Information supporting the estimates of appropriations

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

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

Formats and related files

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

 

Chapters of the External Sector volume of the Information Supporting the Estimates 2008/09 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 Foreign Affairs and Trade
  • Vote Official Development Assistance
  • Vote Defence
  • Vote Defence Force
  • Vote Veterans' Affairs - Defence Force
  • Vote Customs

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

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

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

Introduction#

Purpose of Information Supporting the Estimates#

The Information Supporting the Estimates provides members of Parliament with additional performance information in order to:

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

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

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

The number of sectors and coverage of each sector is set in consultation with the House of Representatives. The 10 sectors are:

  • Economic Development and Infrastructure Sector
  • Education and Science Sector
  • Environment Sector
  • External Sector
  • Finance and Government Administration Sector
  • Health Sector
  • Justice Sector
  • National Identity Sector
  • Primary Sector
  • Social Development and Housing Sector.

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

Votes and Departments in Each Sector#

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

Purpose and Nature of Appropriations#

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

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

Limits Created by Appropriations#

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

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

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

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

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

Responsibility for Appropriations#

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

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

Types of Appropriation#

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

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

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

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

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

Borrowing Expenses Departmental

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

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

Non-Departmental

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

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

Other Expenses Departmental

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

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

Non-Departmental

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

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

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

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

Types of Output Expense Appropriations#

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

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

Standard Output Expense Appropriation

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

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

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

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

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

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

Multi-Class Output Expense Appropriation (MCOA)

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

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

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

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

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

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

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

Revenue-Dependent Appropriation (RDA)

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

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

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

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

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

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

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

Department-to-Department Appropriation (DDA)

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

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

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

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

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

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

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

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

Appropriation Period#

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

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

 

Guide to Reading Information Supporting the Estimates#

 

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

Sector Overview#

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

Performance Information for Appropriations in Each Vote#

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

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

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

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

 

Part 2 - Details and Expected Performance for Output Expenses

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

  • Part 2.1 - Departmental Output Expenses - Intended impacts, outcomes or objectives are presented for departmental output expense appropriations in the Vote. This is followed by information on each appropriation, including its scope, a table showing expenses and revenue (distinguishing between revenue from the Crown and others), a statement of reasons for change in the appropriation (if material), and tables detailing performance measures and standards for significant aspects of expected output performance, any conditions on use of the appropriation, any memorandum accounts (which record accumulated surpluses and deficits incurred in the provision of outputs on a full cost-recovery basis), and any current and past policy initiatives affecting the appropriation.

Information on impacts and outcomes or objectives to which the outputs contribute is provided where the relationships are direct or involve a small number of output expenses. Where the relationships are more complex, this information will be included in high-level objectives of the Vote outlined in Part 1.2. Conditions of use include administrative criteria and processes contained in legislation, regulations and Government decisions, which may be referenced in scope statements or performance measures. The current and past policy initiatives table provides a five-year history of announced initiatives that impact on the Budget year, the preceding year and the following three years.

For MCOAs, an explanation is provided as to why the classes of outputs have been grouped under a single appropriation, and the scope statement, expenses and revenue, and performance information is presented for each output class. Data provided for MYAs enables the original appropriation to be reconciled to the adjusted level if changes have been approved or are proposed, and the balance remaining to be derived taking account of actual or estimated actual expenses incurred to date.

The appropriation scope, expenses and revenue, and output performance measures and standards match information required to be included in a department's Statement of Forecast Service Performance with respect to departmental output expense appropriations used by the department.

  • Part 2.2 - Non-Departmental Output Expenses - This sub-part contains comparable information to that presented in Part 2.1 on departmental output expense appropriations. The main differences are that details of third parties' other revenue is not relevant and a summary of service providers is included.

The service providers table shows Crown entities and non-governmental organisations providing outputs funded through the Vote, and (where applicable) the mechanism for reporting actual performance to Parliament and the expiry of the Government's resource commitment. The reporting mechanisms are typically an entity's annual report or a report by the responsible Minister required by section 32A of the PFA. Where the provider is a Crown entity that is required to produce a Statement of Intent, its annual report may contain more detailed performance information at the output class or output level. ‘Section 32A’ reports include a statement of service performance in relation to the appropriation.

Part 3 - Details for Benefits and Other Unrequited Expenses

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

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

 

Guide to Reading Information Supporting the Estimates (continued)#

 

Part 4 - Details for Borrowing Expenses

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

  • Part 4.2 - Non-Departmental Borrowing Expenses - The set of performance information for these appropriations is the same as that for non-departmental benefits and other unrequited expenses, except that conditions on use of an appropriation are not specified.

Part 5 - Details and Expected Results for Other Expenses

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure

This Part provides details about appropriations for capital expenditure.

  • Part 6.1 - Departmental Capital Expenditure - The purchase or development of assets by a department is made under a permanent appropriation authorised by section 24(1) of the PFA. Capital expenditure is defined in section 2 as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories. The appropriation appears in the Vote that contains appropriations belonging to the department's Responsible Minister.

Information is provided on intended impacts and outcomes of the appropriation, its scope, expenditure analysed by standard asset categories, reasons for material changes in the appropriation, and expected results. The scope statement is in a standard form for all departments. The performance information relates to the department as a whole and is not limited to any specific capital injection.

  • Part 6.2 - Non-Departmental Capital Expenditure - Performance information for capital expenditure incurred by the Crown is the same as that for departmental capital expenditure except for not detailing asset categories and the addition of any conditions on use of the appropriation, any current and past policy initiatives, and a summary of the mechanism for reporting to Parliament.

The scope statement indicates the form of interest or asset acquired by the Crown, such as a capital injection (equity), loan or shares.

Overview of Performance Information

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

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

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

Guide to Reading Information Supporting the Estimates (continued)#

Statement of Forecast Service Performance of Departments#

The third component of the Information Supporting the Estimates of Appropriations comprises the Statement of Forecast Service Performance of each department included in the sector, by reference to performance information set out in Part 2.1 of Votes containing appropriations proposed to be used by the department. This Statement is of particular importance for those departments proposing to use appropriations in more than one Vote.

Forecast Financial Statements of Departments#

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

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

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

Statements of Intent of Departments#

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

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

 

Terms and Definitions#

 

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

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

 

The suite of Budget 2008 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2008. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Sector Overview - External Sector#

Ministerial Statements of Responsibility#

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the 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 Phil Goff
Responsible Minister for the Ministry of Defence
Responsible Minister for the New Zealand
Defence Force
16 April 2008

Rt Hon Winston Peters
Responsible Minister for the Ministry of Foreign
Affairs and Trade
16 April 2008

Hon Nanaia Mahuta
Responsible Minister for the New Zealand
Customs Service
16 April 2008

 

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 Vote/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 (2008/09 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Phil Goulin
Director of Finance
Ministry of Foreign Affairs and Trade
16 April 2008
Counter-signed
Simon Murdoch
Chief Executive
Ministry of Foreign Affairs and Trade
16 April 2008
 

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/Votes 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 (2008/09 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Stuart Patterson
Acting Chief Financial Officer
Ministry of Defence
16 April 2008
Counter-signed
John McKinnon
Secretary of Defence
Ministry of Defence
16 April 2008
 

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 Vote/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 (2008/09 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

M Horner
Corporate Financial Officer
New Zealand Defence Force
16 April 2008
Counter-signed
 

J Mateparae
Lieutenant General
Chief of Defence Force
New Zealand Defence Force
16 April 2008

 

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/Votes 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 (2008/09 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

John Kyne
Chief Financial Officer
New Zealand Customs Service
16 April 2008
Counter-signed

Martyn Dunne
Chief Executive
New Zealand Customs Service
16 April 2008

 

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 2008/09 financial year covering the following:

  • a total of over $307 million on purchasing services in the spheres of foreign affairs and trade from the Ministry of Foreign Affairs and Trade
  • a total of over $12 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 $46 million on subscriptions to international organisations
  • a total of $1 million on payments in accordance with the Diplomatic Privileges and Immunities Act 1968
  • a total of $100,000 on payments made on behalf of other governments and international organisations, specifically the Government of Tokelau
  • a total of nearly $69 million on departmental capital expenditure
  • a total of nearly $1 million capital contribution to the New Zealand Antarctic Institute (NZAI) for the upgrade or replacement of the Scott Base buildings and services infrastructure.

The Ministry expects to collect $100,000 of Crown revenue in 2008/09, which is for recovery of payments made on behalf of the Government of Tokelau.

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 to the achievement of key Government themes, in particular economic transformation, national identity, and sustainability.

Government Priorities and Outcomes - Links to Appropriations - Foreign Affairs and Trade
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Government Theme: Economic Transformation Successful outcomes to trade negotiations Policy Advice and Representation - International Institutions
Sub-theme: Globally Competitive Firms (Government's 2008 and 2007 Programmes, Parliament) Policy Advice and Representation - Other Countries
Sub-theme: Globally Competitive Firms Improved flows of trade, investment, skills, and technology Policy Advice and Representation - International Institutions
  (Government's 2008, 2007 and 2006 Programmes, Parliament) Policy Advice and Representation - Other Countries
    Promotional Activities - Other Countries
Government Theme: National Identity Global peace and security advanced Pacific Security Fund
(Government's 2008 and 2007 Programmes, Parliament) Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
New Zealand's bedrock relationships refreshed Pacific Security Fund
(Government's 2007 Programme, Parliament) Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Enhanced security in the Pacific region Pacific Security Fund
(Government's 2008 and 2007 Programmes, Parliament) Policy Advice and Representation - Other Countries
New Zealand included in evolving Asian regional architecture Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Satisfaction of constitutional and international obligations Administration of Diplomatic Privileges and Immunities
(Speech: New Zealand's Foreign Policy October 2007) Consular Services
  Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Sustainability Achieve a comprehensive post-2012 agreement on climate change Policy Advice and Representation - International Institutions
(Government's 2008 Programme, Parliament) Policy Advice and Representation - Other Countries
Achieve sustainable international resource management regimes Policy Advice and Representation - International Institutions
(Speech: New Zealand's Foreign Policy October 2007) Policy Advice and Representation - Other Countries

Summary of Financial Activity#

Summary of Financial Activity - Foreign Affairs and Trade
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 191,827 192,695 212,935 260,106 292,032 286,932 307,499 17,820 325,319 360,673 383,261 399,699
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 26,940 32,758 37,040 39,604 43,567 43,567 - 46,986 46,986 46,953 47,020 47,020
Capital Expenditure 15,730 16,904 23,327 19,474 37,907 37,907 68,633 800 69,433 66,188 49,759 18,779
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

234,497 242,357 273,302 319,184 373,506 368,406 376,132 65,606 441,738 473,814 480,040 465,498

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 251 194 373 346 1,566 1,566 N/A N/A 100 100 100 100
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

251 194 373 346 1,566 1,566 N/A N/A 100 100 100 100

Budget Policy Initiatives#

Budget Policy initiatives - Foreign Affairs and Trade
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Asia New Zealand Foundation: Increased Funding for Strategy Implementation Promotion of Asian Skills and Relationships(M34)Non-Departmental Output Expenses - 2,453 - - -
NZAI : Implementing Wind Energy Technology at Scott Base Antarctic Research and Support (M34) - - 320 320 320
  Non-Departmental Output Expenses          
Pacific Cooperation Foundation - Increase in Baseline Funding Pacific Cooperation Foundation (M34) - 1,347 1,400 1,400 1,400
  Non-Departmental Output Expenses          
Safeguarding New Zealand's Security Interests Consular Services (M34) - 112 352 516 648
  Departmental Output Expenses          
  Pacific Security Fund (M34) - 278 285 620 566
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) - 261 1,233 1,464 1,369
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) - 4,310 10,155 14,086 17,176
  Departmental Output Expenses          
  Net Assets Schedule - Capital Investment (M34) - - 11,237 7,058 -
  Capital Expenditure          
Advancing Economic Transformation and Sustainable Economic Growth Administration of Diplomatic Privileges and Immunities (M34) - 3 3 15 16
  Departmental Output Expenses          
  Consular Services (M34) - 233 929 1,280 1,443
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) - 419 570 659 818
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) - 3,657 18,300 24,778 28,723
  Departmental Output Expenses          
  Promotional Activities - Other Countries (M34) - (3) (3) (3) (3)
  Departmental Output Expenses          
  Net Assets Schedule - Capital Investment (M34) - 9,000 9,722 7,336 -
  Capital Expenditure          
Promoting Transboundary Rules and Effective International Rules Administration of Diplomatic Privileges and Immunities (M34) - - 1 1 1
  Departmental Output Expenses          
  Consular Services (M34) - 2 5 9 18
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) - 881 1,165 2,260 2,575
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) - - 99 90 411
  Departmental Output Expenses          
  Net Assets Schedule - Capital Investment (M34) - - 1,633 1,202 -
  Capital Expenditure          
Protecting the Rights of New Zealanders Abroad Consular Services (M34) - 198 924 1,153 1,022
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) - 10 10 9 8
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) - 359 368 325 292
  Departmental Output Expenses          
  Net Assets Schedule - Capital Investment (M34) - - 1,437 798 -
  Capital Expenditure          
Response to Foreign and Trade Changes - Capability Administration of Diplomatic Privileges and Immunities (M34) - 6 16 22 29
  Departmental Output Expenses          
  Consular Services (M34) - 336 882 1,307 1,682
  Departmental Output Expenses          
  Pacific Security Fund (M34) - 36 95 141 181
  Departmental Output Expenses          
  Policy Advice and Representation - International Institutions (M34) - 1,746 4,592 6,801 8,752
  Departmental Output Expenses          
  Policy Advice and Representation - Other Countries (M34) - 5,572 14,652 21,701 27,927
  Departmental Output Expenses          
  Promotional Activities - Other Countries (M34) - 16 41 61 79
  Departmental Output Expenses          
  Net Assets Schedule - Capital Investment (M34) - - 5,971 3,606 -
  Capital Expenditure          
Total Initiatives   - 31,232 86,394 99,015 95,453

Total Vote: All Appropriations

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

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

Total Vote Expense Trends
Total Vote Expense Trends
Source: Ministry of Foreign Affairs and Trade

The table of departmental and non-departmental flows reflects the impact of periodic property revaluations; non-recurring activities such as the Pacific Islands Forum meeting hosted by New Zealand in 2003/04; one-off capital contributions and lower Crown revenue and receipts. The underlying trend, however, is an overall increase in the amount appropriated for outputs and other expenses mainly reflecting capability funding, higher property values, tax on overseas terms and conditions of service and approved new initiatives.

Departmental Output Expenses

Figure 2 - Trends in departmental output expenses

Departmental Output Expense Trends
Departmental Output Expense Trends
Source: Ministry of Foreign Affairs and Trade

The key changes from 2003/04 are as follows:

  • Funding Increases: total $96.227 million mainly for additional resources to deepen the Ministry's capability and capacity through additional staff, increases in support infrastructure and cost increases ($70.311 million), a new post in Cairo ($3.107 million), a new post in Dili ($1.929 million), a new post in Warsaw ($3.009 million), additional resources for WTO Negotiations and Bilateral Closer Economic Partnerships/Free Trade Agreements ($3.548 million), implementing security enhancements to ensure staff and their families and property are safe, secure and protected ($5.192 million), and the establishment of a Pacific Security Fund ($2.667 million).
  • Fiscally Neutral Changes: the main changes since 2003/04 include: foreign exchange rate movements (-$14.480 million), rate of capital charge lowered from 10.0% to 7.5% (-$2.240 million), ongoing lower capital charge and depreciation following revaluation of properties (-$2.291 million), tax on overseas terms and conditions ($39.302 million) and transfer of chanceries and residences back to the Ministry from the Treasury in 2005/06 ($9.558 million).

Non-Departmental Other Expenses

Figure 3 - Trends in non-departmental other expenses

Non Departmental Other Expense Trends
Non Departmental Other Expense Trends
Source: Ministry of Foreign Affairs and Trade

Other expenses have increased by $20.046 million since 2003/04. The key changes have been:

  • The cost of subscriptions to international organisations has increased by $19.691 million, from $26.195 million in 2003/04 to $45.886 million in 2008/09. This increase mainly reflects higher assessed contributions to UN peacekeeping activities, partially offset by exchange rate movements.

Departmental Capital Expenditure

Figure 4 - Trends in departmental capital expenditure

Capital Departmental Expense Trends
Capital Departmental Expense Trends
Source: Ministry of Foreign Affairs and Trade
  • In 2004/05 the Ministry received $2.660 million for the establishment of a new post in Warsaw, Poland.
  • 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 larger 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, $7.000 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 $1.000 million for capital expenditure to implement the capital plan in chanceries and residences previously rented from Treasury.
  • In 2007/08 the Ministry received $0.750 million for Apia Chancery agency accommodation, $3.169 million to upgrade the New Zealand Consulate-General in Dili to an Embassy, $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 $1.000 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 2008/09.

Non-Departmental Capital Expenditure

Figure 5 - Trends in non-departmental capital expenditure

Capital Non Departmental Expense Trends
Capital Non Departmental Expense Trends
Source: Ministry of Foreign Affairs and Trade
  • In 2003/04 the New Zealand Antarctic Institute received $3.937 million for the construction of a new heated field store at Scott Base, $1.500 million in 2006/07 and $2.400 million in 2007/08 to maintain the Scott Base buildings and services infrastructure.
  • Refer to Part 6.2 for details of the capital expenditure the New Zealand Antarctic Institute will receive in 2008/09.

Crown Revenue and Receipts Trends

Figure 6 - Trends in Crown revenue

Crown Revenue Trend
Crown Revenue Trend
Source: Ministry of Foreign Affairs and Trade
  • 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: 2008/09 and 2007/08 Compared

Departmental output expenses

Annual appropriations are expected to increase by $32.357 million (11.8%) in 2008/09 relative to 2007/08. 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 ($33.510 million), lower overseas costs caused by the appreciation of the New Zealand dollar (-$2.859 million), WTO Negotiations and Bilateral Closer Economic Partnerships/Free Trade Agreements ($759,000), additional tax on overseas terms and conditions of service ($1.785 million) and additional resources to upgrade Dili to full Embassy status ($465,000).

Non-departmental output expenses

Annual appropriations are expected to increase by $930,000 (5.5%) in 2008/09 relative to 2007/08. New Zealand Antarctic Institute funding has increased by $175,000 for maintaining Antarctic logistics support capability. Asia New Zealand Foundation's funding has increased by $308,000 following additional funding received in 2008/09 to further fund a strategy implementation. Pacific Cooperation Foundation's funding has increased by $447,000 following an increase in baseline funding in 2008/09.

