Information supporting the estimates of appropriations

Finance and Government Administration 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 Finance and Government Administration Sector volume of the Information Supporting the Estimates 2008/09 are available in Adobe PDF and HTML format.

Using PDF Files

Cover, Contents#

Introduction#

Sector Overview#

  • Sector Overview Statement
  • Ministerial Statements of Responsibility
  • Speaker's Statement of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Prime Minister and Cabinet
  • Vote Communications Security and Intelligence
  • Vote Security Intelligence
  • Vote State Services
  • Vote Finance
  • Vote State-Owned Enterprises
  • Vote Revenue
  • Vote Ministerial Services
  • Vote Office of the Clerk
  • Vote Parliamentary Service
  • Vote Audit
  • Vote Ombudsmen

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Department of the Prime Minister and Cabinet
  • State Services Commission
  • The Treasury
  • Inland Revenue Department
  • Office of the Clerk of the House of Representatives
  • Parliamentary Service
  • Controller and Auditor-General
  • Office of the Ombudsmen

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 - Finance and Government Administration Sector#

Sector Overview Statement#

The Finance and Government Administration sector covers a range of Votes that fund the delivery of functions and services (including the administration of major legislation), which covers how Government and Parliament operate and the delivery of a range of services to New Zealanders. A key focus across the sector relates to the behaviour and adherence of the public sector to its legal and constitutional constraints and commitments; its relationships with stakeholders and the public; and the management and collection of Crown revenue.

Speaker's Overview of the Parliamentary Votes in this Sector

My part of this sector provides a range of services that support a functioning legislature in which members of Parliament are able to discharge their constitutional duties in respect of the consideration of legislation and other parliamentary business (Vote Office of the Clerk and Vote Parliamentary Service).

Agencies responsible to me also include the Officers of Parliament who have an oversight role on behalf of Parliament relating to the behaviour of the public sector; how it administers the law; and meets and performs its agreed and public responsibilities (Vote Audit and Vote Ombudsmen).

The key budget initiatives for Budget 2008 within the Votes in my part of this sector are:

Office of the Clerk
  • roll-out of eCommittee system to all select committees
Office of the Ombudsmen
  • the Ombudsmen adopting an enhanced role in the investigation of serious incidents that occur within prisons.
Hon Margaret Wilson, MP
Speaker of the House of Representatives
 


Ministers' Overview of the Votes (other than the Parliamentary Votes) in this Sector

Our sector also funds advice to Government on financial matters, including input on expenditure and budgeting (Vote Finance and Vote Revenue); manages the collection and distribution of Crown revenue and other payments (Vote Revenue and Vote Finance); monitors and advises on the performance of State-Owned Enterprises (Vote State-Owned Enterprises); and advises and provides services to improve the performance of the State sector (Vote Prime Minister and Cabinet, Vote State Services and Vote Finance). The State Services Commission manages the appointment of Chief Executives to government departments (Vote State Services).

The agencies in the sector that are responsible to us provide a number of services to New Zealanders, which includes a range of government social support programmes (Vote Revenue). We also fund delivery of services relating to the ability of central Government to function efficiently and effectively, carrying out its constitutional role as the government of New Zealand and in support of the Crown and the official responsibilities of our nation (Vote Prime Minister and Cabinet and Vote Ministerial Services). The sector also delivers services in support of maintaining national security (Vote Communication Security Intelligence and Vote Security Intelligence).

We take a keen interest in the level of service provided by our departments and in what contribution each has indicated they will make to support our three themes, Economic transformation, Families - young and old, and National identity. We are pleased to draw your attention to the increasing level of co-ordination between the agencies in the sector, as well as with those having complimentary roles in other sectors. We particularly note the consistency of their Statements of Intent, with evident purpose shown in increasing the productivity of the State sector. This will be reported on to Cabinet through the year. Those providing direct services to the public are making a determined effort to offer the customer service improvements we expect, through use of technology and in direct accessibility, but doing so with due consideration to providing value for money.

The Statements of Intent for 2008 of our respective agencies set out how their activities during the next three to five years focus on meeting the Government's three priority themes as these relate to individual agency roles. They outline what they are seeking to achieve, what they will do and how this will be measured, so that the combined progress contributes a positive impact and does so in a manner that offers the maximum benefit to New Zealanders.

Initiatives of note for Budget 2008-2009 within this part of the sector are:

Department of Prime Minister and Cabinet
  • renovation and refurbishment of Government House, Wellington
Finance
  • all Government Superannuation Fund and National Provident Fund annuitants receive 100% of the Consumer Price Index as a cost of living adjustment
  • New Zealand Export Credit Office development of US contract bonds and trade finance export products
  • funding for the development and maintenance of rail infrastructure
  • equity injections to the Reserve Bank, Industrial Research Limited, Timberlands West Coast and a new Hawke's Bay airport company
  • compensation to Landcorp for retaining protected land under the Protected Land Agreement
  • funding of negotiations with Atihau-Whanganui Incorporation in respect to claimed Māori vested land lease losses
Revenue
  • ‘Student Loans’ redesign
  • services to inform the public about entitlements and meeting obligations.

(Please refer to section 1.3 of each Vote for a list of all budget initiatives. In addition, please note that the Department of Internal Affairs' Statement of Intent is included in the National Identity Sector and under section 45E(2) of the Public Finance Act 1989, intelligence and security departments are not required to present information on their future operating intentions to the House of Representatives or produce a statement of forecast service performance.)

Hon Dr Michael Cullen
Minister of Finance

Hon David Parker
Minister of State Services

Rt Hon Helen Clark
Prime Minister
Minister Responsible for Ministerial Services
Minister in Charge of the NZ Security Intelligence Service
Minister Responsible for the Government Communications Security Bureau

Hon Trevor Mallard
Minister for State-Owned Enterprises

Hon Peter Dunne
Minister of Revenue

 

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 Finance and Government Administration 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 Dr Michael Cullen
Responsible Minister for the Treasury
16 April 2008

Hon Peter Dunne
Responsible Minister for the Inland Revenue Department
16 April 2008

Rt Hon Helen Clark
Responsible Minister for the Department of the Prime Minister and Cabinet
16 April 2008

Hon David Parker
Responsible Minister for the State Services Commission
16 April 2008

 

Speaker's Statement of Responsibility#

I am satisfied that the information on future operating intentions provided by the Office of the Clerk of the House of Representatives and the Parliamentary Service and included in the Information Supporting the Estimates for the Finance and Government Administration Sector is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with my requirements and performance expectations as Responsible Minister for the Office and the Service.

Hon Margaret Wilson, MP
Speaker of the House of Representatives
Responsible Minister for the Office of the Clerk of the House of Representatives
Responsible Minister for the Parliamentary Service
16 April 2008

 


Chief Executive Statements of Responsibility#

Department of the Prime Minister and Cabinet#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Department of the Prime Minister and Cabinet and for the Vote/Votes for which the Department of the Prime Minister and Cabinet is the administering department. Specifically, this information is contained in the Department of the Prime Minister and Cabinet'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.

Brent Anderson
Chief Financial Officer
Department of the Prime Minister and Cabinet
16 April 2008
Counter-signed

Maarten Wevers
Chief Executive
Department of the Prime Minister and Cabinet
16 April 2008

 

State Services Commission#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the State Services Commission and for the Vote/Votes for which the State Services Commission is the administering department. Specifically, this information is contained in the State Services Commission'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.

Anne Smith
Chief Financial Officer
State Services Commission
16 April 2008
Counter-signed

Mark Prebble
State Services Commissioner
State Services Commission
16 April 2008

 

The Treasury#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Treasury and for the Vote/Votes for which the Treasury is the administering department. Specifically, this information is contained in the Treasury'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 Matheson
Chief Financial Officer
The Treasury
16 April 2008
Counter-signed

John Whitehead
Secretary to the Treasury
The Treasury
16 April 2008

 

Inland Revenue Department#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Inland Revenue Department and for the Vote/Votes for which the Inland Revenue Department is the administering department. Specifically, this information is contained in the Inland Revenue Department'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.

Gordon Davidson
Chief Financial Officer
Inland Revenue Department
16 April 2008
Counter-signed

Robert Russell
Chief Executive and Commissioner of Inland Revenue
Inland Revenue Department
16 April 2008

 

Office of the Clerk of the House of Representatives#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Office of the Clerk of the House of Representatives and for the Vote/Votes for which the Office of the Clerk of the House of Representatives is the administering department. Specifically, this information is contained in the Office of the Clerk of the House of Representatives'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.

Peter Carr
Clerk-Assistant (Corporate Services)
(Chief Financial Officer)
Office of the Clerk of the House of Representatives
16 April 2008
Counter-signed

Mary Harris
Clerk of the House of Representatives
Office of the Clerk of the House of Representatives
16 April 2008

 


Chief Executive Statements of Responsibility (continued)#

Parliamentary Service#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Parliamentary Service and for the Vote/Votes for which the Parliamentary Service is the administering department. Specifically, this information is contained in the Parliamentary 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.

Simon Wall
Chief Finance Officer
Parliamentary Service
16 April 2008
Counter-signed

Geoff Thorn
General Manager
Parliamentary Service
16 April 2008

 

Controller and Auditor-General#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Controller and Auditor-General and for the Vote/Votes for which the Controller and Auditor-General is the administering department. Specifically, this information is contained in the Controller and Auditor-General's statement of forecast service performance, forecast financial statements and Annual Plan.

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 J Viviers
Financial Controller
Controller and Auditor-General
16 April 2008
Counter-signed

K B Brady
Controller and Auditor-General
16 April 2008

 

Office of the Ombudsmen#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Office of the Ombudsmen and for the Vote/Votes for which the Office of the Ombudsmen is the administering department. Specifically, this information is contained in the Office of the Ombudsmen'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.

Peter Brocklehurst
Finance Manager
Office of the Ombudsmen
16 April 2008
Counter-signed

Beverley Wakem
Chief Ombudsman
Office of the Ombudsmen
16 April 2008

 

Performance Information for Appropriations Vote Prime Minister and Cabinet#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Prime Minister (M52)

ADMINISTERING DEPARTMENT: Department of the Prime Minister and Cabinet

MINISTER RESPONSIBLE FOR DEPARTMENT OF THE PRIME MINISTER AND CABINET: Prime Minister

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

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

  • a total of just over $8.500 million (33.5% of the Vote) on free and frank advice on policy issues; services to facilitate inter-departmental co-ordination of policy development and promote a more collective approach to performance across the state sector; and co-ordination of central government activities aimed at protecting New Zealand's domestic and external security. From the Cabinet Office, advice on constitutional policy and procedural issues for the Governor-General, and the Prime Minister and Cabinet; coordination of the Government's legislation programme; secretariat services to Cabinet, Cabinet committees and the Executive Council; and administration of the New Zealand Royal Honours system
  • a total of nearly $3.600 million (14.1% of the Vote) on support services to the Governor-General and maintenance of the two Government Houses
  • a total of nearly $3.400 million (13.3% of the Vote) for the provision of information and reports on events and trends overseas affecting New Zealand's interests
  • a total of nearly $6.700 million (26.1% of the Vote) on Government House capital investment, including the renovation and refurbishment of Government House, Wellington
  • a total of nearly $1.200 million (4.6% of the Vote) under permanent legislative authority (Civil List Act 1979) for payments for the salary, the personal allowance and travel expenses of the Governor-General
  • a total of just over $1.300 million (5.2% of the Vote) on departmental capital expenditure
  • a total of nearly $47,000 (0.2% of the Vote) under permanent legislative authority (NZSIS Amendment (No. 2) Act 1999) for payments to the Commissioner of Security Warrants
  • a total of nearly $765,000 (3.0% of the Vote) for depreciation expenses on Crown assets (two Government Houses and their contents).

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 - Prime Minister and Cabinet
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
To achieve true sustainability in New Zealand through:
  • Economic transformation
  • Families - young and old
  • National Identity
Decision making by the Prime Minister and Cabinet is well-informed and supported Policy Advice and Secretariat and Coordination Services
External Assessments on Developments Overseas
Executive government is well-conducted and continues in accordance with the accepted conventions and practices Policy Advice and Secretariat and Coordination Services
  The Governor General is well-supported Support Services to the Governor-General and maintenance of the Government Houses, New Zealand
  The management of domestic and external security is well-planned, informed and coordinated Policy Advice and Secretariat and Coordination Services
  External Assessments on Developments Overseas
  A high-performing, trusted and accessible state sector, delivering the right things, in the right way, at the right prices Policy Advice and Secretariat and Coordination Services

Objectives of the Vote#

The appropriations for Vote Prime Minister and Cabinet are directed towards the overarching objective to work to achieve good government.

Summary of Financial Activity#

Summary of Financial Activity - Prime Minister and Cabinet
  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 14,474 15,145 14,172 14,936 15,646 15,546 15,527 - 15,527 15,527 15,527 15,527
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 1,117 810 1,209 1,257 1,901 1,901 - 1,973 1,973 2,033 2,095 2,162
Capital Expenditure 700 2,263 795 146 2,450 2,450 1,320 6,650 7,970 15,450 17,450 8,587
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

16,291 18,218 16,176 16,339 19,997 19,897 16,847 8,623 25,470 33,010 35,072 26,276

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 - Prime Minister and Cabinet
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Upgrade of information and communications technology infrastructure " websites Policy Advice and Secretariat and Coordination Services (M52) - 336 336 336 336
  Departmental Output Expenses          
  Capital Expenditure PLA (M52) - 1,020 - - -
  Departmental Capital Expenditure          
Renovation and refurbishment of Government House, Wellington Government House-Capital Investment (M52) - 6,500 15,000 17,000 8,137
  Non-Departmental Capital Expenditure          
  Support Services to the Governor-General and Maintenance of the two Government Houses (M52) - 200 200 200 200
  Departmental Output Expenses          
Climate Change Solutions package Policy Advice and Secretariat and Coordination Services (M52) 500 - - - -
  Departmental Output Expenses          
Total Initiatives   500 8,056 15,536 17,536 8,673

Total Vote: All Appropriations

The movements in departmental and non-departmental appropriations in Prime Minister and Cabinet, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in Output Expenses and Crown Capital Expenditure.

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

Departmental Output Expenses

Figure 1 - Trends in output appropriations

Trends in Departmental Output Expenses Trends
Trends inDepartmental Output Expenses Trends
Source: Department of Prime Minister and Cabinet

The baseline increase in 2004/05 is largely due to one-off funding for the Foreshore and Seabed Group.

The increase in 2007/08 is largely due to one-off funding for the climate change solutions package.

The increase in 2008/09 is additional capital funding to maintain information and communications technology infrastructure and for operating costs associated with the renovation and conservation of Government House, Wellington.

Non-Departmental Capital Expenditure

Figure 2 -Trends in capital expenditure

Trends in Non-Departmental Capital Expenditure
Trends in Non-Departmental Capital Expenditure
Source: Department of Prime Minister and Cabinet

This appropriation includes capital additions, alterations and renovation activities to the two Government Houses in order to maintain or increase their on-going use, functionality, and value as heritage assets.

The increase in 2004/05 is due to additional funding for extensions and renovation carried out at Government House, Auckland.

The increase in 2007/08 is due to additional funding for detailed design for the proposed refurbishment of Government House, Wellington.

The increase in 2008/09 is due to additional funding for the renovation and conservation of Government House, Wellington. This funding is time limited to 2011/12.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Prime Minister and Cabinet
2007/08Structure -
Appropriations that have been
Changed
2007/08
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been
Transferred
Amount
Moved
$000
2008/09Structure -
Appropriations affected by the
Changes in Appropriation
Structure
2007/08
(Restated)
$000
2008/09
$000
Departmental Output Expenses            
Support Services to the Governor-General and Maintenance of Government House New Zealand 3,506 Transferred to Support Services to the Governor-General and Maintenance of the two Government Houses 3,506 Support Services to the Governor-General and Maintenance of the two Government Houses 3,506 3,591
Non-Departmental Other Expenses             
Government House - Other Payments 1,106 Transferred to Governor-General - Remuneration and Travel 1,106 Governor-General -Remuneration and Travel 1,106 1,161

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

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Decision-making by the Prime Minister and Cabinet is well informed and supported Policy Advice and Secretariat and Coordination Services
  Intelligence Assessments on Developments Overseas
Outcome - Executive Government is well-conducted and continues in accordance with accepted conventions and practices Policy Advice and Secretariat and Coordination Services
Outcome - The Governor-General is well-supported Support Services and Maintenance of the two Government Houses.
Outcome - The management of domestic and external security is well-planned, informed and co-ordinated Policy Advice and Secretariat and Coordination Services
  Intelligence Assessments on Developments Overseas
Outcome - A high-performing, trusted and accessible state sector, delivering the right things, in the right way, at the right prices Policy Advice and Secretariat and Coordination Services

Intelligence Assessments on Developments Overseas (M52)

Scope of Appropriation

Assessments on events and trends overseas affecting New Zealand's interests.

Expenses and Revenue

Expenses and Revenue - Intelligence Assessments on Developments Overseas (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,339 3,309 3,399
Revenue from the Crown 3,339 3,339 3,399

Output Performance Measures and Standards

Output Performance Measures and Standards - Intelligence Assessments on Developments Overseas (M52) - Prime Minister and Cabinet
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The assessments of developments overseas are high-quality, accurate and succinct 100% of assessments are factually correct 100% 100% of assessments are factually correct
  90% of assessments require no more than minor revision At least 90% 90% of assessments require no more than minor revision
  Feedback from key stakeholders is positive Discussion with key stakeholders indicate satisfaction with service Feedback from key stakeholders is positive
The assessments are of policy relevance to New Zealand Feedback from key stakeholders is positive Survey being conducted to assess stakeholder satisfaction Feedback from key stakeholders is positive

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Intelligence Assessments on Developments Overseas (M52) - Prime Minister and Cabinet
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
Expansion of capability to improve whole-of-government performance 2007/08 302 302 302 302 302
Expansion of capability to provide greater geographical and in-depth coverage in assessments provided 2004/05 300 300 300 300 300
Total   602 602 602 602 602

Policy Advice and Secretariat and Coordination Services (M52)#

Scope of Appropriation#

Strategic and issues-based policy advice of a frank and impartial nature to the Prime Minister and other Ministers; advice on constitutional policy and procedural issues for the Governor-General, and the Prime Minister and Cabinet; support for the coordination of the Government's legislation programme; secretariat services to the Executive Council, Cabinet and its committees; and administration of the New Zealand Honours system.

Expenses and Revenue#

Expenses and Revenue - Policy Advice and Secretariat and Coordination Services (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,801 8,741 8,537
Revenue from the Crown 8,801 8,801 8,537

Reasons for Change in Appropriation#

There was a one-off appropriation for the climate change solutions package in 2007/08.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Secretariat and Coordination Services (M52) - Prime Minister and Cabinet
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Advice provided meets the department's quality, quantity and timeliness standards Key stakeholders are satisfied Survey being conducted to ascertain stakeholder satisfaction Key stakeholders are satisfied
Services provided meet quality, accuracy, impartiality and timeliness criteria. Key stakeholders are satisfied Survey being conducted to ascertain stakeholder satisfaction Key stakeholders are satisfied

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice and Secretariat and Coordination Services (M52) - Prime Minister and Cabinet
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
Upgrade of information and communications technology infrastructure and websites 2008/09 - 336 336 336 336
Expansion of capability to improve whole-of-government performance 2007/08 874 874 874 874 874
Climate Change Communication Strategy 2007/08 500 - - - -
Expansion of capability to improve whole-of-government performance 2006/07 450 450 450 450 450
Expansion of capability to provide quality advice 2003/04 535 535 535 535 535
Total   2,359 2,195 2,195 2,195 2,195

Support Services to the Governor-General and Maintenance of the two Government Houses (M52)#

Scope of Appropriation#

This appropriation is limited to financial, administrative, communications, travel and advisory services for the Governor-General; services to maintain the Governor-General's two residences including gardening, maintenance and security; renovation and conservation of Government House, Wellington.

Expenses and Revenue#

Expenses and Revenue - Support Services to the GovernorGeneral and Maintenance of the two Government Houses (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,506 3,496 3,591
Revenue from the Crown 3,476 3,476 3,561
Revenue from Others 58 42 62

Reasons for Change in Appropriation#

The increase is due mainly to additional appropriation for operating costs associated with the renovation and conservation of Government House, Wellington.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Support Services to the GovernorGeneral and Maintenance of the two Government Houses (M52) - Prime Minister and Cabinet
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Support to the Governor-General is efficient and effective Feedback from the Governor-General is positive No negative feedback received Feedback from the Governor-General is positive
Events at Government Houses are well-organised Feedback from key stakeholders on the quality of events is positive Feedback has been predominantly positive Feedback from key stakeholders on the quality of events is positive
Maintenance of Governor-General's programme is appropriate and well-balanced Feedback from the Governor-General and other key stakeholders is positive Feedback has been predominantly positive Feedback from the Governor-General and other key stakeholders is positive

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Support Services to the GovernorGeneral and Maintenance of the two Government Houses (M52) - Prime Minister and Cabinet
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
Renovation and refurbishment of Government House, Wellington 2008/09 - 200 200 200 200
Expansion of capability to improve whole-of-government performance 2007/08 54 54 54 54 54
Specialist assessments of structural and refurbishment requirements at Government House Wellington 2006/07 155 - - - -
Expansion of maintenance programme for the two Government Houses 2004/05 200 200 200 200 200
Total   409 454 454 454 454

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 - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The Commissioner of Security Warrants is well-supported Fees for the Commissioner of Security Warrants
The Governor-General is well-supported Governor-General: Remuneration and Travel

Depreciation Expenses on Crown Assets (M52)

Scope of Appropriation

Depreciation expenses on Government Houses in Wellington and Auckland and their contents.

