator of the quality of the Ministry's overall management of ODA and is carefully monitored. Since careful, rigourous monitoring began it has become clear that the eventual target of 100% compliance with good practice standards for evaluations is not realistic in the short term; hence the 2010/11 target has been reduced to seventy percent, already a significant improvement from estimated current quality. The quality of reviews and evaluations improved in 2008 compared with previous years. Forty-one percent of the 2008 evaluations and reviews were assessed as "satisfactory or good in all or many respects" compared with 22 percent in 2007. The figure provided for 2009/10 in the table above is only a rough estimate.

Note 5 - Quantity measures for Ministerial services are demand driven.

Note 6 - In 2008/09 it was discovered that less than half of replies to Ministerial correspondence were delivered to the Minister's office within the 10 working day deadline, with the median late period eight days. The issue is receiving management attention, and this indicator has been selected as a suitable proxy of overall timeliness of Ministerial services.

Quality standard for analysis and advice

Quality standard for analysis and advice - Official Development Assistance
Quality Description
Analytically rigorous
Robust reasoning and logic Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. We come to a conclusion and give action-oriented recommendations.
Evidence-based Analysis is supported by relevant evidence. All material facts are present and accurate and based on reliable reporting, research, or other appropriate information. Known gaps that could significantly affect the conclusions are identified and the range of uncertainty stated. We draw on experience of current and past policy interventions and, where relevant, the experience of other countries. In-house experience harnessed.
Innovative Advice takes into account recent literature and thinking in the field. Advice does not rely on a stock set of responses to problems. Advice endeavours to contribute to intellectual leadership on the issue.
Free and frank Honest, impartial and politically neutral. We have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating.
Set in a wider strategic context
Strategic Advice is set in the context of the Ministry's medium term goals and government priorities, and informed by a strategic view about what is important. Connections across policy issues are made, including to areas of work undertaken by other agencies. Advice considers the long-term implications of decisions, and provides a perspective that goes beyond immediate impacts. Interactions with other foreign policy goals identified. Risks and where possible mitigation options are identified.
Engagement Evidence of thorough and timely engagement with other government departments and interested parties is presented, and their views, including objections, incorporated as appropriate.
Practical Issues of implementation, technical feasibility, practicality and timing are considered. Costs, including resource implications, of options are identified. Advice accurately identifies compliance, transitional, legal, machinery of government, political, legislative, Treaty of Waitangi, or other issues or risks that require management.
Perspectives of wider stakeholders We understand and advise Ministers on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate.
Customer-focussed and persuasive
Presentation
  • Material is presented to suit the target audience and:
  • is concise and structured in a way which assists others to understand the aim of the advice, key features of the information, analysis and recommendations, and their key implications
  • uses appropriate language and style
  • avoids cliches and technical jargon (or where the latter is not possible, it is used appropriately for a general audience), and
  • is consistent with departmental and Cabinet Office presentation requirements.
Timely Advice is provided with sufficient lead time to materially affect the issue advice is being provided on, even if that means at times providing advice that is not fully developed.
Politically aware Advice demonstrates awareness of the wider environment and political situation. Advice recognises choices and constraints Ministers face, and includes a range of options to address those.
Solutions-focussed We are proactive, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forwards and includes a range of practical options.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strategic Evaluation and Advice (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by Current Government            
Capability Review to Support Organisational Change and Government Priorities 2010/11 - (268) (277) (299) (309)
Funding for Development Advisor - Bamyan Province, Afghanistan 2009/10 44 145 130 - -
Changes to New Zealand's Official Development Assistance funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI 2009/10 (1,679) (1,674) (1,443) (1,130) (1,130)
Agreed by Previous Government            
Increase to New Zealand's Official Development Programme 2005/06 6,456 6,563 6,563 6,563 6,563

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 - Official Development Assistance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and just world Global Development Assistance
Impact: More prosperous, secure and equitable Pacific Island Countries New Zealand Voluntary Agency Grants
Impact: An effective NZ response to international emergencies in developing countries outside the Pacific, including social and economic recovery, with NZ's international relationships strengthened as a result of its ODA interventions Pacific Development Assistance
Impact: Enhanced sustainable development in Asia, Africa and Latin America, with NZ's international relationships strengthened as a result of its ODA interventions  
Impact: A multilateral system which is able to effectively and accountably address global issues such as food security, global economic crisis and climate change  
Impact: Effective contributions by NZ NGOs to sustainable development, reducing poverty and responding to humanitarian crises overseas  

The impacts and outcome of these appropriations are measured by the Ministry of Foreign Affairs and Trade (MFAT) using a performance reporting framework that assists in the management of Official Development Assistance (ODA). The four appropriations are managed through 30-32 programmes (such as the Samoa programme, the Pacific Growth programme, or the multilateral agencies programme), each of which has a strategic framework that specifies appropriate objectives and development outcomes. Progress towards these programme objectives and the contribution of New Zealand's ODA is monitored and rated annually, with results printed in the MFAT Annual Report.

Each of the programmes consists of a number of ODA activities, of which there are around 780 in total. Each of these activities has its own objectives and monitoring and evaluation arrangements. There are extensive reporting obligations for MFAT's implementing partners and a requirement that MFAT regularly assess progress and quality of the activities it administers. Results, including from MFAT's reviews and evaluations of activities, are reported in aggregate in the MFAT Annual Report.

The Annual Report provides information against the following indicators of contribution to outcomes:

  • Progress towards economic and human development targets for key partner countries.
  • Progress towards the internationally-agreed Millennium Development Goals for key partners.
  • Progress towards outcomes identified in programme strategies, including the percentage of objectives rated excellent, good, adequate and unsatisfactory; and representative examples of objectives with each rati