Non-departmental other expenses

The annual appropriation is expected to increase by $3.419 million (7.8%) in 2008/09 relative to 2007/08 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 - Successful outcomes to trade negotiations Policy Advice and Representation - International Institutions
Impact - Opportunities secured for the New Zealand economy through enhanced conditions for New Zealand's international trade in goods and services and maintenance of existing market access, particularly through WTO Doha Round and FTA and CEP negotiations Policy Advice and Representation - Other Countries
Outcome - Successful outcomes to trade negotiations Policy Advice and Representation - International Institutions
Impact - New Zealand's rights and interests protected and/or improved through use of WTO rules, dispute procedures and accession negotiations Policy Advice and Representation - Other Countries
Outcome - Improved flows of trade, investment, skills, and technology facilitated Policy Advice and Representation - International Institutions
Impact - New Zealand's international connections lead to enhanced flows of capital, ideas, people, knowledge, research and technology; New Zealand companies assisted to leverage the trade and economic opportunities offered by FTAs, doors opened for New Zealand business, market intelligence helps companies use environmental integrity for economic advantage Policy Advice and Representation - Other Countries
  Promotional Activities - Other Countries
Outcome - Global peace and security advanced Pacific Security Fund
Impact - New Zealand's positions and views advanced and interests upheld, especially on nuclear and other forms of disarmament; conclusion of an international agreement on cluster munitions that meets New Zealand's concerns; counter-terrorism and counter-proliferation activities that contribute to global security supported; initiatives that build dialogue and relations across civilisations and faiths supported Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Outcome - Global peace and security advanced Pacific Security Fund
Impact - New Zealand's use of bilateral, regional and multilateral mechanisms and whole-of-government peace support deployments assist conflict prevention, stabilisation and reconciliation processes, especially in the Asia-Pacific region Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Outcome - New Zealand's bedrock relationships refreshed Pacific Security Fund
Impact - New Zealand's core relationships with Australia, United States, Pacific Island countries, Japan, China, ASEAN and Europe strengthened Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Outcome - Enhanced security in the Pacific region Pacific Security Fund
Impact - Regional security and cooperation strengthened through Pacific Plan initiatives; effective whole-of-government responses by New Zealand help address common challenges and counter risks of instability within region Policy Advice and Representation - International Institutions
  Policy Advice and Representation - Other Countries
Outcome - New Zealand included in evolving Asian regional architecture Policy Advice and Representation - International Institutions
Impact - New Zealand's positions and interests taken into account when decisions that may affect its future are taken; political, trade, economic, environmental and people-to-people links with Asia deepened Policy Advice and Representation - Other Countries
Outcome - Satisfaction of constitutional and international obligations Policy Advice and Representation - International Institutions
Impact - New Zealand's values and reputation upheld, particularly its commitment to the international rule of law and human rights standards Policy Advice and Representation - Other Countries
Outcome - Achieve a comprehensive post-2012 agreement on climate change Policy Advice and Representation - International Institutions
Impact - Effective international rules negotiated that advance and protect New Zealand's interests Policy Advice and Representation - Other Countries
Outcome - Achieve sustainable international resource management regimes Policy Advice and Representation - International Institutions
Impact - Sustainable international regimes negotiated that meet New Zealand's interests and concerns, including in international fisheries arrangements, whaling, Antarctica, sea bird protection, and other resource issues Policy Advice and Representation - Other Countries
Objective - To administer the Government's responsibilities and obligations under the Vienna Conventions on Diplomatic and Consular Relations Administration of Diplomatic Privileges and Immunities
Impact - Efficient delivery of services meets New Zealand's obligations and contributes to reciprocal benefits  
Objective - To provide consular services to New Zealanders abroad Consular Services
Impact - The rights of New Zealanders abroad protected  
Objective - To provide services for other New Zealand agencies with overseas interests Services for Other New Zealand Agencies Overseas
Impact - Efficient provision of services by the Ministry's overseas network helps multiply the reach and impact of other agencies' external engagement, offers economies of scale and supports optimal NZ Inc alignment  

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 550 550 561
Revenue from the Crown 550 550 561
Revenue from Others - - -

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Diplomatic Privileges and Immunities (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Processing of arrival/departure documentation will be completed within ten working days 10 working days 10 working days -
Documentation for Head of Mission appointments will be processed within a timeframe of three weeks 3 weeks 3 weeks -
Programme of calls, as requested by Heads of Mission, will be processed within working days 10 working days 10 working days -
Tax exemptions/rates refunds will be processed within four weeks 4 weeks 4 weeks -
Advice will be provided, on an ongoing basis, on cases or disputes involving issues of privileges or immunities. Advice accurate and contributes to resolution of issues Advice accurate and contributes to resolution of issues -
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Conditions on Use of Appropriation) and confirmed by the Minister twice a year - - Rated as meeting expectations
Processing of documentation and provision of services for Diplomatic Corps accredited to New Zealand meet agreed standards - - 100%
Processing of documentation and provision of services to New Zealand diplomatic and consular representatives meet agreed standards - - 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Diplomatic Privileges and Immunities (M34) - Foreign Affairs and Trade
Reference Conditions
Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action  
Quality The purpose of advice will be clearly stated; its assumptions made explicit; its arguments logical; all material facts will be included and accurate; a range of options will be presented and assessed for benefits; consultation will be undertaken; implementation issues will be considered and professionally presented.
Representation, negotiation and implementation will effectively convey and advance the Government's policies and views.
Quality assurance measures will be implemented through managers directing the completion of work, maintaining approval processes, ensuring deadlines are met, and controlling quality either directly or through delegation procedures. This will be supported by an individual performance management system and senior management oversight of unit performance through internal operational planning and evaluation. Confirmation of Ministerial satisfaction will be obtained twice a year.
Responses to Ministerial correspondence, Parliamentary Questions, and requests under the Official Information Act will be well presented.
Quantity Management of relationships with countries and international and regional organisations, and of issues arising, will be undertaken as agreed with the Minister. Priorities for each issue and relationship will be translated into actual work programmes for each unit in the Ministry incorporating goals, action steps and impact measures.
Briefings and reports on external events and issues will be provided for Ministers, Members of Parliament, Select Committees, and other organisations and groupings as appropriate.
Responses will be prepared for all Ministerial correspondence, Parliamentary Questions and requests under the Official Information Act.
Timeliness Advice will be given, and action taken, in a prompt and appropriate manner. Substantive responses to Ministerial correspondence will be prepared within 14 days, unless otherwise agreed.
Responses to Parliamentary Questions and Cabinet papers will be prepared in time for the Minister to consider and review the response prior to the due date.
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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
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 15 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,976 10,784 12,474
Revenue from the Crown 10,626 10,626 12,124
Revenue from Others 350 350 350

Reasons for Change in Appropriation#

This appropriation will increase by $1.498 million to $12.474 million for 2008/09. The movement arises from:

  • Capital charge rate movements (-$1,000).
  • Foreign exchange and overseas inflation movements (-$66,000).
  • Response to foreign and trade policy changes ($1.500 million).
  • Taxation on conditions of overseas service ($65,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Consular Services (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Compliance with the Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. 100% 100% Rated as meeting expectations
Consular services including notarial services delivered in an efficient, effective and timely manner, within the limits permitted by international and domestic law, and within the Ministry's quality assurance standards and procedures. 100% 98% 100%
Ministry's Safe Travel website consulted by the media and travel industry, and by the public before travelling. - - Website hits, media publicity

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Consular Services (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Response to Foreign and Trade Policy Changes 2007/08 604 1,223 1,223 1,223 1,223
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 1,297 1,362 1,430 1430 1430
Capability Review 2003/04 722 722 722 722 722
Loss of Department of Internal Affairs Revenue 2003/04 353 353 353 353 353

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,910 2,910 3,224
Revenue from the Crown 2,910 2,910 3,224
Revenue from Others - - -

Reasons for Change in Appropriation#

This appropriation will increase by $314,000 to $2.910 million for 2008/09. This movement arises from response to foreign and trade policy changes ($314,000)

Output Performance Measures and Standards#

Output Performance Measures and Standards - Pacific Security Fund (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All programmes and project bids assessed against the Pacific Security Strategy. All bids consistent with primary objective of Strategy All bids consistent with primary objective of Strategy All bids consistent with primary objective of Strategy
Funds are accessed, disbursed and monitored in accordance with the management process established by the Pacific Security Coordinating Committee. Expenditure consistent with standard MOU between MFAT and sponsoring agency Expenditure consistent with standard MOU between MFAT and sponsoring agency Expenditure consistent with standard MOU between MFAT and sponsoring agency
Compliance with the Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. - - Rated as meeting expectations

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Pacific Security Fund (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Remuneration: Market Movement 2005/06 4 4 4 4 4
Remuneration: Flow on Cost to Overseas Allowances 2005/06 3 3 3 3 3
Pacific Security Fund 2004/05 2,667 2,667 2,667 2,667 2,667

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 45,585 44,788 50,883
Revenue from the Crown 45,422 45,422 50,883
Revenue from Others 163 163 -

Reasons for Change in Appropriation#

This appropriation will increase by $5.298 million to $50.883 million for 2008/09. This movement arises from:

  • Allocations from the NZODA Government Agencies Contestable Fund administered by NZAID (-$163,000).
  • Contribution to the Secretariat for the South Pacific Regional Fisheries Management Organisation ($30,000).
  • Disarmament G8 Global Partnership ($2,000).
  • Foreign exchange and overseas inflation movements (-$775,000).
  • Response to foreign and trade policy changes ($5.958 million).
  • Taxation on conditions of overseas service ($246,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Representation International Institutions (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Management of New Zealand's interests in international institutions will be undertaken as agreed. Priorities and requirements for relationships with each institution will be agreed and translated into work programmes for each unit in the Ministry incorporating goals, action steps, and impact measures Rated as meeting expectations Rated as meeting expectations -
Briefing and reports will be provided on international events and for meetings involving Ministers Rated as meeting expectations Rated as meeting expectations -
Compliance with the Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year - - Rated as meeting expectations
Maximum benefit secured for New Zealand from trade negotiations - - Improved market access conditions
Effective international climate change, sustainability and resource management rules negotiated - - New Zealand interests taken into account
Effective initiatives and/or engagement in international responses to international security threats, including in areas of peace support deployments, disarmament, counter-terrorism, counter-proliferation, interfaith and intercivilisation dialogue, and regional security and cross-border problems especially in the Asia-Pacific - - New Zealand interests agreed with Ministers, well managed and upheld or taken into account
New Zealand included in evolving Asia regional architecture New Zealand interests agreed with Ministers, well managed and taken into account New Zealand interests agreed with Ministers, well managed and taken into account New Zealand interests agreed with Ministers, well managed and taken into account

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Response to Foreign and Trade Policy Changes 2007/08 2,579 5,220 5,220 5,220 5,220
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 4,936 5,182 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 2005/06 683 685 685 685 685
Crown Property Portfolio Transfer from Treasury 2005/06 415 415 415 415 415
Capability Review 2003/04 4,101 4,101 4,101 4,101 4,101

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 faciltate 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 200,675 196,564 226,233
Revenue from the Crown 199,701 199,701 225,854
Revenue from Others 974 974 379

Reasons for Change in Appropriation#

This appropriation will increase by $25.558 million to $226.233 million for 2008/09. This movement arises from:

  • Allocations from the NZODA Government Agencies Contestable Fund administered by NZAID (-$336,000).
  • Allocations from the Cultural Diplomacy International Programme administered by the Ministry of Culture and Heritage (-$114,000).
  • Cairo post operating costs (-$88,000).
  • Capital charge rate changes (-$4,000).
  • Crown overseas property portfolio ($80,000).
  • Development and implementation of the Plaza Nueva Zealandia in Santiago, Chile (-$95,000).
  • Dili upgrading to Embassy status ($465,000).
  • Foreign exchange and overseas inflation movements (-$1.757 million).
  • In principle expense transfers from 2006/07 to 2007/08 for Continental Shelf Negotiations (-$87,000) and Wood Processing Strategy (-$600,000).
  • Maximising gains from trade negotiations ($801,000).
  • New Zealand inc promotional activities in France associated with the 2007 Rugby World Cup administered by the Ministry of Culture and Heritage (-$50,000).
  • NZ/US Council (-$133,000).
  • Physical security and agency accommodation ($59,000).
  • RAMSI deputy position (-$46,000).
  • Response to foreign and trade policy changes ($25.716 million).
  • Security information systems and physical ($489,000).
  • Seriously Asia work programme (-$267,000).
  • Taxation on conditions of overseas service ($1.473 million).
  • Transfer to Vote Commerce for work in support of trade rules ($52,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Representation Other Countries (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Management of relationships with countries and regional organisations, and of issues arising, will be undertaken as agreed with the Minister. Priorities for each issue and relationship will be translated into annual work programmes for relevant units incorporating goals, action steps and impact measures Rated as meeting expectations Rated as meeting expectations -
Briefings and reports on external events and issues will be provided for Ministers, members of Parliament, Select Committees, and relevant organisations and groupings Standards and timeframes met Standards and timeframes met -
Responses will be prepared for all Ministerial correspondence, Parliamentary Questions and Official Information Act requests Responses meet standards and timeframes Responses meet standards and timeframes -
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Departmental Output Expense Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year - - Rated as meeting expectations
New Zealand's core relationships with Australia, United States, Pacific Island countries, Japan, China, ASEAN and Europe strengthened - - New Zealand interests in relationships agreed with Ministers, well managed and advanced
Maximum benefit secured for New Zealand from trade negotiations - - Improved bilateral market access conditions
New Zealand companies assisted to leverage trade and economic opportunities from FTAs and CEPs, doors opened for New Zealand business, market intelligence helps companies use environmental integrity for economic advantage - - Evidence that trade opportunities facilitated
Enhanced security in Pacific region - - New Zealand interests agreed with Ministers, role and contributions well managed
New Zealand links with Asia deepened New Zealand interests agreed with Ministers; evidence of increased influence and closer connections at government, business and people-to-people levels New Zealand interests agreed with Ministers; evidence of increased influence and closer connections at government, business and people-to-people levels New Zealand interests agreed with Ministers; evidence of increased influence and closer connections at government, business and people-to-people levels

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Dili: Upgrading to Embassy Status 2007/08 1,464 1,929 1,946 1,963 1,963
Physical Security & Agency Accommodation 2007/08 (110) (166) (110) (110) (110)
Response to Foreign Trade and Policy Changes 2007/08 11,739 23,557 23,557 23,557 23,557
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 3,786 4,331 4,331 4,331 4,331
Cairo Post Operating Costs 2005/06 3,195 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 3,667 3,318 2,494 2,494 2,494
NZ/US Council 2005/06 133 - - - -
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 2005/06 333 287 287 287 287
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 29,452 30,925 32,471 32,471 32,471
Market Access Forestry 2004/05 89 - - - -
Seriously Asia Follow Up 2004/05 267 - - - -
Warsaw Post Operating Costs 2004/05 3,009 3,009 3,009 3,009 3,009
Capability Review 2003/04 16,705 16,705 16,705 16,705 16,705
Loss of Department of Internal Affairs Revenue 2003/04 700 700 700 700 700

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 131 131 118
Revenue from the Crown 131 131 118
Revenue from Others - - -

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Representation Other Countries PLA (M34) - Foreign Affairs and Trade
  2007/08 2008/09
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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 835 835 848
Revenue from the Crown 835 835 848
Revenue from Others - - -

Output Performance Measures and Standards#

Output Performance Measures and Standards - Promotional Activities Other Countries (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
High quality and timely proposals are delivered in support of the Government's economic transformation priority initiative - Export Year 2007- in close coordination with other agencies Agreed private/public vision for the future of the New Zealand export economy Agreed private/public vision for the future of the New Zealand export economy -
High quality guidance/advice is provided regarding NZTE's offshore operations and joint activities and is acknowledged by NZTE; close coordination with MED; posts informed of outcomes in a timely manner; posts provide effective support to NZTE regarding implementation Guidance and advice provided in a timely manner Guidance and advice provided in a timely manner -
Informed recommendations provided to Ministers through the MFAT/MED Monitoring Unit regarding NZTE monitoring and evaluation matters in line with quality and timeliness standards Regular meetings provided to Ministers and improved working relationships Regular meetings provided to Ministers and improved working relationships -
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year - - Rated as meeting expectations
High-quality and timely proposals developed in support of investment - - Contribution to the promotion of investment opportunities
High-quality guidance and advice to Government on investment policy and MFAT's role - - Advice taken into account

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Remuneration: Flow on Cost to Overseas Allowances 2005/06 4 4 4 4 4
Remuneration: Market Movement 2005/06 5 5 5 5 5
Foreign Direct Investment Generic Promotion 2004/05 250 250 250 250 250

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,480 13,480 13,158
Revenue from the Crown - - -
Revenue from Others 13,480 13,480 13,158

Reasons for Change in Appropriation#

This appropriation will decrease by $322,000 to $13.480 million for 2008/09. This movement arises from:

  • Foreign exchange and overseas inflation movements (-$250,000).
  • Decrease in the level of services purchased by other departments and agencies (-$72,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Services for Other New Zealand Agencies Overseas (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Agencies' satisfaction with advice and ranges of services provided by the Ministry Rated as meeting expectations Rated as meeting expectations -
Service activity and performance standards will be determined with each agency on a full cost recovery basis. Agreements for the delivery of international administrative services will be negotiated with agencies that have representatives overseas, and with agencies on whose behalf the Ministry performs agreed services (eg, Identity Services). Miscellaneous services, with performance standards, will be agreed as required Annual fee schedules negotiated Annual fee schedules negotiated -
Services will be delivered within performance standards set out in agency agreements and as agreed at overseas posts with relevant agency managers Agreements maintained Agreements maintained -
Services provided at posts by Heads of Missions with relevant agency managers are met and outputs are produced within agreed time allocations No complaints received No complaints received -
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year - - Rated as meeting expectations
Specific services agreed annually with each agency - - As per annual fee schedule and/or agreements

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Services for Other New Zealand Agencies Overseas (M34) - Foreign Affairs and Trade
Reference Conditions
Performance delivery as set out in agency agreements and/or as agreed at overseas posts with agency managers Any issues resolved by mutual agreement

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Services for Other New Zealand Agencies Overseas (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Loss of Department of Internal Affairs Revenue 2003/04 (1,053) (1,053) (1,053) (1,053) (1,053)

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,298 12,298 12,473

Reasons for Change in Appropriation

This appropriation will increase by $175,000 to $12.473 million for 2008/09. This movement arises from:

  • End of funding for ANDRILL international science project (-$570,000).
  • Existing output cost pressures ($70,000).
  • Logistical support for ITASE project ($75,000).
  • Maintaining Antarctic logistical support capability ($500,000).
  • Operating flow on effects of capital expenditure programme ($100,000).

Output Performance Measures and Standards

Output Performance Measures and Standards - Antarctic Research and Support (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of person-days in the Antarctic supported for science activities At least 6,500 days At least 6,500 days At least 6,500 days
Number of person-days in the Antarctic supported for non-science activities At least 1,000 days At least 1,000 days At least 1,000 days

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Maintaining Antarctic Logistics Support Capability 2007/08 1,100 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 2006/07 300 400 400 400 400
International Influence and Leadership 2006/07 50 50 50 50 50
Logistical Support for ITASE Project 2006/07 250 325 500 500 500
Existing Output Cost Pressures 2005/06 810 880 880 880 880
ANDRILL International Science Project 2004/05 670 100 100 100 100
Antarctic Operations and Science Support 2003/04 (131) (131) (131) (131) (131)

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 900 900 1,347

Reasons for Change in Appropriation#

This appropriation will increase by $447,000 to $1.347 million for 2008/09. This movement arises from an increase in baseline funding for the Pacific Cooperation Foundation.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Pacific Cooperation Foundation (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Fostering understanding of the Pacific      
  • Visits to Pacific Cooperation Foundation website
at least 20% increase from the previous year total of 800,000 hits Increased by 20% from previous year at least 20% increase from 2007/08
Promoting economic sustainability in the Pacific      
  • Number of visits to the Pacificbizonline database
at least 10% increase from the previous year total of 15,000 Increased by 10% from previous year at least 10% increase from 2007/08
Providing informed, independent commentary and encouraging debate      
  • Public events are held
6 7 6

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Pacific Cooperation Foundation (M34) - Foreign Affairs and Trade
Reference Conditions
2008/09 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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increase in Baseline Funding 2007/08 900 - - - -

Promotion of Asian Skills and Relationships (M34)#

Scope of Appropriation#

The promotion of New Zealanders' skills in improving relations with Asian countries. The provider is the Asia New Zealand Foundation.

Expenses#

Expenses - Promotion of Asian Skills and Relationships (M34) - Foreign Affairs and Trade
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,692 3,692 4,000

Reasons for Change in Appropriation#

This appropriation will increase by $308,000 to $4.000 million for 2008/09. This movement arises from increased funding for the Asia New Zealand Foundation for strategy implementation.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Promotion of Asian Skills and Relationships (M34) - Foreign Affairs and Trade
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Recognition of Asia New Zealand by New Zealand public - 23% 25%
Number of learning experiences in Asia assisted through grants 45 50 55
Impact of Asia New Zealand on Asia literacy of constituents - - Increase on scale
International partners in projects 12 12 15

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 Progress report on implementing recommendations due by September 2008.

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increased Funding for Strategy Implementation 2007/08 1,804 - - - -
Seriously Asia Follow Up 2005/06 341 - - - -

Summary of Service Providers#

Summary of Service Providers - Summary of Service Providers - Foreign Affairs and Trade
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Crown entities          
New Zealand Antarctic Institute 12,298 12,298 12,473 Provider's annual report  
Other entities controlled by the Crown          
Asia New Zealand Foundation 3,692 3,692 4,000 Provider's statement of service performance  
Pacific Cooperation Foundation 900 900 1,347 Provider's statement of service performance  

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
Objective - To enhance New Zealand's reputation as a good international citizen demonstrated through compliance with the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations. Disbursements Made Exemptions from Taxation etc
Objective - To meet New Zealand assistance to Tokelau through access to the Ministry's systems for offshore payments. Payments on Behalf of Other Governments and International Organisations
Objective - To enhance New Zealand's reputation for consistent and principled application of international trade, disarmament, environmental sustainability and climate change rules, and human rights is maintained and/or enhanced. Subscriptions to International Organisations

Disbursements Made, Exemptions from Taxation, etc PLA (M34)

Scope of Appropriation

Refund of New Zealand local body rates for offices and residential premises of overseas diplomatic missions and consular posts (see Note 2).

Expenses

Expenses - Disbursements Made, Exemptions from Taxation, etc PLA (M34) - Foreign Affairs and Trade
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 1,000

Conditions on Use of Appropriation

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

Payments on Behalf of Other Governments and International Organisations PLA (M34)#

Scope of Appropriation#

Payment facility for purchases made on behalf of Tokelau (see Note 3).

Expenses#

Expenses - Payments on Behalf of Other Governments and International Organisations PLA (M34) - Foreign Affairs and Trade
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 100 100 100

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Payments on Behalf of Other Governments and International Organisations PLA (M34) - Foreign Affairs and Trade
Reference Conditions
Section 71 of the Public Finance Act 1969 Approval of the Minister of Finance

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 42,467 42,467 45,886
Comprising:      
  • Asia Pacific Economic Cooperation Business Advisory Council
18 18 17
  • Asia Pacific Economic Cooperation Secretariat
168 168 193
  • Biological Weapons Convention
5 5 4
  • Chemical Weapons Convention
311 311 313
  • Climate Change in Developing Countries
1,900 1,900 1,900
  • Commonwealth Foundation
204 204 199
  • Commonwealth Secretariat
883 883 858
  • Conservation of Antarctic Marine Living Resources
150 150 154
  • Conservation of Southern Hemisphere Albatross
21 21 21
  • Convention to Combat Desertification
24 24 25
  • Comprehensive Test Ban Treaty
416 416 400
  • Export Control for Arms & Ammunition
9 9 9
  • Global Environment Facility
3,296 3,296 3,296
  • Inhumane Weapons Convention
1 1 4
  • International Atomic Energy Agency
1,370 1,370 1,360
  • International Criminal Court
589 589 750
  • International Humanitarian Fact Finding Mission
1 1 1
  • International Seabed Authority
21 21 24
  • International Whaling Commission
80 80 75
  • Law of the Sea Conference
54 54 54
  • NZ/US Education Foundation
578 578 578
  • Organisation for Economic Cooperation and Development
1,978 1,978 1,902
  • Organisation of International Vinters
11 11 34
  • Ottawa Mine Ban Convention
2 2 11
  • NZ Pacific Economic Cooperation Secretariat
40 40 40
  • PECC International Secretariat
31 31 27
  • Permanent Court of Arbitration
10 10 10
  • Secretariat for the Antarctic Treaty
19 19 50
  • World Trade Organisation
579 579 620
  • United Nations Subscription
7,348 7,348 6,604
  • United Nations Peacekeeping Operations
22,350 22,350 26,353

Reasons for Change in Appropriation#

This appropriation will increase by $3.419 million to $45.886 million for 2008/09. 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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Global Environment Fund 2006/07 1,005 1,215 1,215 1,215 1,173
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
Payments on Behalf of Other Governments and International Organisations 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 28,221 28,221 60,180
Intangibles 7,286 7,286 8,453
Other - - -
Total Appropriation 35,507 35,507 68,633
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 28,221 28,221 60,180
Intangibles 7,286 7,286 8,453
Other - - -
Total Appropriation 35,507 35,507 68,633

Reasons for Change in Appropriation

The appropriation, which includes a Departmental Capital Injection of $9 million, reflects additional investment to accommodate and equip a "stepped up" Ministry, responding to foreign and trade policy challenges.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Foreign Affairs and Trade
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - To manage Crown Antarctic assets efficiently New Zealand Antarctic Institute - Capital Expenditure

New Zealand Antarctic Institute (M34)#

Scope of Appropriation

To enable NZAI to maintain the Scott Base buildings and services infrastructure.