Expenses

Expenses - Depreciation Expenses on Crown Assets (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 750 750 765

Fees for the Commissioner of Security Warrants PLA (M52)#

Scope of Appropriation#

The appropriation under permanent legislative authority (the NZSIS Amendment (No. 2) Act 1999) will provide for payments to the Commissioner as an independent judicial officer for the authorisation of domestic security warrants.

Expenses#

Expenses - Fees for the Commissioner of Security Warrants PLA (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 45 45 47

Governor-General - Remuneration and Travel PLA (M52)#

Scope of Appropriation#

The appropriation under permanent legislative authority (the Civil List Act 1979) provides for payment of the salary, personal allowance and travel expenses of the Governor-General.

Expenses#

Expenses - GovernorGeneral Remuneration and Travel PLA (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,106 1,106 1,161

Reasons for Change in Appropriation#

The increase in 2008/09 is for anticipated increases in the Governor-General's remuneration, personal allowance and travel.

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Prime Minister and Cabinet
Appropriation Reporting Mechanism
Depreciation Expenses on Crown Assets G.48 Annual report
Fees for the Commissioner Security Warrants G.48 Annual report
Governor-General: Remuneration and Travel G.48 Annual report

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 - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Critical infrastructure continues to adequately support the delivery of our outputs Department of Prime Minister and Cabinet - Capital Expenditure

Department of the Prime Minister and Cabinet - Capital Expenditure PLA (M52)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Department of the Prime Minister and Cabinet Capital Expenditure PLA (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 300 300 1,270
Intangibles - - 50
Other - - -
Total Appropriation 300 300 1,320
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 300 300 1,270
Intangibles - - 50
Other - - -
Total Appropriation 300 300 1,320

Reasons for Change in Appropriation

The increase is for the one-off purchase and replacement of information and communications technology infrastructure including hardware and software.

Expected Results

Expected Results - Department of the Prime Minister and Cabinet Capital Expenditure PLA (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Department is enabled to maintain and enhance its ability to provide advice and support to Executive Government Feedback from key stakeholders is positive Feedback is predominantly positive Feedback from key stakeholders is positive

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Government House Wellington is made fit for the purpose for another 50 years Government House-Capital Investment

Government House - Capital Investment (M52)#

Scope of Appropriation

This appropriation is limited to the renovation and conservation of the Government House, Wellington property to maintain or increase its on-going use, functionality, and value as a heritage asset; and purchases of and investment in capital items for the two Government Houses.

Capital Expenditure

Capital Expenditure - Government House Capital Investment (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,150 2,150 6,650

Reasons for Change in Appropriation

The significant increase in 2008/09 is for the extensive renovation and conservation of Government House, Wellington which will be completed in 2011/12.

Expected Results

Expected Results - Government House Capital Investment (M52) - Prime Minister and Cabinet
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The functionality, ongoing use of and heritage value of the two Government Houses is maintained or increased Feedback from key stakeholders is positive Feedback is predominantly positive Feedback from key stakeholders is positive

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Government House Capital Investment (M52) - Prime Minister and Cabinet
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
Conservation and renovation of Government House, Wellington 2008/09 - 6,500 15,000 17,000 8,137
Renovation and refurbishment of Government House, Wellington 2007/08 2,000 - - - -
Total   2,000 6,500 15,000 17,000 8,137

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Prime Minister and Cabinet
Appropriation Reporting Mechanism
Government House-Capital Investment G.48 Annual report

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 Communications Security and Intelligence#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for the Government Communications Security Bureau (M60)

ADMINISTERING DEPARTMENT: Government Communications Security Bureau

MINISTER RESPONSIBLE FOR GOVERNMENT COMMUNICATIONS SECURITY BUREAU: Prime Minister

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Communications Security and Intelligence
  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 - - - - - - - - - - - -
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure 26,448 35,152 37,977 42,099 40,345 40,345 48,888 N/A 48,888 50,801 60,703 49,277

Total Appropriations

26,448 35,152 37,977 42,099 40,345 40,345 48,888 - 48,888 50,801 60,703 49,277

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 - - - -

Performance Information for Appropriations Vote Security Intelligence#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister in Charge of the New Zealand Security Intelligence Service (M59)

ADMINISTERING DEPARTMENT: New Zealand Security Intelligence Service

MINISTER RESPONSIBLE FOR NEW ZEALAND SECURITY INTELLIGENCE SERVICE: Minister in Charge of the New Zealand Security Intelligence Service

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Security Intelligence
  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 - - - - - - - - - - - -
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure 15,294 19,944 22,446 41,239 33,751 33,751 36,889 N/A 36,889 35,992 35,992 35,992

Total Appropriations

15,294 19,944 22,446 41,239 33,751 33,751 36,889 - 36,889 35,992 35,992 35,992

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 - - - -

Performance Information for Appropriations Vote State Services#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of State Services (M66)

ADMINISTERING DEPARTMENT: State Services Commission

MINISTER RESPONSIBLE FOR STATE SERVICES COMMISSION: Minister of State Services

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister of State Services is responsible for $205.362 million of appropriations in the Vote for the 2008/09 financial year covering the following:

  • a total of $19.987 million (9.7% of appropriations in this Vote) on E-government Development and Operations
  • a total of $15.268 million (7.4% of appropriations in this Vote) on Government Shared Network
  • a total of $11.431 million (5.6% of appropriations in this Vote) on State Services Development, Governance and Performance
  • a total of $13.872 million (6.8% of appropriations in this Vote) on State Services People Capability
  • a total of $116,000 (0.1% of appropriations in this Vote) on Development of On-line Authentication Services
  • a total of $3.851 million (1.9% of appropriations in this Vote) on the Mainstream Supported Employment Programme
  • a total of $2.000 million (1.0% of appropriations in this Vote) on the KiwiSaver: State Sector Employer Contributions
  • a total of $12.972 million (6.3% of appropriations in this Vote) for the Remuneration and Related Employment costs of Chief Executives
  • a total of $196,000 (0.1% of appropriations in this Vote) on the Settlement of Legal Liabilities incurred by now disestablished Public Service departments
  • a total of $116.564 million (56.8% of appropriations in this Vote) for the State Sector Retirement Savings Scheme
  • a total of $9.105 million (4.4% of appropriations in this Vote) for capital expenditure.

The Commission expects to collect $11.805 million in Crown revenue from government departments relating to the reimbursement of the costs of chief executives' remuneration.

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 - State Services
Government vision for the State Services Government Priorities Government Outcomes and Objectives Appropriations
A system of world-class professional State Services serving the Government of the day and meeting the needs of New Zealanders Economic Transformation
Families - young and old
National Identity
Improved State Services performance (Development Goals for the State Services) All appropriations in Vote State Services

Objectives of the Vote#

The State Services Commission (SSC), together with the two other central agencies - the Department of the Prime Minister and Cabinet (DPMC) and the Treasury - share the responsibility of providing leadership to State Services agencies in realising the Government's vision. The central agencies' key roles in lifting performance across the system and making sure Ministers receive the best possible advice before making decisions underpin all of the Government priorities.

Summary of Financial Activity#

Summary of Financial Activity - State Services
  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 32,651 37,147 43,199 50,157 62,661 61,071 60,558 116 60,674 59,498 55,841 55,843
Benefits and Other Unrequited Expenses 2,630 3,320 3,208 3,100 3,566 3,566 N/A 3,851 3,851 4,159 4,492 4,566
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 18,186 52,179 89,243 110,628 113,229 113,229 - 131,732 131,732 158,560 205,948 214,929
Capital Expenditure 1,689 2,419 1,163 12,816 12,358 12,358 9,105 - 9,105 2,325 2,325 2,325
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

55,156 95,065 136,813 176,701 191,814 190,224 69,663 135,699 205,362 224,542 268,606 277,663

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 8,355 9,422 9,397 10,474 11,231 11,231 N/A N/A 11,805 12,405 12,793 13,150
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

8,355 9,422 9,397 10,474 11,231 11,231 N/A N/A 11,805 12,405 12,793 13,150

Summary of Financial Activity

Summary of Financial Activity - State Services
  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 32,651 37,147 43,199 50,157 62,661 61,071 60,558 116 60,674 59,498 55,841 55,843
Benefits and Other Unrequited Expenses 2,630 3,320 3,208 3,100 3,566 3,566 N/A 3,851 3,851 4,159 4,492 4,566
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 18,186 52,179 89,243 110,628 113,229 113,229 - 131,732 131,732 158,560 205,948 214,929
Capital Expenditure 1,689 2,419 1,163 12,816 12,358 12,358 9,105 - 9,105 2,325 2,325 2,325
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Total Appropriations 55,156 95,065 136,813 176,701 191,814 190,224 69,663 135,699 205,362 224,542 268,606 277,663
Crown Revenue and Receipts                        
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 8,355 9,422 9,397 10,474 11,231 11,231 N/A N/A 11,805 12,405 12,793 13,150
Capital Receipts - - - - - - N/A N/A - - - -
Total Crown Revenue and Receipts 8,355 9,422 9,397 10,474 11,231 11,231 N/A N/A 11,805 12,405 12,793 13,150

Budget Policy Initiatives#

Budget Policy initiatives - State Services
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
KiwiSaver in the State Sector: Implication for Crown as an employer KiwiSaver: State Sector Employer Contributions 1,000 2,000 11,000 58,000 67,000
KiwiSaver in the State Sector: Implication for Crown as an employer State Services People Capability 150 150 150 150 150

Appropriations for departmental output expenses have increased by $28 million or 87% over the past five years. The principle driver has been projects relating to E-government initiatives ($25 million) such as the Authentication programme (including the Identity Verification and Government Logon Services) and the Government Shared Network.

Figure 1 - Trends in departmental output expenses

Figure 1 - Trends in Departmental Output Expenses
Figure 1 - Trends in Departmental Output Expenses
Source: State Services Commission

Figure 2 - Departmental output expenses

Figure 2 - Departmental Output Expenses
Figure 2 - Departmental Output Expenses
Source: State Services Commission

Figure 3 - Trends in non-departmental expenses

The growth in Non-Departmental expenditure, reflected in the graph below, largely relates to the reimbursement of employer contributions to the State Sector Retirement Savings Scheme and KiwiSaver for employees of state sector employers.

Figure 3 - Trends in Non-Departmental Expenditure
Figure 3 - Trends in Non-Departmental Expenditure
Source: State Services Commission

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 - State Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - improved State Services performance
Impact - contributes to the Development Goals for the State Services
E-government Development and Operations
Outcome - improved State Services performance
Impact - contributes to the Development Goals for the State Services
Government Shared Network
Outcome - improved State Services performance
Impact - contributes to the Development Goals for the State Services
State Services Development, Governance and Performance
Outcome - improved State Services performance
Impact - contributes to the Development Goals for the State Services
State Services People Capability

E-government Development and Operations (M66)

Scope of Appropriation

The development, operations and evaluation of e-government services, infrastructure and initiatives in the State sector.

Expenses and Revenue

Expenses and Revenue - Egovernment Development and Operations (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 24,109 23,239 19,987
Revenue from the Crown 22,214 21,344 17,195
Revenue from Others 1,895 1,895 2,792

Reasons for Change in Appropriation

The Government Logon Service is now operational and crown funding in the 2008/09 year reduces to match the reducing level of associated expenditure.

Output Performance Measures and Standards

Output Performance Measures and Standards - Egovernment Development and Operations (M66) - State Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Complete baseline report of indicators to measure progress of the Networked State Services Development Goal, with results aligned with, and incorporated in, measurement through Kiwis Count research agencies - - 31 December 2008
Provide leadership in ICT strategy and innovation to support service delivery and engagement in areas such as: identity management, sustainability, participation, security, information management and new media broadband demand aggregation Achieve Achieve Achieve
Provide advice and support to major Public Sector information technology investment decisions by completing Gateway reviews for major IT projects Number of reviews completed: 4 Number of reviews completed: 4 Number of reviews completed: 25
Set and promote standards and collaboration through the E-government Interoperability Framework (e-GIF), by publishing a set of federated enterprise architecture reference models, and by leading broadband demand aggregation - - 30 June 2009
Manage separation of ICT leadership and Government Technology Services (GTS), and subsequent move of GTS to the Department of Internal Affairs at a future date, while continuing to meet output service levels - - Achieve
Manage the operational delivery of all-of-government ICT infrastructure and services in accordance with targets in agency service level agreements/schedules Meet Meet Meet
Develop shared services and implement new services and enhancements to meet agreed stakeholder priority needs Meet Meet Meet
Implement programmes for developing, implementing, maintaining and governing Authentication and Web standards and promote the use of standards to support e-government delivery of citizen access services Meet Meet Meet
Number of State sector agencies committing to Government Logon Service 12 12 25-30
Number of State sector agencies implementing Government Logon Service 6 6 15
Increase in use of Public Sector Intranet 100% 100% 100%
Increase in active use in new shared workspaces 25% 25% 15%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Egovernment Development and Operations (M66) - State Services
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
All of Government Online Authentication 2004/05 6,932 3,724 3,823 - -

Government Shared Network (M66)#

Scope of Appropriation#

The development, deployment and operation of Telecommunications infrastructure, architected to government standards, for the shared use of public sector agencies.

Expenses and Revenue#

Expenses and Revenue - Government Shared Network (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,221 13,221 15,268
Revenue from the Crown - - -
Revenue from Others 4,172 4,172 12,421

Reasons for Change in Appropriation#

A technical change in the accounting treatment of Government Shared Network (GSN) funding occured in October 2007. There has been a delay in completion of the project resulting in lower than anticipated revenue in 2007/08. The increase in appropriation and revenues is due to increased uptake of the GSN products.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Government Shared Network (M66) - State Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of agencies committing to the Government Shared Network 18 18 30-40
Reduction in average cost of individual products offered within the Government Shared Network service over a 12 month period - - 5%

Memorandum Account#

Memorandum Account - Government Shared Network (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Government Shared Network

     
Opening Balance at 1 July (7,346) (7,346) (16,395)
Revenue 4,172 4,712 12,421
Expenses (13,221) (13,221) (15,268)
Transfers and Adjustments - - -
Closing Balance at 30 June (16,395) (16,395) (19,242)

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Government Shared Network (M66) - State Services
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
Government Shared Network Funding Arrangement 2004/05 8,100 - - - -

State Services Development, Governance and Performance (M66)#

Scope of Appropriation#

Chief executive appointment and performance management services, advice on governance and performance of the State Services, leading and reinforcing integrity and conduct, support to the Minister of State Services, and operational services to client departments.

Expenses and Revenue#

Expenses and Revenue - State Services Development, Governance and Performance (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,078 11,658 11,431
Revenue from the Crown 11,086 10,666 10,849
Revenue from Others 992 992 582

Output Performance Measures and Standards#

Output Performance Measures and Standards - State Services Development, Governance and Performance (M66) - State Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Public Service chief executive appointments, assessment, performance and remuneration reviews and professional development completed in compliance with the provisions of the State Sector Act 1998 and in accordance with the common competency framework 100% 100% 100%
Implement the joint central agencies work programme to improve performance of the State Services Achieve Achieve Achieve
Provide advice to Crown entity board chairs on chief executive appointment processes and annual chief executive remuneration review, including administering the Cabinet Fees Framework Achieve Achieve Achieve
Undertake reviews (as required) to provide interdepartmental/shared outcomes and/or whether departments are configured well to achieve results; on the allocation and coordination of functions to, and between, agencies Achieve Achieve Achieve
Provide leadership to support a user-focused, accessible and coordinated State Services, using the results of the New Zealanders' Experience (NZE) research programme as an evidence base, and promote and support government service delivery agencies to use the Common Measurements Tool Achieve Achieve Achieve
State of the Development Goals Report and supplementary communications published and launched 30 November 2007 30 November 2007 30 January 2009
Standards of integrity and conduct set and monitored; advice and guidance provided to State Services agencies in compliance with the State Sector Act 1988 Meet Meet Meet
Statutory investigations, inquiries and ad hoc reviews completed, comply with the provisions of the State Sector Act and agreed terms of reference, and meet natural justice requirements Meet Meet Meet
Complete Ministerial correspondence, Official Information Act requests, Parliamentary Questions, and Select Committee Questionnaires within required timeframes and quality standards Estimated volume: 200 - 350 Estimated volume: 200 - 350 Estimated volume: 200 - 350
Management services, including records management and accounting services provided in accordance with relevant legislation, standards, or agreements Achieve Achieve Achieve

State Services People Capability (M66)#

Scope of Appropriation#

The development, implementation and evaluation of initiatives to ensure the State Services is an employer of choice, and to develop the skills of State servants at all levels.

Expenses and Revenue#

Expenses and Revenue - State Services People Capability (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,137 12,837 13,872
Revenue from the Crown 7,467 7,467 7,520
Revenue from Others 5,670 5,370 6,652

Reasons for Change in Appropriation#

An expense transfer from 2007/08 to 2008/09 is proposed. Increased revenue has been offset by increased expenditure.

Output Performance Measures and Standards#

Output Performance Measures and Standards - State Services People Capability (M66) - State Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Undertake a programme of activities to promote the State sector to attract high performers to the State sector, including supporting and on going improvement of jobs.govt.nz Achieve Achieve Achieve
Number of State Services agencies supported in using a suitable employee engagement tool 5 5 20
Number of State Services agencies supported in integration of the common competency model into Human Resource practices 25 25 30
Number of State Services agencies supported to use the State Services learning and development framework 10 10 12
Implement work programme to improve people capability in the State Services with focus on human resource practitioners and the policy workforce Achieve Achieve Achieve
Promote, develop and monitor Equal Employment Opportunities across the Public Service Achieve Achieve Achieve
Promote positive workplace employment relationships by implementing the key recommendations from the expenditure review on employment relations arrangements in the State sector, providing advice on the development of the Tripartite Forum, and implementing the partnership for quality work plan Achieve Achieve Achieve
Provide information on the Public Service labour market by conducting an annual Human Resource Capability survey and report its findings to the Minister of State Services 31 October 2007 31 October 2007 31 October 2008
Provide ongoing advice on and support to State sector employees' retirement savings, including the State Sector Retirement Savings Scheme (SSRSS) and KiwiSaver Achieve Achieve Achieve
Number of participants in the Mainstream Supported Employment Programme 230 230 300
Percentage of programme reviews completed by employing agencies and Mainstream Programme participants rate programme management as satisfactory or better 80% 80% 80%
Senior leadership and management development strategy enhanced, promoted, and monitored; advice and guidance provided to State Services agencies - in compliance with the State Services Commissioner's responsibility for senior leadership and management capability in Public Service under the State Sector Act 1988 Achieve Achieve Achieve
Promote and implement structured workplace learning according to the contract targets and performance measures agreed with the Tertiary Education Commission Achieve Achieve Achieve
Cost per trainee for 12 months on an industry training programme provided by Learning State - $308 $312
Cost per modern apprentice for 12 months on a modern apprenticeship programme provided by Learning State - $445 $445

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - State Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impact - contributes to the E-government programme and to the Networked State Services Development Goal Development of On-line Authentication Services

Development of On-line Authentication Services (M66)#

Scope of Appropriation

Services provided by the Office of the Privacy Commissioner in the development of on-line authentication services.

Expenses

Expenses - Development of Online Authentication Services (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 116 116 116

Output Performance Measures and Standards

Output Performance Measures and Standards - Development of Online Authentication Services (M66) - State Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services to be delivered according to the Memorandum of Understanding between the State Services Commissioner and the Office of the Privacy Commissioner Meet Meet Meet

Summary of Service Providers#

Summary of Service Providers - Summary of Service Providers - State Services
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Privacy Commissioner 116 116 116 Annual report of the State Services Commission Ongoing

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

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - State Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impact - contributes to the Employer of Choice Development Goal Mainstream Supported Employment Programme

Mainstream Supported Employment Programme (M66)

Scope of Appropriation

This appropriation is limited to salary subsidy, training, and other support provided by the Mainstream Supported Employment Programme, which is a programme to assist people with disabilities to gain permanent employment in the State sector.

