Information supporting the estimates of appropriations

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

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

 

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

Using PDF Files

Cover, Contents#

Introduction#

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

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Agriculture and Forestry
  • Vote Biosecurity
  • Vote Fisheries
  • Vote Food Safety
  • Vote Lands

Statements of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Ministry of Agriculture and Forestry
  • Ministry of Fisheries
  • Land Information New Zealand

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

Purpose of Information Supporting the Estimates#

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

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

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

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

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

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

 

Votes and Departments in Each Sector#

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

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

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

Education and Science Sector - B.5A Vol.2

Vote Education Ministry of Education
Vote Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector.)

Environment Sector - B.5A Vol.3

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

External Sector - B.5A Vol.4

Vote Foreign Affairs and Trade Ministry of Foreign Affairs and Trade
Vote Official Development Assistance
Vote Defence Ministry of Defence
Vote Defence Force New Zealand Defence Force
Vote Veterans' Affairs - Defence Force
Vote Customs New Zealand Customs Service

Finance and Government Administration Sector - B.5A Vol.5

Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance The Treasury
Vote State-Owned Enterprises
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the Māori, Other Populations and Cultural Sector)  
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Ombudsmen Office of the Ombudsmen
Vote Parliamentary Service Parliamentary Service
Vote Audit Office of the Auditor-General

Health Sector - B.5A Vol.6

Vote Health Ministry of Health

Justice Sector - B.5A Vol.7

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

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

Vote Arts, Culture and Heritage Ministry for Culture and Heritage
Vote Sport and Recreation
Vote Statistics Statistics New Zealand
Vote National Archives Archives New Zealand
Vote National Library National Library of New Zealand
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations (this Vote is administered by the Ministry of Justice, which is in the Justice Sector)  
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Internal Affairs Department of Internal Affairs
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing

Primary Sector - B.5A Vol.9

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

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

Vote Social Development Ministry of Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth Development
Vote Housing Department of Building and Housing

Purpose and Nature of Appropriations#

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

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

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

Limits Created by Appropriations#

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

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

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

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

Responsibility for Appropriations#

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

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

 

Types of Appropriation#

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

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

Types of Appropriation
Appropriation Type Transaction Status Description

Output Expenses

Departmental

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

Non-Departmental

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

Benefits and Other Unrequited Expenses

Non-Departmental

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

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

Borrowing Expenses

Departmental

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

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

Non-Departmental

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

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

Other Expenses

Departmental

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

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

Non-Departmental

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

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

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

Capital expenditure

Departmental

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

Non-Departmental

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

Expenses or Capital expenditure Incurred by an Intelligence and Security Department

Departmental

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

Types of Output Expense Appropriations#

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

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

Standard Output Expense Appropriations

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

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

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

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

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

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

Multi-Class Output Expense Appropriations (MCOA)

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

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

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

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

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

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

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

Revenue-Dependent Appropriations (RDA)

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

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

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

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

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

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

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

Department-to-Department Appropriation (DDA)

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

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

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

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

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

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

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

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

Appropriation Period#

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

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

Guide to Reading Information Supporting theEstimates#

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

1 Sector Overview Information

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

2 Performance Information Relating to Appropriations in Each Vote#

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

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

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

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

Part 2 - Details and Expected Performance for Output Expenses#

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

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

Part 4 - Details for Borrowing Expenses#

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

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

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

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

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

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

3 Statement of Forecast Service Performance of Departments#

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

4 Forecast Financial Statements of Departments#

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

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

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

5 Statements of Intent of Departments#

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

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

Terms and Definitions#

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

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

The suite of Budget 2010 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2010. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Ministerial Statements of Responsibility#

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the Primary 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 David Carter
Responsible Minister for the Ministry of Agriculture and Forestry

19 April 2010

Hon Phil Heatley
Responsible Minister for the Ministry of Fisheries

19 April 2010

Hon Maurice Williamson
Responsible Minister for Land Information New Zealand

19 April 2010

 

Chief Executive Statements of Responsibility#

Ministry of Agriculture and Forestry

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

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

M A Sherwin
Director-General
Ministry of Agriculture and Forestry

16 April 2010

Patricia McAuliffe
Chief Financial Officer
Ministry of Agriculture and Forestry

16 April 2010

Ministry of Fisheries

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

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Wayne McNee
Chief Executive
Ministry of Fisheries

16 April 2010

Peter Murray
Deputy Chief Executive Organisation Services
Ministry of Fisheries

16 April 2010

Land Information New Zealand

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

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Colin MacDonald
Chief Executive
Land Information New Zealand

16 April 2010

Bridgette Hickey
Chief Financial Officer
Land Information New Zealand

16 April 2010

Performance Information for Appropriations Vote Agriculture and Forestry#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Agriculture (M2), Minister of Forestry (M35)

ADMINISTERING DEPARTMENT: Ministry of Agriculture and Forestry

MINISTER RESPONSIBLE FOR MINISTRY OF AGRICULTURE AND FORESTRY: Minister of Agriculture

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

Appropriations

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

  • a total of nearly $75 million (24% of the Vote) on departmental output expenses for policy advice, implementation of the Emissions Trading Scheme and indigenous forestry provisions of the Forests Act 1949, provision of support services to other agencies, administration of grants and programmes, and animal welfare education and enforcement
  • a total of nearly $10 million (3% of the Vote) on non-departmental output expenses for climate change research and for the operation of the New Zealand Walking Access Commission
  • a total of $1.100 million for the operation of the Rural Veterinarians Bonding Scheme
  • a total of just over $56 million (19% of the Vote) for the Primary Growth Partnership - a government-industry initiative that invests in significant programmes of research and innovation to boost economic growth and sustainability across the primary sectors
  • a total of nearly $22 million (7% of the Vote) on other non-departmental expenses for the Sustainable Farming Fund grants, Global Research Alliance on agricultural greenhouse gases, the Hill Country Erosion Fund, subscriptions to international organisations, possible adverse climatic events and community irrigation scheme
  • a total of just over $36 million (12% of the Vote) for departmental capital expenditure on property, plant, equipment and IT software
  • a total of nearly $500,000 for the purchase and development of capital assets by the New Zealand Walking Access Commission.

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

  • a total of nearly $14 million (5% of the Vote) for management of Crown forestry assets, the Afforestation Grants Scheme and the East Coast Afforestation Grants scheme
  • a total of just over $90 million (30% of the Vote) on purchasing forest management and wood production services from sector contractors for Crown forests.

Crown Revenue and Capital Receipts

The Ministry expects to collect nearly $109.300 million of Crown revenue and capital receipts in 2010/11, made up as follows:

  • a total of $103.500 million for the sale of logs from Crown forests
  • a total of $5.400 million from forestry encouragement loan interest and loan repayments
  • a total of $350,000 from emissions trading scheme fees and levies payable under the Dairy Industry Restructuring Act.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Agriculture and Forestry
Government Priorities Government Outcomes Appropriations
Driving Goal: To grow the New Zealand economy in order to deliver greater prosperity, security and opportunities for all New Zealanders.
Priorities:
  • Water policy and infrastructure
  • Primary industry performance
  • Trade
  • Maori agribusiness
  • Animal welfare
  • Climate change
  • Traceability
End outcome: Economy
Sustainable economic growth and prosperity for New Zealanders
Administration and management of Crown Forestry assets
Administration of grants and programmes
Animal welfare education and enforcement
Implementation of the Emissions Trading Scheme and Indigenous Forestry
Policy advice: Agriculture and forestry
Policy advice: Climate change
Policy Advice: Animal welfare
  End outcome: People
Healthy New Zealanders and a vibrant rural community
Administration of grants and programmes
Animal welfare education and enforcement
Implementation of the Emissions Trading Scheme and Indigenous Forestry
Policy advice: Agriculture and forestry
Policy advice: Climate change
  End outcome: Environment
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment
Administration of grants and programmes
Implementation of the Emissions Trading Scheme and Indigenous Forestry
Policy advice: Agriculture and forestry
Policy advice: Climate change
  The provision of cost-effective information management, financial and procurement, contract and payroll services to other agencies. Support services and infrastructure to other agencies

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 89,411 98,650 130,245 158,369 183,480 176,714 76,605 99,982 176,587 168,240 156,675 152,406
Benefits and Other Unrequited Expenses - - - 99 770 770 N/A 1,100 1,100 1,430 1,760 1,650
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 22,522 13,850 14,602 13,754 35,264 19,953 - 90,359 90,359 80,516 104,715 99,592
Capital Expenditure 26,859 19,967 11,039 752,980 7,907 7,907 36,249 500 36,749 15,977 12,160 14,145
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

138,792 132,467 155,886 925,202 227,421 205,344 112,854 191,941 304,795 266,163 275,310 267,793

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 81,549 88,179 87,844 101,085 116,683 116,733 N/A 105,998 105,998 105,109 90,599 88,701
Capital Receipts 2,015 1,959 2,154 723,211 4,520 4,520 N/A 3,300 3,300 3,270 3,050 3,050

Total Crown Revenue and Capital Receipts

83,564 90,138 89,998 824,296 121,203 121,253 N/A 109,298 109,298 108,379 93,649 91,751

New Policy Initiatives

Budget Policy Intiatives - Agriculture and Forestry
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Better biosecurity risk targeting at international airports Departmental Capital Injection 2,000 - - - -
Global alliance on agricultural greenhouse gas mitigation research Policy Advice (M2)          
  Output Class Climate Change Policy Advice - (1,500) (1,500) (1,500) (1,500)
  Departmental Multi-Class Output Expense          
  Global Research Alliance on Agricultural Greenhouse Gases (M2)
Non-Departmental Other Expense
- 5,000 10,000 15,000 15,000
Animal welfare Animal Welfare Education and Enforcement (M2)
Departmental Output Expense
- 1,200 1,650 1,700 1,700
  Policy Advice (M2)          
  Output Class Animal Welfare Policy Advice - 400 550 500 500
  Departmental Multi-Class Output Expense          
Emissions Trading Scheme implementation Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2)
Departmental Output Expense
- 6,300 1,900 1,100 1,500
Afforestation Grants Scheme Afforestation Grants Scheme (M35)
Non-Departmental Other Expense
- - (2,000) (2,000) (2,000)
Climate Change Plan of Action Policy Advice (M2)          
  Output Class Climate Change Policy Advice - (350) (550) (550) (550)
  Departmental Multi-Class Output Expense          
  Climate Change Research (M2)
Non-Departmental Output Expense
- (500) (500) (500) (800)
Joint Border Management System Departmental Capital Injection - 4,507 2,161 - -
New Zealand Productivity Commission Policy Advice (M2)          
  Output Class Agriculture and Forestry Policy Advice - (35) (70) (75) (75)
  Departmental Multi-Class Output Expense          
Amalgamation of New Zealand Food Safety Authority with Ministry of Agriculture and Forestry Departmental Capital Injection - 3,141 - - -
Total initiatives   2,000 18,163 11,641 13,675 13,775

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Agriculture and Forestry, which are detailed in the Summary of Financial Activity table above, are discussed briefly below.