Capital Expenditure

Capital Expenditure - New Zealand Antarctic Institute (M34) - Foreign Affairs and Trade
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,400 2,400 800

Reasons for Change in Appropriation

This appropriation will decrease by $1.600 million to $800,000 for 2008/09. This movement is part of a $5 million four year programme to maintain the Scott Base building and infrastructure.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - New Zealand Antarctic Institute (M34) - Foreign Affairs and Trade
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
NZAI - Capital Expenditure Programme Antarctic Operations 2006/07 2,400 800 300 - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Foreign Affairs and Trade
Appropriation Reporting Mechanism
New Zealand Antarctic Institute - Capital Expenditure Annual report of the New Zealand Antarctic Institute

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

Performance Information for Appropriations Vote 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 approriations in the Vote for the 2008/09 financial year covering the following:

  • a total of over $28 million for Management of the Official Development Assistance Programme
  • a total of almost $10 million for Strategic Advice and Evaluation
  • a total of over $82 million for contributions to international organisations
  • a total of almost $33 million for contributions to non-government organisations
  • a total of almost $97 million from the multi-year appropriation for Global Development Assistance
  • a total of almost $223 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#

Contribution of Appropriations to Government Priorities and Outcomes#

Vote Official Development Assistance provides the Government with an effective ODA programme centrally focused on poverty elimination through development partnerships, and with a core focus on the Pacific.

Government Priorities and Outcomes - Links to Appropriations - Official Development Assistance
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Economic Transformation International Poverty Elimination Management of Official Development Assistance Programme
National Identity   Strategic Advice and Evaluation
Building a Sustainable, Secure Future   Global Development Assistance
    International Agency Funding
    Pacific Development Assistance
    New Zealand Voluntary Agency Grants
  New Zealand's security interests safeguarded Global Development Assistance
    International Agency Funding
    Pacific Development Assistance
  New Zealand's international connections support transformation of the New Zealand economy Global Development Assistance
    International Agency Funding
    New Zealand Voluntary Agency Grants
    Pacific Development Assistance
  Transboundary solutions and effective international rules promoted Management of Official Development Assistance Programme
    Strategic Advice and Evaluation
    International Agency Funding

Summary of Financial Activity#

Summary of Financial Activity - Official Development Assistance
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 19,583 20,653 23,353 26,116 32,736 31,936 37,583 - 37,583 43,980 44,770 44,770
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 232,850 291,995 324,555 330,229 412,646 412,646 - 434,324 434,324 499,440 567,981 567,981
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

252,433 312,648 347,908 356,345 445,382 444,582 37,583 434,324 471,907 543,420 612,751 612,751

Crown Revenue and Receipts

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

Total Crown Revenue and Receipts

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

Budget Policy Initiatives#

Annual Appropriations

Budget Policy initiatives - Official Development Assistance
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increase to New Zealand's Official Development Assistance funding to 0.35% of GNI by 2010/11 that will enable New Zealand to address pressing development needs in the Pacific region, Asian and African countries, and beyond Management of Official Development Assistance Programmes (M34) - 2,590 5,740 4,823 4,823
  Departmental Output Expenses          
  Strategic Advice and Evaluation (M34) - 1,110 2,460 2,067 2,067
  Departmental Output Expenses          
  Global Development Assistance (M34) - - (5,492) (12,831) (12,831)
  Other Expenses to be Incurred by the Crown          
  International Agency Funding (M34) - 4,900 12,700 17,400 17,400
  Other Expenses to be Incurred by the Crown          
  New Zealand Voluntary Agency Grants (M34) - 1,700 600 (1,600) (1,600)
  Other Expenses to be Incurred by the Crown          
  Pacific Development Assistance (M34) - - (1,155) 2,325 2,325
  Other Expenses to be Incurred by the Crown          
Total Initiatives for Annual Appropriations   - 10,300 14,853 12,184 12,184

Multi-Year Appropriations

Budget Policy initiatives - Official Development Assistance
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
      $(000) increase/ (decrease)  
Policy Initiative Appropriation 2007/08 2008/09 2009/10 2010/11 2011/12
Multi-Year Appropriations 2006/07 to 2008/09          
Increase to New Zealand's Official Development Assistance funding to 0.35% of GNI by 2010/11 that will enable New Zealand to address pressing development needs in the Pacific region, Asian and African countries, and beyond Global Development Assistance (M34) - 1,200 - - -
  Other Expenses to be Incurred by the Crown          
  Pacific Development Assistance (M34) - (239) - - -
  Other Expenses to be Incurred by the Crown          
Total Initiatives for Multi-Year Appropriations   - 961 - - -

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Official Development Assistance are discussed briefly below:

Figure 1 - Trends in total voted and actual expenses

Total Vote All Expense Trend
Total Vote All Expense Trend
Source: Ministry of Foreign Affairs and Trade

Departmental Output Expenses

Figure 2 - Trends in departmental output expenses

Departmental Output Expense Trend
Departmental Output Expense Trend
Source: Ministry of Foreign Affairs and Trade

Output Expenses have increased from $19.583 million in 2003/2004 to $37.583 million in 2008/2009. The ongoing annual increases in Departmental Output Expenses represent the ongoing increases necessary to effectively manage and monitor the increasing size and number of development assistance programmes arising from additional funding for increased ODA capability.

Non-Departmental Other Expenses to be Incurred by the Crown

Figure 3 - Trends in non-departmental other expenses to be incurred by the Crown

Non Departmental Other Expenses Trend
Non Departmental Other Expenses Trend
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 have seen greater increases as New Zealand increases Vote ODA progressively to 0.35% of GNI to achieve previously agreed ODA:GNI targets. The current ratio stands at approximately 0.30% and is planned to reach 0.35% by the year 2010/2011.

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
Objective
Development partners have reduced poverty and are less reliant on aid
Intermediate Outcomes
Contributions to the achievement of poverty elimination through the design and management of effective development assistance strategies, programmes and projects
Forging and maintaining relationships with developing partner countries, development organisations and agencies, civil society and the wider New Zealand community, that support the achievement of poverty elimination
Progress made across the developing countries in the Pacific and Asia regions, towards:
  • Improving governance and leadership skills
  • Achieving economic growth and supporting livelihoods
  • Improving the availability and quality of education and healthcare
  • Reducing vulnerability to poverty arising from conflict and natural disasters
End Outcome
International poverty elimination
Management of Official Development Assistance Programme
Strategic Advice and Evaluation

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 24,709 24,105 28,074
Revenue from the Crown 24,596 24,596 28,002
Revenue from Others 113 113 72

Reasons for Change in Appropriation

This appropriation is increasing in order to effectively manage and monitor the increasing size and number of development assistance programmes arising from the growth in ODA.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Official Development Assistance Programme (M34) - Official Development Assistance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Visits or meetings with core bilateral partners At least twice in the Pacific; at least once for non-Pacific Expectations met -
Agreed targets for high-level meetings and visits to bilateral partners, international agencies and regional agencies are met Targets achieved Targets achieved Targets achieved
Appropriate number of high-level consultations with the six core Pacific Regional agencies At least one per year Expectations met -
The number of contracts/agreements being negotiated and agreed during the year In the range of 650-750 Expectations met -
Number of relationship/policy/governance visits to international agencies 8 Expectations met -
Core bilateral programmes managed 17 17 17
Multilateral relationships managed - top priority and second priority respectively under the Multilateral Engagement Strategy 10"15 10"15 10"15
Non-Pacific regional programmes managed (Africa, Latin America) 2 7 (addition of Asia Trade and Development; Asia HRD; Asia Regional; Great Mekong Subregion, humanitarian complex emergencies) 7
Core bilateral programmes in Southeast Asia managed (Indonesia, Timor-Leste, Viet Nam, Philippines, Cambodia, Lao PDR) to integrate with regional processes and reflect common themes 6 6 6
Major Pacific regional Agencies relationships managed (PIFS, COPAC, FFA, SPC, SPREP, USP) 6 8 (addition of SPBEA, FSM) 8
Pacific programmes managed on a regional basis (environment, health, education, governance, humanitarian, and disaster management) 5 6 (addition of Pacific NZ Government Agency Fund and other Funds) 6
Partnerships with New Zealand NGO's will be managed through four strategic relationships, and contestable funding schemes Relevant programme criteria met Relevant programme criteria met -
Compliance with stated Quantity, Quality and Timeliness targets of policy advice Expectations met Expectations met Expectations met
Achievement of tangible improvements to the poverty indicators of partner countries in the long term Expectations met Expectations met -
Agreed targets for high-level meetings and visits to bilateral partners, international agencies and regional agencies are met Targets achieved Targets achieved -
All activities will comply with relevant approved programme strategies and criteria of NZAID 100% 100% 100%
All Activities and programmes will be managed under contracts and agreements that comply with agreed and audited internal procurement standards and grant determination standards 100% Not met. Systems strengthening project implemented in response. 100%
Where applicable, projects and programmes will meet OECD Development Assistance Committee (DAC) criteria for eligibility Meet DAC criteria if assessed Not assessed -
All projects will deliver the outputs specified in relevant contracts, and contribute to the outcomes identified 100% Estimates to be developed if possible -
Activity and programme payments correct and on time 100% Estimates to be developed 100%
Strategic relationships (with CID, VSA, DRC, Trade Aid ) and contestable funding schemes (KOHA-PICD, HAF) to manage partnerships with NZ NGOs - - 6 strategic relationships and 2 funding schemes
Volume of Crown ODA resources administered - - As set out in Crown appropriations
Feedback from programme partners on NZAID engagement - - Expectations met and qualitative summary provided
At least one visit to all core bilateral partners, regional agencies, and 5 out of the 10 top priority multilateral agencies - - Expectations met

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Official Development Assistance Programme (M34) - Official Development Assistance
Reference Conditions
Payment of grants and other donor assistance In accordance with timely receipt of acquittal reports addressing reporting criteria and other obligations attached to funding.
Procurement and contract services and information management In accordance with Government policy, legislation, regulations and NZAID and MFAT financial policies and internal processes.

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Funding to Enable New Zealand's Response to the Indian Ocean Tsunami 2004/05 155 155 - - -
Increase to New Zealand's Official Development Programme 2003/04 9,422 10,332 12,032 13,632 13,632

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,027 7,831 9,509
Revenue from the Crown 7,977 7,977 9,477
Revenue from Others 50 50 32

Reasons for Change in Appropriation#

This appropriation is increasing in order to effectively manage and monitor the increasing size and number 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
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Review or development of programme strategies 4 At least 4 At least 4
Appraisal of all necessary proposals/design studies for programmes 40 At least 40 At least 40
New (or substantially revised) sectoral or thematic policies or strategies 2 At least 2 At least 2
Evaluations or activity reviews 20 At least 20 At least 20
Programme strategy reviews developed within agreed timeframes and resulting agreed recommendations approved by NZAID and by partners Agreed timeframes met Agreed timeframes met Agreed timeframes met
Programme allocations will be reviewed and approved by the Minister before commencement 100% 100% -
Proposals and design studies will be appraised within agreed timeframes 100% 100% -
Sectoral and thematic policies and strategies will be developed or reviewed within agreed timeframes 100% 100% -
Agreed records and revised forward aid programmes achieved for all high level NZAID/country consultations 100% 100% -
Reviews and evaluations comply with good practice guidelines 100% 100% 100%
All demand for Ministerial correspondence, parliamentary questions and Ministerial and Cabinet submissions met - - 100% (with numbers reported)
All media inquiries met - - 100% (with numbers reported)
Ministerial servicing products meet standards - - 100%
Programme Strategies that are up to date as per the schedule of reviews and revisions - - 100% (with numbers reported)
Programme Strategy reviews completed this year were agreed with partners and meet guidelines and standards - - 100% (with numbers reported)
Proposals and design studies meet guidelines and standards - - 100% (with numbers reported)
Sectoral and thematic policies and strategies meet guidelines, and NZAID advice stands up to public scrutiny - - 100% (with numbers reported; and criticisms documented and responded to)

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Strategic Evaluation and Advice (M34) - Official Development Assistance
Reference Conditions
Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action  
Quality The purpose of advice will be clearly stated; its assumptions made explicit; its arguments logical; all material facts will be included and accurate; a range of options will be presented and assessed for benefits; consultation will be undertaken; implementation issues will be considered and professionally presented.
Representation, negotiation and implementation will effectively convey and advance the Government's policies and views.
Quality assurance measures will be implemented through managers directing the completion of work, maintaining approval processes, ensuring deadlines are met, and controlling quality either directly or through delegation procedures. This will be supported by an individual performance management system and senior management oversight of unit performance through internal operational planning and evaluation. Confirmation of Ministerial satisfaction will be obtained twice a year.
Responses to Ministerial correspondence, Parliamentary Questions, and requests under the Official Information Act will be well presented.
Quantity Management of relationships with countries and international and regional organisations, and of issues arising, will be undertaken as agreed with the Minister. Priorities for each issue and relationship will be translated into actual work programmes for each unit in the Ministry incorporating goals, action steps and impact measures.
Briefings and reports on external events and issues will be provided for Ministers, Members of Parliament, Select Committees, and other organisations and groupings as appropriate.
Responses will be prepared for all Ministerial correspondence, Parliamentary Questions and requests under the Official Information Act.
Timeliness Advice will be given, and action taken, in a prompt and appropriate manner. Substantive responses to Ministerial correspondence will be prepared within 14 days, unless otherwise agreed.
Responses to Parliamentary Questions and Cabinet papers will be prepared in time for the Minister to consider and review the response prior to the due date.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Strategic Evaluation and Advice (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Funding to Enable New Zealand to Respond to the Indian Ocean Tsunami 2004/05 44 44 - - -
Increase to New Zealand's Official Development Programme 2003/04 3,387 3,777 4,277 4,777 4,777

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
Objective
Development partners have reduced poverty and are less reliant on aid
Intermediate Outcomes
Contributions to the achievement of poverty elimination through the provision of effective development assistance strategies, programmes and projects
Forging and maintaining relationships with developing partner countries, development organisations and agencies, civil society and the wider New Zealand community, that support the achievement of poverty elimination
Progress made across the developing countries in the Pacific and Asia regions, towards:
  • Improving governance and leadership skills
  • Achieving economic growth and supporting livelihoods
  • Improving the availability and quality of education and healthcare
  • Reducing vulnerability to poverty arising from conflict and natural disasters
End Outcome
International poverty elimination
Global Development Assistance
International Agency Funding
New Zealand Voluntary Agency Grants
Pacific Development Assistance

Global Development Assistance (M34)

Scope of Appropriation and Expenses

Multi-Year Appropriations - Official Development Assistance
Type, Title, Scope and Period of Appropriations Appropriation $000

Other Expenses to be incurred by the Crown

   

Global Development Assistance (M34)

Provision of assistance for development activities for non Pacific Island countries including Asian, African, Latin American, Caribbean, and Middle Eastern countries. The assistance will be provided to development organisations, partner countries and through other delivery mechanisms and be used to implement activities that include humanitarian assistance; design, management, implementation and evaluation of those partner-led activities. The assistance is to be consistent with Ministers' requirement for NZAID to work with development partners to ensure aid expenditure is targeted as close as possible to need.

Commences: 1 July 2006

Expires: 30 June 2009

Original Appropriation 234,930
Adjustments for 2006/07 43,745
Adjustments to 2007/08 (5,900)
Adjusted Appropriation 272,775
Actual to 2006/07 Year End 80,417
Estimated Actual for 2007/08 95,798
Estimated Actual for 2008/09 96,560
Estimated Appropriation Remaining -

Reasons for Change in Appropriation

This appropriation is increasing in order to move towards the agreed upon target of a ratio of 0.35% ODA:GNI by 2010/2011.

Expected Results

Expected Results - Global Development Assistance (M34) - Official Development Assistance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Contribution towards poverty elimination, demonstrated through NZAID programme strategies Achieved targets Achieved targets Achieved targets
Concentration of development assistance on activities that help to create safe, just and inclusive societies Achieved targets Achieved targets Achieved targets

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Global Development Assistance (M34) - Official Development Assistance
Reference Conditions
Provision of assistance Evaluations show that programmes are realistic, effective and appropriately prioritised; development is aligned to partner country priorities and is delivered in ways that grow partner country capability and ownership; NZAID has well-aligned policies, strategies, culture, processes and resources to support its programmes.
Acknowledgement and pursuance of the Millennium Development Goals (MDGs).

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Global Development Assistance (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increase to New Zealand's Official Development Programme 2006/07 15,500 21,000 35,700 51,100 51,100

International Agency Funding (M34)#

Scope of Appropriation#

Contributions to international agencies for multilateral humanitarian and development policy and programme activity.

Expenses#

Expenses - International Agency Funding (M34) - Official Development Assistance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 72,918 72,918 82,418
Comprising:      
  • Commonwealth Agencies
5,245 5,245 5,245
  • International Financial Institutions
20,968 20,968 18,634
  • International Voluntary Agencies
4,200 4,200 5,200
  • United Nations Agencies
40,075 40,075 43,575
  • Other Multilateral Groups
1,550 1,550 2,050
  • Other
880 880 7,714

Reasons for Change in Appropriation#

This appropriation is increasing in order to meet ongoing increases in international obligations.

Expected Results#

Expected Results - International Agency Funding (M34) - Official Development Assistance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
To address humanitarian needs, deliver effective development programmes and create and sustain social, cultural, environmental and economic conditions conducive to the elimination of poverty Met expectations Met expectations Met expectations

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - International Agency Funding (M34) - Official Development Assistance
Reference Conditions
Contributions and subscriptions to International organisations including the UN and its associated institutions, the World Bank, the Asian Development Bank, the International Committee of the Red Cross and Pacific regional agencies Cabinet approval

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - International Agency Funding (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increase to New Zealand's Official Development Programme 2003/04 32,600 37,200 46,400 55,700 55,700

New Zealand Voluntary Agency Grants (M34)#

Scope of Appropriation#

Contributions to non-government organisations providing humanitarian and development assistance overseas, conducting development education within New Zealand and providing capacity building and co-ordination support to New Zealand NGOs.

Expenses#

Expenses - New Zealand Voluntary Agency Grants (M34) - Official Development Assistance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 29,326 29,326 32,826

Reasons for Change in Appropriation#

This appropriation is increasing in order to meet the ongoing increases required to maintain service delivery levels.

Expected Results#

Expected Results - New Zealand Voluntary Agency Grants (M34) - Official Development Assistance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Contribution to poverty elimination through New Zealand NGOs' community development and humanitarian assistance programmes, demonstrated by results from NGOs' own monitoring and evaluation systems facilitated and analysed by NZAID Met expectations Met expectations Met expectations

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - New Zealand Voluntary Agency Grants (M34) - Official Development Assistance
Reference Conditions
Contributions to NGOs Analysis indicates that contributions are effectively utilised for the purpose for which they are provided.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - New Zealand Voluntary Agency Grants (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Transfer of Funding for Himalayan Trust 2006/07 290 290 290 290 290
Increase to New Zealand's Official Development Programme 2003/04 10,123 11,923 17,023 22,223 22,223

Pacific Development Assistance (M34)#

Scope of Appropriation and Expenses#

Multi-Year Appropriations - Official Development Assistance
Type, Title, Scope and Period of Appropriations Appropriation $000

Other Expenses to be incurred by the Crown

   

Pacific Development Assistance (M34)

Provision of assistance for development activities for Pacific Island countries. The assistance will be provided to development organisations, partner countries and through other delivery mechanisms; and be used to implement activities that include humanitarian assistance; design, management, implementation and evaluation of those partner-led activities. The assistance is to be consistent with Ministers' requirement for NZAID to work with development partners to ensure aid expenditure is targeted as close as possible to need.

Commences: 1 July 2006

Expires: 30 June 2009

Original Appropriation 499,720
Adjustments for 2006/07 102,275
Adjustments to 2007/08 (2,439)
Adjusted Appropriation 599,556
Actual to 2006/07 Year End 162,432
Estimated Actual for 2007/08 214,604
Estimated Actual for 2008/09 222,520
Estimated Appropriation Remaining -

Reasons for Change in Appropriation#

This appropriation is increasing in order to move towards the agreed upon ratio of 0.35% ODA:GNI by 2010/2011.