Expenses

Expenses - Mainstream Supported Employment Programme (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,566 3,566 3,851

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 - State Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - meets the Crown's commitment to reimburse State sector employers' statutory obligation to pay employer contributions to KiwiSaver KiwiSaver: State Sector Employer Contributions
Objective - meet the Crown's commitment on the remuneration and related employment costs of chief executives employed by the State Services Commissioner Remuneration and Related Employment Costs of Chief Executives
Objective - meet the Crown's obligations for settlement of legal liabilities incurred by now disestablished government departments and other Crown settlements Settlement of Legal Liabilities
Objective - meets the Crown's commitment to reimburse employer contributions to the State Sector Retirement Savings Scheme for the Public Service and non-Public Service departments and the Education Service State Sector Retirement Savings Scheme: State Sector Employer Contributions

KiwiSaver: State Sector Employer Contributions (M66)

Scope of Appropriation

This appropriation is limited to the reimbursement of the net cost of compulsory employer contributions to KiwiSaver above the employer tax credits received for employees of State sector employers who are not members of other subsidised schemes.

Expenses

Expenses - KiwiSaver: State Sector Employer Contributions (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 2,000

Expected Results

Expected Results - KiwiSaver: State Sector Employer Contributions (M66) - State Services
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Approved employers are reimbursed for employer contributions to KiwiSaver correctly and on time Meet Meet Meet

Current and Past Policy Initiatives

Current and Past Policy Initiatives - KiwiSaver: State Sector Employer Contributions (M66) - State Services
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
KiwiSaver for State sector employees 2007/08 1,000 2,000 11,000 58,000 67,000

Scope of Appropriation#

This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the State Services Commissioner.

Expenses#

Expenses - Remuneration and Related Employment Costs of Chief Executives (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,358 12,358 12,972

Expected Results#

Expected Results - Remuneration and Related Employment Costs of Chief Executives (M66) - State Services
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All chief executives employed by the State Services Commissioner are paid correctly and on time Meet Meet Meet

Scope of Appropriation#

The settlement of legal liabilities incurred by now-disestablished government departments and other Crown settlements.

Expenses#

Expenses - Settlement of Legal Liabilities (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 196 196 196

Expected Results#

Expected Results - Settlement of Legal Liabilities (M66) - State Services
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Legal liabilities are managed Meet Meet Meet

State Sector Retirement Savings Scheme: State Sector Employer Contributions (M66)#

Scope of Appropriation#

This appropriation is limited to the reimbursement of employer contributions to the State Sector Retirement Savings Scheme for employees of Public Service and non-Public Service departments and in the Education Service.

Expenses#

Expenses - State Sector Retirement Savings Scheme: State Sector Employer Contributions (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 99,675 99,675 116,564

Reasons for Change in Appropriation#

Uptake of State Sector Retirement Savings Scheme by State sector employees is forecast to increase.

Expected Results#

Expected Results - State Sector Retirement Savings Scheme: State Sector Employer Contributions (M66) - State Services
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Approved employers are reimbursed for employer contributions to the State Sector Retirement Savings Scheme correctly and on time Meet Meet Meet

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - State Services
Appropriation Reporting Mechanism
KiwiSaver: State Sector Employer Contributions Annual report of the State Services Commission
Remuneration and Related Employment Costs of Chief Executives Annual report of the State Services Commission
Settlement of Legal Liabilities Annual report of the State Services Commission
State Sector Retirement Savings Scheme: State Sector Employer Contributions Annual report of the State Services Commission

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#

State Services Commission - Capital Expenditure PLA (M66)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - State Services Commission Capital Expenditure PLA (M66) - State Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 5,325 5,325 2,537
Intangibles 7,033 7,033 6,568
Other - - -
Total Appropriation 12,358 12,358 9,105
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 5,325 5,325 2,537
Intangibles 7,033 7,033 6,568
Other - - -
Total Appropriation 12,358 12,358 9,105

Current and Past Policy Initiatives

Current and Past Policy Initiatives - State Services Commission Capital Expenditure PLA (M66) - State Services
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
Identity Verification Service - Enhanced Identity Management across Government 2007/08 3,000 6,000 - - -

Expected Results

Expected Results - State Services Commission Capital Expenditure PLA (M66) - State Services
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Investment in assets to support the achievement of departmental outcomes. Meet Meet Meet

Performance Information for Appropriations Vote Finance#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Finance (M31)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

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

  • a total of nearly $13 million for macroeconomic policy and management including Budget management, macroeconomic, tax and fiscal forecasting; advice on fiscal policy and strategy; and fiscal reporting and departmental financial management controls including the development and application of generally accepted accounting practice to the Crown
  • a total of over $36 million for policy advice on improving New Zealand's overall economic performance and state sector performance
  • a total of over $1,996 million for the payment of interest and other costs relating to the Crown's debt
  • a total of over $3,204 million in superannuation costs
  • a total of over $623 million for capital in the Reserve Bank of New Zealand, Landcorp Farming Limited, Industrial Research Limited and Hawke's Bay Airport company
  • a total of nearly $430 million for the development and maintenance of rail infrastructure
  • a total of $200 million for New Zealand's membership of the international financial institutions
  • a total of over $15 million for the purchase of Maui gas in accordance with the Crown's contractual obligations
  • a total of over $17 million for New Zealand House, London costs
  • a total of nearly $2 million for the purchase of Treasury departmental assets
  • a total of nearly $2 million for unclaimed money and various Crown liabilities.

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 - Finance
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Economic Transformation Outcome: A stable and sustainable macroeconomic environment
(Budget Speech and Fiscal Strategy Report 2007)
Debt and Related Financial Asset Management output class
    Policy Advice and Management - Macroeconomic
  Outcome: Improved economic performance
(Budget Speech 2007)
New Zealand Export Credit Office output class
    Policy Advice - Economic Performance output class
  Outcome: Improved state sector performance(Budget Speech 2007) Policy Advice - State Sector Performance output class
  Objective: To meet Crown liabilities and manage Crown assets efficiently Debt Servicing
    Hawke's Bay Airport Equity Injection
    Industrial Research Limited Equity Injection
    Landcorp Protected Land Agreement
    Reserve Bank of New Zealand Equity Injection
  Objective: To meet New Zealand's longer-term retirement income needs
(Budget Speech 2007)
Government Superannuation Appeals Board
    Government Superannuation Fund Authority - Crown's Share of Expenses
    Government Superannuation Fund Unfunded Liability
    Management of the New Zealand Superannuation Fund
    New Zealand Superannuation Fund - Contributions
  Outcome: To assist economic development and improve access and mobility
(Transport Sector Strategic Directions 2006- 2009)
Auckland Rail Development
    National Rail Network Improvements
    ONTRACK Operating and Maintenance Costs
    ONTRACK Equity Injection
    ONTRACK Loans
    Urban Rail Development

Objectives of the Vote#

Vote Finance provides the Government with financial and economic advice and services to help improve New Zealand's economic performance, including the performance of the state sector and macroeconomic stability. The Government goal that Vote Finance contributes most directly to is that of economic transformation.

Summary of Financial Activity#

Summary of Financial Activity - Finance
  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 60,819 58,357 54,554 56,333 56,741 56,741 57,979 2,688 60,667 56,851 56,866 55,960
Benefits and Other Unrequited Expenses 242,561 827,384 1,091,367 975,542 - - N/A - - - - -
Borrowing Expenses 2,549,901 2,588,917 2,674,921 2,429,986 2,152,000 2,152,000 - 1,987,000 1,987,000 1,895,000 2,175,000 2,196,000
Other Expenses 229,166 241,452 341,937 389,004 1,283,587 1,283,412 - 1,343,519 1,343,519 1,384,330 1,140,802 1,004,533
Capital Expenditure 4,147,318 3,325,680 2,503,205 2,157,675 3,052,774 3,052,774 1,527 3,144,905 3,146,432 2,372,548 2,480,785 2,491,850
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

7,229,765 7,041,790 6,665,984 6,008,540 6,545,102 6,544,927 59,506 6,478,112 6,537,618 5,708,729 5,853,453 5,748,343

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 2,561,499 2,731,373 3,891,778 3,643,249 3,139,425 3,139,425 N/A N/A 3,067,979 2,702,559 2,777,399 2,717,601
Capital Receipts 446,462 292,684 405,500 158,742 69,192 69,192 N/A N/A 229,457 200,500 200,500 200,500

Total Crown Revenue and Receipts

3,007,961 3,024,057 4,297,278 3,801,991 3,208,617 3,208,617 N/A N/A 3,297,436 2,903,059 2,977,899 2,918,101

Budget Policy Initiatives#

Budget Policy initiatives - Finance
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
All Government Superannuation Fund and National Provident Fund annuitants receive 100% of the Consumer Price Index as a cost-of-living adjustment Government Superannuation Fund and National Provident Fund Cost of Living Indexation (M31)Non-Departmental Other Expenses 33,200 - - - -
Equity injection to allow corporatisation of the airport Hawke's Bay Airport Equity Injection (M31)Non-Departmental Capital Expenditure - 8,000 - - -
Upgrade scientific equipment and facilities, improve management information and reporting to ensure long-term financial viability Industrial Research Limited Equity Injection (M31)Non-Departmental Capital Expenditure 8,000 4,500 - - -
Compensation to Landcorp for retaining protected land under the Protected Land Agreement Landcorp Protected Land Agreement(M31)Non-Departmental Capital Expenditure 65,408 11,000 20,000 9,347 -
ONTRACK operating and maintenance costs that it can not recover from Toll NZ Limited ONTRACK Operating and Maintenance Costs (M31)Non-Departmental Other Expenses - 28,000 - - -
Additional funding for the transfer of Wellington Railway Station from the Crown to ONTRACK ONTRACK Equity Injection(M31)Non-Departmental Capital Expenditure 10,000 - - - -
Loan funding for a range of rail infrastructure capital projects ONTRACK Loans(M31)Non-Departmental Capital Expenditure 40,000 25,000 - - -
A provision for the purchase of Toll NZ Ltd's rail business Purchase of Toll NZ Ltd's Rail Business and Associated Costs(M31)Non-Departmental Capital Expenditure 690,000 - - - -
Equity injection to provide the Reserve Bank with the appropriate level of capital required to carry out its existing statutory obligations Reserve Bank of New Zealand Equity Injection(M31)Non-Departmental Capital Expenditure - 600,000 - - -
Costs of negotiating with Atihau-Whanganui Incorporation in respect to claimed Maori vested land lease losses State Sector and Economic Performance Policy Advice and Management MCOA (M31)(Management of Liabilities, Claims Against the Crown and Crown Properties output class) - 450 - - -
  Crown Contribution to Atihau-Whanganui Incorporation Negotiation Costs (M31)Non-Departmental Other Expenses 500 - - - -
Meet higher than anticipated demand for New Zealand Export Credit Office US contract bond product and extend the product to other countries that impose contract bond requirements on exporters State Sector and Economic Performance Policy Advice and Management MCOA (M31)(New Zealand Export Credit Office output class)Departmental Output Expenses 250 80 140 140 -
New Zealand Export Credit Office development of US contract bonds and trade finance export products State Sector and Economic Performance Policy Advice and Management MCOA (M31)(New Zealand Export Credit Office output class)Departmental Output Expenses 233 438 401 416 -
Equity injection to provide working capital for Timberlands West Coast Ltd Timberlands West Coast Ltd Equity Injection (M31)Non-Departmental Capital Expenditure 2,000 - - - -
Total Initiatives   849,591 677,468 20,541 9,903 -

Total Vote: All Appropriations

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

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

Fig 1. Trends in total actual and estimated operating and capital expenditure
Fig 1. Trends in total actual and estimated operating and capital expenditure
Source: The Treasury

The movements in departmental and non-departmental appropriations in Vote Finance, which are detailed in the Summary of Financial Activity table above, are largely owing to movements in capital expenditure and movements in the Government Superannuation Fund unfunded liability.

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

Departmental Output Expenses

Baselines increase by nearly $4 million in 2007/08 largely owing to the increase in one-off funding for Building Industry Authority litigation management costs.

Non-Departmental Output Expenses

Expenditure increased in 2003/04 to fund the management of the Auckland rail corridor infrastructure. Funding continued for part of 2004/05 until responsibility for this expenditure transferred to the New Zealand Railways Corporation (now ONTRACK) on 1 September 2004, and the appropriation ceased.

Non-Departmental Benefits and Other Unrequited Expenses

The Government Superannuation Fund Authority - Subsidies to Government Superannuation Fund Schemes has been reclassified as a non-departmental other expense appropriation from 2007/08. Prior to 2007/08 the movements in the appropriation were largely owing to net movements in the Crown's liability to the Government Superannuation Fund.

Non-Departmental Borrowing Expenses

Debt servicing costs trend downwards up to 2009/10 before rising in 2010/11 and 2011/12.

Non-Departmental Other Expenses

Expenditure was broadly stable until 2007/08. From 2007/08 the movement in the Government Superannuation Fund unfunded liability was recorded in non-departmental other expenses which causes the large increase in that year relative to prior years. From a peak in 2009/10, expenditure decreases, largely owing to forecast Auckland rail development and movements in the Government Superannuation Fund unfunded liability.

Non-Departmental Capital Expenditure

This appropriation category comprises purchases of debt and equity by the Crown in various Crown entities, and capital additions to the Crown's physical assets. In 2003/04 the initial contribution to the New Zealand Superannuation Fund was made. This initial contribution was higher than in the following years because it was for an 18 month period. In 2004/05, the Reserve Bank received a $1 billion capital injection to support its capacity for intervention in the foreign exchange markets. In 2007/08 a one-off provision was made for the purchase of Toll NZ Ltd's rail business. In 2008/09 capital expenditure increases again, largely owing to a Reserve Bank equity injection of $600 million, forecast capital to International Financial Institutions of $200 million and an increased contribution to the New Zealand Superannuation Fund.

Crown Revenue

Crown revenue largely comprises capital charge, interest from securities and deposits, and dividends from state-owned enterprises and Crown entities. Crown revenue is broadly stable apart from peaks in 2005/06 and 2006/07. These peaks are largely due to one off special dividends from Meridian Energy Limited in 2005/06 following the sale of its Australian investments and increased Air New Zealand dividends. In 2006/07, the Government Superannuation Fund liability decreased resulting in a $1,129 million increase in revenue.

Crown Capital Receipts

Capital revenue arises from the sale of Crown assets, the repayment of Crown loans, capital withdrawals from Crown companies, and transactions arising from the corporatisation of Crown entities. Variances in Crown capital receipts are largely owing to International Monetary Fund capital returns and capital withdrawals from Crown companies.

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 - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome A stable and sustainable macroeconomic environment
Impact Maximising the long-term net return on the Crown's financial asset and debt portfolios, within an appropriate risk management framework
Debt and Related Financial Asset Management
Outcome A stable and sustainable macroeconomic environment
Impact Contributing to Budget decisions that are conducive to achieving short-term macroeconomic stability and meeting long-term fiscal challenges
Policy Advice and Management - Macroeconomic
Objective To meet Crown liabilities and manage Crown assets efficiently
Impact Minimising Crown financial risk within the bounds of Government objectives
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Management of Claims Against the Crown, Contractual Liabilities and Crown Properties output class
Outcome Improved overall economic performance
Impact Increasing the level of export activity within the bounds of the Government's financial risk parameters set out in the delegation agreement
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • New Zealand Export Credit Office output class
Outcome Improved overall economic performance
Impact Achieving policies that promote economic growth, with a focus on increasing productivity
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Policy Advice - Economic Performance output class
Outcome Improved state sector performance
Impact Ensuring the work of the state sector represents value for money in achieving the Government's priorities and generating the maximum possible benefit for taxpayers for a given level of expenditure
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Policy Advice - State Sector Performance output class

Debt and Related Financial Asset Management (M31)

Scope of Appropriation

Operational management of the Crown's sovereign-issued debt portfolio, associated financial investments (including departmental cash management), and lending and derivatives transactions with government-related entities.

Expenses and Revenue

Expenses and Revenue - Debt and Related Financial Asset Management (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,614 8,614 9,001
Revenue from the Crown 8,466 8,466 8,850
Revenue from Others 148 148 151

Output Performance Measures and Standards

Output Performance Measures and Standards - Debt and Related Financial Asset Management (M31) - Finance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Compliance with the Treasury's Quality Standards for Policy (refer to Conditions on Use of Appropriation, below), as assessed by the Minister three times during the year Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
Compliance with risk management policies and parameters for portfolio management and debt issuance 100% 100% 100%
Value added from management of the Crown's debt and related financial assets to meet targets for tactical portfolios as specified in the Vote Finance results plan Targets met Targets exceeded Targets met
Average market risk in tactical portfolios to be within the levels specified in the Vote Finance results plan Levels not exceeded Levels not exceeded Levels not exceeded
Annual cost of settlement errors not to exceed the limits specified in the Vote Finance results plan Levels not exceeded Levels not exceeded Levels not exceeded

Conditions on Use of Appropriation

Treasury quality standards for policy

Quality policy advice is fit for purpose

This Quality Standard for Policy Advice sets out the characteristics or dimensions of policy advice that will best enable it to promote well-informed high-quality decision making by Ministers. However, the quality dimensions below are not a checklist and not all dimensions will be equally important in every case - judgements are required at the outset about how to apply and balance the quality dimensions to ensure a particular piece of advice is fit for purpose in achieving the result sought.

When undertaking a piece of work, explicit consideration needs to be given to the following:

  • What point are Ministers at in their decision-making process? Can Treasury add value? What are our opportunities to have an impact?
  • What result are we seeking by providing a piece of advice?
  • How should the quality dimensions below be applied and balanced to achieve this result?
  • What is the relative priority of this piece of work?
  • What level of investment is warranted?
Dimensions of quality policy advice
Dimensions of Quality Policy Advice - Finance

Analytically rigorous (Analysis)

Set in a wider strategic context (Applied analysis)

Customer focused and persuasive (Advice)

Relevant frameworks
Appropriate analytical frameworks are used, and:
  • knowledge is up-to-date and informed by recent thinking and literature in the field
  • assumptions behind the frameworks used are explicit and consideration has been given to how they will be expected to play out in the real world (a world which includes information and transaction costs, market failure, government failure, etc)
  • consideration has been given to less traditional frameworks and whether they would add innovative or useful perspectives
Strategic
  • Advice is set in the context of the Treasury's results and informed by a strategic view about what is important
  • We are explicit about the relative importance and materiality of the issue, in fiscal, economic and strategic terms
  • Connections across policy issues are made, ensuring that Ministers receive a whole-of-government perspective
  • Advice considers the long-term implications of decisions and provides a perspective that goes beyond immediate impacts
  • We frame issues and help set the agenda
Clear
Advice is compellingly presented. It is:
  • brief and concise - key messages should be readily apparent to the reader from the executive summary
  • easy to read - has a clear and logical structure, avoids technical jargon and uses visual devices such as charts and tables where possible
  • pitched to suit the target audience - uses appropriate language, style and level of detail
  • framed in terms of how it fits with previous advice and communications with the Minister
Robust reasoning and logic
Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. We come to a conclusion and give action-oriented recommendations
Practical
Issues of implementation, technical feasibility, practicality and timing are considered and advice accurately identifies compliance, transitional, legislative, revenue and administrative implications and costs
Timely
Reports should meet Ministers' need for advice that helps in the decision-making process (even if it means, at times, that advice is not fully developed) and indicate when a decision is required
Evidence-based
Analysis is supported by relevant evidence:
  • Empirical methods are sound, data gaps are identified and the level of confidence/certainty in our empirical base is explicit
  • We draw on New Zealand experience of current and past policy interventions and, where relevant, the experience of other countries
  • We give our best judgement despite data imperfections; we acknowledge information limitations and advise within them
Public sector consultation
Ministers receive advice which enables them to engage with their colleagues on a fully informed basis because:
  • thorough and timely consultation with other government departments has occurred and points of difference, and the reasons for these, are set out
  • where possible, advice is developed in conjunction with relevant government agencies
Politically aware
Advice:
  • demonstrates awareness of the wider environment and political situation
  • is based on a clear understanding of the desired outcomes of the Minister/Government
  • relates to the perspectives of Ministers, even if suggesting something that tests those perspectives
  • recognises choices and constraints Ministers face, and includes a range of options to address these
Free and frank
Our advice is honest, impartial and politically neutral - we have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating
Perspectives of wider stakeholders
We understand and advise the Minister on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate  
Solution focused
We are proactive, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forward ("Here is what you can do" as well as "Here is a problem") and includes a range of practical options (first best advice, but also second and third)
Quality involves continuous improvement

At the end:

  • Did we achieve the result we were seeking?
  • Were our judgements about what would be fit for purpose correct?
  • What would we do differently next time?
  • How can we capture and share this learning?

Policy Advice and Management: Macroeconomic (M31)#

Scope of Appropriation#

Provision of Macroeconomic policy advice and management including budget management; macroeconomic, tax and fiscal forecasting; advice on fiscal policy and strategy; and fiscal reporting and departmental financial management controls including the development and application of generally accepted accounting practice to the Crown.