Output Expenses

Output expense increases between 2004/05 and 2006/07 were due mainly to increased harvesting operations in Crown forests and the transfer of animal welfare appropriations from Vote Biosecurity in 2005/06. The baseline increases in 2007/08 and 2008/09 were largely due to funding for climate change initiatives and continued increased harvesting activity in Crown forests. The increase between 2008/09 and 2009/10 was mainly due to the transfer of Timberlands West Coast Limited's forestry operations to the Ministry of Agriculture and Forestry (MAF). The fall in output expense appropriations between 2009/10 and 2010/11 is largely due to the restructure of the Vote that resulted in reclassification of Climate Change Research activities from a departmental to a non-departmental output expense offset by an increase through the reclassification of funding for the Walking Access Commission from a non-departmental other expense to output expense and an increase in baseline funding for departmental output expense Animal Welfare, Education and Enforcement through a fiscally neutral adjustment from Vote Biosecurity. Output expenses vary from year to year due to the nature of Crown forestry operations which are reforecast at each baseline update.

Other Expenses

Other expenses increased in 2004/05 and 2005/06 due to Government support to the agricultural sector following floods in the lower North Island and Bay of Plenty. The baseline increases in 2007/08 and 2008/09 were largely due to climate change initiatives. The increases in 2009/10 and 20010/11 are mainly due to funding for the primary growth partnership.

Capital Expenditure

The increase in 2008/09 was due to a one-off funding of $700 million to establish the New Zealand Fast Forward Fund and $41 million to purchase forestry assets from Timberlands West Coast Limited and Matariki Forests. Funding in 2009/10 was for departmental capital expenditure and Crown forestry non-departmental capital expenditure. Funding in 2010/11 covers a capital injection to the Walking Access Commission and departmental capital expenditure notably for the continued development of IT systems, particularly the National Animal Identification and Traceability, New Zealand FarmsOnline, x-ray imaging, wine e-certification and Joint Border Management System IT systems for which capital injections are provided.

Crown Non-Tax Revenue

Non-tax revenue mainly relates to the sale of logs from Crown forests administered by MAF. The forecast increase in 2009/10 revenue is mainly due to the transfer of Timberlands West Coast Limited's forestry operations to MAF.

Crown Capital Receipts

The $700 million increase in 2008/09 is due to the wind-up of the New Zealand Fast Forward Fund and disestablishment of the two Fast Forward companies (Fast Forward Fund Limited and Fast Forward Limited). Capital receipts in other years mainly relate to repayment of forestry encouragement loans.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Agriculture and Forestry
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Departmental Output Expenses            
Agriculture and Forestry Policy Advice 25,696 Transferred to Agriculture and Forestry Policy Advice (Policy Advice MCOA) (22,511)      
Transferred to Hill Country Erosion Fund (2,756)      
Transferred to Adverse Climatic Events (170)      
Transferred to Administration of Grants and Programmes (259)      
Administration Indigenous Forestry Provisions 2,185 Transferred to Implementation of the Emissions Trading Scheme and Indigenous Forestry (2,185)      
Climate Change 40,429 Transferred to Climate Change Policy Advice (Policy Advice MCOA) (20,171)      
Transferred to Agriculture and Forestry Policy Advice (Policy Advice MCOA) (198)      
Transferred to Administration of Grants and Programmes (1,462)      
Transferred to Implementation of the Emissions Trading Scheme and Indigenous Forestry (8,863)      
Transferred to Climate Change Research (7,700)      
Transferred to Sustainable Farming Fund (2,035)      
Contract, Grant and Asset Management 5,481 Transferred to Administration of Grants and Programmes (3,708)      
Transferred to Administration and Management of Crown Forestry Assets (1,773)      
Animal Welfare 3,360 Transferred to Animal Welfare Policy Advice (Policy Advice MCOA) (350)      
Balance of appropriation renamed Animal Welfare Education and Enforcement (3,010)      
    Transferred from Agriculture and Forestry Policy Advice 22,511 Agriculture and Forestry Policy Advice (Policy Advice MCOA) 22,709 20,187
    Transferred from Climate Change 198
    Transferred from Climate Change 20,171 Climate Change Policy Advice (Policy Advice MCOA) 20,171 15,857
    Transferred from Animal Welfare 350 Animal Welfare Policy Advice (Policy Advice MCOA) 350 750
    Transferred from Agriculture and Forestry Policy Advice 259 Administration of Grants and Programmes 5,429 6,766
    Transferred from Climate Change 1,462
    Transferred from Contract, Grant and Asset Management 3,708
    Transferred from Climate Change 8,863 Implementation of the Emissions Trading Scheme and Indigenous Forestry 11,048 15,920
    Transferred from Administration of Indigenous Forestry Provisions 2,185
    Transferred from Contract, Grant and Asset Management 1,773 Administration and Management of Crown Forestry Assets 1,773 1,799
    Transferred from Animal Welfare 3,010 Animal Welfare Education and Enforcement 3,389 3,796
    Transferred from Vote Biosecurity 379
Total Departmental Output Expenses 77,151       64,869 65,075
Non-Departmental Output Expenses            
Management of Crown Forestry Assets 94,799 This appropriation has been renamed   Crown Forest Asset Management 94,799 90,093
    Transferred from Climate Change 7,700 Climate Change Research 7,700 8,100
    Transferred from NZ Walking Access Commission 1,789 Support for Walking Access 1,789 1,789
Non-Departmental Other Expenses            
Adverse Climatic Events 579 Transferred from Agriculture and Forestry Policy Advice 170 Adverse Climatic Events 749 526
Community Irrigation Fund 531 Transferred to Community Irrigation Fund and Schemes (531)      
Community Irrigation Schemes 17 Transferred to Community Irrigation Fund and Schemes (17)      
    Transferred from Community Irrigation Fund 531 Community Irrigation Fund and Schemes 548 1,626
    Transferred from Community Irrigation Schemes 17
    Transferred from Agriculture and Forestry Policy Advice 2,756 Hill Country Erosion Fund 2,756 3,100
New Zealand Walking Access Commission 1,789 Transferred to Support for Walking Access (1,789)      
Sustainable Farming Fund 8,608 Transferred from Climate Change 2,035 Sustainable Farming Fund 10,643 9,200
Total Changes in Appropriations 183,474   379   183,853 179,509

The additional $379,000 was transferred from Vote Biosecurity departmental output expense Biosecurity Enforcement, to the Animal Welfare Education and Enforcement departmental output expense under Vote Agriculture and Forestry.

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 - Agriculture and Forestry
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impacts: Expected impact of final goods and services to be provided.
Effective and efficient commercial management of the Crown's forestry and related assets and interests.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
Effective stewardship of the Crown's forestry and related assets.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Administration and Management of Crown Forestry Assets (M35)
Impacts: Expected impact of final goods and services to be provided.
Effective and efficient administration of grants and programmes. See Non-Departmental Output Expenses for programme specific impacts.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high performance.
Enhanced prosperity for Maori engaged in the agriculture, food, forestry and related sectors.
Connected and resilient rural communities.
The sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
The agriculture, food, forestry and related sectors are adaptive to the challenges and opportunities associated with the global focus on climate change.
A reduction in New Zealand's agricultural greenhouse gas emissions.
An increase in carbon sinks and sequestration.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
A vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Administration of Grants and Programmes (M2)
Impacts: Expected impact of final goods and services to be provided.
Increased awareness of MAF's animal welfare interventions.
The public engage in regulatory focused activities and change their behaviour accordingly.
Compliance with the regulatory frameworks implemented by MAF.
Animals are treated in a humane and ethical manner.
New Zealand gains, maintains or improves market access for its animal-related agricultural products.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
New Zealanders are informed and involved participants in MAF's regulatory systems.
The sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and enhanced.
Market access for New Zealand's animal and plant products is maintained and enhanced.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
A vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Animal Welfare Education and Enforcement (M2)
Impacts: Expected impact of final goods and services to be provided.
Practical technologies and management practices to measure and reduce agricultural greenhouse gas emissions.
Increased awareness of the New Zealand Emissions Trading Scheme.
The public engage in regulatory focused activities and change their behaviour accordingly.
Compliance with regulatory frameworks implemented by MAF.
Forest owners are able to trade carbon units and gain financial benefit from their investment in forestry.
Qualifying landowners earn carbon units for carbon sequestered in Kyoto Protocol compliant forest sinks.
Indigenous wood species are exported legally and in compliance with international treaties, rules and regulations.
Sustainable use of indigenous tree species growing on private land.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
The agriculture, food, forestry and related sectors are adaptive to the challenges and opportunities associated with the global focus on climate change.
Enhanced prosperity for Maori engaged in the agriculture, food, forestry and related sectors.
New Zealanders are informed and involved participants in MAF's regulatory systems.
A reduction in New Zealand's agricultural emissions of greenhouse gases.
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and enhanced.
The sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
A vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2)
Impacts: Expected impact of final goods and services to be provided.
Stakeholders, the public and other interest groups receive timely and quality feedback or information in response to agriculture and forestry-related issues raised with the Minister or the Government.
Operational policy advice that supports the sustainable development (environmental and economic) of the agriculture, food, forestry and related sectors in New Zealand.
New Zealand gains, maintains or improves market access for its animal-related agricultural products.
New Zealand's interests in international agricultural trade disputes are protected.
Full and transparent implementation of World Trade Organisation commitments by member countries.
A reduction in the impact of stock effluent, nitrogen and phosphorous run-off on streams and waterways.
Public sector organisations consider rural impacts during policy development and implementation.
Rural communities have access to new generation communications technologies.
Competitive regulation of the dairy industry.
Commodity Levies Act-driven investment in research, development and innovation.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
Market access for New Zealand's animal and plant products is maintained and enhanced.
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high performance.
Enhanced prosperity for Maori engaged in the agriculture, food, forestry and related sectors.
Connected and resilient rural communities.
The public has free, certain, enduring and practical access to the outdoors.
The sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
A vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Policy Advice MCOA (M2) output class Agriculture and Forestry Policy Advice
Impacts: Expected impact of final goods and services to be provided.
Stakeholders, the public and other interest groups receive timely and quality feedback or information in response to agriculture and forestry-related climate change issues raised with the Minister or the Government.
Policy advice and initiatives that support the Government's response to climate change and its potential impact on the activities of the agriculture, food and forestry sectors.
Practical technologies and management practices to measure and reduce agricultural greenhouse gas emissions.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
The agriculture, food, forestry and related sectors are adaptive to the challenges and opportunities associated with the global focus on climate change.
A reduction in New Zealand's agricultural greenhouse gas emissions.
An increase in carbon sinks and sequestration.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Policy Advice MCOA (M2) output class Climate Change Policy Advice
Impacts: Expected impact of final goods and services to be provided.
Stakeholders, the public and other interest groups receive timely and quality feedback or information in response to animal welfare issues raised with the Minister or the Government.
New Zealand's animal welfare framework is maintained and continue to be developed to reflect domestic and international societal expectations regarding the ethical and humane treatment of production and domestic animals, animals used in research, testing and teaching, and welfare considerations relating to vertebrate pest control.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
New Zealanders are informed and involved participants in MAF's regulatory systems.
The sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and enhanced.
Market access for New Zealand's animal and plant products is maintained and enhanced.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Healthy New Zealanders and a vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Policy Advice MCOA (M2) output class Animal Welfare Policy Advice
Objective
The provision of cost-effective support services to other agencies including subleasing of surplus accommodation.
Support Services and Infrastructure to Other Agencies RDA (M2)

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations please see the Statement of Intent for Ministry of Agriculture and Forestry.