Expected Results#

Expected Results - Pacific Development Assistance (M34) - Official Development Assistance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Contribution towards poverty elimination, shown through progress towards objectives in NZAID programme strategies Achieved targets Achieved targets Achieved targets
Concentration of development assistance on activities that help to create safe, just and inclusive societies Achieved targets Achieved targets Achieved targets

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Pacific Development Assistance (M34) - Official Development Assistance
Reference Conditions
Provision of assistance Evaluations show that programmes are realistic, effective and appropriately prioritised; development is aligned to partner country priorities and is delivered in ways that grow partner country capability and ownership; NZAID has well-aligned policies, strategies, culture, processes and resources to support its programmes.
Acknowledgement and pursuance of the Millennium Development Goals (MDGs).

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Pacific Development Assistance (M34) - Official Development Assistance
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increase to New Zealand's Official Development Programme 2006/07 48,400 67,200 108,000 148,000 148,000

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Official Development Assistance
Appropriation Reporting Mechanism
Global Development Assistance Not required
International Agency Funding Not required
New Zealand Voluntary Agency Grants Not required
Pacific Development Assistance Not required

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

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 2008/09 financial year covering the following:

  • a total of nearly $2 million for audits and assessments of the New Zealand Defence Force and Ministry of Defence
  • a total of nearly $4 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 nearly $4 million for policy advice, management of international defence relations and services to the Minister
  • a total of just over $190 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#

The high level outcome for Vote Defence is to ensure that New Zealand is secure and New Zealand's contribution to regional and international peace and security is effective.

This objective is primarily linked to the Government priority theme of National Identity in that it allows all New Zealanders to be able to take pride in who and what we are through, among other things our stance on international issues.

A secure New Zealand is a critical pre-condition to economic growth and social well-being. New Zealanders need to live free from physical threat from external parties to be able to achieve their aspirations. As well, New Zealand's security is directly affected by the security of other countries, by the stability of other regions and by the maintenance of multilateral systems that ensure stability and security.

An essential part of the Ministry's business, therefore, lies in understanding events in the international environment because these affect the demands likely to be placed on our Defence Force in the future, and thus inform the Ministry's statutory duty to give advice to the Government on issues relating to New Zealand's defence policy, doctrine, military capabilities and deployments of the New Zealand Defence Force. The Ministry is also statutorily responsible for acquiring major items of equipment for the New Zealand Defence Force and for providing independent audits of the New Zealand Defence Force functions, duties and projects.

New Zealand's Defence Policy Objectives#

The Defence Policy Framework, issued by the Government in June 2000, provides a framework for future decisions about military capabilities, resources and funding. It articulates the Government's goals and priorities for defence. Subsequent Government statements, such as A Modern Sustainable Defence Force, the Defence Long-term Development Plan (and subsequent biennial updates) and the Defence Sustainability Initiative added detail to the earlier strategic document.

The Defence Policy Framework sets out five key defence policy objectives:

  • To defend New Zealand and to protect its people, land, territorial waters, exclusive economic zone, natural resources and critical infrastructure.
  • To meet New Zealand's alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests.
  • To assist in the maintenance of security in the South Pacific and to provide assistance to New Zealand's Pacific neighbours.
  • To play an appropriate role in the maintenance of security in the Asia Pacific region, including meeting New Zealand's obligations as a member of the Five Power Defence Arrangements.
  • To contribute to global security and peacekeeping through participation in the full range of United Nations and other appropriate multilateral peace support and humanitarian relief operations.

The following table shows how the delivery of the Ministry of Defence's output expenses and capital expenditure, 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
Appropriations Government Priorities - Themes / Sub-themes Government Outcomes
Departmental Output Expenses
Audit and Assessment of Performance
Management of Equipment Procurement
Policy Advice
Theme:National Identity
Sub Theme:New Zealand in the World
High Level Outcome
New Zealand is secure and New Zealand's contribution to regional and international peace and security is effective.
Intermediate Level Outcomes
The Government is provided with independent audit advice on the performance of the New Zealand Defence Force and the procurement activities of the Ministry of Defence.
The New Zealand Defence Force is equipped with those major systems and equipment it needs to meet the Government's defence and security sector requirements.
The Government has security, defence and capability options that allow it to respond to the international, regional and local security environment appropriately.
Non Departmental Capital Expenditure
Defence Equipment
Theme:National Identity
Sub Theme:New Zealand in the World
High Level Outcome
New Zealand is secure and New Zealand's contribution to regional and international peace and security is effective.
Intermediate Level Outcome
The New Zealand Defence Force is equipped with those major systems and equipment it needs to meet the Government's defence and security sector requirements.

Summary of Financial Activity#

Summary of Financial Activity - Defence
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 9,480 8,529 8,450 9,006 9,689 9,445 9,601 - 9,601 9,601 9,601 9,601
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 301,902 313,468 415,478 471,597 290,513 244,775 375 190,275 190,650 240,469 146,969 285
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

311,382 321,997 423,928 480,603 300,202 254,220 9,976 190,275 200,251 250,070 156,570 9,886

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 290 237 570 754 547 547 N/A N/A 400 400 400 400
Capital Receipts 462,298 282,357 395,882 509,267 253,230 253,230 N/A N/A 261,999 215,592 152,783 77,954

Total Crown Revenue and Receipts

462,588 282,594 396,452 510,021 253,777 253,777 N/A N/A 262,399 215,992 153,183 78,354

Total Vote: All Appropriations

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

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

Total Vote: All Appropriations
Total Vote: All Appropriations
Source: Ministry of Defence

The changes in total appropriations in Vote Defence, which are detailed in the Summary of Financial Activity table above, reflect the number, structure and scope of procurement project payments.

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

Departmental Output Expenses

Figure 2 -Trends in actual and estimated output expenses

Departmental Output Expense
Departmental Output Expense
Source: Ministry of Defence

Changes in the baseline are due to the recovery of pre-acquisition costs from the New Zealand Defence Force. Recoveries are dependent upon the number and scope of projects in the pre-acquisition phase.

Departmental Capital Expenditure

Figure 3 -Trends in actual and estimated departmental capital expenditure

Departmental Capital Expenditure
Departmental Capital Expenditure
Source: Ministry of Defence

The significant changes in 2005/06 and 2006/07 are the Ministry of Defence's contribution towards the construction of the new Defence House in Aitken Street in Wellington.

Non-Departmental Capital Expenditure

Figure 4 -Trends in actual and estimated non-departmental capital expenditure

Non Departmental Capital Expenditure
Non Departmental Capital Expenditure
Source: Ministry of Defence

The changes in the baseline reflect the number and scope of projects currently being undertaken, as well as the structure and timing of project contractual milestone payments.

Capital Receipts

Figure 5 -Trends in actual and estimated capital receipts

Capital Receipts
Capital Receipts
Source: Ministry of Defence

The Ministry of Defence receives Capital Receipts from the New Zealand Defence Force from the sale of defence equipment. Changes in Capital Receipts reflect the number, structure and scope of the projects currently being undertaken on behalf of the Crown.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,909 1,787 1,909
Revenue from the Crown 1,842 1,720 1,842
Revenue from Others 67 67 67

Output Performance Measures and Standards

Output Performance Measures and Standards - Audit and Assessment of Performance (M22) - Defence
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Delivery of a target number of audit reports to the Minister of Defence 11-13 17 15-18
Reports will be of quality, timeliness and effectiveness that is acceptable to key stakeholders Achieved Achieved Achieved
Audits will be performed in accordance with the Ministry's Auditing Standards 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.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,771 3,699 3,733
Revenue from the Crown 3,615 3,543 3,665
Revenue from Others 156 156 68

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Equipment Procurement (M22) - Defence
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
New equipment procurement or refurbishment projects will be managed within the approved budget, to the agreed delivery schedule and to the quality standards negotiated for each project. Achieved Achieved Achieved
Confirmation by the Defence Industry Committee of New Zealand that the Ministry of Defence and its agent, the Industry Capability Network have 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
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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Long-term Development Plan Pre Acquisition Costs 2004/05 178 178 178 178 178

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,009 3,959 3,959
Revenue from the Crown 3,941 3,891 3,891
Revenue from Others 68 68 68

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice (M22) - Defence
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Submission of policy papers for the Minister including Cabinet papers 24-30 24-30 24-30
Prepare Ministerial correspondence for the Minister 35-55 35-55 35-55
Prepare answers to Parliamentary questions for the Minister 90-100 90-100 90-100
Prepare answers to Select Committee questions for the Minister 20-30 20-30 20-30
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% 90%
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% 95%
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 Achieved

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Defence Capability and Resourcing Review - Improved Organisational Capability 2005/06 844 844 844 844 844

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

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 122 122 300
Intangibles 116 116 75
Other - - -
Total Appropriation 238 238 375
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 122 122 300
Intangibles 116 116 75
Other - - -
Total Appropriation 238 238 375

Reasons for Change in Appropriation

The increase in appropriation for 2008/09 is due to an upgrade 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 290,275 244,537 190,275

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
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
ANZAC Close in Weapon System 2006/07 10,524 2,343 7,188 4,940 -
C-130 Life Extension Self Protection System Upgrade 2006/07 12,000 4,300 2,000 2,200 700
Medium Utility Helicopter Capability 2006/07 103,068 96,354 177,753 163,946 -
B-757 Acquisition and Modification 2005/06 26,833 - - - -
P-3 Mission Management, Communication and Navigation Systems Upgrade 2004/05 68,186 53,683 - - -
C-130 Life Extension 2004/05 22,899 32,005 - - -
Project Protector 2004/05 65,488 - - - -

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 performance 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 $2,628 million, for the 2008/09 financial year covering the following:

  • a total of nearly $2,008 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 over $658 million
    • Army: just over $774 million
    • Air Force: just over $575 million
  • a total of just over $54 million on operationally deployed forces [previously under a three-year (2005/06 to 2007/08) Multi-Year Appropriation]
  • a total of nearly $14 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, the Limited Service Volunteer Scheme (a service provided to the Ministry of Social Development) and Service Military Museums
  • a total of just over $10 million on military policy development, coordination and advice to the Government
  • a Capital Expenditure appropriation of $542 million for the purchase of assets, including items on the Defence Long-Term Development Plan.

The New Zealand Defence Force expects to recognise about $19 million in third-party revenue (Revenue Department and Revenue Other) in 2008/09.

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:

[Invalid character here] 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[Invalid character here] .

The NZDF mission is primarily linked to the Government Priority Theme of National Identity (sub-theme New Zealand in the World ) and the connotation that, as New Zealanders, we celebrate our identity in a world as people who support and defend freedom and fairness. This theme links with the Government policy to not only provide Defence Force contributions to the resolution of conflict and maintenance of stability, particularly the international roles of peacekeeping and humanitarian relief operations, but also to the wide range of assistance that is provided by the NZDF to other government departments and the wider New Zealand community. National Identity also carries the belief that New Zealanders understand our history as a nation and our stance on international issues. The NZDF also has less obvious links with the Government Priority Themes of Economic Transformation and Families - young and old, as noted in more detail in the NZDF 2008/2011 Statement of Intent .

New Zealand's Defence Policy Objectives#

The primary goal of Vote Defence Force is to prepare an effective Defence Force capable of meeting the Government's defence policy goals.

The Defence Policy Framework , issued by the Government in June 2000, provides a framework for future decisions about military capabilities, resources and funding. It articulates the Government's goals and priorities for defence. Subsequent Government statements, such as those of 8 May 2001 ( A Modern Sustainable Defence Force matched to New Zealand's needs ), the Defence Long-Term Development Plan (LTDP) of 11 June 2002 (and subsequent annual updates to that plan) and the Defence Sustainability Initiative (DSI) of 2 May 2005, added detail to the earlier strategic document. The Defence Policy Framework sets out five key defence policy objectives, and appropriations are sought to support them. The defence policy objectives are to:

  • defend New Zealand and to protect its people, land, territorial waters, EEZ, natural resources and critical infrastructure
  • meet our alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests
  • assist in the maintenance of security in the South Pacific and to provide assistance to our Pacific neighbours
  • play an appropriate role in the maintenance of security in the Asia-Pacific region, including meeting our obligations as a member of the Five Power Defence Arrangements
  • contribute to global security and peacekeeping through participation in the full range of UN and other appropriate multilateral peace support and humanitarian operations.

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 - Themes / Sub-themes 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 (fourteen UH-1H Iroquois helicopters)
Others:
Operationally Deployed Forces (operational commitments as approved by the Government)
Miscellaneous Support Activities (support to the Mutual Assistance Programme, New Zealand Cadet Forces, Limited Service Volunteers, and Service Military Museums)

Theme:National Identity
Sub-theme:New Zealand in the World
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.

Summary of Financial Activity#

Summary of Financial Activity - Defence Force
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 1,529,740 1,522,510 1,657,820 1,814,698 1,886,246 1,886,246 2,086,176 - 2,086,176 2,011,537 2,012,675 2,015,045
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - 1,665 2,700 2,700 - - - - - -
Capital Expenditure 486,910 338,619 428,827 611,993 412,152 373,925 541,956 - 541,956 437,598 315,870 224,918
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

2,016,650 1,861,129 2,086,647 2,428,356 2,301,098 2,262,871 2,628,132 - 2,628,132 2,449,135 2,328,545 2,239,963

Crown Revenue and Receipts

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

Total Crown Revenue and Receipts

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

Budget Policy Initiatives#

Budget Policy initiatives - Defence Force
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Defence Funding Package Year 4(To provide for the recognition of the Budget 2008 element of a Budget 2005 agreement to restore military and organisational capability through eventual new funding of $4.6 billion, as a charge against future budgets). Military Policy Development, Coordination and Advice
Departmental Output Expense
- (44) (44) (44) (44)
Naval Combat Forces
Departmental Output Expense
- 15,218 15,218 15,218 15,218
Naval Support Forces
Departmental Output Expense
- 4,839 4,839 4,839 4,839
Mine Countermeasures (MCM) and MCM Diving Forces
Departmental Output Expense
- 1,002 1,002 1,002 1,002
Naval Patrol Forces
Departmental Output Expense
- 4,234 4,234 4,234 4,234
Military Hydrography, and Hydrographic Data Collection and Processing for LINZ
Departmental Output Expense
- 1,088 1,088 1,088 1,088
Land Combat Forces
Departmental Output Expense
- 12,537 12,537 12,537 12,537
Land Combat Support Forces
Departmental Output Expense
- 7,746 7,746 7,746 7,746
Land Combat Service Support Forces
Departmental Output Expense
- 6,269 6,269 6,269 6,269
Special Operations Forces
Departmental Output Expense
- 3,091 3,091 3,091 3,091
Naval Helicopter Forces
Departmental Output Expense
- 2,619 2,619 2,619 2,619
Maritime Patrol Forces
Departmental Output Expense
- 4,185 4,185 4,185 4,185
Fixed Wing Transport Forces
Departmental Output Expense
- 4,314 4,314 4,314 4,314
Rotary Wing Transport Forces
Departmental Output Expense
- 2,008 2,008 2,008 2,008
Sub Total   - 69,106 69,106 69,106 69,106
Expense Transfer to provide for 2008/09 and outyears operating pressures. Military Policy Development, Coordination and Advice
Departmental Output Expense
431 (1,171) - - -
Naval Combat Forces
Departmental Output Expense
(14,351) (12,367) - - -
Naval Support Forces
Departmental Output Expense
(3,793) 7,230 - - -
Mine Countermeasures (MCM) and MCM Diving Forces
Departmental Output Expense
(1,188) (5,431) - - -
Naval Patrol Forces
Departmental Output Expense
(3,738) 11,024 - - -
Military Hydrography, and Hydrographic Data Collection and Processing for LINZ
Departmental Output Expense
(415) (73) - - -
Land Combat Forces
Departmental Output Expense
(15,884) 5,006 - - -
Land Combat Support Forces
Departmental Output Expense
(7,182) 16,547 - - -
Land Combat Service Support Forces
Departmental Output Expense
(6,453) 21,963 - - -
Special Operations Forces
Departmental Output Expense
(2,798) 9,240 - - -
Naval Helicopter Forces
Departmental Output Expense
(2,888) (1,068) - - -
Maritime Patrol Forces
Departmental Output Expense
(3,806) 9,642 - - -
Fixed Wing Transport Forces
Departmental Output Expense
(4,312) (45) - - -
Rotary Wing Transport Forces
Departmental Output Expense
(1,452) 7,503 - - -
Miscellaneous Support Activities
Departmental Output Expense
(171) - - - -
Sub Total   (68,000) 68,000 - - -
Transfer dedicated Operationally Deployed Forces funding for future activity.(To ensure residual Multi-Year Appropriation funding remains available to provide for Operationally Deployed Forces commitments agreed by the Government). Operationally Deployed Forces
Departmental Output Expense
(7,313) 7,313 - - -
Sub Total   (7,313) 7,313 - - -
Disposal Costs - Other Expense An accounting treatment, should it become necessary, for the expensing, by 30 June 2008, of items included in the NZDF Statement of Financial Position; in accordance with Audit New Zealand advice 2,700 - - - -
Sub Total   2,700 - - - -
Total Initiatives   (72,613) 144,419 69,106 69,106 69,106

Total Vote: All Appropriations

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

Departmental Output Expense Appropriations

The following changes are noted:

  • While there were funding increases in 2004/05, primarily to address Service personnel pay, the maintenance of effective Air Force personnel levels, continuation of New Zealand's commitment to the Provincial Reconstruction Team in Afghanistan and other overseas operational commitments, and operating implications and pre-acquisition funding for the Long-Term Development Plan (LTDP), this was offset by reductions in funding required for operational commitments (withdrawal of the battalion group from Timor Leste and reduced commitments to Afghanistan and the Solomon Islands), a planned reduction in Navy personnel and operating expenses, and a reduction in the rate of Capital Charge from 8.5% to 8%. Subsequently, a decision was made to transfer $19 million from 2004/05 to 2005/06 to provide early traction for the Defence Sustainability Initiative (DSI), resulting in an overall net decrease of $7 million between 2003/04 and 2004/05.
  • The total increase of $135 million between 2004/05 and 2005/06 was primarily made up from: increases from the first year (2005/06) DSI funding package allocation and Project Protector operating costs of some $64 million; a transfer from 2004/05 to 2005/06 of $19 million; an asset revaluation of $37 million; and a decrease from the transfer of $7 million to the MYA Operationally Deployed Forces.
  • The total increase in annually appropriated output expenses of almost $157 million between 2005/06 and 2006/07 is shown in the following table:
Annually Appropriated Expenses: Difference 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 $71 million between 2006/07 and 2007/08 is shown in the following table:
Annually Appropriated Expenses: Difference Between 2006/07 and 2007/08 - Defence Force
Item $ million
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
2006/07 Surplus Repaid 6

Total

71

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.

Comparison: 2007/08 with 2008/09

Departmental Output Expenses

As advised in this Vote since 2005/06, funding for the Output Expense Operationally Deployed Forces was placed under a three-year, Multi-Year Appropriation (MYA) for the period 2005/06 - 2007/08. From 1 July 2008 Operationally Deployed Forces will be appropriated annually.

Appropriations for the purchase of NZDF outputs for the year ending 30 June 2009 include the following Cabinet-agreed departmental output expense funding changes that were considered during the 2008 Budget process:

  • An increase of $69.106 million in 2008/09, and outyears, being the fourth year funding package under the Defence Sustainability Initiative (DSI). This increase in funding will go towards, primarily, sustainment of personnel growth, future personnel growth, operating costs, depreciation impacts associated with new equipment, and continuation of the maintenance upgrade of NZDF infrastructure.
  • Expense Transfer of $68 million from 2007/08 to 2008/09 to provide for 2008/09 and outyears operating pressures.
  • Transfer of the residual MYA funding of $7.313 million from 2007/08 to 2008/09 to ensure that this funding remains available to fund the Output Expense Operationally Deployed Forces.

The annual departmental output expense appropriations sought for Vote Defence Force in 2008/09 exceed those for 2007/08 by almost $200 million. The major items and values that contribute to this increase are shown in the following table:

Annually Appropriated Expenses: Difference 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
Capital Charge - 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 ($70 million) in 2007/08 and Annual in 2008/09 ($53 million) (17)
Project KiwImage (All of Government Imagery Purchase) 1

Total

200

Other Expenses

  • Disposal costs, as an Other Expense of $2.700 million for the expensing, by 30 June 2008, of items included in the NZDF Statement of Financial Position; in accordance with Audit New Zealand advice.