Expenses and Revenue#

Expenses and Revenue - Policy Advice and Management: Macroeconomic (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,614 12,614 12,762
Revenue from the Crown 12,397 12,397 12,548
Revenue from Others 217 217 214

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Management: Macroeconomic (M31) - Finance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Compliance with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation), as assessed by the Minister three times during the year. Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
Consistency with the Budget timetable set by the Government and the statutory requirements of the Public Finance Act 1989. 100% 100% 100%
Tax revenue forecast error on one-year-ahead forecasts.
(Tax revenue forecast root mean square error and mean error over the 5 years to June 2007 were 4.4% and 4.2% respectively).
Less than 3% Less than 3% Less than 3%
Audit opinion issued by the Controller and Auditor-General on the Financial Statements of the Government. Unqualified Unqualified Unqualified

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Policy Advice and Management: Macroeconomic (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Debt and Related Financial Asset Management output expense above

State Sector and Economic Performance Policy Advice and Management MCOA (M31)#

Scope of Appropriation#

New Zealand Export Credit Office
Implementation of the Government's Export Credit Guarantees policy and operation of the New Zealand Export Credit Office.

Policy Advice: Economic Performance
Policy advice on the Government's economic strategy and policy settings and their effect on New Zealand's economic growth.

Policy Advice: State Sector Performance
Policy advice on the effective and efficient use of state resources including improved decision-making and performance management systems and the efficient management of Crown assets.

Management of Liabilities, Claims Against the Crown and Crown Properties
Management of contractual or Treaty of Waitangi related claims against the Crown and the management of New Zealand House, London.

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes all contribute to the outcomes of improving New Zealand's overall economic performance and improving state sector performance.

Expenses and Revenue#

Expenses and Revenue - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

32,625 32,625 36,216
  • Management of Liabilities, Claims Against the Crown and Crown Properties
2,398 2,398 5,786
  • New Zealand Export Credit Office
1,574 1,574 1,594
  • Policy Advice - Economic Performance
15,447 15,447 15,458
  • Policy Advice - State Sector Performance
13,206 13,206 13,378

Revenue from the Crown

32,055 32,055 35,617
  • Management of Liabilities, Claims Against the Crown and   Crown Properties
2,361 2,361 5,697
  • New Zealand Export Credit Office
1,546 1,546 1,568
  • Policy Advice - Economic Performance
15,175 15,175 15,199
  • Policy Advice - State Sector Performance
12,973 12,973 13,153

Revenue from Others

570 570 599
  • Management of Liabilities, Claims Against the Crown and Crown Properties
37 37 89
  • New Zealand Export Credit Office
28 28 26
  • Policy Advice - Economic Performance
272 272 259
  • Policy Advice - State Sector Performance
233 233 225

Reasons for Change in Appropriation#

Funding of over $3 million for the management of litigation against the former Building Industry Authority relating to the weathertightness of homes was not required in 2007/08 and was therefore carried forward to 2008/09. In addition, $450,000 was provided in 2008/09 for the costs of negotiating with the Atihau-Whanganui Incorporation.

Output Performance Measures and Standards#

Output Performance Measures and Standards - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

All classes of outputs within the appropriation

     
Compliance with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation), as assessed by the Minister three times during the year. Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations

Management of Liabilities, Claims Against the Crown and Crown Properties

     
Settlement of liabilities within parameters set by Ministers. 100% 100% 100%

New Zealand Export Credit Office

     
Conform to international best practice for the provision of export credit insurance, as specified in OECD and World Trade Organisation guidelines. 100% 100% 100%
Value of new medium- to long-term credit insurance policies. $76 million $38 million $77 million
Value of new US contract bonds. $40 million $25 million $24 million
Value of new non-US contract bonds. - $1 million $8 million
Value of new working capital policies. - $1 million $5 million

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Debt and Related Financial Asset Management output expense above

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
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
Costs of negotiating with Atihau-Whanganui Incorporation in respect to claimed Maori vested land lease losses. 2008/09 - 450 - - -
Meet higher-than-anticipated demand for New Zealand Export Credit Office US contract bond product and extend the product to other countries that impose contract bond requirements on exporters 2007/08 250 80 140 140 -
New Zealand Export Credit Office development of US contract bonds and trade finance export products 2007/08 233 438 401 416 -
Extension of the New Zealand Export Credit Office US contract bond product 2007/08 350 350 350 350 -

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Government Objective To meet Crown liabilities and manage Crown assets efficiently
Specific Objective To minimise Crown Financial risk within the bounds of Government objectives
Management of the Crown's Obligations for Geothermal Wells
Objective To manage New Zealand House efficiently and minimise Crown financial risks associated with property ownership Management of New Zealand House, London
Government Objective To manage a fund for the future cost of New Zealand superannuation, without undue risk, and to avoid prejudice to New Zealand's reputation as a responsible member of the world community
Specific Objective To maximise returns on the New Zealand Superannuation Fund without undue risk to the fund as a whole
Management of the New Zealand Superannuation Fund

Management of New Zealand House, London (M31)#

Scope of Appropriation

This appropriation is limited to the property management services in respect of New Zealand House, London.

Expenses

Expenses - Management of New Zealand House, London (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 925 925 1,000

Reasons for Change in Appropriation

The contingency to cover unfavourable foreign exchange movements was not required in 2007/08.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of New Zealand House, London (M31) - Finance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Optimise New Zealand House rental revenue Achieved Achieved Achieved
Occupancy rates maximised Achieved Achieved Achieved
Maintain the property to support the achievement of revenue and occupancy objectives Achieved Achieved Achieved

Management of the Crown's Obligations for Geothermal Wells (M31)#

Scope of Appropriation#

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

Expenses#

Expenses - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 351 351 151

Reasons for Change in Appropriation#

A one-off expense of $200,000 is budgeted for in 2007/08 to perform remedial work on redundant geothermal assets at Wairakei.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Monitor and maintain wells through regular inspections and completion of standard maintenance actions Achieved Achieved Achieved

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation#

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.

Expenses#

Expenses - Management of the New Zealand Superannuation Fund (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,612 1,612 1,537

Reasons for Change in Appropriation#

The 2007/08 budget was increased owing to higher board and legal fees.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of the New Zealand Superannuation Fund (M31) - Finance
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Guardians of New Zealand Superannuation manage and administer the Fund in accordance with their statement of intent Achieve Achieve Achieve

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of the New Zealand Superannuation Fund (M31) - Finance
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Funding for the Guardians of New Zealand Superannuation following independent review. (This funding was subsequently reduced following a review of the allocation of costs between the Guardians and the New Zealand Superannuation Fund). 2004/05 2,044 2,044 - - -

Summary of Service Providers#

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

Crown entities

         
The Guardians of New Zealand Superannuation
- Guardians of New Zealand Superannuation
1,612 1,612 1,537 Provider's annual report Ongoing

Non-government organisations

         
King Sturge International Property Consultants, London
- Management of New Zealand House
925 925 1,000 Not required 2010
Connell Wagner Limited and other providers
- Management of Residual Geothermal Liabilities
351 351 151 Not required 2011

The above table summarises funding to be allocated through Vote Finance 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 4 - Details for Borrowing Expenses#

Part 4.2 - Non-Departmental Borrowing Expenses#

Debt Servicing PLA (M31)

Scope of Appropriation

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.

Expenses

Expenses - Debt Servicing PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,152,000 2,152,000 1,987,000

Reasons for Change in Appropriation

The amount varies with interest rates and the amount of debt outstanding.

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 - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - To assist economic development and improve access and mobility Auckland Rail Development
  National Rail Network Improvements
  ONTRACK Operating and Maintenance Costs
  Urban Rail Development
Objective - To meet Crown liabilities and manage Crown assets efficiently Crown Residual Liabilities
  Geothermal Wells Fund
  Government Superannuation Appeals Board
  Government Superannuation Fund Authority - Crown's Share of Expenses
  Government Superannuation Fund Unfunded Liability
  Maui Gas Contracts
  New Zealand House, London
  Unclaimed Money
  Unclaimed Trust Money
  Wellington Railway Station Expenses

Auckland Rail Development (M31)

Scope of Appropriation and Expenses

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

Other Expenses to be incurred by the Crown

   

Auckland Rail Development (M31)

Renewals and upgrades of the Auckland rail network 'below track' infrastructure.

Commences: 1 July 2007

Expires: 30 June 2010

Original Appropriation 421,314
Adjustments for 2006/07 -
Adjustments to 2007/08 77,103
Adjusted Appropriation 498,417
Actual to 2006/07 Year End -
Estimated Actual for 2007/08 77,290
Estimated Actual for 2008/09 212,169
Estimated Appropriation Remaining 208,958

Reasons for Change in Appropriation

This multi-year appropriation replaces the previous Auckland Rail Development appropriation that was revoked as of 1 July 2007. The funding of this new appropriation comes from the 2005/06 unspent balance of $21.314 million and a transfer from 2006/07 of $400 million, both from the previous Auckland Rail Development appropriations. A further adjustment was made in 2007/08 when the unspent balance from 2006/07 was also transferred to this new Auckland Rail Development appropriation.

Expected Results

Expected Results - Auckland Rail Development (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Auckland rail network 'below track' infrastructure is renewed and upgraded in accordance with ONTRACK programmes Achieved Achieved Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Auckland Rail Development (M31) - Finance
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
Auckland rail development 2006/07 150,000 150,000 125,000 - -

Crown Residual Liabilities (M31)#

Scope of Appropriation#

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

Expenses#

Expenses - Crown Residual Liabilities (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 475 475 230

Reasons for Change in Appropriation#

The amount required is reducing over time as liabilities are resolved.

Expected Results#

Expected Results - Crown Residual Liabilities (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Settlements are within limits agreed by the Minister Achieved Achieved Achieved

Geothermal Wells Fund (M31)#

Scope of Appropriation#

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

Expenses#

Expenses - Geothermal Wells Fund (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Expected Results#

Expected Results - Geothermal Wells Fund (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Damages are made good within agreed timeframes and budgets Achieve for all such events (no more than one expected in year) No events in year Achieve for all such events (no more than one expected in year)

Government Superannuation Appeals Board (M31)#

Scope of Appropriation#

This appropriation is limited to the Government Superannuation Appeals Board members' fees and disbursements.

Expenses#

Expenses - Government Superannuation Appeals Board (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 50 50 50

Expected Results#

Expected Results - Government Superannuation Appeals Board (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Board members' fees and disbursements are consistent with Cabinet Office Guidelines. Achieve Achieve Achieve

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Act 1956.

Expenses#

Expenses - Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,000 15,000 23,500

Reasons for Change in Appropriation#

The increase in custodial, investment and administration costs is a result of the transition from passive to active management of global equities following changes to New Zealand tax legislation.

Expected Results#

Expected Results - Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Crown's share of management and administration fees is paid in accordance with the Government Superannuation Fund's determination and certification of the Government Actuary $15 million $15 million $23.5 million

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Act 1956.

Expenses#

Expenses - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,003,617 1,003,617 936,699

Reasons for Change in Appropriation#

Return on assets are forecast to be higher in 2008/09 relative to 2007/08, which partly offsets the forecast increase in the liability.

Expected Results#

Expected Results - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Recognition of the Crown's GSF obligations in the Financial Statements of the Government Unqualified audit opinion Unqualified audit opinion Unqualified audit opinion
Tax payments are accurate and paid within deadlines Met Met Met

Maui Gas Contracts (M31)#

Scope of Appropriation#

This appropriation is limited to the Crown's purchase of gas from the Maui gas field and meeting the Crown's obligations arising from related contracts.

Expenses#

Expenses - Maui Gas Contracts (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 42,873 42,873 15,365

Reasons for Change in Appropriation#

Gas purchases are forecast to reduce as the Crown's right to call for gas reduces.

Expected Results#

Expected Results - Maui Gas Contracts (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Payments are made in accordance with the Crown's contractual obligations arising from the Maui gas contracts Met Met Met

National Rail Network Improvements (M31)#

Scope of Appropriation#

This appropriation is limited to the upgrade of the national rail network.

Expenses#

Expenses - National Rail Network Improvements (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 25,000

Reasons for Change in Appropriation#

A new appropriation commencing from 1 July 2008 that was approved in Budget 2007.

Expected Results#

Expected Results - National Rail Network Improvements (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The rail network is renewed and upgraded in accordance with ONTRACK programmes - - Achieve

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - National Rail Network Improvements (M31) - Finance
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
Improvements to the national rail track network. 2008/09 - 25,000 - - -

New Zealand House, London (M31)#

Scope of Appropriation#

This appropriation is limited to the operational costs of New Zealand House, London.

Expenses#

Expenses - New Zealand House, London (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,800 15,800 16,200

Reasons for Change in Appropriation#

The budget variance between years is largely due to the timing of maintenance projects.

Expected Results#

Expected Results - New Zealand House, London (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Net rental from commercial space is optimised Achieve Achieve Achieve
New Zealand House is maintained to provide office accommodation of a suitable standard for New Zealand Government entities in London Achieve Achieve Achieve

ONTRACK Operating and Maintenance Costs (M31)#

Scope of Appropriation#

This appropriation is limited to the national rail network operating and maintenance expenses incurred by ONTRACK that are not recoverable from the Rail Network operator through the National Rail Access Agreement.

Expenses#

Expenses - ONTRACK Operating and Maintenance Costs (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,800 12,800 28,000

Reasons for Change in Appropriation#

The change between years is owing to increases in ONTRACK's operating and depreciation costs.

Expected Results#

Expected Results - ONTRACK Operating and Maintenance Costs (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Payments are made in accordance with the National Rail Access Agreement $12.8 million $12.8 million $28 million

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - ONTRACK Operating and Maintenance Costs (M31) - Finance
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
ONTRACK operating and maintenance costs 2008/09 - 28,000 - - -
ONTRACK operating and maintenance costs 2006/07 12,800 - - - -

Unclaimed Money PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.

Expenses#

Expenses - Unclaimed Money PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

Expected Results#

Expected Results - Unclaimed Money PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Repayment of unclaimed money to claimants is performed in accordance with section 74(5) of the Public Finance Act 1989 Achieve Achieve Achieve

Unclaimed Trust Money PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.

Expenses#

Expenses - Unclaimed Trust Money PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

Expected Results#

Expected Results - Unclaimed Trust Money PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Repayment of unclaimed money to claimants is performed in accordance with section 70(2) of the Public Finance Act 1989 Achieve Achieve Achieve

Urban Rail Development (M31)#

Scope of Appropriation and Expenses#

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

Other Expenses to be incurred by the Crown

   

Urban Rail Development (M31)

Funding for electrification, upgrades and maintenance of the Auckland and Wellington metropolitan rail networks.

Commences: 1 July 2007

Expires: 30 June 2012

Original Appropriation 550,000
Adjustments for 2006/07 -
Adjustments to 2007/08 25,000
Adjusted Appropriation 575,000
Actual to 2006/07 Year End -
Estimated Actual for 2007/08 6,390
Estimated Actual for 2008/09 84,744
Estimated Appropriation Remaining 483,866

Reasons for Change in Appropriation#

During 2007/08, $25,000 was transferred from the National Rail Network Improvements appropriation to the Urban Rail Development multi year appropriation above, to provide additional funds for the upgrade of the Wellington urban network.

Expected Results#

Expected Results - Urban Rail Development (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Payments are made in accordance with the agreed project plan Achieve Achieve Achieve

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Urban Rail Development (M31) - Finance
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
Urban rail development 2007/08 75,000 125,000 125,000 125,000 100,000

Wellington Railway Station Expenses (M31)#

Scope of Appropriation#

This appropriation is limited to maintenance and depreciation of the Wellington Railway Station building.

Expenses#

Expenses - Wellington Railway Station Expenses (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,162 1,162 562

Reasons for Change in Appropriation#

The Wellington Railway Station is expected to be transferred to ONTRACK by 30 June 2008.  However, a reduced budget in 2008/09 has been retained in the event that the transfer is delayed.

Expected Results#

Expected Results - Wellington Railway Station Expenses (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Station's depreciation is correctly recorded in the Financial Statements of the Government Unqualified audit opinion Unqualified audit opinion Unqualified audit opinion

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Auckland Rail Development Annual report of ONTRACK (New Zealand Railways Corporation)
Crown Residual Liabilities Not required
Geothermal Wells Fund Not required
Government Superannuation Appeals Board Not required
Government Superannuation Fund Authority - Crown's Share of Expenses Annual report of the Government Superannuation Fund Authority
Government Superannuation Fund Unfunded Liability Not required
Maui Gas Contracts Not required
National Rail Network Improvements Annual report of ONTRACK (New Zealand Railways Corporation)
New Zealand House - London Section 32A report
ONTRACK Operating and Maintenance Costs Annual report of ONTRACK (New Zealand Railways Corporation)
Unclaimed Money Not required
Unclaimed Trust Money Not required
Urban Rail Development Annual report of ONTRACK (New Zealand Railways Corporation)
Wellington Railway Station Expenses 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 - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Maintain and upgrade capability through routine replacement of the Treasury's information technology The Treasury - Capital Expenditure PLA (M31)

The Treasury - Capital Expenditure PLA (M31)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - The Treasury Capital Expenditure PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,414 1,414 983
Intangibles 402 402 544
Other - - -
Total Appropriation 1,816 1,816 1,527
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,414 1,414 983
Intangibles 402 402 544
Other - - -
Total Appropriation 1,816 1,816 1,527

Reasons for Change in Appropriation

The 2007/08 budgeted capital expenditure is $289,000 more than that budgeted in 2008/09 primarily owing to some of the routine replacement and upgrade of the department's information technology being delayed from 2006/07 into 2007/08.

Expected Results

The budgeted capital expenditure for the 2008/09 financial year is for the routine replacement and upgrade of the department's information technology. The forecast capital expenditure will support the efficient delivery of services as set out in the Department's Statement of Intent.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Equity injection to allow the corporatisation of the airport Hawke's Bay Airport Equity Injection
Equity funding to support the long term viability of Industrial Research Limited Industrial Research Limited Equity Injection
Funding of New Zealand's membership obligations to the International Monetary Fund, the World Bank, International Finance Corporation and the Multilateral Investment Guarantee Agency International Financial Institutions
To compensate Landcorp for retaining protected land Landcorp Protected Land Agreement
Partially provide for the future cost of funding New Zealand Superannuation payments New Zealand Superannuation Fund - Contributions
Provision of capital to fund the release of rail land, Arahura bridge replacement and transfer the Wellington Railway Station from the Crown to ONTRACK ONTRACK Equity Injection
Loans to ONTRACK to undertake a range of rail infrastructure capital projects ONTRACK Loans
Equity injection to provide the Reserve Bank with the appropriate level of capital required to carry out its existing statutory obligations Reserve Bank of New Zealand Equity Injection

Hawke's Bay Airport Equity Injection (M31)#

Scope of Appropriation

This appropriation is limited to the purchase of equity in a new Hawke's Bay airport company.

Capital Expenditure

Capital Expenditure - Hawke's Bay Airport Equity Injection (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 8,000

Reasons for Change in Appropriation

This is a one-off payment in 2008/09 to acquire 50% of the shares in the corporatised Hawke's Bay Airport.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Hawke's Bay Airport Equity Injection (M31) - Finance
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
Equity injection to allow corporatisation of the airport 2008/09 - 8,000 - - -

Industrial Research Limited Equity Injection (M31)#

Scope of Appropriation#

This appropriation is limited to the purchase of equity in Industrial Research Limited to provide additional working capital.

Capital Expenditure#

Capital Expenditure - Industrial Research Limited Equity Injection (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,000 8,000 4,500

Reasons for Change in Appropriation#

The changes in the appropriation reflect Industrial Research Limited's capital programme to upgrade facilities and ensure its financial viability.

Expected Results#

Expected Results - Industrial Research Limited Equity Injection (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
       
Scientific equipment, facilities and management information are upgraded to generate greater sector connectivity Upgrades underway Upgrades underway Upgrades completed
Industrial Research Limited provides assurance of long-term financial viability - - Plans demonstrate long term financial viability

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Industrial Research Limited Equity Injection (M31) - Finance
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
Equity injection to upgrade Research facilities 2007/08 8,000 4,500 - - -

International Financial Institutions PLA (M31)#

Scope of Appropriation#

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.

Capital Expenditure#

Capital Expenditure - International Financial Institutions PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 200,000

Reasons for Change in Appropriation#

New Zealand membership of the Multilateral Investment Guarantee Agency was ratified during 2007/08 and the budget is for the subscription to it.  The 2008/09 budget is for possible capital subscriptions to the International Monetary Fund, International Bank for Reconstruction and Development, International Finance Corporation and Multilateral Investment Guarantee Agency.

Expected Results#

Expected Results - International Financial Institutions PLA (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
International Financial Institutions membership obligations will be met Met No calls on capital this year Met
New Zealand will be a member of the Multilateral Investment Guarantee Agency which encourages the flow of investments for productive purposes among member countries Achieve Achieve Met

Landcorp Protected Land Agreement (M31)#

Scope of Appropriation#

Purchase (including by reinvesting cash dividends) of redeemable preference shares in Landcorp under the Protected Land Agreement.

Capital Expenditure#

Capital Expenditure - Landcorp Protected Land Agreement (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 65,408 65,408 11,000

Reasons for Change in Appropriation#

Under the terms of the Protected Land Agreement, an initial payment of $52.2 million was paid in cash to Landcorp in 2007/08. The balance of the compensation will be through the reinvestment of dividends spread over several years.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Landcorp Protected Land Agreement (M31) - Finance
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
Protected Land Agreement with Landcorp 2007/08 65,408 11,000 20,000 9,347 -

NZ Superannuation Fund - Contributions (M31)#

Scope of Appropriation#

This appropriation is limited to capital contributions to the New Zealand Superannuation Fund, for the present and future cost of New Zealand Superannuation.