Administration and Management of Crown Forestry Assets (M35)

Scope of Appropriation

This appropriation is limited to administration and management of the Crown's interest in forests and forestry-related assets.

Expenses and Revenue

Expenses and Revenue - Administration and Management of Crown Forestry Assets (M35) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,799
Revenue from Crown - - 1,782
Revenue from Other - - 17

Reasons for Change in Appropriation

New output expense resulting from restructure of the Vote.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration and Management of Crown Forestry Assets (M35) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Management of Crown Forests

     
Number of forests under administration and management 39 40 40
Number of forestry leases (where the Crown owns the land) under administration and management 13 13 13
Number of known breaches of statutes, lease agreements, forestry rights and other contractual arrangements brought or upheld against Crown Forestry since the last independent audit 0 0 0
Contracting, evaluation/auditing and payment of forest managers 6 6 6
Number of hectares of Crown forestry interests surrendered or sold 900 1,615 1,300

Management Forestry Encouragement Loans

     
Number of forestry encouragement loan grantees 6 5 5
Number of forestry encouragement loans 20 16 15
Total value of outstanding forestry encouragement loans $22m $19.5m $19m

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration and Management of Crown Forestry Assets (M35) - Agriculture and Forestry
Reference Conditions
Contracting, evaluation/auditing and payment of forest managers Forest managers will be contracted and evaluated based on pre-determined sets of qualifying criteria.
Payment will be made to contractors at the agreed rates upon delivery of services following verification by audits as specified in a quality management system. Amounts paid and work completed will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. This will be verified by independent management reviews/audits of each forest managed by MAF Crown Forestry (at four-year intervals).
Leasing of Crown forest land Management and accounting for rent received will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. Completion of rent reviews will be in accordance with the process required under the individual lease agreements.
Sale and surrender of Crown forestry assets The sale or surrender of forestry assets will be in accordance with individual lease variations or negotiated sales approved by the Minister(s) of Finance, Forestry and Cabinet.
Valuations and negotiations will be performed in accordance with Crown policy and, in the case of Maori leases, as requested by lessors.
Administration and management of forestry encouragement loans Management, valuation and recording of loans will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Administration and Management of Crown Forestry Assets (M35) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
Timberlands West Coast 2008/09 - 200 200 200 200
Staff Remuneration 2006/07 - 123 123 123 123

Administration of Grants and Programmes (M2)#

Scope of Appropriation

This appropriation is limited to the administration of government approved schemes, grants and assistance to the land-based sectors.

Expenses and Revenue

Expenses and Revenue - Administration of Grants and Programmes (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 6,766
Revenue from Crown - - 6,696
Revenue from Other - - 70

Reasons for Change in Appropriation

New output expense resulting from restructure of the Vote.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Grants and Programmes (M2) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Administration of Adverse Climatic Events recovery assistance

     
Number of regions with active rural support trusts or similar entities 14 14 14

Administration of the Afforestation Grants Scheme

     

Public Tender Rounds

     

High sequestration rate category

     
Number of applications approved New measure 45 23
Grant area approved New measure 1,309 ha 1,754 ha
Average grant rate/ha New measure $638 $685

Low sequestration rate category

     
Number of applications approved New measure 9 1
Grant area approved New measure 1,298 ha 20 ha
Average grant rate/ha New measure $638 $685

Regional Council Tender Rounds

     

High sequestration rate category

     
Number of applications approved New measure 1,378 1,600
Grant area approved New measure 52 ha 50 ha
Average grant rate/ha New measure $2,384 $2,000

Low sequestration rate category

     
Number of applications approved New measure 48 41
Grant area approved New measure 1,409 ha 1,481 ha
Average grant rate/ha New measure $2,400 $2,226

Administration of the Community Irrigation Fund and Schemes

     
Percentage of projects meetings reporting requirements New measure - 100%
Percentage of grant payments made on time per contractual agreement New measure - 100%

Administration of East Coast Forestry Grants

     
Grant funding ($000) approved for the year $4,500 $2,100 $4,500
Total area (ha) in the scheme 36,900 ha 39,047 ha 42,100 ha
Hectares of annual grant area treated 3,000 ha 860 ha 1,500 ha

Administration of the Primary Growth Partnership

     
The Primary Growth Partnership will be fully operational Achieved Achieved Measure withdrawn
Percentage of IAP meetings that are resourced appropriately to the Chair's satisfaction. New measure 100% 100%
Monthly reports (excluding Dec) delivered to the IAP and DG New measure 7 11

Administration of the Sustainable Farming Fund

     
Value of Sustainable Farming Fund grants allocated $7m $7m Measure withdrawn
Total number of funding contracts under management 220 220 200
Percentage of written progress reports received and actioned within 2 months of period end New measure - 80

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Grants and Programmes (M2) - Agriculture and Forestry
Reference Conditions
Administration of the Sustainable Farming Fund Commensurate with processes and procedures agreed with the Minister.
Administration of East Coast forestry grants Commensurate with statutory framework.
Payment of East Coast forestry grants Amounts paid and work completed will be in accordance with Government policy, the Forestry (East Coast) Grants Regulations 2000 and MAF financial policies and internal processes.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Administration of Grants and Programmes (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Primary Growth Partnership 2009/10 - 2,960 3,091 3,641 3,641
Previous Government            
Building rural capacity to respond to adverse events 2007/08 - 190 190 190 190
Climate Change Plan of Action 2007/08 - 1,441 1,441 1,441 1,441
Sustainable land management programme 2007/08 - 300 300 300 300
Staff remuneration 2006/07 - 144 144 144 144

Animal Welfare Education and Enforcement (M2)#

Scope of Appropriation

This appropriation is limited to standard setting, education and enforcement intended to improve animal welfare in New Zealand.

Expenses and Revenue

Expenses and Revenue - Animal Welfare Education and Enforcement (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,360 3,348 3,796
Revenue from Crown 3,340 3,340 3,776
Revenue from Other 20 8 20

Reasons for Change in Appropriation

The increase in appropriation reflects the Government's decision to increase baseline funding in Budget 2010.

Output Performance Measures and Standards

Output Performance Measures and Standards - Animal Welfare Education and Enforcement (M2) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Animal Welfare Education

     
Number of issues of Welfare Pulse published 2 3 3
Number of codes of welfare distributed to key stakeholders New measure 7,000 10,500
Number of papers presented at conferences New measure 10 8

Regulation of the use of live animals in research, testing and teaching

     
Number of independent reviews of animal ethics committees and code holders carried out New measure 12 2
Number of codes of ethical conduct recommended for approval by the Director-General under the Animal Welfare Act New measure 11 1

Enforcement of New Zealand's Animal Welfare Regulatory Framework

     
Percentage of complaints received and investigated in priority order and in accordance with the MAF Compliance and Enforcement priority grading framework 100% 100% 90%

Investigations of Alleged Breaches of the Animal Welfare Act 1999

     
Category I - Enforcement intervention requiring statutory action regulatory response - see Note 1 below 800-1,000 600-800 600-1,000
Category II - Enforcement intervention requiring investigation response for lower threshold criminal behaviours (including section130 instructions, warnings and education, search warrants, court enforcement orders, (usually completion in a six month time period) - see Note 2 below 180 100-150 250
Category III - Enforcement intervention involving large scale mitigation of animal suffering and investigation, establishing criminal liability requiring strong deterrent action (usually completion in a 12-18 month time period) 5 15-20 3

Prosecution of Cases of Alleged Breaches of the Animal Welfare Act 1999

14 14 10
Category I - Prosecution response required from statutory enforcement intervention 5 2 10
Category II - Prosecution intervention requiring preparation for lower threshold criminal behaviour (usually completion in a six month time period) 10 9 10
Category III - Prosecution strategy and preparedness for proactive criminal investigation involving organised illegal activity requiring strong deterrent outcomes (usually completion in a 12 - 18 month time period) 5 3 5
Percentage of cases lodged with the Court that incurred adverse judicial comment 0 0 5%

Note 1 - The Enforcement Directorate operates within a priority response framework compiled from the various business groups throughout the organisation. The Enforcement Directorate works closely with each business entity to ensure it remains open to any immediate business changes and maintains the flexibility to accommodate these changes.

Note 2 - This Category output has been implemented in order to achieve a more rich and meaningful output achievement including the recording of the different complexities of function within the enforcement environment.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Animal Welfare Education and Enforcement (M2) - Agriculture and Forestry
Reference Conditions
Development, review and promulgation/communication of codes of animal welfare
Implementation of surveillance and recording of complaints
Investigation of alleged breaches
Commensurate with the Animal Welfare Act 1999.
Prosecution of alleged breaches Prosecutions commenced through the Court process will be well researched, legally sound, led by legally qualified staff and reach the prima facie threshold.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Animal Welfare Education and Enforcement (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Animal welfare 2010/11 - 1,200 1,650 1,700 1,700

Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2)#

Scope of Appropriation

This appropriation is limited to the implementation of the agriculture and forestry provisions of the Climate Change Response Act 2002 and the indigenous forestry provisions of the Forests Act 1949.

Expenses and Revenue

Expenses and Revenue - Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 15,920
Revenue from Crown - - 15,837
Revenue from Other - - 83

Reasons for Change in Appropriation

New output expense resulting from restructure of the Vote.