Capital Expenditure

  • The Capital Expenditure appropriations shown in the Trends table between 2003/04 and 2011/12 disclose the annual payments for equipment purchases under the Defence Long-Term Development Plan (LTDP) to be made to the Ministry of Defence, and for NZDF managed capital projects.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

What impacts are the NZDF striving to achieve through delivering current NZDF Outputs? 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. This makes the NZDF different from most other government departments in that 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 - through the NZDF Output Expense Operationally Deployed Forces and, in the New Zealand environment, Multi-Agency Operations and Tasks. The focus of what the NZDF does, therefore, is primarily geared to this ultimate 'end product' or goal. The impacts that the NZDF are hoping 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
NZDF contributions to Government-approved operational missions and deployments is of a high standard in terms of personnel and equipment; personnel and equipment that is Ready, Combat Capable, Deployable and Sustainable.  Operationally Deployed Forces

On-going and improved advice to Government in the areas of:

  • Military Intelligence
  • Military Policy - generally (in concert with the Ministry of Defence)
  • Operational Military Policy
  • Ministerial Correspondence and Parliamentary Questions
Military Policy Development, Coordination and Advice

Enhanced military capability of the Force Elements of the Navy, Army and Air Force:

  • To better provide Government with choice in the deployment of NZDF capabilities
  • To better provide support for Multi-Agency Operations and Tasks (supporting other government departments)
  • To support the wider New Zealand community, when available and not 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 Land information New Zealand (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

Continued high quality support to NZDF miscellaneous activities, namely:

  • Support to the Mutual Assistance Programme (MAP)
  • Support to New Zealand Cadet Forces
  • Support to Limited Service Volunteer (LSV) Training
  • Support to Service Military Museums
Multi-Class Output Appropriations:
Miscellaneous Support Activities

NZDF Performance Information

Prior to detailing the expected performance of each of the NZDF's Output Expenses [including the Multi-Class Output Appropriation (MCOA)] 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; this reflects 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 the NZDF Operational Preparedness and Reporting System (OPRES), the performance of all force elements is assessed against the four elements of Preparedness of Readiness, Combat Viability, Deployment and Sustainability. Within each of these elements, measures are applied to, predominately, personnel and equipment - as shown in the following table:

Indicative Key Performance Indicators and Performance Measures under the NZDF Operational Preparedness and Reporting System (OPRES) - 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 in the last six months
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) Equipments, 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 standardization (as defined by NATO, ASIC and ABCA) with friendly forces for the EC Mission Essential Tasks (METs).
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 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 avail or obtainable within RT + OVP
Availability of Replacement Equipment % of replacement equipment avail or obtainable within RT + OVP
Materiel 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, to quantify Force Element performance in achieving preparedness relative to the Directed Level of Operational Capability (DLOC):

Operational Preparedness and Reporting System (OPRES) Rating Scale - Defence Force
Rating Meaning
P1 Fully Prepared - at the Directed Level of Operational Capability (DLOC). It means that the standards required for all measurement areas, under OPRES, have been achieved by between 90 to 100%
P2 Substantially Prepared- below DLOC. 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 that the standards required for all measurement areas, under OPRES, have been achieved by between 80 and 89%
P3 Partially Prepared - below DLOC. 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 that the standards required for all measurement areas, under OPRES, have been achieved by between 70 to 79%
P4 Not Prepared- below DLOC. 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 that 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.
External Audit of the NZDF's Performance

It should 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. Employment Contexts 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. Employment Contexts are selected through assessment of New Zealand's geo-strategic situation and international security trends. The Employment Contexts 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. Employment Contexts include high level Operational Concepts which, in turn, drive Services' and joint Mission Essential Tasks (METs), that is, those tasks that the deployed forces must be able to perform. The METs 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 Employment Contexts 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 Employment Contexts. Current Employment Context 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. Employment Contexts provide the detail that ensures the NZDF output quality dimension is consistent with defence policy. The Employment Contexts (ECs), which are covered in more detail in the NZDF Output Plan and other NZDF-internal documents, are as follows:

  • 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.
    • 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

Conducting the training activities needed to maintain the Directed Level of Capability (DLOC) for operational employment also produces within the NZDF the capacity to deliver a range of services in support of other government departments, the community, and foreign and defence policy objectives.

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, however, 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 Department of Conservation (DOC) and the NZ Police. The frequency of other tasks, primarily of an emergency nature such as search and rescue, assistance to civil defence and fire fighting, are 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), once in service, at 8 hours DON for emergency tasks, including SAR.
  • One Diving Team at 12 hours DON for emergency tasks, including under-water search and Explosive Ordnance Disposal (EOD).  [Note:  EOD only as Improvised Explosive Device Disposal (IEDD) comes under Output Expense Special Operations Forces].
  • 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. [Note:  EOD only as Improvised Explosive Device Disposal (IEDD) comes under Output Expense Special Operations Forces].
  • 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 EOD Team at 12 hours DON. [Note: Explosive Ordnance Disposal (EOD) only as Improvised Explosive Device Disposal (IEDD) comes under Output Expense Special Operations Forces].
  • 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.

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 [Invalid character here] general support[Invalid character here] 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 refer 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 Government has emphasised the general direction and increased importance of the civilian/military requirements associated with the NZ EEZ and border control.

The NZDF will continue to work closely with other government departments and agencies to plan formal arrangements for these requirements. It needs to be noted that, while existing formal support to other government departments and agencies will continue during 2007/08, significant increase in this support cannot be guaranteed until new / replacement / upgraded vessels and aircraft are introduced into service.

The reporting of MAO&T with government departments and other general support to the government and the community is to 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
List of 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 about 400 pre-planned Iroquois helicopter flying hours support).
  • RNZN ships (sea days).
  • Diving support.
  • Other general and [Invalid character here] one-off[Invalid character here] support and assistance.
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). [Note: For planning purposes flying hours provided for SAR are: 150 Orion hours, 16 Hercules hours, and 60 Iroquois hours].
  • 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.
  • 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.
  • 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.
Explosive Ordnance Disposal (EOD) Typically 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.[Note that this does not include CBRE / IEDD that comes under Output Expense Special Operations Forces]
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.
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).
  • Logistic and other support (as required).
For planning purposes, flying hours provided for Disaster Relief Support are 50 Hercules hours and 15 Orion hours.
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).
Detection of Pollution Involves the detection and reporting of pollution, and any NZDF response / assistance as may be requested.
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 the Limited Service Volunteer (LSV) Scheme 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 178,023 178,023 201,218
Revenue from the Crown 176,346 176,346 198,958
Revenue from Others 1,677 1,677 2,260

Reasons for Change in Appropriation

The bulk of the $23 million increase in this appropriation mainly reflects the depreciation and capital charge increases associated with the upgrades to the C-130 Hecules and Boeing 727-200 aircraft, with a small amount from the Defence Funding Package increment for 2008/09.

Output Performance Measures and Standards

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Fixed Wing Transport Forces - Defence Force
Performance Standards Performance Measures
Two C-130 Hercules aircraft available for deployed military tasks - from a total fleet of five C-130 Hercules aircraft. To be sustainable on operations in accordance with Schedule 4 to the NZDF Output Plan. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
A third Hercules to be available for specified tasks under EC 1D and emergency tasks, as required. NZDF OPRES
One Boeing 757-200 available for strategic transport tasks - from a total fleet of two Boeing 757 aircraft. To be sustainable for expected duration of strategic transport task in accordance with Schedule 4 to the NZDF Output Plan. (Provided from a fleet of two B-757-200 aircraft). NZDF OPRES
An Aeromedical Evacuation (AE) element for strategic and tactical AE in support of land operations.  The RNZAF is required to provide forward, tactical and strategic Aeromedical Evacuation (AE) services, including responsibility for the provision of AE-qualified personnel and associated AE equipment. For fixed wing tactical and strategic AE it is likely that, for high dependency cases, specialist support would be sought from other Services of the NZDF and/or non-defence resources. NZDF OPRES
Planned Flying Hours for the year (1 July 2008-30 June 2009).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 C-130 fleet during the period.
  • The Hercules will fly a total of 2,200 hours (target range 2,090-2,310).
  • The Boeing 757s will fly a total of 1,400 hours (target range 1,330-1,470).
Undertake MAO&T (Multi-Agency Operations/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. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, earlier in Part 2.1].
  • Satisfaction of the supported department / agency.
  • Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Fixed Wing Transport Forces that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Fixed Wing Transport Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), RNZAF Mission Essential Task Lists (being updated) and the 40 Squadron Training Programme.
NZDF OPRES, and RNZAF Publications, including:
  • 40 Squadron Standard Operating Procedures.
  • RNZAF Master Personnel Establishment.
  • NZAP(S) 700 (This document is currently under review).
  • RNZAF 9000 series (training manuals).
Combat Viability :
  • Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective standardisation when working with friendly forces.
NZDF OPRES, and RNZAF Publications (as listed above).
Deployability :
  • Fixed Wing Transport Forces capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Air Publication NZAP(S) 700.
NZDF OPRES, and RNZAF Publications (as listed above).
Sustainability :
  • Aircraft, expendable and technical stores available, as specified in Air Publication NZAP(S) 700, to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/ rotation of the Fixed Wing Transport Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan
NZDF OPRES, and RNZAF Publications (as listed above).

Note 1: Strategic and tactical air transport operations under Employments Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: The number of C-130 Hercules aircraft available during 2008/09 (through to 20010/11) will be affected by the Long-Term Development Programme project to upgrade the C-130 fleet and will reduce the full capacity of this output. At least two C-130 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 affect 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.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 324,682 324,682 354,832
Revenue from the Crown 323,357 323,357 353,573
Revenue from Others 1,325 1,325 1,259

Reasons for Change in Appropriation#

The $30 million increase in this appropriation mainly reflects the Defence Funding Package increment for 2008/09 and other comparative differences where savings have been transferred from 2007/08.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Land Combat Forces - Defence Force
Performance Standards Performance Measures
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:
  • A Company Group (motorised, non-motorised or composite) for tasks under ECs 1 and 2.
  • Up to an Infantry Battalion Group (motorised, non-motorised or composite) for tasks under ECs 2 - 5. (During the period 2008-2011 a motorised battalion group would be for surge capacity only and would be dependant on there being no other operational deployments - see notes under [Invalid character here] Deployment Impact[Invalid character here] below).
  • Sub-unit elements as options for independent contribution to a combined force.
  • An appropriate headquarters (including intelligence and communications support) for command and control of a deployed force.
NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Army will also provide an appropriate Brigade-level headquarters and the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training. The framework for a Brigade Group requires supplementation from the Territorial Force. NZDF OPRES
Contribute to a range of services in support of other government departments and the community 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, earlier in Part 2.1]. Satisfaction of the supported department / agency.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Designated force elements that meet specified readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Directed Level of Capability (DLOC) for units contributing to Company and Battalion Groups.
  • Basic Level of Capability (BLOC) for Brigade Group framework units (TF Battalion Groups).
  • Land Combat Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), Army Mission Essential Task Lists (METLs), Army Annual Plan, and Formation and Unit Training Directives. This will include participation in Battalion Group exercises and Formation level Command Post Exercises.
NZDF OPRES
Combat Viability :
  • Personnel that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES
Deployability :
  • Force Elements capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Munitions, stores and equipment available for OLOC generation, as specified in unit and Army Equipment Holding Documents and Contingency Plans.
NZDF OPRES
Sustainability :
  • Munitions, expendable and technical stores available, as specified in Contingency Plans to maintain OLOC for designated operational viability period.
  • Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan.
Availability of munitions will depend on inventory holdings to meet OLOC generation requirements and holdings of Contingency Reserve Stocks (CRS).
NZDF OPRES

Note 1: Land operations under Employment Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: This Output Expense is designed to provide the following capabilities:

  • A deployable headquarters prepared to provide operational command, control and intelligence for deployed land forces; and to provide elements to the framework of a brigade group for simulation and Command Post Exercise-based combined-arms training.
  • Manoeuvre elements prepared for the conduct of land operations. This includes the provision of these elements for a force of up to battalion group size. It also includes the requirement to provide infantry and reconnaissance elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training.

Note 3: Deployment Impact

  • As covered in several places in the NZDF 2007 Annual Report - and given the extent of current operational commitments - the deployment of a battalion to meet lower-end contingencies or a battalion group for responses under ECs 3 to 5 is unachievable until further notice.
  • The Army Intelligence capability can be stretched when it is required to support a large number of concurrent deployments.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 135,134 135,134 154,984
Revenue from the Crown 134,717 134,717 154,559
Revenue from Others 417 417 425

Reasons for Change in Appropriation#

The increase of $20 million in this appropriation mainly reflects a combination of the Defence Funding Package increment for 2008/09 and resource reprioritisation.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Land Combat Service Support Forces - Defence Force
Performance Standards Performance Measures
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, as applicable:
  • A Company Group (motorised, non motorised or composite) for tasks under ECs 1 and 2.
  • Up to an Infantry Battalion Group (motorised, non-motorised or composite) for tasks under ECs 2 - 5 (inclusive).
  • Sub-unit elements as options for independent contribution to a combined force, only when those elements are available.
NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Army will also provide combat service support elements to support the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training; this will require supplementation by TF Battalion Groups. NZDF OPRES
Contribute to a range of services in support of other Government departments and the community 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, earlier in Part 2.1]. Satisfaction of the supported department/agency.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Designated force elements that meet specified readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Directed Level of Capability (DLOC) for units contributing to Company and Battalion Groups.
  • Basic Level of Capability (BLOC) for Brigade Group framework units (TF Battalion Groups).
  • Land Combat Service Support Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), Army Mission Essential Task Lists (METLs), Army Annual Plan, and Formation and Unit Training Directives. This will include participation in Battalion Group exercises and Formation level Command Post Exercises.
NZDF OPRES
Combat Viability :
  • Personnel that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES
Deployability :
  • Force Elements capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Munitions, stores and equipment available for OLOC generation, as specified in unit and Army Equipment Holding Documents and Contingency Plans.
NZDF OPRES
Sustainability :
  • Munitions, expendable and technical stores available, as specified in Contingency Plans to maintain OLOC for designated operational viability period.
  • Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan.
Availability of munitions will depend on inventory holdings to meet OLOC generation requirements and holdings of Contingency Reserve Stocks (CRS).
NZDF OPRES

Note 1: Land operations under Employment Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: This Output Expense is designed to provide Transport, Medical, Supply, Repair and Movements capabilities prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised, non-motorised or composite). It also includes the requirement to provide transport elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services.

Note 3: Deployment Impact - the Army Transport, Medical, Supply and Repair capabilities can be stretched when they are required to support a large number of concurrent deployments.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 171,654 171,654 201,599
Revenue from the Crown 171,046 171,046 200,932
Revenue from Others 608 608 667

Reasons for Change in Appropriation#

The $30 million increase in this appropriation mainly reflects the Defence Funding Package increment for 2008/09 and savings transferred from 2007/08.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Land Combat Support Forces - Defence Force
Performance Standards Performance Measures
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, 2 Signal Squadron, 3 Signal Squadron - including an Electronic Warfare element, and Force 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, as applicable:
  • A Company Group (motorised, non-motorised or composite) for tasks under ECs 1 and 2.
  • Up to an Infantry Battalion Group (motorised, non-motorised or composite) for tasks under ECs 2 - 5.
  • Sub-unit elements as options for independent contribution to a combined force, only when those elements are available.
NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Army will also provide artillery, engineer, communications and military police force elements to support the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training; this will require supplementation from the Territorial Force. NZDF OPRES
Contribute to a range of services in support of other government departments and the community 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, earlier in Part 2.1]. Satisfaction of the supported department/agency.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Designated force elements that meet specified readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Directed Level of Capability (DLOC) for units contributing to Company and Battalion Groups.
  • Basic Level of Capability (BLOC) for Brigade Group framework units (TF Battalion Groups).
  • Land Combat Support Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), Army Mission Essential Task Lists (METLs), Army Annual Plan, and Formation and Unit Training Directives. This will include participation in Battalion Group exercises and Formation level Command Post Exercises.
NZDF OPRES
Combat Viability :
  • Personnel that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES
Deployability :
  • Force Elements capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Munitions, stores and equipment available for OLOC generation, as specified in unit and Army Equipment Holding Documents and Contingency Plans.
NZDF OPRES
Sustainability :
  • Munitions, expendable and technical stores available, as specified in Contingency Plans to maintain OLOC for designated operational viability period.
  • Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan.
Availability of munitions will depend on inventory holdings to meet OLOC generation requirements and holdings of Contingency Reserve Stocks (CRS).
NZDF OPRES

Note 1: Land operations under Employment Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: This Output Expense is designed to provide Artillery, Engineer, Communications and Military Police capabilities prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised, non-motorised or composite). It also includes the requirement to provide transport elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services.

Note 3: Deployment Impact - the Army Communications and Military Police capabilities can be stretched when they are required to support a large number of concurrent deployments.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 149,736 149,736 166,855
Revenue from the Crown 148,886 148,886 165,792
Revenue from Others 850 850 1,063

Reasons for Change in Appropriation#

The increase of $17 million in this appropriation mainly reflects the Defence Funding Package increment for 2008/09 and other operating initiatives.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Maritime Patrol Forces - Defence Force
Performance Standards Performance Measures
Two P-3K Orion aircraft available for military tasks - from a total fleet of six Orion aircraft. To be sustainable on operations in accordance with Schedule 4 to the NZDF Output Plan. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
A third P-3K Orion for maritime Search and Rescue and other emergency tasks, as required. NZDF OPRES
Planned Orion Flying Hours for the year (1 July 2008-30 June 2009).
The total P-3K 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 2008/09.
2,380 hours (target range 2,261-2,499)
Undertake MAO&T (Multi-Agency Operations/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. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, earlier in Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Maritime Patrol Forces that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Maritime Patrol Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), RNZAF Mission Essential Task Lists (being updated) and the 5 Squadron Training Programme.
NZDF OPRES, and RNZAF Publications, including:
  • 5 Squadron Standard Operating Procedures.
  • RNZAF Master Personnel Establishment.
  • NZAP(S) 700 (This document is currently under review).
  • RNZAF 9000 series (training manuals).
Combat Viability :
  • Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective standardisation when working with friendly forces.
NZDF OPRES, and RNZAF Publications (as listed above).
Deployability :
  • Maritime Patrol Forces capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Air Publication NZAP(S) 700.
NZDF OPRES, and RNZAF Publications (as listed above).
Sustainability :
  • Aircraft, expendable and technical stores available, as specified in Air Publication NZAP(S) 700, to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/ rotation of the Maritime Patrol Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan
NZDF OPRES, and RNZAF Publications (as listed above).

Note 1: Maritime air operations under Employments Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: The number of P-3K Orion aircraft available during 2008/09 (through to 2010/11) will be affected by the Long-Term Development Plan (LTDP) rolling programme to upgrade the Orion fleet and will reduce the full capacity of this output expense. From September 2008 up to two aircraft will be removed from service at any one time during the upgrade programme. In addition, the remaining aircraft will continue to be cycled through group and phase servicing requirements. This will have an affect on the likely sustainable 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 effect the nature and extent of tasking that can be undertaken by the fleet during the period.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,270 15,270 15,996
Revenue from the Crown 8,608 8,608 9,303
Revenue from Others 6,662 6,662 6,693

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Military Hydrography, and Hydrographic Data Collection and Processing for LINZ - Defence Force
Performance Standards Performance Measures
HMNZS RESOLUTION available to conduct military hydrography, and hydrographic tasks for LINZ under contract. The Deployable Hydrographic Support Unit (DHSU) available to conduct military hydrography either independently or in support of other NZDF force elements. The Hydrographic Business Unit available to support the collection and processing programmes. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Mission Availability and Planned Sea-Days for the year (1 July 2008-30 June 2009).
During sea time under contract to LINZ the hydrographic vessel will maintain sea operational efficiency in accordance with the NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability).
  • HMNZS RESOLUTION will be mission available for 236 days during which 100 to 115 will be at sea. Of this total, 2,975 survey miles on hydrographic tasks will be on contract to LINZ.
Hydrography Contract with LINZ.
Contract 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.
  • 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.
Contribute to a range of services in support of the government and the community when not committed to primary tasks, when available. [For details see the section on Services in Support of the Government and the Community, including MAO&T, following the last Departmental Output Expense within Part 2.1]. Satisfaction of the supported department/agency.
For Military Hydrography: Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Hydrographic Vessel that meets the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Hydrographic Vessel that carries out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS) and the NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability) to achieve DLOC.
NZDF OPRES, and relevant RNZN Publications, including:
  • NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability).
  • Warrant of Armament Stores.
  • RNZN Master Personnel Establishments.
Combat Viability :
  • Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES, and RNZN Publications (as listed above).
Deployability :
  • Hydrographic Vessel capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Stores and provisions embarked to allow tasking.
  • Materiel state satisfactory to permit tasking.
  • Personnel state satisfactory to permit tasking.
NZDF OPRES, and RNZN Publications (as listed above)
Sustainability :
  • Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period.
  • Fuel, stores and provisions available to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation.
NZDF OPRES, and RNZN Publications (as listed above)

Note 1: Military hydrography under Employment Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: The ability for HMNZS RESOLUTION and the Deployable Hydrographic Support Unit (DHSU) to leverage opportunities to help achieve the OS20/20 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.

Note 3: Deployment Impact - 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 16 operations.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,204 10,204 10,352
Revenue from the Crown 10,169 10,169 10,317
Revenue from Others 35 35 35

Output Performance Measures and Standards#

Output Performance - Military Policy Development, Coordination and Advice - Defence Force
Performance Standards Performance Measures
Range of keys submissions anticipated as follows:  
  • Statutory Reports to Parliament
2
  • Submissions to Cabinet (in conjunction with the Ministry of Defence)
40-60
  • Reports and Briefing Papers to Minister (in conjunction with the Ministry of Defence)
350-450
  • Ministerial Correspondence ([Invalid character here] Ministerials[Invalid character here] )
300-400
  • Parliamentary Questions (for Written and Oral answer)
350-450
  • Select Committee Reports
5-10
  • Select Committee Questions (Foreign Affairs Defence & Trade, and Finance and Expenditure Committees)
300-400
  • The supply of individual products, as above, of high quality:
Defined by the seven characteristics of quality advice: Purpose, Logic, Accuracy, Options, Consultation, Practicality and Presentation
  • Percentage of the first drafts of all policy papers accepted by the Minister
95%
  • Percentage of other responses accepted without substantive amendment
90%
  • All reports and oral advice will be delivered within the agreed or statutory time frame. Percentage of: replies to Ministerials within 20 days of receipt of request, replies to Parliamentary Questions for Written Answer provided by due date, and replies to Parliamentary Questions for Oral Answer provided by midday on the day that the reply is due in the House
95%
Degree of satisfaction expressed by the Minister, appropriate committee or agency (feedback from those for whom policy products have been produced) High satisfaction

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

Scope of Appropriation#

Provision of the capabilities of the Mine Countermeasures (MCM) Forces, HMNZS MANAWANUI with HMNZS KAHU as backup, 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 27,131 27,131 30,950
Revenue from the Crown 26,947 26,947 30,744
Revenue from Others 184 184 206

Reasons for Change in Appropriation#

The $4 million increase in this appropriation mainly recognises the comparative differences as a result of savings from 2007/08.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Mine Countermeasures (MCM)and MCM Diving Forces - Defence Force
Performance Standards Performance Measures
MCM Support Vessel (HMNZS MANAWANUI) and Operational Diving Team available for military tasks. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Mission Availability, Planned Sea-Days, and Diving Hours for the year (1 July 2008-30 June 2009).
  • HMNZS MANAWANUI will be mission available for 236 days, of which 50 to 65 days will be at sea.
  • HMNZS KAHU will be mission available for 236 days, of which 40 to 55 days will be at sea.
  • The Diving Team will spend approximately 360 hours (target range 340-380 hours) 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).
Contribute to a range of services, including MAO&T (Multi-Agency Operations " Tasks), in support of other government departments and the community when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, earlier in Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • MCM Support Vessel and Operational Diving Team that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • MCM Support Vessel and Operational diving Team carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS) and the NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability) to achieve DLOC.
NZDF OPRES, and relevant RNZN Publications, including:
  • NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability).
  • Warrant of Armament Stores.
  • RNZN Master Personnel Establishments.
Combat Viability :
  • Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES, and RNZN Publications (as listed above).
Deployability :
  • MCM Support Vessel and Operational Diving Team capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Stores and provisions embarked to allow tasking.
  • Materiel state satisfactory to permit tasking.
  • Personnel state satisfactory to permit tasking.
NZDF OPRES, and RNZN Publications (as listed above)
Sustainability :
  • Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period.
  • Fuel, stores and provisions available to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation.
NZDF OPRES, and RNZN Publications (as listed above)

Note 1: MCM operations under Employment Contexts (ECs) 1 and 2, and independent diving tasks under ECs 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: When HMNZS MANAWANUI is deployed outside of New Zealand waters, HMNZS KAHU will undertake the tasks of MCM Support Vessel on the New Zealand station. When not deployed in this role, HMNZS KAHU will operate as part of the Naval Patrol Forces).