Capital Expenditure#

Capital Expenditure - NZ Superannuation Fund Contributions (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,103,000 2,103,000 2,242,000

Reasons for Change in Appropriation#

The Crown's contribution to the New Zealand Superannuation Fund is calculated according to the formula in the New Zealand Superannuation Act 2001. The contribution calculation is based on forecasts of gross domestic product and expected New Zealand superannuation entitlements.

Expected Results#

Expected Results - NZ Superannuation Fund Contributions (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A fund will be established to partially provide for future superannuation payments $15.9 billion $14.5 billion $17.7 billion

ONTRACK Equity Injection (M31)#

Scope of Appropriation#

This appropriation is limited to the purchase of equity in ONTRACK to provide additional working capital.

Capital Expenditure#

Capital Expenditure - ONTRACK Equity Injection (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 42,750 42,750 16,400
Release of surplus rail not required by Toll NZ as contractually required by the National Rail Access Agreement 12,750 12,750 7,500
Transfer of Wellington Railway Station from the Crown to ONTRACK 30,000 30,000 -
Replacement of the Arahura railway bridge - - 8,900

Reasons for Change in Appropriation#

The transfer of the Wellington Railway Station will be completed in 2007/08 and ONTRACK's share of the costs for replacing the Arahura bridge will be incurred in 2008/09.

Expected Results#

Expected Results - ONTRACK Equity Injection (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Surplus rail land not required by Toll NZ will be released as contractually required by the National Rail Access Agreement Achieve Achieve Achieve
Wellington Railway Station will be transferred from the Crown to ONTRACK - Achieve -
The Arahura bridge will be replaced - - Commence works

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - ONTRACK Equity Injection (M31) - Finance
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 the transfer of Wellington Railway Station from the Crown to ONTRACK 2007/08 10,000 - - - -
Release of surplus rail land and replacement of the Arahura bridge 2007/08 18,550 - - - -
Funding for the transfer of Wellington Railway Station from the Crown to ONTRACK 2006/07 20,000 - - - -

ONTRACK Loans (M31)#

Scope of Appropriation#

This appropriation is limited to loans to ONTRACK, to fund a range of rail infrastructure capital projects.

Capital Expenditure#

Capital Expenditure - ONTRACK Loans (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 110,000 110,000 63,005

Reasons for Change in Appropriation#

Loans are provided to ONTRACK to fund specific rail infrastructure capital projects. The timing of these projects in turn impacts on the timing of loans.

Expected Results#

Expected Results - ONTRACK Loans (M31) - Finance
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The track network will be renewed and upgraded in accordance with ONTRACK programmes Achieve Achieve Achieve
Surplus rail not required by Toll NZ will be released as contractually required by the National Rail Access Agreement Achieve Achieve Achieve

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - ONTRACK Loans (M31) - Finance
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
ONTRACK Loans 2007/08 40,000 25,000 - - -
ONTRACK Loans 2007/08 86,000 - - - -

Reserve Bank of New Zealand Equity Injection (M31)#

Scope of Appropriation#

This appropriation is limited to the purchase of equity in the Reserve Bank of New Zealand.

Capital Expenditure#

Capital Expenditure - Reserve Bank of New Zealand Equity Injection (M31) - Finance
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 600,000

Reasons for Change in Appropriation#

This is a one-off equity injection to the Reserve Bank to provide it with the appropriate level of capital to carry out its existing statutory obligations.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Reserve Bank of New Zealand Equity Injection (M31) - Finance
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
Reserve Bank of New Zealand Equity Injection 2008/09 - 600,000 - - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Hawke's Bay Airport Equity Injection Not required
Industrial Research Limited Equity Injection Annual report of Industrial Research Limited
International Financial Institutions Not required
Landcorp Protected Land Agreement Annual report of Landcorp Farming Limited
New Zealand Superannuation Fund - Contributions Annual report of the Guardians of New Zealand Superannuation
ONTRACK Equity Injection Annual report of ONTRACK (New Zealand Railways Corporation)
ONTRACK Loans Annual report of ONTRACK (New Zealand Railways Corporation)
Reserve Bank of New Zealand Annual report of the Reserve Bank of New Zealand

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 State-Owned Enterprises#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for State Owned Enterprises (M65)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister for State-Owned Enterprises (SOEs) is responsible for appropriations in Vote SOEs for the 2008/09 financial year totalling $2.468 million. These appropriations will be spent on ownership monitoring advice to, and management of issues on behalf of, the Minister for SOEs and other responsible Ministers in respect of a portfolio of SOEs, Crown entity companies and Crown entities monitored by the Crown Company Monitoring Advisory Unit (CCMAU).

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

Part 1.2 - High-Level Objectives of the Vote#

Contribution of Appropriations to Government Priorities and Outcomes#

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - State-Owned Enterprises
Appropriations Government Priorities - Themes / Sub-themes Government Outcomes
SOE, Crown entity company and Crown entity monitoring advice Economic transformation Improved State sector performance resulting in the Government getting an optimal return on its investments in state-owned enterprises, Crown entity companies and Crown entities.

Summary of Financial Activity#

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

Appropriations

                       
Output Expenses 2,101 2,260 2,480 2,582 2,668 2,668 2,468 - 2,468 2,468 2,468 2,468
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

2,101 2,260 2,480 2,582 2,668 2,668 2,468 - 2,468 2,468 2,468 2,468

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 - - - -

Expenditure on monitoring advisory outputs under Vote SOEs has gradually increased over time, reflecting the increasing cost of maintaining a core capability within the CCMAU to provide ownership monitoring advice to, and manage issues on behalf of, responsible Ministers. Over this time, CCMAU has not only maintained its core monitoring and governance role, but has undertaken additional work such as:

  • completing long-term hold reviews to clarify shareholder preferences for a number of SOEs
  • reviewing the organisational and purchasing arrangements supporting New Zealand's weather forecasting and climate services
  • undertaking an organisational review of AgriQuality Ltd and Asure New Zealand Ltd that resulted in the merging of these two companies to form AsureQuality Ltd; providing advice on a framework to assist SOE diversification proposals, and
  • establishing a corporate social responsibility framework for SOEs.

In addition, CCMAU has provided, and will continue to provide, issue-specific advice affecting a number of SOEs covering a wide range of issues.

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 - State-Owned Enterprises
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
While all companies and entities are expected to be financially viable, there are other expectations that are becoming increasingly important to the owner. The objective of these appropriations is to broaden the suite of levers available to influence the company and entity performance. State-owned enterprise, Crown entity company and Crown entity monitoring advice.

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65)

Scope of Appropriation

Provision by CCMAU of ownership monitoring advice to, and management of issues on behalf of, the Minister for SOEs and other Responsible Ministers in respect of the Ministers' shareholder responsibilities.

Expenses and Revenue

Expenses and Revenue - Crown Company Monitoring Advice to the Minister for StateOwned Enterprises and Other Responsible Ministers (M65) - State-Owned Enterprises
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,668 2,668 2,468
Revenue from the Crown 2,602 2,602 2,400
Revenue from Others 66 66 68

Reasons for Change in Appropriation

A fiscally neutral transfer from Vote Finance to Vote SOEs of $202,000 was made in 2007/08 to enable CCMAU to deliver its agreed outputs following unavoidable cost increases. A similar funding transfer from Vote Finance in 2008/09 is not currently forecast. However, options for CCMAU funding will be considered later in 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Crown Company Monitoring Advice to the Minister for StateOwned Enterprises and Other Responsible Ministers (M65) - State-Owned Enterprises
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality standards for analysis and advice. Achieved Achieved Achieved
Ministerial Satisfaction Materially met Materially met Materially met

Conditions on Use of Appropriation

Treasury quality standards for policy

Quality policy advice is fit for purpose

This Quality Standard for Policy Advice sets out the characteristics or dimensions of policy advice that will best enable it to promote well-informed, high-quality decision-making by Ministers. However, the quality dimensions below are not a checklist and not all dimensions will be equally important in every case - judgements are required at the outset about how to apply and balance the quality dimensions to ensure a particular piece of advice is fit for purpose in achieving the result sought.

When undertaking a piece of work, explicit consideration needs to be given to the following:

  • What point are Ministers at in their decision-making process? Can Treasury add value? What are our opportunities to have an impact?
  • What result are we seeking by providing a piece of advice?
  • How should the quality dimensions below be applied and balanced to achieve this result?
  • What is the relative priority of this piece of work?
  • What level of investment is warranted?

Dimensions of quality policy advice

Dimensions of Quality Policy Advice - State-Owned Enterprises
Analytically rigorous (Analysis) Set in a wider strategic context (Applied analysis) Customer focused and persuasive (Advice)

Relevant frameworks

Appropriate analytical frameworks are used, and:
  • knowledge is up-to-date and informed by recent thinking and literature in the field
  • assumptions behind the frameworks used are explicit and consideration has been given to how they will be expected to play out in the real world (a world which includes information and transaction costs, market failure, government failure, etc)
  • consideration has been given to less traditional frameworks and whether they would add innovative or useful perspectives.

Strategic

  • Advice is set in the context of the Treasury's results and informed by a strategic view about what is important.
  • We are explicit about the relative importance and materiality of the issue, in fiscal, economic and strategic terms.
  • Connections across policy issues are made, ensuring that Ministers receive a whole-of-government perspective.
  • Advice considers the long-term implications of decisions and provides a perspective that goes beyond immediate impacts.
  • We frame issues and help set the agenda.

Clear

Advice is compellingly presented. It is:
  • brief and concise - key messages should be readily apparent to the reader
  • easy to read - has a clear and logical structure, avoids technical jargon and uses visual devices such as charts and tables where possible
  • pitched to suit the target audience - uses appropriate language, style and level of detail
  • framed in terms of how it fits with previous advice and communications with the Minister.

Robust reasoning and logic

Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. We come to a conclusion and give action-oriented recommendations.

Practical

Issues of implementation, technical feasibility, practicality and timing are considered and advice accurately identifies compliance, transitional, legislative, revenue and administrative implications and costs.

Timely

Reports should meet Ministers' need for advice that helps in the decision-making process (even if it means, at times, that advice is not fully developed) and indicate when a decision is required.

Evidence-based

Analysis is supported by relevant evidence:
  • empirical methods are sound, data gaps are identified and the level of confidence/certainty in our empirical base is explicit
  • we draw on New Zealand experience of current and past policy interventions and, where relevant, the experience of other countries
  • we give our best judgement despite data imperfections; we acknowledge information limitations and advise within them.

Public sector consultation

Ministers receive advice which enables them to engage with their colleagues on a fully informed basis because:
  • thorough and timely consultation with other government departments has occurred and points of difference, and the reasons for these, are set out
  • where possible, advice is developed in conjunction with relevant government agencies.

Politically aware

Advice:
  • demonstrates awareness of the wider environment and political situation
  • is based on a clear understanding of the desired outcomes of the Minister/Government
  • relates to the perspectives of Ministers, even if suggesting something that tests those perspectives
  • recognises choices and constraints Ministers face, and includes a range of options to address these.

Free and frank

Our advice is honest, impartial and politically neutral - we have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating.

Perspectives of wider stakeholders

We understand and advise the Minister on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate. 

Solution focused

We are proactive, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forward ("Here is what you can do" as well as "Here is a problem") and includes a range of practical options (first best advice, but also second and third). 
Quality involves continuous improvement

At the end:

  • Did we achieve the result we were seeking?
  • Were our judgements about what would be fit for purpose correct?
  • What would we do differently next time?
  • How can we capture and share this learning?

Performance Information for Appropriations Vote Revenue#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Revenue (M57)

ADMINISTERING DEPARTMENT: Inland Revenue Department

MINISTER RESPONSIBLE FOR INLAND REVENUE DEPARTMENT: Minister of Revenue

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

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

  • a total of nearly $627 million on departmental output expenses including management of debt and outstanding returns, policy advice, services to inform the public about entitlements and meeting obligations, services to process obligations and entitlements, and taxpayer audit
  • a total of just under $5,331 million for benefits and other unrequited expenses
  • a total of nearly $3 million for borrowing expenses
  • a total of nearly $994 million for other expenses, and
  • a total of nearly $78 million for departmental capital expenditure.

The Minister of Revenue is also responsible for Crown revenue and receipts in the Vote for the 2008/09 financial year covering the following:

  • a total forecast of $51,208 million on tax revenue
  • a total forecast of $888 million on non-tax revenue, and
  • a total forecast of just over $679 million on capital receipts.

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 - Revenue
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Economic transformation
Families - young and old
National identity
Primary:
  • Improving the economic and social wellbeing of New Zealanders
Intermediate:
  • Revenue is available to fund government programmes through people meeting payment obligations of their own accord
  • People receive payments they are entitled to, enabling them to participate in society
Management of Debt and Outstanding Returns
Policy Advice
Services to Inform the Public About Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Taxpayer Audit

Vote Revenue contributes to improving the economic and social wellbeing of New Zealanders through the provision of policy advice to government, through the collection of revenue and through the distribution of social policy payments. These activities directly support the Government priorities of economic transformation, families - young and old, and national identity.

Summary of Financial Activity#

Summary of Financial Activity - Revenue
  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 404,617 429,359 479,654 532,204 621,132 614,132 626,508 - 626,508 611,185 607,674 609,337
Benefits and Other Unrequited Expenses 1,189,831 1,213,177 1,772,470 2,529,830 4,601,500 4,538,457 N/A 5,330,880 5,330,880 5,597,980 5,736,320 5,980,580
Borrowing Expenses 1,399 5,771 3,550 3,427 4,460 4,460 - 2,710 2,710 3,010 3,010 3,010
Other Expenses 417,941 892,714 1,503,851 1,562,619 1,185,000 1,185,000 - 993,500 993,500 896,375 926,644 959,326
Capital Expenditure 33,727 51,224 51,088 73,950 118,910 118,910 77,973 - 77,973 69,813 71,909 54,168
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

2,047,515 2,592,245 3,810,613 4,702,030 6,531,002 6,460,959 704,481 6,327,090 7,031,571 7,178,363 7,345,557 7,606,421

Crown Revenue and Receipts

                       
Tax Revenue 37,996,846 42,002,623 46,832,541 48,571,297 51,217,000 51,217,000 N/A N/A 51,208,000 52,800,000 54,435,000 56,506,000
Non-Tax Revenue 750,236 843,154 741,721 981,442 823,000 823,000 N/A N/A 888,000 939,000 992,000 1,046,000
Capital Receipts 447,157 570,618 539,579 515,783 626,600 626,600 N/A N/A 679,200 761,000 836,000 916,000

Total Crown Revenue and Receipts

39,194,239 43,416,395 48,113,841 50,068,522 52,666,600 52,666,600 N/A N/A 52,775,200 54,500,000 56,263,000 58,468,000

Budget Policy Initiatives#

Budget Policy initiatives - Revenue
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Student loans redesign Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 2,560 - - -
  Services to Process Obligations and Entitlements
Departmental Output Expense
- 1,707 - - -
Implementation of Government initiatives Management of Debt and Outstanding Returns
Departmental Output Expense
- 100 41 41 41
Policy Advice
Departmental Output Expense
- 17 7 7 7
Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 284 117 117 117
Services to Process Obligations and Entitlements
Departmental Output Expense
- 148 62 62 62
Taxpayer Audit
Departmental Output Class
- 184 75 75 75
Departmental Capital Injection
Impact on Net Asset Schedule
- 1,098 - - -
Improved compliance and customer experience Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 1,622 902 (133) (1,483)
Departmental Capital Injection
Impact on Net Asset Schedule
- 3,630 - - -
People capability - remuneration Management of Debt and Outstanding Returns
Departmental Output Expense
- 682 682 682 682
Policy Advice
Departmental Output Expense
- 119 119 119 119
Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 1,934 1,934 1,934 1,934
Services to Process Obligations and Entitlements
Departmental Output Expense
- 1,007 1,007 1,007 1,007
Taxpayer Audit
Departmental Output Expense
- 1,258 1,258 1,258 1,258
Budget 2008 personal tax package Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
338 2,693 644 680 230
Services to Process Obligations and Entitlements
Departmental Output Expense
145 1,795 430 454 154
Departmental Capital Injection
Impact on Net Asset Schedule
134 1,075 296 256 -
Tax relief for redundancy payments Services to Process Obligations and Entitlements
Departmental Output Expense
1,089 1,311 2,356 485 485
Departmental Capital Injection
Impact on Net Asset Schedule
159 - 487 - -
Increasing the student allowance parental income threshold by 10%1 Impairment of Debt Relating to Student Loans
Non-Departmental Other Expenses
- - (3) (9) (16)
Expansion of the bonded merit scholarship scheme1 Impairment of Debt Relating to Student Loans
Non-Departmental Other Expenses
- - (1) (3) (7)
Student achievement component: access in priority areas1 Impairment of Debt Relating to Student Loans
Non-Departmental Other Expenses
- - 20 46 64
Increasing the student loan scheme living cost component to $155 per week1 Impairment of Debt Relating to Student Loans
Non-Departmental Other Expenses
- - 18 59 107
Lowering the age limit for student allowance parental income testing by one year1 Impairment of Debt Relating to Student Loans
Non-Departmental Other Expenses
- - (7) (22) (38)
Total Initiatives   1,865 23,224 10,444 7,115 4,798

Note 1 - Co Votes: Vote Education and Vote Social Development.

Departmental Output Expenses

Figure 1 - Trends in departmental output expenses

Departmental Output Expenses
Departmental Output Expenses
Source: Inland Revenue

Expenditure on Departmental Output Expenses has grown from nearly $405 million in 2003/04 to an estimated amount of nearly $614 million in 2007/08 and a budgeted amount of nearly $627 million in 2008/09. This is an expected increase of about $222 million from 2003/04 to 2008/09.

The movement is largely explained by:

  • Development of capability to meet future challenges within the tax administration and funding to bring remuneration to market levels.
  • Introduction of KiwiSaver as a new business for Inland Revenue.
  • Core tax and compliance improvement initiatives (eg, business tax review, property audit strategy, litigation and complex transactions audits).
  • Introduction and enhancements to Working for Families Tax Credit initiatives and a range of student loan enhancement initiatives (eg, interest free student loans, student loan amnesty, data match and student loan redesign).

The baseline growth seen in recent years has reduced in 2008/09 as initiatives like KiwiSaver, student loans and Working for Families Tax Credits complete one-off implementation and move into ongoing delivery.

The 2008/09 departmental budget is allocated among Departmental Output Expenses as depicted in the graph below.

Figure 2 - Departmental budget allocation by departmental output expense for 2008/09

Departmental Output Appropriations
Departmental Output Appropriations
Source: Inland Revenue

Non-Departmental Output Expenses

The Retirement Commission was appropriated $380,000 one-off funding through Vote Revenue in 2007/08. This was to enable the Retirement Commissioner to incorporate enhancements to KiwiSaver into its communications on retirement policies.

Non-Departmental Benefits and Other Unrequited Expenses

Figure 3 - Trends in non-departmental benefits and other unrequited expenses

Benefits and Other Unrequited Expenses
Benefits and Other Unrequited Expenses
Source: Inland Revenue

Benefits and Other Unrequited Expenses includes KiwiSaver initiatives (eg, kick-start payment, member tax credit, employer tax credit, fee subsidy and interest), Working for Families Tax Credit initiatives (eg, family tax credit, in-work tax credit, paid parental leave), research and development tax credit, payroll subsidy and child support payments to custodial parents. The increases in 2005/06 and 2006/07 are due to the introduction of new Working for Families Tax Credits. The 2007/08 year shows the first year impact of KiwiSaver, with the full year impact reflected in the increase in 2008/09 (eg, first full year of the member tax credit and employer tax credit).

Non-Departmental Borrowing Expenses

Figure 4 - Trends in non-departmental borrowing expenses

Borrowing Expenses
Borrowing Expenses
Source: Inland Revenue

Borrowing expenses include interest payments under the Income Equalisation, Adverse Event and Environmental Restoration Account schemes. The interest payable can vary depending on factors such as income changes in the farming, agriculture, fishing and forestry sectors in any particular year.

Non-Departmental Other Expenses

Figure 5 - Trends in non-departmental other expenses

Other Expenses
Other Expenses
Source: Inland Revenue

Other expenses include accounting adjustments relating to student loan, child support, general tax, and family support debt. Until 2006/07 these adjustments were based on a provision for doubtful debts under New Zealand Financial Reporting Standards (NZ FRS). The increase in 2005/06 reflects the early adoption of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) for student loan debt, which created a large one-off fair value and impairment adjustment. In 2006/07 Inland Revenue revised the methodology for calculating bad and doubtful debts for general tax and family support that resulted in a large one-off increase in that year. Fair value and impairment adjustments for 2007/08 and outyears have been calculated under NZ IFRS for all debt types.