Output Performance Measures and Standards

Output Performance Measures and Standards - Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Implementation of the New Zealand Emissions Trading Scheme

     
Number of new/amended sets of implementation Regulations on which operational advice is provided New measure - 4
Number of workshops and hui held to publicise and promote forestry sector obligations and entitlements New measure - 10
Percentage of recommendations (to register a forestry participant) sent to the Chief Executive of MED within 5 working days of an application approved or deforestation notification received New measure - 95%
Percentage of directions (to transfer New Zealand Units to holding accounts) given to the NZ Emissions Unit Registrar within 5 working days of a Forestry Allocation Plan Final Determination being issued or Emissions Return processing completed New measure - 95%
Number of compliance officers undertaking inspections and audits New measure - 4

Administration of the Permanent Forest Sink Initiative

     
Number of new covenants signed 50 25 30
Hectares covered by covenants 10,000 ha 7,000 ha 9,000 ha

Promotion of Sustainable Management of Indigenous Forestry

     
Approval of draft sustainable forest management plans and review of registered sustainable forest management plans 5 2 5
Approval of sustainable forest management permit applications 25 25 25
Registration of sawmills 200 175 175
Issuing of other milling statements 200 196 200
Approval of annual logging plans 45 45 45
Approval and monitoring of indigenous timber export consignments 50 50 50
Hectares of land covered by sustainable management plans and permits 122,000 ha 122,500 ha 125,000 ha
Cubic metres of indigenous timber approved for milling in sustainable forest management plans and permits 80,000m3 80,275m3 81,000m3
Cubic metres of indigenous timber approved for export 1,000m3 600m3 600m3
Percentage of annual logging plans inspected that comply 80% 80% 80%
Percentage of sawmills inspected that comply 80% 80% 80%

Enforcement of New Zealand's Indigenous Forestry Regulations

     
Percentage of complaints received and investigated in priority order and in accordance with the MAF Compliance and Enforcement priority grading framework 100% 100% 90%

Investigations of Alleged Breaches of New Zealand's Indigenous Forestry Legislative Framework

     
Category I - Enforcement intervention requiring statutory action for lower threshold criminal behaviours (usually acknowledgement of culpability or no offence identified) - see Note 1 below 5 8 8
Category II - Enforcement intervention requiring criminal investigation response resulting in formal warning (completion in an eight month time period) - see Note 2 below 5 7 8
Category III - Enforcement intervention addressing organised illegal activity enforcement responses requiring proactive criminal investigation (ie, intelligence gathering, surveillance) and pursuit of deterrent outcomes (usually completion in a 12 month time period) 4 3 4

Prosecution of Alleged Breaches of New Zealand's Indigenous Forestry Legislative Framework

     
Category I - Prosecution response required from enforcement intervention requiring statutory action (including warnings) 5 5 5
Category II - Prosecution intervention requiring preparation for lower threshold criminal behaviours (usually completion in an eight month time period where offender behaviour recognises culpability) 6 4 4
Category III - Prosecution strategy and preparedness for proactive criminal investigation involving organised illegal activity requiring deterrent outcomes (usually completed in a 12 month time period) 3 0 2
Percentage of cases lodged with the Court that incurred adverse judicial comment 0 0 5%

Note 1 - The Enforcement Directorate operates within a priority response framework compiled from the various business groups throughout the organisation. The Enforcement Directorate works closely with each business entity to ensure it remains open to any immediate business changes and maintains the flexibility to accommodate these changes.

Note 2 - This Category output has been implemented in order to achieve a more rich and meaningful output achievement including the recording of the different complexities of function within the enforcement environment.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2) - Agriculture and Forestry
Reference Conditions
Approval of draft sustainable forest management plans, permits and annual logging plans.
Registration of sawmills and issuing milling statements and other approvals to enable the milling of indigenous timber.
Monitoring, compliance and inspection of indigenous forestry operations.
Inspection, approval and audit of indigenous forest produce export consignments.
Investigation of alleged breaches of Part 3A of the Forest Act, 1949.
Commensurate with Part 3A of the Forest Act, 1949.
Prosecution of alleged breaches. Prosecutions commenced through the Court process will be well researched, legally sound, led by legally qualified staff and reach the prima facie threshold.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Implementation of the Emissions Trading Scheme and Indigenous Forestry (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Emissions Trading Scheme (ETS) implementation 2010/11 - 6,300 1,900 1,100 1,500
Previous Government            
Emissions Trading Scheme (ETS) implementation 2007/08 - 5,290 3,780 4,060 3,390
Climate Change Plan of Action 2007/08 - 1,415 1,415 1,415 1,415
Staff remuneration 2006/07 - 165 165 165 165

Policy Advice MCOA (M2)#

Scope of Appropriation

Agriculture and Forestry Policy Advice
This output class is limited to policy advice, developing and administering legislation, communication, and implementation on economic, environmental and social matters affecting land based sectors, and ministerial servicing.
Animal Welfare Policy Advice
This output class is limited to policy advice and analysis on animal welfare, and ministerial servicing.
Climate Change Policy Advice
This output class is limited to policy advice, developing and administering legislation, communication, and implementation on climate change matters affecting land based sectors, and ministerial servicing.

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output expense appropriation contains output classes that contribute to the sustainable development of New Zealand's biological resources.

Expenses and Revenue

Expenses and Revenue - Policy Advice MCOA (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 36,794
Agriculture and Forestry Policy Advice - - 20,187
Animal Welfare Policy Advice - - 750
Climate Change Policy Advice - - 15,857

Revenue from Crown

- - 36,194
Agriculture and Forestry Policy Advice - - 19,857
Animal Welfare Policy Advice - - 750
Climate Change Policy Advice - - 15,587

Revenue from Other

- - 600
Agriculture and Forestry Policy Advice - - 330
Animal Welfare Policy Advice - - -
Climate Change Policy Advice - - 270

Reasons for Change in Appropriation

New multi-class output expense formed as a consequence of restructure of the Vote.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice MCOA (M2) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Agriculture and Forestry Policy Advice

     

Development and Provision of Agriculture, Horticulture and Forestry-related Policy Advice

     
Number of ministerial briefing papers or reports provided 560 420 500
The Minister rates the quality of policy advice provided as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4

Provision of Ministerial Services

     
Number of ministerial letters prepared 330 280 300
Number of official information request responses provided 120 110 120
Number of parliamentary question responses provided 235 205 210
The Minister rates the quality of ministerial services as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4
Percentage of Parliamentary Questions completed within specified timeframes New measure 95-100% 95%
Percentage of ministerial correspondence completed within 15 working days 95% 92% 95%
Percentage of ministerial correspondence completed within20 working days 100% 96% 100%
Percentage of ministerial correspondence accepted without amendments 95% 88% 95%
Percentage of OIA requests completed within 15 working days 95% 56% Measure withdrawn
Percentage of OIA requests completed within 20 working days 100% 87.5% Measure withdrawn
Percentage of OIA requests actioned within 20 working days New measure 100% 100%

Climate Change Policy Advice

     

Development and Provision of Climate Change-related Policy Advice

     
Number of ministerial briefing papers or reports provided 60 36 45
The Minister rates the quality of policy advice provided as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4

Provision of Ministerial Services

     
Number of ministerial letters prepared 50 65 70
Number of official information request responses provided 20 10 15
Number of parliamentary question responses provided 20 5 10
The Minister rates the quality of ministerial servicing as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4
Percentage of Parliamentary Questions completed within specified timeframes New measure 95-100% 95%
Percentage of ministerial correspondence completed within
15 working days
95% 97% 95%
Percentage of ministerial correspondence completed within
20 working days
100% 100% 100%
Percentage of ministerial correspondence accepted without amendments 95% 91.5% 95%
Percentage of OIA requests completed within 15 working days 95% 45% Measure withdrawn
Percentage of OIA requests completed within 20 working days 100% 87.5% Measure withdrawn
Percentage of OIA requests actioned within 20 working days New measure 100% 100%

Animal Welfare Policy Advice

     

Research to support the development of animal welfare standards

     
Proportion of total available discretionary research funding approved for animal welfare research from MAF's operational research funding New measure 30 15

Development of codes of welfare under the Animal Welfare Act 1999

     
Number of codes recommended to the Minister for issue under the Act New measure 2 4

Development and Provision of Animal Welfare-related Policy Advice

     
Number of ministerial briefing papers or reports provided New measure 30 30
The Minister rates the quality of policy advice provided as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4
The Minister rates the quality of policy advice provided by National Animal Welfare Advisory Committee and National Animal Ethics Advisory Committee as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months New measure 4 4

Provision of Ministerial Services

     
Number of ministerial letters prepared New measure 1,400 1,000
Number of official information request responses provided New measure 10 15
Number of parliamentary question responses provided New measure 25 25
The Minister rates the quality of ministerial servicing as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4
Percentage of parliamentary questions completed within specified timeframes New measure 100% 95%
Percentage of ministerial correspondence completed within
15 working days
New measure 99% 95%
Percentage of ministerial correspondence completed within
20 working days
New measure 100% 100%
Percentage of ministerial correspondence accepted without amendments New measure 98% 95%
Percentage of OIA requests actioned within 20 working days New measure 100% 100%

Coordination of the Sanitary and Phytosanitary Chapter Components of Free Trade Agreement Negotiations

     
Number of free trade agreements where MAF coordinates the negotiation of the sanitary and phytosanitary charter 4 6 3

Provision of Input into Briefings and Participation in the Negotiation of Non-Sanitary and Phytosanitary Components of Free Trade Agreements

     
Number of free trade agreements under negotiation 4 6 3

Input into Briefing, and Participation in the Negotiation and Regular Sessions of the World Trade Organisation

     
Number of forums covered 7 7 7

Input into briefings of the Trans Tasman Animal Welfare Committee, PISC/PIMC and QUADs

     
Number of briefings provided New measure 10 10

World Organisation for Animal Health (OIE)

     
Number of OIE draft standards reviewed by New Zealand New measure 4 2
Presentation of annual report to OIE General Session as Chair of the OIE's Animal Welfare Working Group New measure 1 1

Quality standards for analysis and advice

Quality Standards for Analysis and Advice - Agriculture and Forestry
Quality Standard Performance Criteria
Purpose The objective for the advice will be clearly stated; it will answer any financial and economic issues raised by the Minister and demonstrate a clear understanding of the desired outcome(s) of the Government and/or Minister.
Problem definition Any public policy problem, including the underlying causes, size and materiality of issues, will be defined and supported by data or other evidence.
Context It will be clear where the advice stands in the context of the wider policy process, including what has already been undertaken and what is expected to occur in the future.
Logic An appropriate analytical framework will be used. Assumptions behind the advice will be explicit and the argument will be logical and supported by facts.
Accuracy All material facts presented will be accurate. Known gaps that could significantly affect the conclusions will be identified and the range of uncertainty stated. Forecasts will be credible at the time they are produced and will take into account all relevant information.
Options A range of options will be presented that provides clearly differentiated choices and these will be rigorously evaluated against the analytical framework. Costs, benefits, consequences and risks/opportunities of the options will be assessed as part of the analysis. Where it is not appropriate to use a range of options, the reasons will be clearly stated.
Recommendations Recommendations will be clear, logical and action oriented and should stand alone from the rest of the advice. They will be sufficient to enable a decision to be made on the proposal or to move to the next decision/action point.
Consultation Evidence of thorough and timely consultation with other government departments and interested parties will be presented, and their views, including objections, will be incorporated as appropriate.
Practicality Issues of implementation, technical feasibility, practicality and timing will be considered and advice will accurately identify compliance, transitional, political, legislative, revenue, expense and administrative implications and costs (quantified where possible).
Communication Guidance will be provided on how communications arising from decisions on the advice should be handled, including an assessment of key stakeholders who should be informed and how.
Presentation Material will be presented to suit the target audience and:
  • Will be concise and structured in a way which assists others to understand the aim of the advice, key features of the information, analysis and recommendations, and their key implications.
  • Will use appropriate language and style.
  • Will use empirical evidence.
  • Will avoid cliches and technical jargon (or where the latter is not possible, it will be used appropriately for a general audience).
Will be consistent with departmental and Cabinet Office presentation requirements.
Monitoring and evaluation Policy analysis and advice will be assessed by using a ministerial rating, independent third-party review, evaluation results, agency/stakeholder feedback and/or internal peer review processes.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice MCOA (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Global alliance on agricultural greenhouse gas mitigation research 2010/11 - (1,500) (1,500) (1,500) (1,500)
Animal welfare 2010/11 - 400 550 500 500
Climate Change Plan of Action 2010/11 - (350) (550) (550) (550)
New Zealand Productivity Commission 2010/11 - (35) (70) (75) (75)
Value for money review savings 2009/10 - (2,455) (1,291) (1,291) (1,291)

Previous Government

           
Inter-agency resource needs for trade agreements 2008/09 - 355 - - -
Climate Change Plan of Action 2007/08 - 19,316 15,019 15,070 15,308
Inter-nation leadership on climate change research 2007/08 - 1,000 1,000 1,000 1,000
Policy advice capability 2006/07 - 600 600 600 600
Staff remuneration 2006/07 - 2,295 2,295 2,295 2,295

Support Services and Infrastructure to Other Agencies RDA (M2)#

Scope of Appropriation

This appropriation is limited to the provision of support services to other agencies, including financial, personnel and information technology services and subleasing of surplus accommodation.