Miscellaneous Support Activities (M22)#

Scope of Appropriation#

Provision of the NZDF infrastructure and planned support to regional defence forces and the New Zealand community provided by identified elements of the NZDF. It includes support provided under the auspices of the Mutual Assistance Programme, support to the New Zealand Cadet Forces, training of Limited Service Volunteers and the provision of Service Museums, in accordance with NZDF Output Plan specifications.

Expenses and Revenue#

Expenses and Revenue - Miscellaneous Support Activities (M22) - Defence Force
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,295 14,295 -
Revenue from the Crown 12,895 12,895 -
Revenue from Others 1,400 1,400 -

Reasons for Change in Appropriation#

This appropriation changes to a MCOA with effect FY 2008/09.

Miscellaneous Support Activities MCOA (M22)#

Scope of Appropriation#

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 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 Service Military Museums
This output class is limited to collection development, collection management and exhibits related to New Zealand's military history.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 13,774
Support to Mutual Assistance Programme - - 1,977
Support to New Zealand Cadet Forces - - 2,897
Support to Limited Service Volunteer Scheme - - 2,576
Support to Service Military Museums - - 6,324
Revenue from the Crown - - 12,424
Support to Mutual Assistance Programme - - 1,977
Support to New Zealand Cadet Forces - - 2,897
Support to Limited Service Volunteer Scheme - - 1,226
Support to Service Military Museums - - 6,324
Revenue from Others - - 1,350
Support to Mutual Assistance Programme - - -
Support to New Zealand Cadet Forces - - -
Support to Limited Service Volunteer Scheme - - 1,350
Support to Service Military Museums - - -

Reasons for Change in Appropriation#

In the past the output classes that now make up this MCOA were treated as outputs within the one output expense. There is no noticeable cost difference between 2007/08 and 2008/09.

Output Performance Measures and Standards#

Output Performance - Miscellaneous Support Activities MCOA - Defence Force
Performance Standards Performance Measures
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.
  • Performance, in general, will be measured by the degree of satisfaction expressed by the authorities requesting assistance - in accordance with their annual programmes.
  • Performance will also be assessed by the regular evaluation of significant issues, the capacity to react to requests for assistance and the provision of adequate support from the limited resources available.
Mutual Assistance Programme:
Training and technical assistance for the Mutual Assistance Programme (MAP) - anticipated to be in the range of 120 to 180 activities. Each activity could include formal training, on-the-job training, technical advice, attachments, study, mobile training teams, and exchanges - both in New Zealand and overseas.
  • 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.
  • It will include monitoring and analysis of MAP activities within each country programme through various processes, including post-activity reports and evaluation of the training outcomes against identified need.
New Zealand Cadet Forces Support:
Support for the New Zealand Cadet Forces (NZCF) in 2008/09 will involve the conduct of 34 courses for NZCF officers and 47 courses for cadets - amounting to about 2,416 officer training days and 11,085 cadet training days. Permanent staff includes 27 Tri-Service, Regular Force training and support staff, and 5 civilian administrative staff. [Note: Training days do not include community projects completed at the local level].The NZCF comprises 350 NZCF officers and 3,910 cadets within 102 Cadet Force Units across New Zealand. The personnel figures fluctuate from month to month, especially at the end of the school year.
  • Meet the training, course and exercise objectives of the NZ Cadet Forces.
  • Conduct courses that meet the requirements of the NZQA framework, where appropriate.
  • Meet NZDF standards for the administrative support provided to NZCF units.
  • The effectiveness of the support provided to the NZCF is assessed from the reports of Area Coordinators and Cadet Unit Commanders and feedback from the public, and overall evaluation by the Commandant NZCF.
Limited Service Volunteer Training:
Special Training for Limited Service Volunteers, to include 5 courses (each of six weeks duration) for up to a total of 720 unemployed people between the ages of 17 and 25 years for the training year (1 Jul 08 - 30 Jun 09)
  • Complete training courses to standards agreed in a Memorandum of Understanding (MOU) between the NZDF and the Ministry of Social Development (MSD).
  • This will include an analysis of the training objectives achieved, the reported post-course employment status of Scheme participants, and feedback from the public and the MSD.
Service Military Museums:
For Service Military Museums. The provision of 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. The current Service Museums are at Devonport (Navy), Waiouru (Army), and Wigram (Air Force). Note: [Invalid character here] Collection management[Invalid character here] includes preservation.
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. For Service Museums, an annual review against Service Museum benchmarks and periodic reviews against the New Zealand Museum Standards Scheme will be conducted. 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

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 385,241 385,241 398,056
Revenue from the Crown 382,666 382,666 395,736
Revenue from Others 2,575 2,575 2,320

Reasons for Change in Appropriation#

The $13 million increase in this appropriation mainly reflects the Defence Funding Package increment for 2008/09, offset by a redistribution of the already appropriated total NZDF capital charge.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Naval Combat Forces - Defence Force
Performance Standards Performance Measures
Two frigates, each with embarked Seasprite helicopter, as required, available for military tasks. One frigate to be available for regional or collective security tasks and the second frigate to be available to deal with low-level security challenges in New Zealand or South Pacific waters. The Offshore Patrol Vessels (OPVs) will assume the latter role once accepted into service. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Mission Availability and Planned Sea Days for the year (1 July 2008-30 June 2009).
  • HMNZS TE KAHA will be mission available for 175 days, of which 90 to 110 days will be at sea.
  • HMNZS TE MANA will be mission available for 200 days, of which 130 to 140 days will be at sea.
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, earlier in Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Frigates that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Frigates carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS) and the NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability) to achieve DLOC.
NZDF OPRES, and relevant RNZN Publications, including:
  • NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability).
  • Warrant of Armament Stores.
  • RNZN Master Personnel Establishments.
Combat Viability :
  • Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES, and RNZN Publications (as listed above).
Deployability :
  • Vessels capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Stores and provisions embarked to allow tasking.
  • Materiel state satisfactory to permit tasking.
  • Personnel state satisfactory to permit tasking.
NZDF OPRES, and RNZN Publications (as listed above)
Sustainability :
  • Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period.
  • Fuel, stores and provisions available to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation.
NZDF OPRES, and RNZN Publications (as listed above)

Note 1: Maritime operations under Employment Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: Details on the Seasprite helicopters are recorded under Output Expense Naval Helicopter Forces.

Note 3: Deployment Impact - consecutive deployments of the Naval Combat Force elements for six months, on similar missions, are likely to have an adverse impact on training.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 79,073 79,073 82,275
Revenue from the Crown 78,617 78,617 81,863
Revenue from Others 456 456 412

Reasons for Change in Appropriation#

The small increase of $3 million in this appropriation mainly reflects the Defence Funding Package increment for 2008/09.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Naval Helicopter Forces - Defence Force
Performance Standards Performance Measures
Three SH-2G(NZ) Seasprite helicopters available for military tasks - from a total fleet of five Seasprite helicopters. To be sustainable on operations in accordance with Schedule 4 to the NZDF Output Plan. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Planned Seasprite Flying Hours for the year (1 July 2008-30 June 2009). 1,406 hours, made up as follows:
  • For flying while embarked with force elements of the Navy, a total of 453 hours (target range 430-475 hours).
  • For shore-based readiness training - a total of 953 hours (target range 905-1,000 hours)
Contribute to MAO&T (Multi-Agency Operations/Tasks) and 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. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, earlier in Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Naval Helicopter Forces that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Naval Helicopter Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), 6 Squadron Training Programme, and the NZBR 202 (RNZN Air Orders) to achieve DLOC.
NZDF OPRES, and RNZAF and RNZN Publications, including:
  • RNZAF Master Personnel Establishment.
  • RNZN Personnel States.
  • NZAP(S) 700 (This document is currently under review).
  • NZBR 99, RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability
  • NZBR 202, RNZN Air Orders.
  • 6 Squadron Standard Operating Procedures.
Combat Viability :
  • Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective standardisation when working with friendly forces.
NZDF OPRES, and RNZAF and RNZN Publications (as listed above).
Deployability :
  • Naval Helicopter Forces capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Air Publication NZAP(S) 700.
NZDF OPRES, and RNZAF and RNZN Publications (as listed above).
Sustainability :
  • Aircraft, expendable and technical stores available, as specified in Air Publication NZAP(S) 700, to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation of the Naval Helicopter Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan
NZDF OPRES, and RNZAF and RNZN Publications (as listed above).

Note 1: Predominantly maritime operations under Employments Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: 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.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 61,912 61,912 104,652
Revenue from the Crown 61,541 61,541 104,266
Revenue from Others 371 371 386

Reasons for Change in Appropriation#

The comparatively large $43 million increase in this appropriation mainly reflects the comparative differences associated with the introduction into service of the new inshore and offshore patrol vessels for the Navy.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Naval Patrol Forces - Defence Force
Performance Standards Performance Measures
The OPVs, HMNZ Ships OTAGO and WELLINGTON, with embarked Seasprite or other helicopter/s as required, available for military tasks and MAO&T (Multi-Agency Operations and Tasks). NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
The IPVs, HMNZ Ships ROTOITI, HAWEA, PUKAKI and TAUPO, available for military tasks and MAO&T. NZDF OPRES
OPV Mission Availability and Planned Sea-Days for the year (1 July 2008-30 June 2009).
  • HMNZS OTAGO will be mission available for 236 days, of which 110 to 125 days will be at sea.
  • HMNZS WELLINGTON will be mission available for 236 days, of which 70 to 90 days will be at sea.
IPV Mission Availability and Planned Sea-Days for the year (1 July 2008-30 June 2009).
  • HMNZS ROTOITI will be mission available for 235 days, of which 115 to 140 days will be at sea.
  • HMNZS HAWEA will be mission available for 235 days, of which 105 to 125 days will be at sea.
  • HMNZS PUKAKI will be available for 20 to 40 days at sea.
  • HMNZS TAUPO will be available for 20 to 40 days at sea.
Undertake MAO&T (Multi-Agency Operations/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. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, following the last Departmental Output Expense within Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While theaim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under EC 3 a P2 OPRES rating.
Readiness :
  • OPVs and IPVs that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • OPVs and IPVs carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS) and the NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability) to achieve DLOC.
NZDF OPRES, and relevant RNZN Publications, including:
  • NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability).
  • Warrant of Armament Stores.
  • RNZN Master Personnel Establishments.
Combat Viability :
  • Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES, and RNZN Publications (as listed above).
Deployability :
  • OPVs and IPVs capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Stores and provisions embarked to allow tasking.
  • Materiel state satisfactory to permit tasking.
  • Personnel state satisfactory to permit tasking.
NZDF OPRES, and RNZN Publications (as listed above)
Sustainability :
  • Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period.
  • Fuel, stores and provisions available to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation.
NZDF OPRES, and RNZN Publications (as listed above)

Note 1: Maritime operations under Employment Contexts (ECs) 1, 2, and 3. (See details on ECs earlier in Part 2.1). Note: Subject to availability and the Government's requirements, tasking of these vessels, the IPVs and particularly the OPVs, may take place in other ECs.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Naval Patrol Forces (M22) - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Project Protector (Operating Costs for new Navy Vessels) 2005/06 39,172 44,181 44,166 44,180 44,188

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 92,677 92,677 108,664
Revenue from the Crown 92,151 92,151 108,069
Revenue from Others 526 526 595

Reasons for Change in Appropriation#

The $16 million increase in this appropriation mainly reflects the Defence Funding Package increment for 2008/09 and operating initiatives associated with expense transfers from 2007/08.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Naval Support Forces - Defence Force
Performance Standards (Quantity and Quality) Performance Measures
HMNZS ENDEAVOUR and HMNZS CANTERBURY, each with embarked Seasprite helicopter/s, as required, available for military tasks. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Mission Availability and Planned Sea-Days for the year (1 July 2008-30 June 2009).
  • HMNZS ENDEAVOUR will be available for 4 to 15 days at sea.
  • HMNZS CANTERBURY will be mission available for 236 days, of which 120 to 140 days will be at sea.
Undertake MAO&T (Multi-Agency Operations/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. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, earlier in Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Replenishment Ship and Amphibious Sealift Ship that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Ships carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS) and the NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability) to achieve DLOC.
NZDF OPRES, and relevant RNZN Publications, including:
  • NZBR 99 (RNZN Instructions for the Generation, Maintenance and Evaluation of Operational Capability).
  • Warrant of Armament Stores.
  • RNZN Master Personnel Establishments.
Combat Viability :
  • Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks.
  • Equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective interoperability when working with friendly forces.
NZDF OPRES, and RNZN Publications (as listed above).
Deployability :
  • Vessels capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Stores and provisions embarked to allow tasking.
  • Materiel state satisfactory to permit tasking.
  • Personnel state satisfactory to permit tasking.
NZDF OPRES, and RNZN Publications (as listed above).
Sustainability :
  • Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period.
  • Fuel, stores and provisions available to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation.
NZDF OPRES, and RNZN Publications (as listed above).

Note 1: Maritime logistic support and amphibious sealift operations under Employment Contexts (ECs) 1, 2, 3, 4, and 5. (See details on ECs earlier in Part 2.1).

Note 2: HMNZS CANTERBURY is also capable of embarking four NH-90 helicopters (to be acquired by the NZDF in the future).

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Naval Support Forces (M22) - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Project Protector (Operating Costs for new Navy Vessels) 2005/06 21,355 24,086 24,086 24,086 24,086

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 54,110
Revenue from the Crown - - 53,659
Revenue from Others - - 451

Reasons for Change in Appropriation#

This appropriation has been under a three-year multi-year appropriation (1 July 2005 - 30 June 2008) and now reverts to being funded on an annual basis. The 2007/08 costs are expected to total some $71 million. The costs appropriated for 2008/09, on an annual basis, are expected to total $54 million. The difference in costs (between 2007/08 and 2008/09) reflects a variety of the 2007/08 costs that are not expected to require recognition in 2008/09.

Output Performance Measures and Standards#

Output Performance - Operationally Deployed Forces Annual - Defence Force
Performance Standards Performance Measures

Maintain the operational commitments specified by Government in its approval for each task/mission/operation.

Personnel, as applicable, to be at the Operational Level of Capability (OLOC) - for applicable Employment Context/s - prior to deployment.

Timely replacement of each element or individual, when requested and as approved by the Government.

(See Current Operational Commitments table below).Generally:
  • The level of capability achieved by individuals, detachments or units prior to departure will be assessed by the designated Operational Commander.
  • Regular formal reporting against the statedmissionof the deployed force from the New Zealand Senior National Officer on the operation.
  • Occasional reports received from respective United Nations/Coalition/Force Commanders.
  • Degree of satisfaction of performance of duties expressed by the authorities requesting the assistance.
  • Performance of equipment provided by NZDF, when applicable.
  • Evaluation by visiting New Zealand politicians and senior NZDF personnel.
  • Budget considerations. (Each deployment is to be completed within a Cabinet-approved budget).

Note 1: The Government's desired goals for the delivery of this output expense over the ten-year period (2005/06 - 2014/15), in accordance with the results of the Defence Capability and Resourcing Review (DCARR) and the Defence Funding Package (DFP), are detailed within Schedule 4 (Classified) to the NZDF Output Plan.

Note 2: Deployed force elements across all Employment Contexts (ECs) as determined at any one time. (See details on ECs earlier in Part 2.1).

Current Operational Commitments#

Current Operational Commitments - Defence Force
Government Approved Deployments (as at 1 April 2008) Numbers (Personnel)
OP KORU (Timor Leste) All Task Groups 182
UNTSO (Middle East) [OP SCORIA] 8
MFO (Sinai) [OP FARAD] 26
UNMIK (Kosovo) [OP KOSTER] 1
UNAMI (Iraq) [OP HAVEN, Task Group IRON] 1
OP ARIKI (Afghanistan) [Task Group CRIBB] 111
OP ARIKI (Afghanistan) [Task Group KEA] 5
OP ARIKI (Tampa, Florida, USA) [Task Group SPEAK] 2
OP ARIKI (Afghanistan) [Task Group AFFIRM] 1
OP ARIKI (Afghanistan) [Task Group RUA] 2
OP ARIKI (Afghanistan) [Task Group MANAAKI] 2
OP ARIKI (Arabian Sea area) [Task Group TROY] 6
UNMIS [OP SUDDEN] (Sudan) 3
OP RATA II (Solomon Islands) 52
UNCMAC (Republic of Korea) [OP MONITOR] 3
USCENTCOM Staff Officer 1
Total NZDF personnel deployed: 406

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Operationally Deployed Forces Annual (M22) - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Additional Funding for Operationally Deployed Forces 2006/07 41,776 37,050 37,568 38,296 38,966

Operationally Deployed Forces (M22)#

Scope of Appropriation and Expenses#

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

Departmental Output Expenses

   

Operationally Deployed Forces (M22)

The provision of force elements for routine operational deployments in support of the United Nations and other relevant multinational agencies as approved by the Government, in accordance with NZDF Output Plan specifications.

Commences: 1 July 2005

Expires: 30 June 2008

Original Appropriation 66,999
Adjustments for 2006/07 71,179
Adjustments to 2007/08 (7,311)
Adjusted Appropriation 130,867
Actual to 2006/07 Year End 59,575
Estimated Actual for 2007/08 71,292
Estimated Actual for 2008/09 -
Estimated Appropriation Remaining -

Revenue#

Revenue - Operationally Deployed Forces (M22) - Defence Force
  Budget
$000
Revenue from the Crown to end of 2008/09 129,918
Revenue from Others to end of 2008/09 947
Total Revenue 130,865

Reasons for Change in Appropriation#

As reflected in the table above, this appropriation has been under a three-year multi-year appropriation (1 July 2005 - 30 June 2008). From 2008/09 it reverts to being funded on an annual basis.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Operationally Deployed Forces (M22) - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Additional Funding for Operationally Deployed Forces 2006/07 41,776 37,050 37,568 38,296 38,966

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 118,859 118,859 124,891
Revenue from the Crown 118,236 118,236 124,100
Revenue from Others 623 623 791

Reasons for Change in Appropriation#

The $6 million increase in this appropriation mainly reflects the Defence Funding Package increment for 2008/09.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Rotary Wing Transport Forces - Defence Force
Performance Standards Performance Measures
Six UH-1H Iroquois helicopters available for military tasks - from a fleet total of 14 Iroquois helicopters. To be sustainable on operations in accordance with Schedule 4 of the NZDF Output Plan. NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Two 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. NZDF OPRES
Planned Iroquois Flying Hours for the year (1 July 2008-30 June 2009). 4,560 hours (target range 4,332-4,788 hours).
A Forward and Tactical Aeromedical Evacuation (AE) element for the support of land operations. (Note: The RNZAF is required to provide forward and tactical Rotary Wing AE services, including responsibility for the provision of AE-qualified personnel and associated AE equipment). NZDF OPRES
Undertake MAO&T (Multi-Agency Operations/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. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. [For details see the section on Services in Support of the Government and the Community, including MAO&T, earlier in Part 2.1]. Satisfaction of the supported department/agency. Many of the MAO&T agreements/MOUs, which will include performance requirements (conditions and standards), are still under development.
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Rotary Wing Transport Forces that meet the Directed Level of Capability (DLOC) readiness criteria in accordance with Schedule 4 to the NZDF Output Plan.
  • Rotary Wing Transport Forces carry out a range of training activities in accordance with the NZDF Exercise Activity Schedule (EAS), RNZAF Mission Essential Task Lists (being updated) and the 3 Squadron Training Programme.
NZDF OPRES, and RNZAF Publications, including:
  • 3 Squadron Standard Operating Procedures.
  • RNZAF Master Personnel Establishment.
  • NZAP(S) 700 (This document is currently under review).
  • RNZAF 9000 series (training manuals).
Combat Viability :
  • Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks.
  • Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks.
  • Effective standardisation when working with friendly forces.
NZDF OPRES, and RNZAF Publications (as listed above).
Deployability :
  • Rotary Wing Transport Forces capable of generating the Operational Level of Capability (OLOC) within designated Response Times (timeliness), as specified in Schedule 4 to the NZDF Output Plan.
  • Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Air Publication NZAP(S) 700.
NZDF OPRES, and RNZAF Publications (as listed above).
Sustainability :
  • Aircraft, expendable and technical stores available, as specified in Air Publication NZAP(S) 700, to maintain OLOC for designated operational viability period.
  • Personnel available for sustainment/rotation of the Rotary Wing Transport Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan
NZDF OPRES, and RNZAF Publications (as listed above).