Tax Revenue

Figure 6 - Trends in tax revenue

Tax Receipts
Tax Receipts
Source: Inland Revenue

Tax revenue incorporates income taxes, goods and service tax, fringe benefit tax, withholding taxes and other revenues. The increase in actual and estimated tax receipts from 2003/04 to 2011/12 reflects economic growth. The slower rate of growth from 2007/08 reflects a reduction in the company tax rate and changes in personal tax.

Non-Tax Revenue

Figure 7 - Trends in non-tax revenue

Non-Tax Receipts
Non-Tax Receipts
Source: Inland Revenue

Non-tax revenue incorporates child support collections from non-custodial parents, student loan interest unwind, and unclaimed monies. The increase from 2007/08 reflects steady growth in the student loan scheme and in child support receipts.

Capital Receipts

Figure 8 - Trends in capital receipts

Capital Receipts
Capital Receipts
Source: Inland Revenue

Capital receipts includes student loan capital repayments and deposits into the Adverse Event Income Equalisation, Income Equalisation and Environmental Restoration Account schemes. There was a downward trend in net payments into the Income Equalisation scheme between 2004/05 and 2006/07. The growth from 2007/08 reflects anticipated steady growth in the student loan scheme and an increase in borrower repayments due to wage growth.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Revenue
2007/08Structure -
Appropriations that have been
Changed
2007/08
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been
Transferred
Amount
Moved
$000
2008/09Structure -
Appropriations affected by the
Changes in Appropriation
Structure
2007/08
(Restated)
$000
2008/09
$000

Non-Departmental Benefits and Other Unrequited Expenses

           
On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers 139,000 Transferred to On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers PLA 139,000 On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers PLA 574,000 636,000
On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers PLA 435,000          
        Research and Development Tax Credit 37,000 208,000

Non-Departmental Other Expenses

           
Research and Development Tax Credit 37,000 Transferred to Research and Development Tax CreditNon-Departmental Benefits and Other Unrequited Expenses 37,000      
Total Changes in Appropriations 611,000   176,000   611,000 844,000

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

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Intermediate outcome - Revenue is available to fund government programmes through people meeting payment obligations of their own accord. Management of Debt and Outstanding Returns
Policy Advice
Services to Inform the Public About Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Taxpayer Audit
Intermediate outcome - People receive payments they are entitled to, enabling them to participate in society. Management of Debt and Outstanding Returns
Policy Advice
Services to Inform the Public About Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Taxpayer Audit

Management of Debt and Outstanding Returns (M57)

Scope of Appropriation

Taking follow-up action where returns are outstanding and where payments are overdue, including providing people with assistance on the actions they need to take to meet their obligations.

Expenses and Revenue

Expenses and Revenue - Management of Debt and Outstanding Returns (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 85,097 84,119 88,017
Revenue from the Crown 81,158 81,158 84,078
Revenue from Others 3,939 3,939 3,939

Reasons for Change in Appropriation

The increase in appropriation is largely due to additional funding associated with implementing and delivering government initiatives (eg, KiwiSaver and taxation of investment income), costs associated with implementing a long-term property solution in Wellington and the cost of bringing remuneration to market levels.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Debt and Outstanding Returns (M57) - Revenue
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
We will:      
  • Ensure that at least 85% of all returns that were not filed by the due date are filed or brought to completion within 12 months.
85% 81% 85%
  • Resolve at least 85% of all new debt cases within 12 months of the due date for payment.
85% 88% 85%
  • Limit the growth of total child support debt to less than 11.5% (excluding penalties, debt we manage on behalf of overseas agencies and uncollectable debt cases).
  11.0%  

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Debt and Outstanding Returns (M57) - Revenue
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 and improving taxpayer compliance 2004/05 200 200 200 200 200
State sector retirement scheme 2004/05 963 963 963 963 963
Enhancements to the administration of child support 2004/05 1,870 1,870 1,870 1,870 1,870
Building future capability 2004/05 2,205 2,205 2,205 2,205 2,205
Implementation of Government initiatives - Budget 2005 2005/06 84 84 84 84 84
Implementation of Government initiatives - business package 2005/06 235 184 184 184 184
Increasing child support reciprocal debt cases in Australia 2005/06 748 898 898 898 898
Future challenges with taxation administration 2005/06 5,854 5,854 5,854 5,854 5,854
Protecting the integrity of the tax system 2006/07 300 300 300 300 300
Taxation of investment income and SSCWT 2006/07 600 1,106 613 613 613
Long-term accommodation solution in Wellington 2006/07 1,450 1,828 1,581 2,770 3,164
KiwiSaver 2006/07 3,952 4,930 5,355 5,691 6,267
Retaining people capability 2006/07 3,025 3,025 3,025 3,025 3,025
Remuneration 2007/08 1,642 1,642 1,642 1,642 1,642
Student loan borrowers overseas 2007/08 50 250 250 250 250
Implementation of Government initiatives - Budget 2008 2008/09 - 100 41 41 41
People capability - remuneration 2008/09 - 682 682 682 682

Initiatives for the disestablished Assessment and Collection of Child Support output expense have been rolled into the Services to Inform the Public About Entitlements and Meeting Obligations, Services to Process Obligations and Entitlements as well as the Management of Debt and Outstanding Returns output expenses.

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Policy Advice (M57)#

Scope of Appropriation#

Advising on all aspects of tax policy and social policy measures that interact with the tax system. Drafting tax legislation and rewriting the Income Tax Act. Negotiating and maintaining New Zealand's network of double tax agreements with other countries. Forecasting tax revenues and providing ministerial services.

Expenses and Revenue#

Expenses and Revenue - Policy Advice (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,654 14,486 14,918
Revenue from the Crown 14,538 14,538 14,802
Revenue from Others 116 116 116

Reasons for Change in Appropriation#

The increase in appropriation is largely due to costs associated with implementing a long-term property solution in Wellington and the cost of bringing remuneration to market levels.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice (M57) - Revenue
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
We will provide the minister with:
  • tax and social policy advice
  • tax legislation
  • rewritten tax legislation, and
  • revenue forecasts
following the Generic Tax Policy Process, within agreed quality criteria and timeframes, and in accordance with the agreed work programme.
100% 100% 100%
We will respond to ministerial correspondence and parliamentary questions within agreed and/or statutory timeframes. Where agreed timeframes are unable to be met we will advise the Minister's office, outlining the reason for the delay. 100% 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Policy Advice (M57) - Revenue
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
State sector retirement scheme 2004/05 114 114 114 114 114
Building future capability 2004/05 274 274 274 274 274
Future challenges with taxation administration 2005/06 268 268 268 268 268
Long-term accommodation solution in Wellington 2006/07 205 287 314 546 678
KiwiSaver 2006/07 400 400 400 400 400
Protecting the integrity of the tax system 2006/07 800 800 800 800 800
Retaining people capability 2006/07 325 325 325 325 325
Implementation of Government initiatives - Budget 2008 2007/08 - 17 7 7 7
Business tax review 2007/08 12 12 52 10 10
Remuneration 2007/08 229 229 229 229 229
People capability - remuneration 2008/09 - 119 119 119 119

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Services to Inform the Public About Entitlements and Meeting Obligations (M57)#

Scope of Appropriation#

Providing information and assistance to customers on the application of the law. Responding to customer enquiries about tax and social support programmes. Adjudication on behalf of the Commissioner on proposed taxpayer assessments. Providing binding rulings and other statements on the interpretation and application of the law administered by Inland Revenue.

Expenses and Revenue#

Expenses and Revenue - Services to Inform the Public About Entitlements and Meeting Obligations (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 245,436 242,699 235,973
Revenue from the Crown 242,350 242,350 232,885
Revenue from Others 3,086 3,086 3,088

Reasons for Change in Appropriation#

Vote Revenue received funding in 2007/08 and previous years for the implementation and delivery of KiwiSaver and other government initiatives (eg, student loan borrowers overseas). Some of this funding ends or significantly reduces after 2007/08 (eg, one-off communication and implementation costs).  This has resulted in a reduction in the 2008/09 appropriation which is partly offset by increases due to student loan redesign, other new government initiatives, costs associated with implementing a long-term property solution in Wellington and the cost of bringing remuneration to market levels.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Services to Inform the Public About Entitlements and Meeting Obligations (M57) - Revenue
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
In managing customer contacts we will ensure that:      
  • at least 88% of customers are given an answer that is correct, complete, clear, timely and appropriately referenced, that also shows an understanding of their environment
88% 91% 88%
  • at least 80% of customers who have contacted us are satisfied with the quality of the service we provide
80% 81% 80%
  • at least 97% of customers are satisfied with the quality of advisory services we provide, and
97% 97% 97%
  • at least 85% of all initial telephone enquiries are fully resolved at the time requiring no follow up action.
85% 81% 85%
We will ensure that:      
  • at least 83% of Working for Families Tax Credits recipients who receive a weekly or fortnightly payment are not overpaid, and
70% 85% 83%
  • at least 90% of resident student loan borrowers meet their repayment obligations.
90% 90% 90%
We will respond to customer enquiries within the following timeframes:      
  • at least 85% of correspondence within 3 weeks of receipt
85% 89% 85%
  • 70% of telephone calls in 1 minute on priority queues1
N/A N/A 70%
  • 70% of telephone calls in 4 minutes on non priority queues1, and
N/A N/A 70%
  • at least 80% of returns are finalised within 15 days of due date.
80% 78% 80%
We will ensure that all adjudication reports supporting each decision meet the purpose, logic and alternatives standards. 100% 100% 100%
We will ensure that all reports supporting the decision to issue, or decline to issue, a private or product binding ruling or determination (and any letter setting out the reasons for these decisions), meet the purpose, logic, alternatives and practicality standards. 100% 100% 100%
We will ensure that all public items giving the Commissioner's view of the law meet the purpose, logic, alternatives, consultation and practicality standards. 100% 100% 100%

Note 1 - Telephone Service Factor (TSF) replaces Average Speed to Answer (ASA) methodology as a measure of phone performance.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Services to Inform the Public About Entitlements and Meeting Obligations (M57) - Revenue
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
Simplification initiatives for small and medium enterprises 2004/05 350 350 350 350 350
State sector retirement scheme 2004/05 1,861 1,861 1,861 1,861 1,861
Enhancements to the administration of child support 2004/05 2,511 2,511 2,511 2,511 2,511
Building future capability 2004/05 3,562 3,562 3,562 3,562 3,562
Working for families tax credits 2004/05 12,150 11,175 11,175 11,175 11,175
Student support - enhancing and extending the integrated dataset on student loan scheme borrowers 2005/06 80 80 80 80 80
Student loan data matching 2005/06 114 90 90 90 90
Implementation of Government initiatives - Budget 2005 2005/06 139 139 139 139 139
Taxation of contractors in the fruit picking industry 2005/06 200 200 200 200 200
Implementation of Government initiatives - business package 2005/06 388 305 305 305 305
Increasing child support reciprocal debt cases in Australia 2005/06 1,004 1,205 1,205 1,205 1,205
Interest free student loans and student loan amnesty 2005/06 4,437 4,397 4,397 4,397 4,397
Future challenges with taxation administration 2005/06 8,123 7,234 7,234 7,234 7,234
Taxation of investment income and SSCWT 2006/07 2,421 2,944 1,766 1,766 1,766
Long-term accommodation solution in Wellington 2006/07 2,888 3,750 3,309 5,973 6,943
KiwiSaver 2006/07 36,305 28,549 28,173 28,295 28,499
Retaining people capability 2006/07 4,150 4,150 4,150 4,150 4,150
Remuneration 2007/08 3,543 3,543 3,543 3,543 3,543
Improved compliance and customer experience 2007/08 - 1,622 902 (133) (1,483)
Student loan redesign 2007/08 249 2,560 - - -
Business tax review 2007/08 2,230 2,962 2,978 2,833 2,833
Student loan borrowers overseas 2007/08 8,495 518 669 669 669
Budget 2008 personal tax package 2007/08 338 2,693 644 680 230
People capability - remuneration 2008/09 - 1,934 1,934 1,934 1,934
Implementation of Government initiatives - Budget 2008 2008/09 - 284 117 117 117

Initiatives for the disestablished Assessment and Collection of Child Support output expense have been rolled into the Services to Inform the Public About Entitlements and Meeting Obligations, Services to Process Obligations and Entitlements as well as the Management of Debt and Outstanding Returns output expenses.

Initiatives for the disestablished Information Services and Adjudication and Rulings output expenses have been rolled into the Services to Inform the Public About Entitlements and Meeting Obligations output expense.

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Services to Process Obligations and Entitlements (M57)#

Scope of Appropriation#

Registering tax payers, making tax assessments, assessing child support liabilities including providing a readily accessible inexpensive process for reviewing assessments, receiving and making payments to customers, processing applications and payments for social support programmes, collection of ACC Earners' levies, supplying information to other government agencies and accounting and reporting the collection of Crown revenue.

Expenses and Revenue#

Expenses and Revenue - Services to Process Obligations and Entitlements (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 124,995 123,606 131,543
Revenue from the Crown 101,748 101,748 108,288
Revenue from Others 23,247 23,247 23,255

Reasons for Change in Appropriation#

The increase in appropriation is largely due to additional funding associated with implementing and delivering government initiatives (eg, tax relief for redundancy payments and taxation of investment income), student loan redesign, costs associated with implementing a long-term property solution in Wellington and the cost of bringing remuneration to market levels.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Services to Process Obligations and Entitlements (M57) - Revenue
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
We will:      
  • correctly process all notices, statements, certificates of entitlement and loan transfer letters
100% 92% 100%
  • issue at least 80% of income tax assessments within 4 weeks of receipt
80% 87% 80%
  • issue at least 95% of FBT and GST assessments within 3 weeks, and
95% 97% 95%
  • issue child support assessments to at least 70% of paying parents within 2 weeks of receipt of a properly made application.
70% 77% 70%
We will:      
  • finalise 90% of KiwiSaver contributions from employees on EMS by the end of the month following the due date
N/A N/A 90%
  • collect at least 78% of child support assessments (excluding cases we manage on behalf of overseas agencies and uncollectable debt cases) for the year ending 31 March 2009
78% 76% 78%
  • bank 100% of payments on the day of receipt, and
100% 100% 100%
  • process and issue at least 90% of rebate claim refunds within 3 weeks of receipt.
90% 93% 90%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Services to Process Obligations and Entitlements (M57) - Revenue
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
Student support review 2004/05 312 312 312 312 312
Simplification initiatives for small and medium enterprises 2004/05 362 362 362 362 362
Paid parental leave 2004/05 519 519 519 519 519
State sector retirement scheme 2004/05 831 831 831 831 831
Enhancements to the administration of child support 2004/05 1,174 1,174 1,174 1,174 1,174
Building future capability 2004/05 1,913 1,913 1,913 1,913 1,913
Working for families tax credits 2004/05 4,611 4,042 4,042 4,042 4,042
KiwiSaver 2004/05 25,269 25,343 25,288 24,821 24,822
Student support - Introduce bonded merit scholarships 2005/06 12 13 13 13 13
Implementation of Government initiatives - Budget 2005 2005/06 76 76 76 76 76
Implementation of Government initiatives - business package 2005/06 212 167 167 167 167
Student loan data matching 2005/06 425 449 449 449 449
Increasing child support reciprocal debt cases in Australia 2005/06 470 564 564 564 564
Future challenges with taxation administration 2005/06 4,859 4,859 4,859 4,859 4,859
Interest free student loans and student loan amnesty 2006/07 420 420 420 420 420
Taxation of contractors in the fruit picking industry 2006/07 891 891 891 891 891
Long-term accommodation solution in Wellington 2006/07 1,691 2,167 1,917 3,391 3,922
Taxation of investment income and SSCWT 2006/07 2,421 2,944 1,766 1,766 1,766
Retaining people capability 2006/07 3,150 3,150 3,150 3,150 3,150
Remuneration 2007/08 1,968 1,968 1,968 1,968 1,968
Student loan borrowers overseas 2007/08 100 - - - -
Student loan redesign 2007/08 997 1,707 - - -
Tax relief for redundancy payments 2007/08 1,089 1,311 2,356 485 485
Business tax review 2007/08 1,743 866 707 678 678
Budget 2008 personal tax package 2007/08 145 1,795 430 454 154
Implementation of Government initiatives - Budget 2008 2008/09 - 148 62 62 62
People capability - remuneration 2008/09 - 1,007 1,007 1,007 1,007

Initiatives for the disestablished Assessment and Collection of Child Support output expense have been rolled into the Services to Inform the Public About Entitlements and Meeting Obligations, Services to Process Obligations and Entitlements as well as the Management of Debt and Outstanding Returns output expenses.

Initiatives for the disestablished Revenue Assessment and Collection output expense have been rolled into the Services to Process Obligations and Entitlements output expense.

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Taxpayer Audit (M57)#

Scope of Appropriation#

Identifying risks to revenue and designing and undertaking audit activities accordingly. Managing litigation of disputed tax cases.

Expenses and Revenue#

Expenses and Revenue - Taxpayer Audit (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 150,570 148,842 156,057
Revenue from the Crown 149,219 149,219 154,706
Revenue from Others 1,351 1,351 1,351

Reasons for Change in Appropriation#

The increase in appropriation is largely due to additional funding associated with implementing and delivering government initiatives (eg, business tax review and KiwiSaver), the delivery of a property audit strategy, costs associated with implementing a long-term property solution in Wellington and the cost of bringing remuneration to market levels.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Taxpayer Audit (M57) - Revenue
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
We will ensure that at least 90% of all cases completed meet our quality standards. 90% 93% 90%
We will assess at least $875 per hour for all audit activity. $600 $805 - $820 $875
New: On average, we will complete:      
  • general audits within 6 months
N/A N/A 6
  • risk-based audits within 14 months, and
N/A N/A 14
  • disputed cases within 18 months.
N/A N/A 18
We will ensure for any litigation undertaken that 100% of all timetable requirements will be delivered as imposed by the courts. 100% 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Taxpayer Audit (M57) - Revenue
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
State sector retirement scheme 2004/05 1,179 1,179 1,179 1,179 1,179
Building future capability 2004/05 2,713 2,713 2,713 2,713 2,713
Maintaining and improving taxpayer compliance 2004/05 8,689 8,689 8,689 8,689 8,689
Implementation of Government initiatives - Budget 2005 2005/06 147 146 146 146 146
Implementation of Government initiatives - business package 2005/06 410 321 321 321 321
Future challenges with taxation administration 2005/06 5,296 4,296 4,296 4,296 4,296
Protecting the integrity of the tax system 2006/07 400 400 400 400 400
Taxation of investment income and SSCWT 2006/07 611 365 208 208 208
KiwiSaver 2006/07 1,794 2,294 2,606 2,928 3,256
Retaining people capability 2006/07 3,750 3,750 3,750 3,750 3,750
Business tax review 2007/08 334 3,578 3,498 3,723 3,723
Compliance and penalties 2007/08 1,792 - - - -
Long-term accommodation solution in Wellington 2007/08 2,194 2,797 2,401 4,295 4,921
Property audit strategy 2007/08 2,927 5,839 5,839 - -
Litigations and complex transaction audit 2007/08 4,000 4,000 4,000 1,000 1,000
Remuneration 2007/08 2,618 2,618 2,618 2,618 2,618
Implementation of Government initiatives - Budget 2008 2008/09 - 184 75 75 75
People capability - remuneration 2008/09 - 1,258 1,258 1,258 1,258

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Part 2.2 - Non-Departmental Output Expenses#

Retirement Commissioner (M57)#

Scope of Appropriation

To enable the Retirement Commissioner to incorporate the enhancements to KiwiSaver into its communications on retirement income policies.

Expenses

Expenses - Retirement Commissioner (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 380 380 -

Reasons for Change in Appropriation

This appropriation reflects one-off funding provided to the Retirement Commission to enable it to incorporate the enhancements to KiwiSaver into its communications on retirement income policies. The primary funding mechanism for the Retirement Commission is through Vote Social Development.

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Primary outcome - Improving the economic and social wellbeing of New Zealanders KiwiSaver: Kickstart payment
KiwiSaver Employer Tax Credit
KiwiSaver Member Tax Credit
KiwiSaver: Fee Subsidy
KiwiSaver: Interest
On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers
Payroll Subsidy
Research and Development Tax Credit
Secondary outcome - People receive payments they are entitled to, enabling them to participate in society Child Support Payments
Child Tax Credit
Family Tax Credit
In-Work Tax Credit
Minimum Family Tax Credit
Paid Parental Leave Payments
Parental Tax Credit

Child Support Payments PLA (M57)

Scope of Appropriation

Child support payments to custodial persons who are not dependent on the state for financial support (expenses incurred pursuant to section 141 of the Child Support Act 1991).

Expenses

Expenses - Child Support Payments PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 190,000 190,000 222,000

Reasons for Change in Appropriation

The growth in the appropriation reflects the forecast growth in earnings of non-custodial parents.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Child Support Payments PLA (M57) - Revenue
Reference Conditions
Section 141 of the Child Support Act 1991 On-payment of money received by the Commissioner by the way of child support  to qualifying custodians, if the qualifying custodian of that child is not a recipient of a social security benefit.