Expenses and Revenue

Expenses and Revenue - Support Services and Infrastructure to Other Agencies RDA (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,530 11,259 11,530
Revenue from Crown - - -
Revenue from Other 11,530 11,259 11,530

Reasons for Change in Appropriation

This appropriation will be reduced post Budget 2010 for the amalgamation of the New Zealand Food Safety Authority with Ministry of Agriculture and Forestry from 1 July 2010.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Support Services and Infrastructure to Other Agencies RDA (M2) - Agriculture and Forestry
Reference Conditions
Subleasing of surplus accommodation. Management and accounting for rent received will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. Completion of rent reviews will be in accordance with the process required under the individual lease agreements.

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Agriculture and Forestry
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impact: The effective and efficient commercial management (i.e. cultivation, pruning, harvesting) of the Crown's forestry and related assets and interests. Crown Forestry Asset Management (M35)
Impact: Practical technologies and management practices to measure and reduce agricultural greenhouse gas emissions. Climate Change Research (M2)
Impact: The public has access to information on legal walking access Support for Walking Access (M2)

For further information on the intended impacts, outcomes and objectives of the non-departmental output expenses appropriations Climate Change Research and Support for Walking Access, please see the Statement of Intent for the Foundation for Research, Science and Technology and New Zealand Walking Access Commission respectively.

Climate Change Research (M2)

Scope of Appropriation

This appropriation is limited to obtaining science, research, technology, capacity and capability in climate change related to the primary land-based sectors.

Expenses

Expenses - Climate Change Research (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 8,100

Reasons for Change in Appropriation

New appropriation formed as a consequence of Vote restructure.

Output Performance Measures and Standards

Output Performance Measures and Standards - Climate Change Research (M2) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of funding reconciled against Foundation for Research, Science and Technology bank statements and approved for payment on or before the last working day of the month New measure 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Climate Change Research (M2) - Agriculture and Forestry
Reference Conditions
Payment of research funding Amounts paid and work completed will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. This will be verified by independent management reviews/audits.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Climate Change Research (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Climate Change Plan of Action reprioritisation of funding 2010/11 - (500) (500) (500) (800)

Previous Government

           
Climate Change Plan of Action 2008/09 - 8,600 9,700 9,700 9,700

Management of Crown Forestry Assets (M35)#

Scope of Appropriation

Payments for forest and asset management of Crown forests established on both Crown-Owned and leased Maori land and 13 leases of Crown-Owned land to other parties for forestry purposes.

Expenses

Expenses - Management of Crown Forestry Assets (M35) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 94,799 94,280 90,093

Reasons for Change in Appropriation

The reduced appropriation for 2010/11 is due to revised operational forecasts for management of Crown forestry assets that reflect latest management plans and harvesting plans. Baseline forecasts include West Coast forest operations, previously managed by State Owned Enterprise Timberlands West Coast Ltd, which transferred to Ministry of Agriculture and Forestry administration with effect from 1 January 2009.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Crown Forestry Assets (M35) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Hectares of net stocked forest 63,128 ha 61,071 ha 61,071 ha
Hectares of silviculture tending 11,900 ha 10,921 ha 11,120 ha
Log volume supplied in cubic metres 1,400,000 m3 1,461,000 m3 1,314,000 m3
Average stumpage price per cubic metre of logs sold $26 $28 $27
Management fee (per net stocked hectare) exclusive of harvesting and re-investment fees $20 $18 $18
Fixed cost per net stocked hectare $38 $34 $33
Hectares lost from fire attributable to the quality of Crown Forestry's response and systems 0 0 0

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Crown Forestry Assets (M35) - Agriculture and Forestry
Reference Conditions
Management of forestry assets on behalf of the Crown. Management, silvicultural and timber production work programmes, as required by lease agreements and management plans, are completed under contracts which clearly prescribe work methods, acceptable standards and costs.
  Completed work is audited using accepted sampling procedures and a quality management system.
  Forests are independently audited on a four-yearly cycle to review management performance.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Crown Forestry Assets (M35) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Management of West Coast Forests 2008/09 16,000        

Previous Government

           
Purchase of Matahi and Oponae forests 2008/09 125 125 125 125 125

Support for Walking Access (M2)#

Scope of Appropriation

This appropriation is limited to the operation of the New Zealand Walking Access Commission.

Expenses

Expenses - Support for Walking Access (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,789

Reasons for Change in Appropriation

Now that the New Zealand Walking Access Commission is operational, expenditure on the Commission has been reclassified from a non-departmental other expense appropriation to a new non-departmental output expense appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Support for Walking Access (M2) - Agriculture and Forestry
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Walking access issues resolved

20 - Measure withdrawn

National walking access strategy

     
Number distributed to all national and regional stakeholders New measure 15 15-20
Forums      
Proportion of national stakeholders attending national access forums New measure 15 15-25
Number and location of regional forums New measure 5 5-8

Advice to Government & Minister

     
Number of reports and briefings provided New measure 2 1-5

Walking Access Mapping system

     
Percentage of users rate the system as easy to use or very easy to use New measure - 50%
Percentage of users rate the mapping information as useful or very useful New measure - 50%

Access Opportunities

     
Number of new access opportunities created New measure - 3-8
Maintenance of existing formal walkways New measure 66 66
Number of new formal walkways created New measure - 1-3

Disputes and Mediation

     
Number of disputes resolved New measure - 3-5
Number of issues requiring mediation New measure - 1-4

Enhanced access fund

     
Funds ($000) approved during the year New measure $200,000 $200,000
Number of applications approved New measure - 10-20

Awareness & education

     
Number of outdoor access codes issued New measure 15 20-30
Number of presentations given New measure 2 3-8

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support for Walking Access (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for money review savings 2009/10 (1,000) - - - -
Walking Access (appropriation establishment) 2008/09 2,789 1,789 1,789 1,789 1,789

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Agriculture and Forestry
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Crown Forestry Asset Management (M35)       Section 32A report  
Non-Government Organisations         Annual contracts with 1-3 month termination
NZ Forest Managers Limited 41,191 39,012 39,081    
P F Olsen Limited 25,965 24,779 23,852    
Northland Forest Managers Limited 4,950 3,685 5,839    
Fortus Forestry Limited 8,449 9,615 6,264    
Ngati Porou Limited 374 239 331    
Taitokerau Forest Limited 292 176 204    
Climate Change Research (M2)          
Crown Entity       Providers Annual Report  
Foundation for Research, Science and Technology - - 8,100    
Support for Walking Access (M2)          
Crown Entity       Providers Annual Report  
New Zealand Walking Access Commission - - 1,789    

The above table summarises funding to be allocated through Vote Agriculture and Forestry 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 - Agriculture and Forestry
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impact: Veterinarians are available in hard-to-staff rural communities Rural Veterinarians Bonding Scheme (M2)

Rural Veterinarians Bonding Scheme (M2)

Scope of Appropriation

This appropriation is limited to the provision of payments to veterinary professionals agreeing to work in understaffed, rural areas, in accordance with government approved criteria and guidelines.

Expenses

Expenses - Rural Veterinarians Bonding Scheme (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 770 770 1,100

Reasons for Change in Appropriation

Incremental baseline funding increase reflecting the nature of the scheme that commenced during 2009/10.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Rural Veterinarians Bonding Scheme (M2) - Agriculture and Forestry
Reference Conditions
Rural veterinarians bonding scheme Understaffed rural areas are defined by the following criteria:
  • Rural area (less than 30,000 people).
  • Where there are a low number of veterinarians to livestock units compared with the rest of New Zealand.
Where veterinary practices have the greatest difficulty recruiting and retaining the number of veterinarians necessary to service livestock-based industry needs.
  A graduate is defined as someone who has completed their veterinary science qualification within 12 months of applying for the scheme (except in the initial transition year when graduates since 2005 will be eligible).

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Rural Veterinarians Bonding Scheme (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Rural Vet Bonding Scheme establishment 2009/10 770 1,100 1,430 1,760 1,650

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 - Agriculture and Forestry
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impacts: Expected impact of final goods and services to be provided.
Rural communities are prepared should adverse climatic events occur.
Rural communities are able to recover in the aftermath of adverse climatic events.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
Connected and resilient rural communities.
End outcomes: Desired end state to which MAF's goods and services will contribute.
A vibrant rural community.
Adverse Climatic Events (M2)
Impacts: Expected impact of final goods and services to be provided.
New planting or regeneration of forests.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
An increase in carbon sinks and sequestration.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Afforestation Grants Scheme (M35)
Impacts: Expected impact of final goods and services to be provided.
Reduced risk to investors in irrigation schemes.
Increase in the area and efficiency of irrigation schemes.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high-performance.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Community Irrigation Fund and Schemes (M2)
Impacts: Expected impact of final goods and services to be provided.
New planting or regeneration of forests.
Severely eroded hill country is treated to stem erosion.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
An increase in carbon sinks and sequestration.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
East Coast Afforestation Grants (M2)
Impacts: Expected impact of final goods and services to be provided.
Practical technologies and management practices to measure and reduce agricultural greenhouse gas emissions.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
The agriculture, food, forestry and related sectors are adaptive to the challenges and opportunities associated with the global focus on climate change.
A reduction in New Zealand's agricultural greenhouse gas emissions.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Objective: Addressing greenhouse gas emissions from agriculture at the same time as maintaining and increasing food production is a critical global issue. The objective of the expenditure under the Global Research Alliance is to promote the scaling up of international research in this area, and establish a platform for New Zealand to link with the best international research. Over time this will help New Zealand deliver mitigation solutions for our agricultural sector. The Alliance also complements New Zealand's position in the international climate change negotiations.
Global Research Alliance on Agricultural Greenhouse Gases (M2)
Impacts: Expected impact of final goods and services to be provided.
Severely eroded hill country is treated to stem erosion.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Hill Country Erosion Fund (M2)
Impacts: Expected impact of final goods and services to be provided.
Investment in primary sector education and skills development, R&D, commercialisation, market development and technology transfer.
Productive sectors have access to the people and skills they require.
Development of niche crops.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high-performance.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Primary Growth Partnership (M2)
Impacts: Expected impact of final goods and services to be provided.
New Zealand gains, maintains or improves qualitative market access for its agriculture, food, forestry and related products.
New Zealand's interests in international agricultural trade disputes are protected.
Full and transparent implementation of World Trade Organisation commitments by member countries.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
New Zealand's reputation for the consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and/or enhanced.
Market access for New Zealand's animal and plant products is maintained and enhanced.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Subscriptions to International Organisations (M2)
Impacts: Expected impact of final goods and services to be provided.
Development of niche crops.
Sustainable land management.
Intermediate outcomes: Expected medium-term consequences of MAF's involvement in the economy, with people, or on the environment.
Enhanced prosperity for Maori engaged in the agriculture, food, forestry and related sectors.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
End outcomes: Desired end state to which MAF's goods and services will contribute.
Sustainable economic growth and prosperity for New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Sustainable Farming Fund (M2)

Adverse Climatic Events (M2)

Scope of Appropriation

This appropriation is limited to providing recovery assistance to the primary sector in the aftermath of adverse climatic events and assistance to rural support trusts.