Note 1: Tactical air transport operations under Employment Contexts (ECs) 1, 2, 3, 4 and 5, and Counter-Terrorist operations under ECs 1 and 2. (See details on ECs earlier in Part 2.1).

Note 2: The Seasprite naval helicopters are provided under a different Output Expense -Naval Helicopter Forces.

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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 51,063 51,063 62,968
Revenue from the Crown 50,881 50,881 62,773
Revenue from Others 182 182 195

Reasons for Change in Appropriation#

The $12 million increase in this appropriation mainly reflects the Defence Funding Package increment for 2008/09 and the expense transfer from 2007/08.

Output Performance Measures and Standards#

For additional important information on this Output Expense, see the notes at the end of this table.

Output Performance - Special Operations Forces - Defence Force
Performance Standards Performance Measures
Army, drawing on 1st NZ Special Air Service (SAS) Group 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 Company and/or Battalion Group (motorised, non-motorised or composite). (See details on ECs earlier in Part 2.1).
  • A Counter-Terrorist Group to assist the NZ Police in Counter-Terrorist operations, including Maritime CT, under Employment Contexts 1D and 2D.
  • 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.
NZDF OPRES (Operational Preparedness and Reporting System). (See the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1).
Army will also maintain a SAS Squadron to support the framework of a brigade group for training in New Zealand. NZDF OPRES
Standards and performance rating required under the NZDF Operational Preparedness and Reporting System (OPRES) against the four Elements of Preparedness (see the OPRES Key Performance Indicators and OPRES Performance Rating Scale earlier in Part 2.1). While the aim, under the OPRES rating system, is an OPRES Rating of P1, for 2008/09 the following will apply:
  • For tasks under ECs 1 and 2 - a P1 OPRES rating.
  • For tasks under ECs 3 to 5 - a P2 OPRES rating.
Readiness :
  • Special Forces, Counter-Terrorist (CT) Forces and CBRE IEDD Teams that meet the degrees of notice and Directed Level of Capability (DLOC) and Operational Level of Capability (OLOC) readiness criteria, as appropriate, in accordance with Schedule 4 to the NZDF Output Plan.
  • Special Forces, CT Forces and CBRE IEDD Teams carry out a range of readiness training activities in accordance with the NZDF Exercise Activity Schedule (EAS), Army Mission Essential Task Lists (METLs), Army Annual Plan, and Formation and Unit Training Directives to maintain DLOC and OLOC, as appropriate, in accordance with Schedule 4 to the NZDF Output Plan.
NZDF OPRES
Combat Viability :
  • Personnel that meet the experience levels and qualification requirements for special operations, CT tasks and CBRE IEDD tasks.
  • Equipment performance, reliability and technology that meet required OLOC standards for commitment to special operations, CT tasks and CBRE IEDD tasks.
  • Effective Standardisation when working with friendly forces.
NZDF OPRES
Deployability :
  • Special Forces, CT Forces and CBRE IEDD Teams capable of deploying within specified degrees of notice/response times, as applicable, in accordance with Schedule 4 to the NZDF Output Plan.
  • Munitions and specialist stores available to OLOC standards.
NZDF OPRES
Sustainability :
  • Munitions and specialist stores available for period of special operations, CT tasks and CBRE IEDD tasks.
  • Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan.
NZDF OPRES

Note 1: This Output Expense is designed to provide capabilities prepared for:

  • Special Operations (NZ Special Air Service (NZ SAS) [Invalid character here] green role[Invalid character here] ) in support of land operations. It also includes the requirement to provide Special Forces elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training. If a major element of the Special Forces is committed in support of land combat operations, the Army is not able to provide, concurrently, a like commitment to another operation/mission.
  • A Counter-Terrorist Group to assist the NZ Police in Counter-Terrorist operations, including Maritime CT, under Employment Contexts 1D and 2D.
  • National Response for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD). It involves the provision of a dedicated military organisation of specialised teams at the operational level of capability prepared for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests. This organisation will not normally be available for other community support services.

Note 2: CBRE IEDD Organisation - Cabinet has 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]. The establishment of this dedicated CBRE IEDD/EOD unit will be set up over the next three to five years. The set up of the unit will not detract from the ability to respond to IEDD and CBRE incidents in the three Central Business Districts (CBDs) of Auckland, Wellington and Christchurch. Although CBRE IEDD is a NZDF responsibility directed by Government, Army has been designated the [Invalid character here] lead Service[Invalid character here] . Navy and Air Force will provide trained manpower and specialist support for CBRE IEDD/EOD, as required.

Note 3: Deployment Impact

  • 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.

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 Force
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Continuation of the upgrade of military capabilities, the restoration of existing infrastructure and the building of new infrastructure;  all in accordance with the Defence Long-Term Development Plan (LTDP) New Zealand Defence Force 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
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 404,682 366,455 533,956
Intangibles 7,470 7,470 8,000
Other - - -
Total Appropriation 412,152 373,925 541,956
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 404,682 366,455 533,956
Intangibles 7,470 7,470 8,000
Other - - -
Total Appropriation 412,152 373,925 541,956

Reasons for Change in Appropriation

This appropriation was formerly in the NZDF Statement of Intent as forecast capital expenditure. The increase of $129.806 million in 2008/09 reflects the year specific nature of capital expenditure and where:

  • Specialised Military Equipment (SME) related payments to the Ministry of Defence (MoD) are expected to exceed the 2007/08 payments made by some $90 million, and
  • increased expenditure of some $40 million is expected to be undertaken on NZDF managed capital projects in 2008/09.

Expected Results

Expected Results - New Zealand Defence Force Capital Expenditure PLA (M22) - Defence Force
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Improved Military Capability and Infrastructure $412 million $412 million $542 million

Performance Information for Appropriations Vote Veterans' Affairs - Defence Force#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Veterans' Affairs (M75)

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 Veterans Affairs is responsible for the appropriations in the Vote for the 2008/09 financial year covering the following:

  • A total of over $1 million for the provision of policy advice, the provision of administrative services to relevant boards and committees, the coordination of commemorations, the administration of contracts for work carried out in Services Cemeteries.
  • A total of over $2 million for the assessment and review of entitlements and benefits (War Disablement Pension, Veterans' Pension and burial in Services Cemeteries), the provision and installation of ex-service memorials for eligible veterans and the provision of case management for veterans and their families.
  • A total of under $1 million for the development and maintenance of Services Cemeteries.
  • A total of over $2 million for the provision of services to veterans and their families.

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 - Veterans' Affairs - Defence Force
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
National Identity Veterans are acknowledged Policy and Administration
  Veterans are acknowledged Support for Veterans and their Families
  Veterans are acknowledged Development and Maintenance of Services Cemeteries
  Veterans are acknowledged Services to Veterans
Families - Young and Old The impacts of service on eligible veterans and their dependants are monitored Policy and Administration
  The impacts of service on eligible veterans and their dependants are monitored Services to Veterans
  The impacts of service on eligible veterans and their dependants are monitored Support for Veterans and their Families
National IdentityFamilies - Young and Old The veterans' perspective in considered as part of government decision-making on issues that impact on their lives Policy and Administration

Summary of Financial Activity#

Summary of Financial Activity - Veterans' Affairs - Defence Force
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 4,420 4,474 4,227 6,604 9,304 9,304 3,941 2,773 6,714 5,791 5,791 5,791
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 337 - - 8,135 1,680 1,680 - - - - - -
Capital Expenditure 225 225 2,500 920 - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

4,982 4,699 6,727 15,659 10,984 10,984 3,941 2,773 6,714 5,791 5,791 5,791

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue - - - - - - N/A N/A - - - -
Capital Receipts 225 - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

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

Budget Policy Initiatives#

Budget Policy initiatives - Veterans' Affairs - Defence Force
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Funding for the Royal New Zealand Returned and Services' Association to further its mission in providing services to veterans Services to Veterans - 1,000 - - -

Total Vote: All Appropriations

Figure 1 -Trends in total actual and estimated total expenses

All Appropriations
All Appropriations
Source: Veterans' Affairs New Zealand

The departmental and non-departmental appropriations in Vote Veterans' Affairs - Defence Force show the changes discussed briefly below.

The overall trend in the vote shows movement in appropriations driven by an increased demand for the provision of services and the one off project activity.

Departmental Output Expenses

Figure 2 - Trends in departmental output expenses

Departmental Output Expense Trends
Departmental Output Expense Trends
Source: Veterans' Affairs New Zealand

The movements in appropriations are driven by the one-off appropriations for one-off project activity. This includes participation in commemorations and arrangements covered by the Memorandum of Understanding (MOU) signed by the Crown and the Ex-Vietnam Services Association and the Royal New Zealand Returned and Services' Association (RNZRSA) regarding the concerns of Viet Nam Veterans.

Non-Departmental Output Expenses

Figure 3 - Trends in non-departmental output expenses

Non-Departmental Output Expense Trends
Non-Departmental Output Expense Trends
Source: Veterans' Affairs New Zealand

The movements in appropriations are driven by an increased demand for services in the case management area and a non-department other expense of $1 million in the 2008/09 year for the RNZRSA to support the RNZRSA in furthering its mission.

Other Crown expenses

A non-departmental other expense of $250,000 in 2006/07 as a grant to the Neville Wallace Memorial Youth Development Trust.

A non-departmental other expense of $7 million in 2006/07 as a one-off payment to establish the Viet Nam Veterans and their Families Endowment Trust. The $7 million will be repaid after 30 years.

A non-departmental other expense of $1 million in the 2008/09 year for the RNZRSA to support the RNZRSA in furthering its mission.

Ex-Gratia Payments

A total of $1.680 million in the 2007/08 year for provision of payments to veterans and/or members of their family with accepted conditions and one-off medical assessments.

Capital Expenditure

Loan to the Rannerdale Trust

A total of $225,000 in 2003/04 to provide a loan to the Rannerdale Trust to assist with the cost of deferred maintenance and capital works at the Rannerdale War Veterans' Home. Interest on the loan is charged at the capital charge rate. The loan will be repaid when there are no longer any World War ll veterans resident in the Rannerdale War Veterans' Home, or in the event that the Home is sold. The interest on the loan is rolled up to be repaid with the principal.

Loan to the Montecillo War Veterans Home

Two loans have been provided to the Montecillo Trust to assist with the cost of redevelopment of the Montecillo Veterans' Home and Hospital at a new site ($225,000 in 2004/05 and $2.500 million in 2005/06). Interest on the loan is charged at the capital charge rate. The loan will be repaid when there are no longer any World War ll veterans resident in the Montecillo Veterans' Home and Hospital, or in the event that the Home is sold. The interest on the loan is rolled up to be repaid with the principal.

Grant to the Viet Nam Veterans and their Families Endowment Trust

A grant of $120,000 in 2007/08 to the Viet Nam Veterans and their Families Endowment Trust to cover administration costs and payments to some veterans and their family members until the time the trust starts to generate its own income.

An additional grant of $180,000 in 2007/08 year to the Viet Nam Veterans and their Families Endowment Trust to cover payments to some veterans and their family members until the time that the trust starts to generate its own income.

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 - Veterans' Affairs - Defence Force
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Veterans are acknowledged and recognised for their service and sacrifice and the community is aware of the role veterans have played and continue to play in developing New Zealand as a nation. Policy and Administration
  Support for Veterans and their Families
Working in partnership with the NZDF, the impacts of service on eligible veterans and their dependants are monitored and they have information about and access to services and supports that promote wellbeing. Policy and Administration
  Support for Veterans and their Families
The veterans' perspective is considered as part of government decision-making on issues that impact on their lives. Policy and Administration

Policy and Administration (M75)

Scope of Appropriation

The purchase of the provision of policy advice on, and administration of, a wide range of issues relating to veterans' entitlements, care, and recognition. This includes the provision of administrative services to relevant boards and committees, the coordination of commemorations, the administration of contracts for service for, and undertaking quality audits of, maintenance and development work carried out in Services Cemeteries.

Expenses and Revenue

Expenses and Revenue - Policy and Administration (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,901 4,901 1,669
Revenue from the Crown 4,901 4,901 1,669
Revenue from Others - - -

Reasons for Change in Appropriation

One-off funding was provided in the 2007/08 year to implement the arrangements covered by a MOU signed by the Crown with the Ex-Vietnam Services Association and the RNZRSA regarding the concerns of Viet Nam Veterans.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy and Administration (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Provide policy advice to the Minister of Veterans' Affairs on veterans' entitlements, care and recognition

     
Replies to requests within 20 days of receipt of requests, if not otherwise specified. 95% 95% 95%
The drafts of policy papers presented to the Minister will be accepted on their first presentation. 95% 95% 95%
Policy papers will meet defined characteristics of quality advice ( purpose, logic, accuracy, options, consultation, practicality and presentation). meet meet meet
Responses to submissions, other than policy papers, accepted without amendment. 90% 90% 90%

Provide Ministerial Servicing and Support

     
Replies to requests within 20 days of receipt of requests, if not otherwise specified. 95% 95% 95%
Responses accepted without amendment. 95% 95% 95%

Provide Administration for War Pensions Appeal Board and War Pensions Advisory Board

     
Arrangements and actions meet Boards requirements. meet meet meet
Actions defined by Boards will be completed within 20 working days after decisions made, unless other wise specified. 95% 95% 95%

Management of Rehabilitation Loan Scheme

     
Provide information to MSD in timely manner to enable them to make payments. 100% 100% 100%

Administration of maintenance agreements and contracts for service relating to the maintenance and development of Services Cemeteries

     
Contracts to be current, legally correct and clearly specify maintenance and development requirements. meet meet meet
No breaches of contract by Veterans' Affairs New Zealand. 100% 100% 100%
Breaches of contracts by contractors will be managed as per the conditions in the contract. meet meet meet
Services Cemeteries will have maintenance agreement specifying the maintenance standards in place. 100% 100% 100%

Quality Audits of Services Cemeteries

     
Specifications outlined in contracts for service have been met. 100% 100% 100%
Services Cemeteries are maintained to the satisfaction of VANZ, Local Authorities, the RSA and veterans' representative organisations. meet meet meet

Coordinate New Zealand's participation in the commemoration of significant military anniversaries

     
Participation to be delivered in accordance with agreed parameters and budget. meet meet meet
The event coordination will be to the satisfaction of the key stakeholders. meet meet meet

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Policy and Administration (M75) - Veterans' Affairs - Defence Force
Reference Conditions
Quality Characteristics Description
Purpose The aims of the papers are clearly stated and answer 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 papers 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 problems of implementation, technical feasibility, timing and consistency with other policies have been considered.
Presentation 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.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy and Administration (M75) - Veterans' Affairs - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
New Zealand Government participation in commemorative activities in Korea and Monte Cassino 2003/04 - - - - -
New Zealand Government participation in commemorative activities related to the 90th anniversary of the landings at Gallipoli and the 60th anniversaries of Victory in Europe and Victory in Japan Days 2004/05 - - - - -
Year of the Veteran 2006/07 - - - - -
Commemoration of Anzac Day at Gallipoli 2005/06 746 820 897 897 897
Memorandum of Understanding (MOU) signed by the Crown with the Ex-Vietnam Services Association and the Royal New Zealand Returned and Services' Association regarding the concerns of Viet Nam Veterans 2006/07 3,210 150 150 150 150
NZ Government attendance at the commemoration of the 90th anniversary of Passchendaele 2006/07 196 - - - -

Services to Veterans (M75)#

Scope of Appropriation#

To purchase the assessment of entitlements and benefits and the provision of appropriate services. This includes the assessment and review of entitlements and benefits - War Disablement Pension, Veterans' Pension and burial in Services Cemeteries, the provision and installation of ex-service memorials for eligible veterans and the provision of case management for veterans and their families.

Expenses and Revenue#

Expenses and Revenue - Services to Veterans (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,630 2,630 2,272
Revenue from the Crown 2,153 2,153 1,795
Revenue from Others 477 477 477

Reasons for Change in Appropriation#

One off funding was provided in the 2007/08 year to implement the arrangements covered by a MOU signed by the Crown with the Ex-Vietnam Services Association and the RNZRSA regarding the concerns of Viet Nam Veterans.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Services to Veterans (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Assess and Review Entitlements to War Disablement Pension and Veterans Pension

     
Assessments and Reviews will be conducted against extant policy. meet meet meet
Assessments will be completed within 10 working days of receipt by the War Pensions Claims Panel. 95% 95% 95%
Reviews and re-openings will be completed within 3 months of receipt by the National Review Officer. 95% 95% 95%
Reviews will be completed within 3 months of receipt by the Secretary for War Pensions. 95% 95% 95%
Appeals will be heard within 3 months of receipt by the War Pensions Appeal Board. 95% 95% 95%

Provide Ex-Service Memorial Plaques and Headstones for Eligible Veterans

     
Ex-service memorials will be factually correct, meet technical specifications as contracted and be correctly installed. 99.5% 99.5% 99.5%
Decisions on eligibility for an ex-service memorials will be made within legislative parameters. meet meet meet
Where correct documentation is been supplied with the application an ex-Service memorials will be manufactured and installed within four months of receipt of the order. 75% 75% 75%

Provide Case Management

     
New referrals to case management will be assigned a case manager within 5 working days. 95% 95% 95%
Active cases will be contacted every 4 months (in the range 1 to 4 months) to monitor progress and the effectiveness of the interventions put in place. 100% 100% 100%
Veterans and their families that are part of the case management service will be satisfied that the service delivered is appropriate to meet their needs. 85% 85% 85%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Services to Veterans (M75) - Veterans' Affairs - Defence Force
Reference Conditions
Extant Policy Policy complies with the War Pensions Act 1954.
Technical specifications for ex-service memorials. Ex-service memorial must meet specified size, material composition and finish as per the relevant contract specifications.
Eligibility for ex-service memorials Decision on eligibility for ex-service memorials will be made on the basis of Section 15 of the Burial and Cremation Act 1964.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Services to Veterans (M75) - Veterans' Affairs - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
MOU signed by the Crown with the Ex-Vietnam Services Association and the RNZRSA regarding the concerns of Viet Nam Veterans. 2006/07 610 202 202 202 202

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Veterans' Affairs - Defence Force
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Veterans are acknowledged and recognised for their service and sacrifice and the community is aware of the role veterans have played and continue to play in developing New Zealand as a nation. Development and Maintenance of Services Cemeteries
  Services to Veterans
Working in partnership with the NZDF, the impacts of service on eligible veterans and their dependants are monitored and they have information about and access to services and supports that promote wellbeing. Services to Veterans

Development and Maintenance of Services Cemeteries (M75)#

Scope of Appropriation

The purchase of the development and maintenance of Services Cemeteries.

Expenses

Expenses - Development and Maintenance of Services Cemeteries (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 746 746 746

Output Performance Measures and Standards

Output Performance Measures and Standards - Development and Maintenance of Services Cemeteries (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Develop and Maintain Services Cemeteries

     
Works carried out under contract will comply with agreed contract standards. 90% 90% 90%
Services Cemeteries will be maintained to specified standards. 100% 100% 100%
Works in Services Cemeteries will be managed in accordance with an agreed annual programme. meet meet meet
Works carried out will be to the satisfaction of Local Authorities, the RSA and veterans' representative organisations. meet meet meet

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Development and Maintenance of Services Cemeteries (M75) - Veterans' Affairs - Defence Force
Reference Conditions
Standards for Services Cemeteries These define the maintenance standards for service cemeteries that Local Authorities need to meet in order to receive maintenance grants.
Works in Services Cemeteries All work funded under this appropriation is contracted with specifications around the work to be undertaken.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Development and Maintenance of Services Cemeteries (M75) - Veterans' Affairs - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Additional annual maintenance grant paid for the routine upkeep of Services Cemeteries 2003/04 512 512 512 512 512

Support for Veterans and Their Families (M75)#

Scope of Appropriation#

To provide for the support of veterans and their families. This includes the provision of counselling for veterans' families, the reimbursement of out of pocket expenses for veterans' children with specified conditions and additional support for veterans to facilitate them remaining in their own homes for as long as possible.

Expenses#

Expenses - Support for Veterans and Their Families (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,027 1,027 2,027

Reasons for Change in Appropriation#

A non departmental other expense of $1 million in the 2008/09 year for the RNZRSA to support the RNZRSA in furthering its mission.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Support for Veterans and Their Families (M75) - Veterans' Affairs - Defence Force
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Support for Veterans and Their Families

     
The services provided will be to the satisfaction of the veteran and/or the veteran's family. meet meet meet
Works carried out under contract will comply with agreed contract standards. 95% 95% 95%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Support for Veterans and Their Families (M75) - Veterans' Affairs - Defence Force
Reference Conditions
Services All interventions are contracted with specifications around the work to be undertaken

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Support for Veterans and Their Families (M75) - Veterans' Affairs - Defence Force
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Additional services to veterans and their families 2005/06 475 475 475 475 475
MOU signed by the Crown with the Ex-Vietnam Services Association and the RNZRSA regarding the concerns of Viet Nam Veterans. 2006/07 1,500 - - - -

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 $9,418 million in the 2008/09 financial year.