Child Tax Credit PLA (M57)#

Scope of Appropriation#

Extra assistance for low to middle income families who are not dependent on the state for financial support (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses#

Expenses - Child Tax Credit PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,300 10,300 6,100

Reasons for Change in Appropriation#

Reduction in child tax credit due to forecast growth in earnings.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Child Tax Credit PLA (M57) - Revenue
Reference Conditions
Subpart MZ of the Income Tax Act 2007 Sets out the entitlement for and calculation of the Child Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subpart MZ of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Child Tax Credit PLA (M57) - Revenue
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
Working for Families package 2004/05 (122,000) (122,000) (122,000) (122,000) (122,000)

Family Tax Credit PLA (M57)#

Scope of Appropriation#

Family Support payments made to beneficiaries and non-beneficiaries during the year (expenses incurred pursuant to section 185 of the Tax Administration Act 1994). Name change as part of the Working for Families package

Expenses#

Expenses - Family Tax Credit PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,066,100 2,066,100 2,118,400

Reasons for Change in Appropriation#

Appropriation reduces in 2008/09 due to having an extra weekly and fortnightly payment in 2007/08. Growth in wages are offset by policy change.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Family Tax Credit PLA (M57) - Revenue
Reference Conditions
Section MD 3 of the Income Tax Act 2007 Sets out the entitlement for and calculation of the Family Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Family Tax Credit PLA (M57) - Revenue
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
Working for Families package 2004/05 888,620 888,620 888,620 888,620 888,620
Extension of eligibility and entitlements under Working for Families 2005/06 485,000 500,000 500,000 500,000 500,000

In-Work Tax Credit PLA (M57)#

Scope of Appropriation#

Extra assistance for low to middle families who are working at least 20 hours per week or 30 hours per week between both parents if they are couple (expenses incurred pursuant to section 185 of the Tax Administration Act 1994). Name changed as part of the Working for families package.

Expenses#

Expenses - InWork Tax Credit PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 556,700 556,700 586,700

Reasons for Change in Appropriation#

Increase in In-Work Tax Credit due to anticipated growth in the scheme.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - InWork Tax Credit PLA (M57) - Revenue
Reference Conditions
Sections MD 4-10 of the Income Tax Act 2007 Sets out the entitlement for and calculation of the In-Work Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - InWork Tax Credit PLA (M57) - Revenue
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
Working for Families package 2004/05 350,346 350,346 350,346 350,346 350,346

Kiwi Saver: Kickstart payment (M57)#

Scope of Appropriation#

To enable the one-off payment made on opening a KiwiSaver account for people who meet the required eligibility criteria as set in the KiwiSaver Act 2006.

Expenses#

Expenses - Kiwi Saver: Kickstart payment (M57) - Revenue
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 663,000 663,000 297,000 115,000 108,000 59,000

Reasons for Change in Appropriation#

The 2007/08 financial year was the first year of KiwiSaver. The appropriation in 2007/08 for kick-start payments reflects the initial start-up membership. The appropriations in the out years reflect the level of new membership forecast for each year.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Kiwi Saver: Kickstart payment (M57) - Revenue
Reference Conditions
Section 226 of the KiwiSaver Act 2006 This section of the act sets out the entitlement for a $1,000 kick-start payment to each member upon joining.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Kiwi Saver: Kickstart payment (M57) - Revenue
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
KiwiSaver 2007/08 276,000 147,718 151,000 103,000 103,000

KiwiSaver Employer Tax Credit (M57)#

Scope of Appropriation#

To enable the payment of a tax credit to employers in respect of their contributions to KiwiSaver as set out in the Income Tax Act 2004.

Expenses#

Expenses - KiwiSaver Employer Tax Credit (M57) - Revenue
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 101,000 101,000 447,000 599,000 664,000 707,000

Reasons for Change in Appropriation#

The employer tax credit was introduced from 1 April 2008 therefore the 2007/08 year is only for three months. The 2008/09 budget represents the anticipated payment for the full year. The appropriations in subsequent years reflect the anticipated growth in the scheme.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - KiwiSaver Employer Tax Credit (M57) - Revenue
Reference Conditions
Part MK 9-16 of the Income Tax Act 2007 Provides a KiwiSaver employer tax credit to reimburse employers for their contributions to employee KiwiSaver accounts up to a maximum of $20 per week per employee.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - KiwiSaver Employer Tax Credit (M57) - Revenue
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
KiwiSaver 2007/08 62,000 292,000 453,000 585,000 585,000

KiwiSaver Member Tax Credit (M57)#

Scope of Appropriation#

To enable the payment of a tax credit to KiwiSaver members as set out in the Income Tax Act 2004.

Expenses#

Expenses - KiwiSaver Member Tax Credit (M57) - Revenue
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 248,000 248,000 593,000 691,000 693,000 703,000

Reasons for Change in Appropriation#

Members are entitled to a tax credit on an annual basis depending on the length of time they have been in the scheme. Members joined at various times during the 2007/08 year and their tax credit entitlement has been pro-rated accordingly. The 2008/09 figure is higher as the tax credit will be paid to all members of the scheme at 30 June 2008 plus on a pro-rated basis for new members during the 2008/09 year. The 2009/10 and subsequent years reflect the anticipated growth in members.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - KiwiSaver Member Tax Credit (M57) - Revenue
Reference Conditions
Part MK 1-8 of the Income Tax Act 2007 Provides a member tax credit to match member contributions up to a cap of $20 per week.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - KiwiSaver Member Tax Credit (M57) - Revenue
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
KiwiSaver 2007/08 144,000 351,000 478,000 586,000 586,000

KiwiSaver: Fee Subsidy (M57)#

Scope of Appropriation#

To enable the payment made to KiwiSaver accounts of the subsidy for provider fees as set out in the KiwiSaver Act 2006.

Expenses#

Expenses - KiwiSaver: Fee Subsidy (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,000 13,000 31,000

Reasons for Change in Appropriation#

For 2007/08 members were entitled to a fee subsidy based on the length of time they had been in the scheme. For 2008/09 all members in the scheme at 30 June 2008 will be entitled to the full fee subsidy and any new members will receive a pro-rated fee subsidy.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - KiwiSaver: Fee Subsidy (M57) - Revenue
Reference Conditions
Sections 227 and 228 of the KiwiSaver Act 2006 Provided to members at $40 per annum pro-rated for members who have been in the scheme for less than a year.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - KiwiSaver: Fee Subsidy (M57) - Revenue
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
KiwiSaver 2007/08 8,000 17,000 23,000 28,000 28,000

KiwiSaver: Interest (M57)#

Scope of Appropriation#

To enable the payment made of interest on KiwiSaver contributions as set in the KiwiSaver Act 2006.

Expenses#

Expenses - KiwiSaver: Interest (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,800 4,800 2,100

Reasons for Change in Appropriation#

The majority of members in the scheme joined in the 2007/08 year and interest was payable on member contributions while they await being forwarded to the scheme providers. Members joining on 1 July 2007 did not have their contributions passed on until 1 October 2007. This figure will reduce in 2008/09 as there will be no similar lag between receipt of payments and forwarding on to scheme providers.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - KiwiSaver: Interest (M57) - Revenue
Reference Conditions
Sections 84-91 of the KiwiSaver Act 2006 Interest payable by Inland Revenue on KiwiSaver member contributions while they await being forwarded to KiwiSaver scheme providers.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - KiwiSaver: Interest (M57) - Revenue
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
KiwiSaver 2007/08 900 500 500 300 300

Minimum Family Tax Credit PLA (M57)#

Scope of Appropriation#

Extra payment made to families where at least one parent is working for salary or wages (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses#

Expenses - Minimum Family Tax Credit PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,800 14,800 13,300

Reasons for Change in Appropriation#

Change in 2008/09 reflects forecast entitlement to the minimum family tax credit.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Minimum Family Tax Credit PLA (M57) - Revenue
Reference Conditions
Subpart ME of the Income Tax Act 2007 Sets out the entitlement for and calculation of the Family Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Minimum Family Tax Credit PLA (M57) - Revenue
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
Working for Families package 2004/05 6,567 6,567 6,567 6,567 6,567
Extension of eligibility and entitlements under Working for Families 2005/06 2,500 2,500 2,500 2,500 2,500

On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers (M57)#

Scope of Appropriation#

To enable the on-payment of employee KiwiSaver contributions collected by Inland Revenue to KiwiSaver providers

Expenses#

Expenses - Onpayment of Employee KiwiSaver Contributions to KiwiSaver Providers (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 139,000 75,957 -

Reasons for Change in Appropriation#

This appropriation has been replaced by a Permanent Legislative Authority from 17 December 2007.

On-payment of Employee KiwiSaver Contributions to KiwiSaver Providers PLA (M57)#

Scope of Appropriation#

To enable the on-payment of employee KiwiSaver contributions collected by Inland Revenue to KiwiSaver providers (expenses incurred pursuant to section 73 of the KiwiSaver Act 2006).

Expenses#

Expenses - Onpayment of Employee KiwiSaver Contributions to KiwiSaver Providers PLA (M57) - Revenue
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 435,000 435,000 636,000 775,000 780,000 830,000

Reasons for Change in Appropriation#

A Permanent Legislative Authority was established for this appropriation from 17 December 2007.  The change in appropriation between 2007/08 and out years reflects anticipated growth in the scheme.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Onpayment of Employee KiwiSaver Contributions to KiwiSaver Providers PLA (M57) - Revenue
Reference Conditions
Section 73 of the KiwiSaver Act 2006 To allow on-payment of employee KiwiSaver contributions to providers without further authority being required.

Scope of Appropriation#

Paid Parental Leave Payments made to parents eligible under the Parental Leave and Employment Protection Act 1987.

Expenses#

Expenses - Paid Parental Leave Payments PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 136,880 136,880 146,350

Reasons for Change in Appropriation#

The increase in 2008/09 reflects forecasts of eligible parents and earnings.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Paid Parental Leave Payments PLA (M57) - Revenue
Reference Conditions
Part 7A of the Parental Leave and Employment Protection Act 1987 Establishes the entitlement for and calculation for a payment for parental leave.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Paid Parental Leave Payments PLA (M57) - Revenue
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
Paid parental leave 2004/05 19,091 19,091 19,091 19,091 19,091
Extend Paid Parental Leave to Self employed 2005/06 6,785 6,758 6,785 6,785 6,785
Paid Parental Leave -Self employed 2006/07 440 465 465 465 465

Parental Tax Credit PLA (M57)#

Scope of Appropriation#

Additional financial support to working families for the eight week period following the birth of a child (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses#

Expenses - Parental Tax Credit PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,100 22,100 22,200

Reasons for Change in Appropriation#

A small increase is forecast in 2008/09 for this appropriation.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Parental Tax Credit PLA (M57) - Revenue
Reference Conditions
Sections MD 11-12 of the Income Tax Act 2007 Sets out the entitlement for (MD11) and calculation of (MD12) of the Parental Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Parental Tax Credit PLA (M57) - Revenue
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
Working for Families package 2004/05 4,900 4,900 4,900 4,900 4,900
Paid parental leave 2004/05 (1,250) (1,250) (1,250) (1,250) (1,250)

Payroll Subsidy (M57)#

Scope of Appropriation#

Subsidy for the purposes of subsidising the costs of a payroll agent undertaking employers' payroll-related tax compliance activities

Expenses#

Expenses - Payroll Subsidy (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 820 820 1,730

Reasons for Change in Appropriation#

The increase in 2008/09 reflects increased forecast uptake of this scheme.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Payroll Subsidy (M57) - Revenue
Reference Conditions
Section RP4 of the Income Tax Act 2007 Establishes the payment of a subsidy by the Commissioner to a listed PAYE intermediary for a payroll service that they provide to an employer (RP4(1)). The calculation of the subsidy is specified in the Income Tax (Payroll Subsidy) regulations.
Section 185(g) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner in accordance with section RP 4 of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Payroll Subsidy (M57) - Revenue
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
Payroll Subsidy 2006/07 10,500 21,500 42,500 42,500 42,500

Research and Development Tax Credit (M57)#

Scope of Appropriation#

This appropriation is limited to tax credits to businesses that are undertaking research and development.

Expenses#

Expenses - Research and Development Tax Credit (M57) - Revenue
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation - - 208,000 250,000 290,000 332,000

Reasons for Change in Appropriation#

This appropriation was transferred from Non-Departmental Other Expenses for 2008/09 onwards. The appropriation in 2007/08 was $37 million. The start date for this tax credit was 1 April 2008. The increase in appropriation for 2008/09 reflects the first full year of the tax credit and the appropriations in subsequent years reflect forecast growth in take-up of this tax credit.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Research and Development Tax Credit (M57) - Revenue
Reference Conditions
Part LH of the Income Tax Act 2007 Provision of a tax credit for eligible expenditure on research and development activities.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Research and Development Tax Credit (M57) - Revenue
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
Research and Development Tax Credit 2007/08 10,000 140,000 220,000 260,000 260,000

Part 4 - Details for Borrowing Expenses#

Part 4.2 - Non-Departmental Borrowing Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 4.2 NonDepartmental Borrowing Expenses - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Primary outcome: Improving the economic and social wellbeing of New Zealanders Adverse Event Interest
Environmental Restoration Account Interest
Income Equalisation Interest

Adverse Event Interest PLA (M57)

Scope of Appropriation

This appropriation is limited to interest on Adverse Event deposits relating to withdrawals and deposits made by taxpayers in the farming and agriculture business (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - Adverse Event Interest PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10 10 10

Environmental Restoration Account Interest PLA (M57)#

Scope of Appropriation#

Interest on the deposits made to the Environmental Restoration Accounts Scheme as authorised by section 185 of the Tax Administration Act 1994.

Expenses#

Expenses - Environmental Restoration Account Interest PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 1,000

Income Equalisation Interest PLA (M57)#

Scope of Appropriation#

This appropriation is limited to interest on Income Equalisation deposits relating to withdrawals and deposits by taxpayers in the farming, fishing or forestry industries (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses#

Expenses - Income Equalisation Interest PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,450 3,450 1,700

Reasons for Change in Appropriation#

The reduction in appropriation in 2008/09 reflects forecast economic factors in the farming, fishing and forestry sectors.

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 - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Primary outcome - Improving the economic and social wellbeing of New Zealanders General Tax and Family Support Bad Debt Write-Offs
Impairment of Debt Relating to Child Support
Impairment of Debt Relating to General Tax and Family Support
Impairment of Debt Relating to Student Loans

General Tax and Family Support Bad Debt Write-Offs (M57)

Scope of Appropriation

Provision for write-downs of Crown debt administered by Inland Revenue due to bad debt write-offs, or bad debt provisions, resulting from the need to value debt according to accepted accounting practice.

Expenses

Expenses - General Tax and Family Support Bad Debt WriteOffs (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 713,000 713,000 722,000

Reasons for Change in Appropriation

There was a change made to Inland Revenue accounting policy in 2006/07 financial year regarding bad debt write-offs. In prior years these had been netted against revenue but in 2006/07 they were reported gross in the financial statements. The increase in appropriations for 2007/08 and out years reflects the policy change.

Impairment of Debt Relating to Child Support (M57)#

Scope of Appropriation#

This appropriation is limited to amounts relating to impairment arising from objective evidence of one or more loss events that occurred after the initial recognition of the debt, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the collective book of child support debt.

Expenses#

Expenses - Impairment of Debt Relating to Child Support (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 85,000 85,000 64,000

Reasons for Change in Appropriation#

This is to recognise the impairment relating to Child Support. Previously it was recognised as a Provision for Doubtful Debts but, with the adoption of the New Zealand equivalents to International Financial Reporting Standards the debt is now impaired annually. It is anticipated that there will be a reduction in impairment as Child Support collections are forecast to increase in future years.

Impairment of Debt Relating to General Tax and Family Support (M57)#

Scope of Appropriation#

This appropriation is limited to amounts relating to impairment arising from objective evidence of one or more loss events that occurred after the initial recognition of the debt, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the collective book of debt.

Expenses#

Expenses - Impairment of Debt Relating to General Tax and Family Support (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 150,000 150,000 157,500

Reasons for Change in Appropriation#

This is to recognise the impairment relating to General Tax and Family Support. Previously it was recognised as a Provision for Doubtful Debts but, with the adoption of the New Zealand equivalents to International Financial Reporting Standards the debt is now impaired annually.

Impairment of Debt Relating to Student Loans (M57)#

Scope of Appropriation#

This appropriation is limited to amounts relating to impairment arising from objective evidence of one or more loss events that occurred after the initial recognition of the loan, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the collective book of student loans.

Expenses#

Expenses - Impairment of Debt Relating to Student Loans (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 200,000 200,000 50,000

Reasons for Change in Appropriation#

There has been a change in the way impairment will be calculated in 2007/08 and the impairment for that year is anticipated to be higher than in future years when the method will be consistent.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Impairment of Debt Relating to Student Loans (M57) - Revenue
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
Annual Inflation Adjustment of the Student Allowance Personal Income Threshold1 2008/09 - - - (1) (1)
Increasing the Parental Income Threshold by 10%1 2008/09 - (2) (6) (10) (10)
Expansion of Step Up Scholarships1 2008/09 - (4) (10) (22) (22)
Increasing the Student Allowance Parental Income Threshold by 10%1 2009/10 - - (3) (9) (16)
Expansion of the Bonded Merit Scholarship Scheme1 2009/10 - - (1) (3) (7)
Student Achievement Component: Access in Priority Areas1 2009/10 - - 20 46 64
Increasing the Student Loan Scheme Living Cost Component to $155 Per Week1 2009/10 - - 18 59 107
Lowering the Age Limit for Student Allowance Parental Income testing by One Year1 2009/10 - - (7) (22) (38)

Note 1 - Co Votes: Vote Education and Vote Social Development.

Research and Development Tax Credit (M57)#

Scope of Appropriation#

This appropriation is limited to tax credits to businesses that are undertaking research and development.

Expenses#

Expenses - Research and Development Tax Credit (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 37,000 37,000 -

Reasons for Change in Appropriation#

This appropriation was transferred to Non-Departmental Benefits and Other Unrequited Expenses for 2008/09 onwards.

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Revenue
Appropriation Reporting Mechanism
General Tax and Family Support Bad Debt Write-Offs Annual Report of Inland Revenue and the Financial Statements of the Government
Impairment of Debt Relating to Child Support Annual Report of Inland Revenue and the Financial Statements of the Government
Impairment of Debt Relating to General Tax and Family Support Annual Report of Inland Revenue and the Financial Statements of the Government
Impairment of Debt Relating to Student Loans Annual Report of Inland Revenue and the Financial Statements of the Government

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 - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Intermediate outcome - Revenue is available to fund government programmes through people meeting payment obligations of their own accord Inland Revenue Department - Capital Expenditure
Intermediate outcome - People receive payments they are entitled to, enabling them to participate in society  

Inland Revenue Department - Capital Expenditure PLA (M57)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Inland Revenue Department Capital Expenditure PLA (M57) - Revenue
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 26,296 26,296 15,828
Intangibles 92,614 92,614 62,145
Other - - -
Total Appropriation 118,910 118,910 77,973
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 26,296 26,296 15,828
Intangibles 92,614 92,614 62,145
Other - - -
Total Appropriation 118,910 118,910 77,973

Reasons for Change in Appropriation

Inland Revenue received one-off capital funding in 2007/08 to implement system changes associated with KiwiSaver, student loans, working for families and business tax review. In 2008/09, Inland Revenue will receive one-off capital funding for enhancements to KiwiSaver and a long-term accommodation solution in Wellington.

Performance Information for Appropriations Vote Ministerial Services#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for Ministerial Services (M47)

ADMINISTERING DEPARTMENT: Department of Internal Affairs

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

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

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

Departmental Appropriations

  • A total of nearly $27.282 million (72% of total departmental appropriations in this Vote) for Support Services to Members of the Executive, including office administration, accounting, personnel, information technology, facilities management, media and advisory services, and the management of residential accommodation provided for Ministers of the Crown.
  • A total of nearly $7.195 million (19% of total departmental appropriations in this Vote) for the provision of transport services, principally for Ministers, the Leader of the Opposition, former Governors-General and Prime Ministers and their spouses, the Judiciary and distinguished visitors, and the provision of self-drive vehicles.
  • A total of nearly $3.479 million (9% of total departmental appropriations in this Vote) for managing Guests of Government visits, reception services at international airports for the Governor-General, Ministers and Guests of Government, State and ministerial functions, commemorative events and national anniversaries.

Non-Departmental Appropriations

  • A total of nearly $400,000 for Annuities to former Governors-General, Prime Ministers and their Widows.
  • A total of nearly $18.311 million for Executive Council and Ministers' salaries and allowances, Governors'-General pension arrangements, travel expenses for Ministers and former Governors-General and Prime Ministers.

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

Part 1.2 - High-Level Objectives of the Vote#

Vote Ministerial Services provides the Government with advice and services to ensure that the Executive Government is well supported.