Expenses

Expenses - Adverse Climatic Events (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 829 829 526

Reasons for Change in Appropriation

Mainly due to one off funding provided in 2009/10 through a fiscally neutral transfer from the East Coast Afforestation Grants non-departmental other expense ($250,000) to respond to droughts affecting a number of regions.

Expected Results

Expected Results - Adverse Climatic Events (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of regions with active rural support trusts or similar entities. 14 14 14

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Adverse Climatic Events (M2) - Agriculture and Forestry
Reference Conditions
Implementation of adverse event recovery measures Commensurate with the Adverse Events Recovery Policy guidelines.
Funding is applied in an equitable manner, and all legal requirements are met.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Adverse Climatic Events (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Building rural capacity to respond to adverse events 2007/08 223 170 170 170 170

Afforestation Grant Scheme (M35)#

Scope of Appropriation

This appropriation is limited to Afforestation Grant Scheme grants.

Expenses

Expenses - Afforestation Grant Scheme (M35) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,742 6,617 7,654

Reasons for Change in Appropriation

Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of approved work programmes.

Expected Results

Expected Results - Afforestation Grant Scheme (M35) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Total area (ha) afforested since initial implementation of the scheme New measure 3,985 ha 3,400 ha

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Afforestation Grant Scheme (M35) - Agriculture and Forestry
Reference Conditions
Payment of grants Amounts paid and work completed will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. This will be verified by independent management reviews/audits.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Afforestation Grant Scheme (M35) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Afforestation Grants Scheme reprioritisation of funding 2011/12 - - (2,000) (2,000) (2,000)

Previous Government

           
Value for money review savings 2008/09 (3,000) (3,000) (3,000) (3,000) (3,000)
Climate Change Plan of Action 2008/09 9,742 10,654 10,000 10,000 5,000

Community Irrigation Fund and Schemes (M2)#

Scope of Appropriation

This appropriation is limited to Community Irrigation Fund grants and operating and maintaining Crown irrigation schemes.

Expenses

Expenses - Community Irrigation Fund and Schemes (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,626

Reasons for Change in Appropriation

New appropriation formed as a consequence of Vote restructure that led to the decision to combine two non-departmental other expense appropriations Community Irrigation Fund and Community Irrigation Schemes.

Expected Results

Expected Results - Community Irrigation Fund and Schemes (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of water strategies adopted into regional council plans New measure - 1
Number of community irrigation schemes under construction New measure - 2
Increases in the potential overall area of land irrigated Achieved Achieved Measure withdrawn

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Community Irrigation Fund and Schemes (M2) - Agriculture and Forestry
Reference Conditions
Support to help promoters of community water storage and irrigation schemes raise investor and community support for their schemes Amounts paid and work completed will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. This will be verified by independent management reviews/audits.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Community Irrigation Fund and Schemes (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Climate Change Plan of Action 2008/09 531 1,609 1,036 785 547

East Coast Afforestation Grants (M35)#

Scope of Appropriation

This appropriation is limited to grants under the Forestry (East Coast) Grants Regulations 1992.

Expenses

Expenses - East Coast Afforestation Grants (M35) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,250 1,500 4,500

Reasons for Change in Appropriation

The 2009/10 appropriation includes an expense transfer from 2008/09 to address an anticipated increase in demand for grants upon the resolution of uncertainties surrounding the Emissions Trading Scheme.

Expected Results

Expected Results - East Coast Afforestation Grants (M35) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Grant funding ($000) approved for the year 4,500 2,100 4,500
Annual area (hectares) treated 3,000 ha 860 ha 1,500 ha
Total area (ha) afforested since initial implementation of the scheme 36,900 ha 39,047 ha 42,100 ha

Conditions on Use of Appropriation

Conditions on Use of Appropriation - East Coast Afforestation Grants (M35) - Agriculture and Forestry
Reference Conditions
Forestry (East Coast) Grants Regulations 2000 Subject to the conditions contained in Regulation 4.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - East Coast Afforestation Grants (M35) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for money review savings 2008/09 (1,278) (1,278) (1,278) (1,278) (1,278)

Global Research Alliance on Agricultural Greenhouse Gases (M2)#

Scope of Appropriation

This appropriation is limited to the Global Research Alliance on Agricultural Greenhouse Gases.

Expenses

Expenses - Global Research Alliance on Agricultural Greenhouse Gases (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 5,000

Reasons for Change in Appropriation

This is a new appropriation from 2010/11.

Expected Results

Expected Results - Global Research Alliance on Agricultural Greenhouse Gases (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Minister rates activities funded under the Global Research Alliance, including Livestock Emissions and Abatement Network, as 4 or better on a scale of 1 to 5 where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months New measure 4 4

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Global Research Alliance on Agricultural Greenhouse Gases (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Global alliance on agricultural greenhouse gas mitigation research 2010/11 - 5,000 10,000 15,000 15,000

Hill Country Erosion Fund (M2)#

Scope of Appropriation

This appropriation is limited to projects that protect erosion-prone hill country.

Expenses

Expenses - Hill Country Erosion Fund (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 3,100

Reasons for Change in Appropriation

New appropriation formed as a consequence of Vote restructure that led to the reclassification of expenditure formerly incurred against a departmental output expense appropriation.

Expected Results

Expected Results - Hill Country Erosion Fund (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Hectares of erosion prone land under treatment New measure 12,000 ha 16,000 ha
Number of farms plans developed through regional initiatives New measure 170 236

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Hill Country Erosion Fund (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Sustainable land management programme 2007/08 - 3,100 2,200 2,200 2,200

Primary Growth Partnership (M2)#

Scope of Appropriation

This appropriation is limited to primary, food and forestry sector investment in education and skills development, research and development, product development, commercialisation, market development and technology transfer, in partnership with relevant industry groups, including research related to greenhouse gases via the Centre for Agricultural Greenhouse Gas Research.

Expenses

Expenses - Primary Growth Partnership (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,070 250 56,425

Reasons for Change in Appropriation

The increase in appropriation reflects the carry forward of funding due to implementation delays.

Expected Results

Expected Results - Primary Growth Partnership (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Primary Growth Partnership will be fully operational Achieved Achieved Measure withdrawn
Percentage (%) of funding committed in accordance with contractual arrangements New measure 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Primary Growth Partnership (M2) - Agriculture and Forestry
Reference Conditions
Primary Growth Partnership Governance arrangements for the Primary Growth Partnership are currently being developed.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Primary Growth Partnership (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Primary Growth Partnership establishment 2009/10 9,070 56,425 46,909 66,359 66,359

Subscriptions to International Organisations (M2)#

Scope of Appropriation

This appropriation is limited to New Zealand's membership of agricultural and forestry related international organisations.

Expenses

Expenses - Subscriptions to International Organisations (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,428 2,328 2,328

Expected Results

Expected Results - Subscriptions to International Organisations (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of input to key international forums that will meet Ministerial expectations as well as domestic and international organisations' time/schedule or notification requirements 100% 100% 90-100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Subscriptions to International Organisations (M2) - Agriculture and Forestry
Reference Conditions
Membership of the Food and Agricultural Organisation of the United Nations and other international organisations Refer conditions of use for Agriculture and Forestry Policy Advice output expense.

Sustainable Farming Fund (M2)#

Scope of Appropriation

This appropriation is limited to community driven programmes aimed at improving economic and environmental performance.

Expenses

Expenses - Sustainable Farming Fund (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,608 6,108 9,200

Reasons for Change in Appropriation

Increase in appropriation as a consequence of Vote restructure that led to the reclassification of expenditure formerly incurred against a departmental output expense appropriation.

Expected Results

Expected Results - Sustainable Farming Fund (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Grant funding committed as a proportion of the total funding pool New measure 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Sustainable Farming Fund (M2) - Agriculture and Forestry
Reference Conditions
Provision of funding Amounts paid and work completed will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes. This will be verified by independent management reviews/audits.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Sustainable Farming Fund (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for money review savings 2009/10 (1,444) (1,444) (1,444) (1,444) (1,444)

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Agriculture and Forestry
Appropriation Reporting Mechanism
Adverse Climatic Events (M2) Not reported
Afforestation Grants Scheme (M35) Not reported
Community Irrigation Fund and Schemes (M2) Not reported
East Coast Afforestation Grants (M2) Not reported
Global Research Alliance on Agricultural Greenhouse Gases (M2) Not reported
Hill Country Erosion Fund (M2) Not reported
Primary Growth Partnership (M2) Not reported
Subscriptions to International Organisations (M2) Not reported
Sustainable Farming Fund (M2) Not reported

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 - Agriculture and Forestry
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - To maintain and upgrade capability through the replacement and development of property, plant, equipment and IT software. Ministry of Agriculture and Forestry - Capital Expenditure PLA (M2)

Ministry of Agriculture and Forestry - Capital Expenditure PLA (M2)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry of Agriculture and Forestry Capital Expenditure PLA (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 4,319 4,319 9,714
Intangibles 2,788 2,788 25,685
Other - - 850

Total Appropriation

7,107 7,107 36,249
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 4,319 4,319 9,714
Intangibles 2,788 2,788 25,685
Other - - 850

Total Appropriation

7,107 7,107 36,249

Reasons for Change in Appropriation

The increase in departmental capital expenditure reflects the continued development of IT systems, particularly the National Animal Identification and Traceability, New Zealand FarmsOnline, x-ray imaging, wine e-certification and Joint Border Management System IT systems for which capital injections are provided.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Agriculture and Forestry
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
New Zealanders have greater certainty regarding rural walking access
New Zealanders have increased opportunities for recreation and outdoor activities
Walking Access Assets (M2)

New Zealand Walking Access Commission (M2)

Scope of Appropriation

This appropriation is limited to the purchase and development of capital assets by the New Zealand Walking Access Commission.