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

  • a total of nearly $9 million on policy advice
  • a total of over $4 million on intelligence and risk assessment services
  • a total of nearly $42 million on clearance of international passengers, crew and craft
  • a total of over $46 million on clearance of import, export and excise transactions
  • a total of nearly $2 million on technical advisory services
  • a total of over $3 million on revenue collection, accounting and debt management
  • a total of over $6 million on surveillance, search and containment
  • a total of nearly $1 million on National Maritime Co-ordination Centre
  • a total of nearly $10 million on investigations of offences
  • a total of nearly $1 million on prosecutions and civil proceedings.

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 government outcomes through effective border management and the collection of Customs Revenue. Broadly, Customs' responsibilities involve facilitating the legitimate movement of people, craft and goods across the border, and law enforcement to protect New Zealand's border and revenue, so that New Zealanders can benefit from participating in international trade and travel while being protected from associated risks.

As part of its role, Customs contributes to shared outcomes with other agencies in the border sector. The border sector was formally recognised in October 2007 when Cabinet approved the establishment of an ongoing border sector governance structure, supported by a strategic framework and work programme, with the aim of improving coordination and collaboration between agencies with an interest at the border. Cabinet agreed to the three outcomes of the border sector of:

  • Protection: New Zealand is protected from people, goods and organisms that pose a risk to our interests
  • Facilitation: New Zealand's economic and social interests are enhanced by facilitating the flow of legitimate trade and travel across the border, and
  • Partnership and Responsibility: Everybody understands and undertakes their roles for the effective management of the border.

These are reflected in Customs' three outcomes of Protection, Facilitation and Relationships.

Vote Customs is also part of the External Sector. Agencies within the External Sector have a role in advancing the Government's external policy goal: New Zealand influences the international environment to promote our interests and values and to contribute to a stable, peaceful and prosperous world. Customs' contributions to the Protection and Relationships outcomes support that external policy goal in relation to international trade, trade security and national security interests.

Customs collects revenue on behalf of the Crown by collecting Customs revenue, both at the border and domestically. Customs revenue is an important source of funding for the government to achieve its economic, social and environmental goals for New Zealanders and represents approximately 15% of the total Crown revenue.

Link to Government Priorities 

Customs contributes to all three of the Government's themes of Economic Transformation, Families - young and old, and National Identity.

Customs contributes to Economic Transformation through several key activities. These include advice and support for the Government's trade agenda, led by the Ministry of Foreign Affairs and Trade; advice and support to industry to enhance facilitation of trade across the border; our contribution to tourism through efforts to provide friendly and efficient facilitation of travellers to and from New Zealand; and further efforts to provide fair and efficient collection of Customs Revenue.

Customs' place at the border means we also make a significant contribution to the Government theme of Families - young and old, by supporting and contributing (through the protection Customs provides at the border) to safe communities. This includes protecting the physical health and safety of New Zealanders, and their values.

Some of Customs' work also contributes to the Government theme of National Identity, through activities such as the protection of New Zealand's culture and heritage.

From 2008/09, we will continue to contribute to these Government themes by focusing on three priorities:

  • World-class passenger clearance services.
  • World-class trade facilitation arrangements.
  • Specialist support for New Zealands' international interests and relationships.

The following table shows how the day-to-day delivery of Customs' Output Expenses, for which appropriations are sought, are linked and contribute to the Government's Priorities and those 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 - Themes / Sub-themes Government Outcomes
Policy Advice
Clearance of International Passengers, Crew & Craft
Clearance of Import, Export and Excise Transactions
Families - young and old
Economic Transformation
National Identity
Protection
Facilitation
Relationships
Revenue
Intelligence and Risk Assessment Services
Revenue Collection, Accounting & Debt Management
Investigation of Offences
Prosecutions and Civil Proceedings
Families - young and old
Economic Transformation
National Identity
Protection
Revenue
Surveillance, Search and Containment
National Maritime Coordination Centre
Families - young and old Protection
Technical Advisory Services Economic Transformation Facilitation
Revenue

Summary of Financial Activity#

Summary of Financial Activity - Customs
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 79,138 95,668 105,623 110,411 118,929 118,429 123,832 - 123,832 123,420 124,444 124,280
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 37 38 - 52 552 52 - 552 552 552 552 552
Capital Expenditure - - - - 6,400 6,400 9,905 - 9,905 11,700 6,500 6,500
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

79,175 95,706 105,623 110,463 125,881 124,881 133,737 552 134,289 135,672 131,496 131,332

Crown Revenue and Receipts

                       
Tax Revenue 7,298,434 7,565,000 8,395,111 8,870,885 9,183,000 9,183,000 N/A N/A 9,418,000 9,920,000 10,553,000 11,170,000
Non-Tax Revenue 535 120 104 132 80 80 N/A N/A 80 80 80 80
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

7,298,969 7,565,120 8,395,215 8,871,017 9,183,080 9,183,080 N/A N/A 9,418,080 9,920,080 10,553,080 11,170,080

Budget Policy Initiatives#

Budget Policy initiatives - Customs
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Inter-Agency Resource Needs for Trade Agreements Clearance of Import, Export and Excise Transactions
Output Expenses
- 485 - - -
National Maritime Coordination Centre (NMCC) Staff and Information Systems National Maritime Co-ordination Centre
Output Expenses
- 284 399 456 446
Prevention of Service Failure - Remuneration and People Capability Clearance of International Passengers, Crew and Craft
Output Expenses
- 1,339 1,339 1,339 1,339
  Intelligence and Risk Assessment Services
Output Expenses
- 115 115 115 115
  Investigation of Offences
Output Expenses
- 211 211 211 211
  Policy Advice
Output Expenses
- 128 128 128 128
  Prosecutions and Civil Proceedings
Output Expenses
- 18 18 18 18
  Revenue Collection, Accounting and Debt Management
Output Expenses
- 98 98 98 98
  Surveillance, Search and Containment
Output Expenses
- 177 177 177 177
Customs' Border Management Systems Replacement Programme Policy Advice
Output Expenses
- 720 - - -
Scoping of Cross-Agency Border Management Trade Single Window Policy Advice
Output Expenses
- 1,000 - - -
Total Initiatives      - 4,575 2,485 2,542 2,532

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 2008/09.

Figure 1 - 2008/09 Crown revenue by category

Figure 1 2008/09 Crown revenue by category
Figure 1 2008/09 Crown revenue by category
Source: New Zealand Customs Service

Figure 2 illustrates growth in Crown revenue collected by category.

Figure 2 - Crown revenue collections by category 1999/00 - 2008/09

Figure 2 Crown revenue collections by category 1999/00-2008/09
Figure 2 Crown revenue collections by category 1999/00-2008/09
Source: New Zealand Customs Service

Departmental output expense

Annual appropriations for the purchase of departmental outputs are expected to increase by $4.903 million for 2008/09 compared with 2007/08. The changes in total appropriations are as a result of additional funding of $350,000 for passenger processing and accommodation carried forward from previous budgets and a net funding increase in 2008/09 of $4.553 million, primarily for remuneration and people capability and border management systems scoping and replacement programmes, as detailed in the Budget Policy Initiatives above.

Trends in comparative actual and estimated expenses for Output Expense appropriations under this Vote are shown in Figure 3 below, including budgeted and estimated actual figures for the preceding year.

Figure 3 - Trends in total actual and estimated output expenses

Figure 3 Trends in total actual and estimated output expenses
Figure 3 Trends in total actual and estimated output expenses
Source: New Zealand Customs Service

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, craft, or goods, and Maori taonga and other treasured items, where the entry or exit may pose a material risk to our national interests.
  • Policy Advice
  • Intelligence and Risk Assessment Services
  • Clearance of International Passengers, Crew " Craft
  • Clearance of Import, Export and Excise Transactions
  • Surveillance, Search and Containment
  • National Maritime Coordination Centre
  • Revenue Collection, Accounting " Debt Management
  • Investigation of Offences
  • Prosecutions and Civil Proceedings
Outcome : Facilitation
New Zealand's economic, social, environmental, and cultural interests are sustained and enhanced by facilitating the flow of legitimate trade, travel, and goods, and Maori taonga and other treasured items, across the border.
  • Policy Advice
  • Clearance of International Passengers, Crew " Craft
  • Clearance of Import, Export and Excise Transactions
  • Technical Advisory Services
Outcome : Relationships
The New Zealand Customs Service establishes and maintains effective formal and informal working relationships with all stakeholder partners, and effectively supports agreements and treaties with other nations and jurisdictions that enhance our national interests.
  • Policy Advice
  • Clearance of International Passengers, Crew " Craft
  • Clearance of Import, Export and Excise Transactions
Outcome : Revenue
Due Customs revenue is collected to support Government social, economic and fiscal objectives.
  • Policy Advice
  • Intelligence and Risk Assessment Services
  • Clearance of International Passengers, Crew " Craft
  • Clearance of Import, Export and Excise Transactions
  • Revenue Collection, Accounting " Debt Management
  • Investigation of Offences
  • Prosecutions and Civil Proceedings
  • Technical Advisory Services

Clearance of Import, Export and Excise Transactions (M21)

Scope of Appropriation

The provision of services relating to validation, checking, inspection, clearance and audit of import and export consignments and excise returns.

Expenses and Revenue

Expenses and Revenue - Clearance of Import, Export and Excise Transactions (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 43,530 43,030 46,181
Revenue from the Crown 13,465 13,465 8,543
Revenue from Others 30,065 29,565 37,638

Reasons for Change in Appropriation

The increase in the appropriation is largely due to updated costing allocations.

Output Performance Measures and Standards

Output Performance Measures and Standards - Clearance of Import, Export and Excise Transactions (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of import transactions (including other cargo clearances and mail items) processed 47.4-52.8 million 45.7 million 47.4-52.8 million
Number of export transactions (including other cargo clearances and mail items) processed 26.5-33.2 million 32.2 million 26.5-33.2 million
Number of excise returns validated 4,588-5,070 5,100 4,588-5,070
% transactions (other than those referred for compliance checks) processed (including assessment against business rules and intelligence alerts) within 30 minutes A minimum of 95% of all import and export transactions >99% A minimum of 95% of all import and export transactions
Revenue leakage captured as a result of verification activities Minimum of $15 million $26 million Minimum of $15 million
Number of verifications 1.1-1.4 million 1.1 million 1.1-1.4 million
% of container exports to USA represented by Secure Exports Scheme (SES) partners 40%-50% 44% 40%-50%
SES will continue to comply with the requirements of the Supply Chain Security Arrangement with USA Yes Yes Yes

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Clearance of Import, Export and Excise Transactions (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Inter-Agency Resource Needs for Trade Agreements 2008/09 - 485 - - -
Customs Wellington Head Office Relocation and Modernisation 2007/08 502 932 932 932 932
Customs Border Management Systems Replacement Programme 2007/08 1,132 770 770 770 770
Establishment of a Customs Position in Washington DC 2005/06 466 466 466 466 466
Remuneration and organisational development 2005/06 3,836 3,836 3,836 3,836 3,836
Customs' Cargo X-Ray Capability 2004/05 17,364 17,364 17,364 17,364 17,364

Clearance of International Passengers, Crew and Craft (M21)#

Scope of Appropriation#

The clearance of international passengers, crew and craft arriving in and departing from New Zealand.

Expenses and Revenue#

Expenses and Revenue - Clearance of International Passengers, Crew and Craft (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 39,936 39,936 41,543
Revenue from the Crown 38,789 38,789 40,760
Revenue from Others 1,147 1,147 783

Reasons for Change in Appropriation#

The increase in the appropriation is largely due to the budget initiative relating to Prevention of Service Failure - Remuneration and People Capability.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Clearance of International Passengers, Crew and Craft (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of international travellers cleared 9.4-9.8 million 9.85 million 9.6-10 million
Additional interactions with international air travellers arriving or departing on a commercial service will take place at different levels of intrusiveness 120,000-160,000 142,500 122,500-162,500
% arriving air passengers processed within timeliness standards A minimum of 90% of arriving air passengers exit Customs' Control Points within 45 minutes of arrival 95% A minimum of 90% of arriving air passengers exit Customs' Control Points within 45 minutes of arrival
  A minimum of 98% of arriving air passengers exit Customs' Control Points within 60 minutes of arrival 98.5% A minimum of 98% of arriving air passengers exit Customs' Control Points within 60 minutes of arrival
% air and marine passengers subject to an alert who are processed in accordance with the alert instruction Minimum of 99.9% 99.3% Minimum of 99.9%
Number of marine craft, other than marine small craft, cleared 4,750-5,100 5,100 4,950-5,250
Number of marine small craft cleared 1,250-1,400 1,275 1,250-1,400
% arriving commercial marine craft boarded at first port of arrival in New Zealand 100% 99% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Clearance of International Passengers, Crew and Craft (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Passenger Processing Facilities at Auckland International Airport 2008/09 - 210 210 210 210
Customs Border Management Systems Replacement Programme 2007/08 609 415 415 415 415
Customs Wellington Head Office Relocation and Modernisation 2007/08 345 640 640 640 640
Remuneration and organisational development 2005/06 4,115 5,454 5,454 5,454 5,454
Enhanced border security capability for the New Zealand Customs Service in the air and marine environments 2004/05 6,667 6,667 6,667 6,667 6,667
Enhancing Customs and Immigration systems integration 2004/05 178 178 178 178 178
Funding to Relieve Congestion at Auckland and Christchurch Airports 2004/05 4,800 4,800 4,800 4,800 4,800

Intelligence and Risk Assessment Services (M21)#

Scope of Appropriation#

The provision of intelligence and risk assessments that inform intervention strategies, including alerts for goods, people and craft.

Expenses and Revenue#

Expenses and Revenue - Intelligence and Risk Assessment Services (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,157 4,157 4,239
Revenue from the Crown 3,926 3,926 4,020
Revenue from Others 231 231 219

Reasons for Change in Appropriation#

The increase in the appropriation is due to the budget initiative relating to Prevention of Service Failure - Remuneration and People Capability.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Intelligence and Risk Assessment Services (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of intelligence and operational risk products completed for external use, nationally and internationally 1,900-2,100 1,600 1,700-1,900
Number of alerts created by other agencies to be managed by New Zealand Customs Service - - 15,000-19,000 (for 15 agencies)
Organisational transactions scanned across alerts managed 16.5-19.5 million 17 million 16.5-19.5 million
% external clients satisfied with New Zealand Customs Service's intelligence and risk products 80% minimum external national & international clients satisfied 80% minimum external national & international clients satisfied 80% minimum external national & international clients satisfied

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Intelligence and Risk Assessment Services (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Customs Wellington Head Office Relocation and Modernisation 2007/08 52 96 96 96 96
Implementing a Data Match for Student Loans 2006/07 98 98 98 98 98
Remuneration and organisational development 2005/06 452 567 567 567 567

Investigation of Offences (M21)#

Scope of Appropriation#

The proactive and reactive investigation of serious transnational crime, transnational crime and other border and revenue offences.

Expenses and Revenue#

Expenses and Revenue - Investigation of Offences (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,362 9,362 9,582
Revenue from the Crown 8,981 8,981 9,321
Revenue from Others 381 381 261

Reasons for Change in Appropriation#

The increase in the appropriation is largely due to the budget initiative relating to Prevention of Service Failure - Remuneration and People Capability.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Investigation of Offences (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of investigation cases commenced 1,200-1,800 1,980 1,400-2,000
Number of cases investigated to completion 800-1,000 950 800-1,000
Investigative priority will be accorded to those investigations where intelligence and investigative processes identify a recognised level of threat to NZ, based on the involvement of transnational criminal activity (TCA), the quantities of commodity involved and/or the nature and complexity of the offending 28%-38% of cases investigated to completion will be of a high priority 36% 28%-38% of cases investigated to completion will be of a high priority
Investigative activity will generate information for future use by New Zealand Customs Service and other enforcement agencies Yes Yes Yes
Procedures will be in place to ensure cases are appropriately commenced and ceased; and case management procedures and legal review procedures will be in place that minimise the Crown's exposure to risks and litigation Yes Yes Yes
Investigation of cases finalised within 12 months of commencement A minimum of 90% 92% A minimum of 90%
% of cases meeting high and medium priority crime criteria investigated to completion A minimum of 80% 67% A minimum of 80%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Investigation of Offences (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Customs Wellington Head Office Relocation and Modernisation 2007/08 111 206 206 206 206
Remuneration and organisational development 2005/06 718 929 929 929 929

National Maritime Co-ordination Centre (M21)#

Scope of Appropriation#

Co-ordination services for civilian purposes that support the effective and efficient use of New Zealand's 'whole-of-government' maritime patrol and surveillance assets.

Expenses and Revenue#

Expenses and Revenue - National Maritime Coordination Centre (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 452 452 736
Revenue from the Crown 450 450 736
Revenue from Others 2 2 -

Reasons for Change in Appropriation#

The increase in the appropriation is due to the budget initiative relating to National Maritime Coordination Centre (NMCC) Staff and Information Systems.

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Maritime Coordination Centre (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
National Maritime Coordination Centre allocates available patrol and surveillance assets for civilian tasking Minimum of 80% of available surface patrol days and air patrol hours 16% surface patrol days Minimum of 80% of aerial patrol hours
    98% air patrol hours Minimum of 80% of sea patrol hours
Satisfaction of requesting agencies and asset providers with National Maritime Co-ordination Centre's coordination of tasking A minimum of 90% satisfaction in relation to responsiveness, transparency, and prioritisation A minimum of 90% A minimum of 90% satisfaction in relation to responsiveness, transparency, and prioritisation
All agencies that have signed an information agreement with National Maritime Co-ordination Centre receive the agreed information Yes Yes Yes
Agencies requesting and providing information are satisfied with the treatment and coordination of maritime information A minimum of 90% overall satisfaction in relation to treatment, information relevance and timeliness A minimum of 90% A minimum of 90% overall satisfaction in relation to treatment, information relevance and timeliness

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - National Maritime Coordination Centre (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
National Maritime Coordination Centre (NMCC) Staff and Information Systems 2008/09 - 284 399 456 446
Customs' People Capability 2007/08 6 6 6 6 6

Policy Advice (M21)#

Scope of Appropriation#

The provision of policy advice and related services relating to border security, border management and Customs revenue.

Expenses and Revenue#

Expenses and Revenue - Policy Advice (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,094 9,094 8,733
Revenue from the Crown 8,130 8,130 8,191
Revenue from Others 964 964 542

Reasons for Change in Appropriation#

The decrease in this appropriation is due to updated costing allocations.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Policy work programme will be advanced to the position agreed or subsequently amended by agreement between the Minister and Chief Executive during the year Yes Yes Yes
Policy advice provided will conform to quality characteristics:
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 has occurred:
  • with other government agencies and other affected parties and possible objections to proposals were identified
  • 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 as assessed by the Minister's satisfaction with the quality of policy advice provided
Yes Yes Yes
Quality management systems are in place through internal peer review, and external review and benchmarking - - Yes
International work programme will be advanced to the position agreed or subsequently amended by agreement between the Minister and Chief Executive during the year Yes Yes Yes
Agency satisfaction with the New Zealand Customs Service's international policy engagement Yes Yes Yes
Number of draft replies to ministerial correspondence 100-120 93 100-120
Number of draft responses to parliamentary questions 120-150 21 100-120
% draft replies to ministerial correspondence provided within agreed timeframes from time of receipt by Customs 90% draft replies to ministerial correspondence will be provided to the Minister within 20 working days from the time of receipt by Customs 68.5% 90% draft replies to ministerial correspondence will be provided to the Minister within 20 working days from the time of receipt by Customs or as agreed with the Minister
  100% draft replies to ministerial correspondence will be provided to the Minister within 30 working days from the time of receipt by Customs 100% 100% draft replies to ministerial correspondence will be provided to the Minister within 30 working days from the time of receipt by Customs or as agreed with the Minister

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Scoping of Cross-Agency Border Management Trade Single Window 2008/09 - 1,000 - - -
Customs' Border Management Systems Replacement Programme 2007/08 1,000 720 - - -
Customs Wellington Head Office Relocation and Modernisation 2007/08 130 242 242 242 242
Remuneration and organisational development 2005/06 306 434 434 434 434
Customs' Cargo X-Ray Capability 2004/05 100 100 100 100 100
Growth and Innovation Framework (GIF) 2004/05 750 750 750 750 750

Prosecutions and Civil Proceedings (M21)#

Scope of Appropriation#

The prosecution of offences and civil proceedings relating to the hearing of applications for the release of seized goods.

Expenses and Revenue#

Expenses and Revenue - Prosecutions and Civil Proceedings (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 909 909 928
Revenue from the Crown 893 893 911
Revenue from Others 16 16 17

Reasons for Change in Appropriation#

The increase in this appropriation is largely due to the budget initiative relating to Prevention of Service Failure - Remuneration and People Capability.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Prosecutions and Civil Proceedings (M21) - Customs
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Prosecution files commenced 35-45 74 60-75
% of prosecutions concluded that are successful A minimum of 80% 100% A minimum of 80%
% of prosecutions that incur adverse judicial comment A maximum of 5% Nil A maximum of 5%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Prosecutions and Civil Proceedings (M21) - Customs
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Customs Wellington Head Office Relocation and Modernisation 2007/08 10 19 19 19 19
Remuneration and organisational development 2005/06 63 81 81 81 81

Revenue Collection, Accounting and Debt Management (M21)#

Scope of Appropriation#

The provision of services relating to receipt and processing of revenues owing from import tariffs, goods and services tax and excise-equivalent duties on imported goods and excise duty on domestically manufactured fuel, tobacco and alcohol products.

Expenses and Revenue#

Expenses and Revenue - Revenue Collection, Accounting and Debt Management (M21) - Customs
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,149 3,149 3,251
Revenue from the Crown 2,862 2,862 2,980