Contribution of Appropriations to Government Priorities and Outcomes#

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Ministerial Services
Appropriations Government Priorities - Themes / Sub-themes Government Outcomes
Annuities to Former Governors-General, Prime Ministers and Widows   Objective: Executive Government is Well Supported
Depreciation   Objective: Executive Government is Well Supported
Executive Council and Ministers' Salaries and Allowances   Objective: Executive Government is Well Supported
Governors'-General Pension Arrangements   Objective: Executive Government is Well Supported
Ministers' Internal and External Travel   Objective: Executive Government is Well Supported
Support Services to Members of the Executive   Objective: Executive Government is Well Supported
Travel for Former Governors-General and Prime Ministers   Objective: Executive Government is Well Supported
VIP Transport   Objective: Executive Government is Well Supported
Visits and Official Events Coordination National identity - connecting with, understanding and celebrating our heritage. Ceremonial events help celebrate and develop an understanding of New Zealand culture and heritage
Economic transformation - New Zealand's Guests of Government visits help build international relations
Objective: Executive Government is Well Supported

Summary of Financial Activity#

Summary of Financial Activity - Ministerial Services
  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 28,381 30,405 32,675 36,408 39,967 39,872 37,956 - 37,956 37,956 37,956 37,956
Benefits and Other Unrequited Expenses 296 317 302 6,211 400 400 N/A 400 400 400 400 400
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 14,282 14,796 15,530 21,727 18,291 18,291 - 18,311 18,311 18,311 18,311 18,311
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

42,959 45,518 48,507 64,346 58,658 58,563 37,956 18,711 56,667 56,667 56,667 56,667

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 10 10 10 10 10 10 N/A N/A 10 10 10 10
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

10 10 10 10 10 10 N/A N/A 10 10 10 10

Budget Policy Initiatives#

Budget Policy initiatives - Ministerial Services
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Extended Guests of Government programme Visits and Official Events Coordination 1,400 - - - -
Sir Edmund Hillary's funeral and memorial service costs Visits and Official Events Coordination 900 - - - -

Total Vote: All Appropriations

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

Figure 1 - Trends in total actual and estimated expenses

Trends in Total Expenses
Trends in Total Expenses
Source: Department of Internal Affairs

The movements in departmental and non-departmental appropriations in Vote Ministerial Services, are detailed in the Summary of Financial Activity table.

Departmental output expenses

Figure 2 - Trends in departmental output expenses

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

The baseline increased in 2004/05 due to increased demand for VIP Transport and additional funding for Guests of Government. The increase in 2005/06 was due to additional funding for the Upgrade of Information and Technology Infrastructure and to enhance personnel capacity. In 2006/07 increased funding provided for additional Ministerial Services staff to support the Executive and increased ministerial travel. Additional funding was provided in 2007/08 for guests of government and Sir Edmund Hillary's funeral and memorial service costs.

Benefits and other unrequited expenses

Figure 3 - Trends in benefits and other unrequited expenses

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

Expenditure was broadly stable until 2006/07. In 2006/07 additional funding of $5.850 million was provided for a one-off technical adjustment to recognise the actuarial valuation for Annuities to Former Governors-General, Prime Ministers and their Widows.

Non-departmental other expenses

Figure 4 - Trends in non-departmental other expenses

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

Expenditure was broadly stable until 2006/07. Expenditure increased in 2006/07 to provide for a one-off technical adjustment to recognise the actuarial valuation of Travel for Former Governors-General and Prime Ministers.

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 - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective:Executive Government is Well Supported. The range of services and processes needed to be effective is available to the Executive, both inside and outside Parliament. Links to Department of the Prime Minister and Cabinet outcome [Invalid character here] Executive government is well conducted and continues in accordance with accepted conventions and practices.[Invalid character here] Support Services to Members of the Executive
VIP Transport
Objective:Executive Government is Well Supported. Guest of Government visits help build international relations. Links to Ministry of Foreign Affairs and Trade outcome [Invalid character here] New Zealand's international connections support transformation of the New Zealand economy and sustainable economic growth through increased trade and through improved flows of investment, skills and technology.[Invalid character here]
Ceremonial events help celebrate and develop an understanding of New Zealand culture and heritage. Links to Ministry for Culture and Heritage outcome [Invalid character here] The diversity, visibility and accessibility of our culture, and participation in cultural experiences, are enhanced.[Invalid character here]
Visits and Official Events Coordination

Support Services to Members of the Executive (M47)

Scope of Appropriation

This appropriation is limited to providing support services for Members of the Executive; office administration; accounting, personnel, information and communication technology; facilities management; media and other advisory services; and provision of residential accommodation.

Expenses and Revenue

Expenses and Revenue - Support Services to Members of the Executive (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26,894 26,844 27,282
Revenue from the Crown 26,541 26,541 26,930
Revenue from Others 353 351 353

Output Performance Measures and Standards

Output Performance Measures and Standards - Support Services to Members of the Executive (M47) - Ministerial Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of Members of the Executive responding to the annual satisfaction survey who assess the quality of support services provided at 3 or above on a scale of 1 to 5 is no less than: 90% 90% 90%
Percentage of Members of the Executive responding to the annual satisfaction survey who assess their satisfaction with the timeliness of services provided to them at 3 or above on a scale of 1 to 5 is no less than: 90% 90% 90%
The Minister Responsible for Ministerial Services is requested to indicate his/her satisfaction with the level of administration of support services provided to the Executive Satisfied or better1 Satisfied1 Satisfied or better1
The Minister Responsible for Ministerial Services is requested to indicate his/her satisfaction with the quality of operational advice Satisfied or better1 Satisfied1 Satisfied or better1

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

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support Services to Members of the Executive (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Support services to members of the Executive 2005/06 2,240 2,240 2,240 2,240 2,240
Departmental Personnel Capability 2005/06 1,866 2,355 2,355 2,355 2,355
Upgrade of Information and Technology Infrastructure 2004/05 277 286 286 286 286

VIP Transport (M47)#

Scope of Appropriation#

The provision of chauffeur-driven vehicle services for Ministers, the Leader of the Opposition, former Prime Ministers and their spouses, former Governors-General and their spouses, the judiciary, distinguished visitors; and self-drive vehicles for Ministers.

Expenses and Revenue#

Expenses and Revenue - VIP Transport (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,311 7,266 7,195
Revenue from the Crown - - -
Revenue from Others 7,293 7,293 7,195

Output Performance Measures and Standards#

Output Performance Measures and Standards - VIP Transport (M47) - Ministerial Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of Members of the Executive who rate their satisfaction with the transport services provided to them at 3 or above on a scale of 1 to 5 is no less than: 90% 90% 90%
Percentage of replacement vehicles complying with European Fuel Emission Standard IV is no less than: 90% 90% 90%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - VIP Transport (M47) - Ministerial Services
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
Ministerial travel capacity increase 2006/07 800 800 800 800 800
Departmental Personnel Capability 2005/06 26 26 26 26 26
Upgrade of Information and Technology Infrastructure 2004/05 58 58 58 58 58

Visits and Official Events Coordination (M47)#

Scope of Appropriation#

The provision of services to manage programmes for visiting guests of Government; receptions at international airports for the Governor-General, Ministers and guests of Government; State and ministerial functions; commemorative events; and national anniversaries.

Expenses and Revenue#

Expenses and Revenue - Visits and Official Events Coordination (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,762 5,762 3,479
Revenue from the Crown 5,744 5,744 3,462
Revenue from Others 17 17 17

Reasons for Change in Appropriation#

The decrease in this appropriation is largely due to additional one-off funding provided in 2007/08 for guests of government and Sir Edmund Hillary's funeral and memorial service costs.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Visits and Official Events Coordination (M47) - Ministerial Services
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of visit programme content and logistics arranged to reflect visit objectives is: 100% 100% 100%
Percentage of Ministers who rate their satisfaction with the quality of arrangements for Ministerial and State functions at 3 or above on a scale of 1 to 5 is no less than:(Only Ministers sponsoring Ministerial and State Functions are surveyed.) 90% 90% 90%
Percentage of Members of the Executive who rate their satisfaction with the coordination and management of official events at 3 or above on a scale of 1 to 5 is no less than:(Only Ministers with responsibility for hosting events are surveyed.) 90% 90% 90%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Visits and Official Events Coordination (M47) - Ministerial Services
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
Extended Guests of Government programme 2007/08 1,400 - - - -
Sir Edmund Hillary's funeral and memorial service costs 2007/08 900 - - - -
Extended Guests of Government programme 2005/06 400 400 400 400 400
Visits and Ceremonial Office Capability 2005/06 460 460 460 460 460
Departmental Personnel Capability 2005/06 120 148 148 148 148
Guests of Government - Extended Programme 2004/05 300 300 300 300 300
Upgrade of Information and Technology Infrastructure 2004/05 36 36 36 36 36
Guests of Government - Extended Programme 2003/04 282 282 282 282 282

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective : Former Governors-General, Prime Ministers and their Widows are paid annuities in accordance with their entitlement. Annuities to Former Governors-General, Prime Ministers and Widows

Annuities to Former Governors-General, Prime Ministers and Widows PLA (M47)

Scope of Appropriation

Annuities to former Governors-General, Prime Ministers, and Widows.

Expenses

Expenses - Annuities to Former GovernorsGeneral, Prime Ministers and Widows PLA (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 400 400 400

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Annuities to Former GovernorsGeneral, Prime Ministers and Widows PLA (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979, Remuneration Authority Act 1977, Civil List (Annuities) Determination 2007 and Parliamentary Annuities Determination 2007 That payments are made within the boundaries of the Acts and Determinations

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 - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective : Depreciation on Crown-owned properties is paid within current accounting practices Depreciation
Objective : Ministers' salaries are paid per their determination from the Remuneration Authority Executive Council and Ministers' Salaries and Allowances
Objective : Pension paid in accordance with the arrangement Governors'-General Pension Arrangements
Objective : Executive Government is Well Supported, Ministers have confidence that they will be provided with travel support required to achieve their roles as legislators and Representatives Ministers' Internal and External Travel
Objective : Former Governors-General and Prime Ministers are provided with travel support covered by their entitlements Travel for Former Governors-General and Prime Ministers

Depreciation (M47)

Scope of Appropriation

Depreciation on ministerial residences.

Expenses

Expenses - Depreciation (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 121 121 121

Executive Council and Ministers' Salaries and Allowances PLA (M47)#

Scope of Appropriation#

Payments for civil purposes to the Executive Council and Ministers.

Expenses#

Expenses - Executive Council and Ministers' Salaries and Allowances PLA (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,190 7,190 7,210

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Executive Council and Ministers' Salaries and Allowances PLA (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 16
Parliamentary Salaries and Allowances Determination 2007 Schedule 1 of the Determination specifies the salary amount payable under the ActSchedule 2 of the Determination specifies the amount of the allowance payable under the Act

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Executive Council and Ministers' Salaries and Allowances PLA (M47) - Ministerial Services
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
Parliamentary Salaries and Allowances Determination 2005 2005/06 780 780 780 780 780
Executive Council Ministers' Salaries and Allowances 2004/05 110 110 110 110 110

Governors'-General Pension Arrangements PLA (M47)#

Scope of Appropriation#

Payments for civil purposes, Governors'-General pension arrangements.

Expenses#

Expenses - Governors'General Pension Arrangements PLA (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20 20 20

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Governors'General Pension Arrangements PLA (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 41 (a) specifies that annuities are payable at a rate determined from time to time by the Remuneration Authority
Civil List (Annuities) Determination 2007 Section 4 of the Determination specifies the annuity for former Governors-General
Section 5 of the Determination specifies the annuity for surviving spouses or partners of former Governors-General

Ministers' Internal and External Travel (M47)#

Scope of Appropriation#

Payments for civil purposes for Ministers' internal and external travel, pursuant to section 20A of the Civil List Act 1979.

Expenses#

Expenses - Ministers' Internal and External Travel (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,440 10.440 10,440

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Ministers' Internal and External Travel (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 20A (3) of the Act requires the Minister Responsible for Ministerial Services to determine in respect of members of the Executive, additional or alternative services in respect of Executive travel, accommodation, attendance, and communications
Executive Travel, Accommodation, Attendance and Communications Services Determination This document states that the detailed requirements in respect of section 20A of the Act are contained in the document signed by the Minister Responsible for Ministerial Services on 23 October 2003
Travel, Accommodation, Attendance and Communication Services Available to Members of the Executive signed by the Minister Responsible for Ministerial Services Part 2 of the document specifies travel entitlements

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Ministers' Internal and External Travel (M47) - Ministerial Services
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
Ministerial travel capacity increase 2006/07 1,647 1,647 1,647 1,647 1,647

Travel for Former Governors-General and Prime Ministers (M47)#

Scope of Appropriation#

Payments for civil purposes, pursuant to section 25 of the Civil List Act 1979.

Expenses#

Expenses - Travel for Former GovernorsGeneral and Prime Ministers (M47) - Ministerial Services
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 520 520 520

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Travel for Former GovernorsGeneral and Prime Ministers (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 25 of the Act states that the appropriation by Parliament of money for the purpose of providing benefits of a specified kind for the Governor-General or a former Governor-General or members of their families shall be sufficient authority for the grant of such benefits of privileges

Performance Information for Appropriations Vote Office of the Clerk#

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

ADMINISTERING DEPARTMENT: Office of the Clerk of the House of Representatives

MINISTER RESPONSIBLE FOR OFFICE OF THE CLERK OF THE HOUSE OF REPRESENTATIVES: Speaker of the House of Representatives

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

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

  • A total of nearly $18 million to assist the Clerk of the House to provide specialist advice on parliamentary procedure and parliamentary law, and administrative services to the Speaker and members of the House of Representatives in the performance of their duties as members of the House.
  • A total of nearly $1 million to assist the Clerk of the House to provide advice on inter-parliamentary relations to the Speaker and members, establish an annual programme of incoming and outgoing visits, develop and implement individual visit programmes, build the capacity of the Pacific Island parliaments, support the New Zealand Parliament's contribution on global issues at international parliamentary organisations and host international parliamentary conferences.

The Clerk of the House of Representatives is the principal permanent officer of the House and carries out the functions required under section 3 of the Clerk of the House of Representatives Act 1988.

The functions of the Clerk of the House of Representatives shall be:

  • to note all proceedings of the House of Representatives and of any committee of the House
  • to carry out such duties and exercise such powers as may be conferred on the Clerk of the House of Representatives by law or by the Standing Orders and practice of the House of Representatives
  • to act as the principal officer of the Office of the Clerk of the House of Representatives and, in that capacity, to manage that office efficiently, effectively, and economically
  • to ensure that the members of the staff of the Office of the Clerk of the House of Representatives carry out their duties (including duties imposed on them by law or by the Standing Orders or practice of the House of Representatives) and maintain:
    • proper standards of integrity and conduct
    • concern for the public interest
  • to be responsible, under the direction of the Speaker of the House of Representatives, for the official report of the proceedings of the House of Representatives and its committees.

The Office of the Clerk, established under section 14 of the Act, assists the Clerk in carrying out these functions.

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 - Office of the Clerk
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Other. The outcome of the Office of the Clerk is a functioning legislature in which members of Parliament are able to discharge their constitutional duties in respect of the consideration of legislation and other parliamentary business. Inter-Parliamentary Relations.Secretariat services for the House of Representatives.

Summary of Financial Activity#

Summary of Financial Activity - Office of the Clerk
  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 11,986 12,127 13,196 14,455 19,684 19,684 18,774 - 18,774 18,303 18,303 18,303
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 271 440 669 482 1,640 1,640 2,617 - 2,617 827 1,045 150
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

12,257 12,567 13,865 14,937 21,324 21,324 21,391 - 21,391 19,130 19,348 18,453

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 - Office of the Clerk
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Roll-out of eCommittee system to all select committees. Secretariat services for the House of Representatives. - 1,303 1,072 1,072 1,072
Checking of two citizens' initiated referenda. Secretariat services for the House of Representatives. 200 - - - -
Costs associated with the opening of Parliament and storage and destruction of ballot papers. Secretariat services for the House of Representatives. - 90 - - -
Hosting the bi-ennial conference of the Australasian Council of Public Accounts Committees. Secretariat services for the House of Representatives. - 300 - - -
Development of a communication strategy for Parliament. Secretariat services for the House of Representatives. - 50 - - -
Enhance the legal services capability. Secretariat services for the House of Representatives. - 200 200 200 200
Televising Parliament operational costs. Secretariat services for the House of Representatives. - 297 297 297 297
Radio broadcasting of Parliament operational costs. Secretariat services for the House of Representatives. - 39 39 39 39

Operating expenses have increased over the years 2003/04 to 2008/09 to fund a number of one-off and ongoing functions of the Office of the Clerk. The major items are:

  • extensions to the AM radio broadcasting network and operating costs
  • set-up and ongoing costs of in-house legal advisory services
  • improvements to the Parliamentary Papers and Journals publishing system
  • enhancements to the Office of the Clerk information technology
  • the hosting the 2008 Asia-Pacific Parliamentary Forum meeting
  • the set-up and ongoing operating costs of the televising of Parliament
  • roll-out of the eCommittee system to all select committees.

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 - Office of the Clerk
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective : To improve relations between the New Zealand Parliament and other Parliaments.
Impact : To enable Parliament to support the fulfilment of New Zealand's obligations as a member of the international parliamentary community.
Inter-Parliamentary Relations.
Objective : To provide the House of Representatives with professional advice and services to assist it to fulfil its constitutional functions.
Impact : To contribute value to the legislature by supporting the consideration of legislation, scrutiny of executive government, and other parliamentary business.
Secretariat services for the House of Representatives.

Inter-Parliamentary Relations (M78)

Scope of Appropriation

This appropriation is limited to services to improve relations between the New Zealand Parliament and other parliaments, including providing advice on inter-parliamentary relations to the Speaker and members, establishing and implementing an annual programme of incoming and outgoing visits, developing and implementing individual visit programmes, assisting to build the capacity of the Pacific Island parliaments, supporting (including through travel to meetings overseas) the New Zealand Parliament's contribution on global issues at international parliamentary organisations and hosting international parliamentary conferences.

Expenses and Revenue

Expenses and Revenue - InterParliamentary Relations (M78) - Office of the Clerk
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,919 3,919 806
Revenue from the Crown 3,913 3,913 800
Revenue from Others 6 6 6

Reasons for Change in Appropriation

The decrease in this appropriation is mainly due to the removal of the one-off appropriation for 2007/08 for costs associated with the hosting of the 16th Asia-Pacific Parliamentary Forum conference held in New Zealand in January 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - InterParliamentary Relations (M78) - Office of the Clerk
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Advice on inter-parliamentary relations      
Speaker and members have accurate, informed and politically sustainable advice on issues relating to inter-parliamentary relations. 100% 100% 100%
Annual programme of visits      
Programmes approved by the Speaker and Cabinet. 100% 100% 100%
Servicing visits      
Advice and services meet the satisfaction of the Speaker, members and select committees. 100% 100% 100%
Visit programmes are completed within approved budget. 100% 100% 100%
Engagement with Pacific parliaments      
Advice and services meet the satisfaction of the CPA Pacific Branches and Regional Representatives. 100% 100% 100%
New Zealand's engagement with Inter-parliamentary organisations      
Advice and services meet the satisfaction of the Speaker, members and delegates. 100% 100% 100%
Secretariat services meet the satisfaction of the New Zealand CPA Branch IPU group Executive Committee. 100% 100% 100%
Hosting parliamentary conferences      
Planning, advice and services meet the satisfaction of the Speaker, members and delegates. 100% 100% 100%
Completed within approved budget. 100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - InterParliamentary Relations (M78) - Office of the Clerk
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
Hosting the 16th Asia-Pacific Parliamentary Forum Meeting 2006/07 2,400 - - - -

Secretariat Services for the House of Representatives (M78)#

Scope of Appropriation#

This appropriation is limited to the provision to the House of Representatives of professional advice and services designed to assist the House in the fulfilment of its constitutional functions. This comprises assisting with the transaction of parliamentary business on the floor of the House and in select committees.

Expenses and Revenue#

Expenses and Revenue - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,765 15,765 17,968
Revenue from the Crown 15,593 15,593 17,796
Revenue from Others 172 172 172

Reasons for Change in Appropriation#

The increase in the appropriation is due largely to the roll-out to all select committees of the eCommittee system and increased costs associated with the television broadcast of Parliament now that the televising of the House is fully operational.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Procedural Advisory Service      
Procedural advice accords with the Standing Orders and Speakers' rulings. 100% 100% 100%
Presiding officers are informed in advance about the nature of all questions to be put in the House and committee. 100% 100% 100%
Presiding officers have accurate, politically sustainable advice on the maintenance of order, relevancy of debate, the scope of bills and the admissibility of amendments. 100% 100% 100%
Certifications of bills and their preparation for Royal assent      
Bills prepared for Royal assent accurately reflect the decisions of the House are ready for Royal assent without delay in the order passed by the House and to meet commencement date requirements. 100% 100% 100%
Bills prepared and certified as ready for reprinting as reported from the committee of the whole House and select committees accurately reflect the decisions of the committees. 100% 100% 100%
Other legislative process services      
Bills introduced accord with the requirements of the Standing Orders 100% 100% 100%
Me