Capital Expenditure

Capital Expenditure - New Zealand Walking Access Commission (M2) - Agriculture and Forestry
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Agriculture and Forestry
Appropriation Reporting Mechanism
Walking Access Assets (M2) Annual Report of the New Zealand Walking Access Commission

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

Performance Information for Appropriations Vote Biosecurity#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Biosecurity (M7)

ADMINISTERING DEPARTMENT: Ministry of Agriculture and Forestry

MINISTER RESPONSIBLE FOR MINISTRY OF AGRICULTURE AND FORESTRY: Minister of Agriculture

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

Appropriations

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

  • a total of nearly $90 million (48% of the Vote) for border biosecurity risk management covering monitoring and clearance programmes that manage the biosecurity risk associated with international trade and travel, and development and maintenance of standards and systems that manage biosecurity risk associated with imports and exports
  • a total of just over $54 million (29% of the Vote) for domestic biosecurity risk management covering the assessment, containment and possible eradication of suspected risk organisms within New Zealand, and domestic biosecurity surveillance activities
  • a total of just over $11 million (6% of the Vote) for policy advice with regard to biosecurity issues and ministerial servicing
  • a total of over $30 million (17% of the Vote) for the Crown's contribution to implementation of the Bovine Tuberculosis National Pest Management Strategy, and
  • a total of $330,000 on subscriptions to international organisations.

Crown Revenue

The Minister of Biosecurity is also responsible for Crown revenue in the Vote for the 2010/11 financial year for a total forecast of $850,000 in Biosecurity Act fines.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Biosecurity
Government Priorities Government Outcomes Appropriations
Driving goal: To grow the New Zealand economy in order to deliver greater prosperity, security and opportunities for all New Zealanders.
Priorities:
Border operations.
Incursion response management.
End outcome: Sustainable economic growth and prosperity for New Zealanders.
End outcome: Healthy New Zealanders and a vibrant rural community.
End outcome: Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
(The New Zealand Biosecurity Strategy, MAF's Outcomes Performance Monitoring Framework).
Biosecurity Policy Advice.
Border Biosecurity Development and Maintenance.
Border Biosecurity Monitoring and Clearance.
Domestic Biosecurity Surveillance.
Biosecurityincursion response and long-term pest management.

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 174,364 175,448 180,962 179,375 182,127 172,796 155,615 30,505 186,120 181,717 180,671 164,333
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 80 117 126 126 130 130 - 330 330 330 330 330
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

174,444 175,565 181,088 179,501 182,257 172,926 155,615 30,835 186,450 182,047 181,001 164,663

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 1,236 866 812 742 850 850 N/A 850 850 850 850 850
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

1,236 866 812 742 850 850 N/A 850 850 850 850 850

New Policy Initiatives

Budget Policy Intiatives - Biosecurity
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Government response to a Phytophthora affecting kauri trees Domestic Biosecurity Surveillance (M7) Departmental Output Expenses 1,603 781 766 749 335
National Animal Identification and Tracing Project: Business Case Approval Domestic Biosecurity Surveillance (M7) Departmental Output Expenses - 2,000 - (1,000) (1,000)
Joint Border Management System Border Biosecurity Monitoring and Clearance (M7)
Departmental Output Expenses
- 2,534 7,073 8,263 8,302
Trans-Tasman X-Ray Imaging Border Biosecurity Monitoring and Clearance (M7)
Departmental Output Expenses
- 500 - - -
Government-Industry Agreement Biosecurity Incursion Response and Long Term Pest Management (M7)
Departmental Output Expenses
- 500 - - -
Transfer of National Saltmarsh Surveillance Programme from Vote Health Domestic Biosecurity Surveillance (M7) Departmental Output Expenses - 1,300 1,300 1,300 1,300
Reprioritisation savings Biosecurity Policy Advice (M7)
Departmental Output Expenses
- (567) (261) (261) (261)
  Border Biosecurity Systems Development and Maintenance (M7)
Departmental Output Expenses
- (148) (143) (143) (143)
  Border Biosecurity Monitoring and Clearance (M7)
Departmental Output Expenses
- (845) (820) (822) (822)
  Domestic Biosecurity Surveillance (M7) Departmental Output Expenses - (655) (633) (635) (635)
  Biosecurity Incursion Response and Long Term Pest Management (M7)
Departmental Output Expenses
- (420) (413) (414) (414)
Total initiatives   1,603 4,980 6,869 7,037 6,662

Analysis of Significant Trends

Total Vote: All Appropriations

Output expense appropriations in Vote Biosecurity, which are detailed in the Summary of Financial Activity table above, are largely influenced by the levels of funding appropriated for responses to disease and pest incursions.

Responses funded between 2005/06 and 2009/10 include southern saltmarsh mosquito, painted apple moth, varroa bee mite, red fire ant, asian gypsy moth, fall webworm, mycoplasma mycoides subspecies mycoides, didymosphenia, styela clava, mediterranean fanworm in Lyttleton Harbour and phytophthora affecting Kauri trees.

The increases in output expense appropriations from 2009/10 are also due to provision of operational funding for the development of the National Animal Identification and Tracing, New Zealand FarmOnline, Trans-tasman x-ray images of checked-in baggage, and Joint Border Management System (in conjunction with New Zealand Customs) information technology systems; for which capital injections have also been provided to the Ministry of Agriculture and Forestry.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Biosecurity
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Departmental Output Expenses            
Biosecurity Policy 13,348 Transferred to Border Biosecurity Monitoring and Clearance (Border Biosecurity Risk Management MCOA) (1,674)      
Transferred to Biosecurity Incursion Response and Long Term Pest Management (Domestic Biosecurity Risk Management MCOA) (586)      
Transferred to Subscriptions to International Organisations (200)      
Balance transferred to in effect renamed Biosecurity Policy Advice (10,888)      
Biosecurity Approvals and Assurance 3,059 Transferred to Border Biosecurity Systems Development and Maintenance (Border Biosecurity Risk Management MCOA) (3,059)      
Biosecurity Enforcement 3,262 Transferred to Domestic Biosecurity Surveillance (Domestic Biosecurity Risk Management MCOA) (750)      
Transferred to Border Biosecurity Monitoring and Clearance (Border Biosecurity Risk Management MCOA) (2,133)      
Transferred to Vote Biosecurity (379)      
Biosecurity Standards 24,979 Transferred to Border Biosecurity Systems Development and Maintenance (Border Biosecurity Risk Management MCOA) (10,819)      
Transferred to Domestic Biosecurity Surveillance (Domestic Biosecurity Risk Management MCOA) (4,000)      
Transferred to Biosecurity Incursion Response and Long Term Pest Management (Domestic Biosecurity Risk Management MCOA) (5,493)      
Transferred to Border Biosecurity Monitoring and Clearance (Border Biosecurity Risk Management MCOA) (4,667)      
Biosecurity Surveillance and Incursion Response 44,618 Transferred to Domestic Biosecurity Surveillance (Domestic Biosecurity Risk Management MCOA) (33,940)      
Transferred to Biosecurity Incursion Response and Long Term Pest Management (Domestic Biosecurity Risk Management MCOA) (10,678)      
Border Clearance Services 63,122 Transferred to Border Biosecurity Monitoring and Clearance (Border Biosecurity Risk Management MCOA) (63,122)      
    Transferred from Biosecurity Policy 10,888 Biosecurity Policy Advice 10,888 11,411
    Transferred from Biosecurity Approvals and Assurance 3,059 Border Biosecurity Systems Development and Maintenance (Border Biosecurity Risk Management MCOA) 13,878 14,747
    Transferred from Biosecurity Standards 10,819
    Transferred from Biosecurity Policy 1,674 Border Biosecurity Monitoring and Clearance (Border Biosecurity Risk Management MCOA) 71,596 75,095
    Transferred from Biosecurity Enforcement 2,133
    Transferred from Biosecurity Standards 4,667
    Transferred from Border Clearance Services 63,122
    Transferred from Biosecurity Enforcement 750 Domestic Biosecurity Surveillance (Domestic Biosecurity Risk Management MCOA) 38,690 41,867
    Transferred from Biosecurity Standards 4,000
    Transferred from Biosecurity Surveillance and Incursion Response 33,940
    Transferred from Biosecurity Policy 586 Biosecurity Incursion Response and Long Term Pest Management (Domestic Biosecurity Risk Management MCOA) 16,757 12,495
    Transferred from Biosecurity Surveillance and Incursion Response 10,678
    Transferred from Biosecurity Standards 5,493
Total Changes in Departmental Output Expenses 152,388   (579)   151,809 155,615
Non-Departmental Other Expenses            
Subscriptions to International Organisations 130 Transferred from Biosecurity Policy 200 Subscriptions to International Organisations 330 330
Total Changes in Appropriations 152,518   (379)   152,139 155,945

The remaining $379,000 of the former Biosecurity Enforcement departmental output expense appropriation was transferred to Vote Agriculture and Forestry departmental output expense Animal Welfare Education and Enforcement.

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 - Biosecurity
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impact:
Stakeholders, the public and other interest groups receive timely and quality feedback or information in response to biosecurity-related issues raised with the Minister or the Government.
Operational policy advice that supports the Government's ongoing development and implementation of New Zealand's biosecurity system as articulated in the New Zealand Biosecurity Strategy.
New Zealand is prepared to manage the risk, and to implement rapid response biosecurity interventions should serious biosecurity status breaches occur.
New Zealand gains, maintains or improves qualitative market access for its agriculture, food, forestry and related products. New Zealand's interests in international agricultural trade disputes are protected.
Biosecurity Policy Advice
Intermediate outcomes:
Market access for New Zealand's animal and plant products is maintained and enhanced Prevention and reduction of harm to:
  • economic activity
  • human health and wellbeing
  • the natural environment, and
  • resources of economic and cultural value to Maori from pests and diseases.
 
End outcomes:
Sustainable economic growth and prosperity for New Zealanders.
Healthy New Zealanders and a vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
 
Impact:
New Zealand is prepared to manage the risk, and to implement rapid response biosecurity interventions, should serious biosecurity status breaches occur.
Border Biosecurity Risk Management MCOA output class Border Biosecurity Systems Development and Maintenance
Intermediate outcomes:
Prevention and reduction of harm to:
  • economic activity
  • human health and wellbeing
  • the natural environment, and
  • resources of economic and cultural value to Maori from pests and diseases.
 
End outcomes:
Sustainable economic growth and prosperity for New Zealanders.
Healthy New Zealanders and a vibrant rural community.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
 
Impact:
Increased awareness of MAF's programmes, initiatives and regulatory framework associated with biosecurity.
The public increasingly engage in regulatory-focused activities and initiatives, and voluntarily change their behaviour to comply with regulatory frameworks.
Compliance with the regulatory framework implemented by MAF.
Biosecurity risk items are identified and kept from being introduced to New Zealand
New Zealand exporters of animal and plant products are able to trade in foreign markets.
The provision of timely and accurate export assurances to other regulatory authorities.
Border Biosecurity Risk Management MCOA output class Border Biosecurity Monitoring and Clearance
Intermediate outcomes:
New Zealanders are informed and involved participants in MAF's regulatory systems.
Prevention and reduction of harm to:
  • economic activity
  • human health and wellbeing
  • the natural environment, and
  • resources of economic and cultural value to Maori from pests and diseases.
Market access for New Zealand's animal and plant products is maintained and enhanced.
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and/or enhanced.
 
End outcomes:
Sustainable economic growth and prosperity for New Zealanders.
Healthy New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
 
Impact:
Unwanted pests and diseases are identified post-border.
Domestic Biosecurity Risk Management MCOA output class Domestic Biosecurity Surveillance
Intermediate outcomes:
Prevention and reduction of harm to:
  • economic activity
  • human health and wellbeing
  • the natural environment, and
  • resources of economic and cultural value to Maori from pests and diseases.
 
End outcomes:
  • Sustainable economic growth and prosperity for New Zealanders.
  • Healthy New Zealanders.
  • Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
 
Impact:
Increased awareness of MAF's programmes, initiatives and regulatory framework associated with biosecurity.
The public increasingly engage in regulatory-focused activities and initiatives, and voluntarily change their behaviour to comply with regulatory frameworks.
Compliance with the regulatory framework implemented by MAF. Pests and diseases posing a biosecurity risk are kept from spreading to other areas.
The biosecurity status of managed sites is restored, maintained or enhanced.
Domestic Biosecurity Risk Management MCOA output class Biosecurity Incursion Response and Long Term Pest Management
Intermediate outcomes:
New Zealanders are informed and involved participants in MAF's regulatory systems Prevention and reduction of harm to:
  • economic activity
  • human health and wellbeing
  • the natural environment, and
  • resources of economic and cultural value to Maori from pests and diseases.
 
End outcomes:
Sustainable economic growth and prosperity for New Zealanders.
Healthy New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
 

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see the Statement of Intent for Ministry of Agriculture and Forestry.

Biosecurity Policy Advice (M7)

Scope of Appropriation

This appropriation is limited to policy advice and analysis on biosecurity, and ministerial servicing.

Expenses and Revenue

Expenses and Revenue - Biosecurity Policy Advice (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,348 13,279 11,411
Revenue from Crown 13,178 13,178 11,074
Revenue from Other 170 101 337

Reasons for Change in Appropriation

The appropriation will decrease by $1.937 million to $11.411 million mainly due to the restructure of the Vote which involved the reallocation of activities between output expense appropriations and between appropriation types.

Output Performance Measures and Standards

Output Performance Measures and Standards - Biosecurity Policy Advice (M7) - Biosecurity
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and provision of biosecurity-related policy advice

     
Number of ministerial briefing papers or reports provided - demand driven 200 144 160-200
The Minister rates the quality of policy advice provided as 4 or better on a scale of 1 to 5, where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4-5

Provision of ministerial services

     
Number of ministerial letters prepared - demand driven 200 158 180-200
Number of official information request responses provided - demand driven 100 96 90-110
Number of parliamentary question responses provided - demand driven 150 156 150-200
The Minister rates the quality of ministerial servicing as 4 or better on a scale of 1 to 5, where 1 represents poor and 5 represents excellent (poor, sub-standard, adequate, good, excellent) via discussion with MAF officials every 6 months 4 4 4-5
Percentage of parliamentary questions completed within specified timeframes New Measure 100% 95%
Percentage of ministerial correspondence completed within 15 working days 95% 90% 95%
Percentage of ministerial correspondence completed within 20 working days 100% 100% 100%
Percentage of ministerial correspondence accepted without amendments 95% 93% 95%
Percentage of OIA requests completed within 15 working days 95% 50% Measure withdrawn
Percentage of OIA requests completed within 20 working days 100% 87.5% Measure withdrawn
Percentage of OIA requests actioned within 20 working days New measure 100% 100%

Biosecurity communications

     
Implementation of biosecurity-related information and communication services and initiatives 8 8 Measure withdrawn
Number of Protect New Zealand brochures distributed 150,000 150,000 Measure withdrawn
Percentage increase in the number of visitors to the MAFBNZ website 5% 5% Measure withdrawn

Quality Standards for Analysis and Advice

Quality Standards for Analysis and Advice - Biosecurity
Quality Standard Performance Criteria
Purpose The objective for the advice will be clearly stated; it will answer any financial and economic issues raised by the Minister and demonstrate a clear understanding of the desired outcome(s) of the Government and/or Minister.
Problem definition Any public policy problem, including the underlying causes, size and materiality of issues, will be defined and supported by data or other evidence.
Context It will be clear where the advice stands in the context of the wider policy process, including what has already been undertaken and what is expected to occur in the future.
Logic An appropriate analytical framework will be used. Assumptions behind the advice will be explicit and the argument will be logical and supported by facts.
Accuracy All material facts presented will be accurate. Known gaps that could significantly affect the conclusions will be identified and the range of uncertainty stated. Forecasts will be credible at the time they are produced and will take into account all relevant information.
Options A range of options will be presented that provides clearly differentiated choices and these will be rigorously evaluated against the analytical framework. Costs, benefits, consequences and risks/opportunities of the options will be assessed as part of the analysis. Where it is not appropriate to use a range of options, the reasons will be clearly stated.
Recommendations Recommendations will be clear, logical and action oriented and should stand alone from the rest of the advice. They will be sufficient to enable a decision to be made on the proposal or to move to the next decision/action point.
Consultation Evidence of thorough and timely consultation with other government departments and interested parties will be presented, and their views, including objections, will be incorporated as appropriate.
Practicality Issues of implementation, technical feasibility, practicality and timing will be considered and advice will accurately identify compliance, transitional, political, legislative, revenue, expense and administrative implications and costs (quantified where possible).
Communication Guidance will be provided on how communications arising from decisions on the advice should be handled, including an assessment of key stakeholders who should be informed and how.
Presentation Material will be presented to suit the target audience and:
  • Will be concise and structured in a way which assists others to understand the aim of the advice, key features of the information, analysis and recommendations, and their key implications.
  • Will use appropriate language and style.
  • Will use empirical evidence.
  • Will avoid cliches and technical jargon (or where the latter is not possible, it will be used appropriately for a general audience).
  • Will be consistent with departmental and Cabinet Office presentation requirements.
Monitoring and evaluation Policy analysis and advice will be assessed by using a ministerial rating; independent third-party review; evaluation results; agency/stakeholder feedback and/or internal peer review processes.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Biosecurity Policy Advice (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Reprioritisation savings through budget alignment process 2010/11 - (567) (261) (261) (261)
Value for money review savings & repriorisation 2009/10 (268) (248) (231) (108) (108)

Previous Government

           
Inter-agency resource needs for trade agreements 2008/09 630 645 - - -
Effective Border Management 2007/08 2,202 2,202 2,202 2,202 2,202
Staff remuneration 2006/07 1,017 1,275 1,275 1,275 1,275

Border Biosecurity Risk Management MCOA (M7)#

Scope of Appropriation

Border Biosecurity Monitoring and Clearance
This output class is limited to biosecurity monitoring and clearance programmes that manage the biosecurity risk associated with international trade and travel.
Border Biosecurity Systems Development and Maintenance
This output class is limited to the development and maintenance of standards and systems that manage biosecurity risk associated with imports and exports.

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output appropriation contains output classes that contribute to preventing harmful organisms from crossing New Zealand's borders, with the assurance that trade and tourism are maintained.

Expenses and Revenue

Expenses and Revenue - Border Biosecurity Risk Management MCOA (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 89,842
Border Biosecurity Monitoring and Clearance - - 75,095
Border Biosecurity Systems Development and Maintenance - - 14,747

Revenue from Crown

- - 57,860
Border Biosecurity Monitoring and Clearance - - 46,589
Border Biosecurity Systems Development and Maintenance - - 11,271

Revenue from Other

- - 31,982
Border Biosecurity Monitoring and Clearance - - 28,506
Border Biosecurity Systems Development and Maintenance - - 3,476

Reasons for Change in Appropriation

New multi-class output expense formed as a consequence of restructure of the Vote.

Output Performance Measures and Standards

Output Performance Measures and Standards - Border Biosecurity Risk Management MCOA (M7) - Biosecurity
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Border Biosecurity Systems Development and Maintenance

     

Import Systems Development and Maintenance

     
Percentage of biosecurity (pre-border, border, and post-border) standards developed as agreed with the Minister in the 2009/10 output plan (including any subsequent agreed amendments) 80% 80% Measure withdrawn
Percentage of agreed and prioritised import standards developed or reviewed according to timelines and compliance with quality control checklist New measure - 80-100
Percentage of risk analysis projects completed within estimated timelines 80% 80% 80-100%

Export Systems Development and Maintenance

     
Number of Export Certificates processed, approved and issued - demand driven 56,000 56,000 50,000-60,000
Percentage of active Importing Country Phytosanitary Requirements (ICPR) met for plants/forestry (see Note 1) 95% 95% 90-100%
Percentage of active Importing Country Zoosanitary Requirements (ICPR) met for animals (see Note 1) 98% 95% 90-100%

Border Biosecurity Monitoring and Clearance

     

Profiling and Intelligence

     
Percentage of prioritised pathway monitoring work-plan completed 80% 100% 80-100%

Passenger and aircraft clearance

     
Number of aircraft arrivals - demand driven 29,900 30,000 28,000-32,000
Number of Air Passengers Cleared (includes crew numbers) - demand driven 4,700,000 5,000,000 4,700,000-5,300,000
Percentage of passengers processed through MAF area in 15 minutes or less New measure - 80%
Air passengers found with biosecurity risk material per 1000 clearances. 23 24 Measure withdrawn
Air Passenger Output Compliance Standard (see Note 2) New measure - 98.5
Number of Cruise Vessel Passengers cleared (including day-trippers) - demand driven 400,000 400,000 390,000-430,000
Number of passenger Compliance Programme (Declare or Dispose) communications material and collateral (signs, postcards etc) distributed 70,000 100,000 70,000-100,000
Number of detector dog awareness communications material and collateral distributed 10,000 90,000 90,000
Number of episodes of Border Patrol and new TV series Dog Squad coordinated and reviewed 20 20 20

Vessels & Goods Clearance

     
Number of international vessels cleared - demand driven 2,800 2,800 2,700-2,900
Number of Cruise Vessel Port Calls - demand driven 320 320 300-350
Number of Sea Containers arriving (loaded) - demand driven 580,000 560,000 550,000-600,000
Percentage of Sea Containers inspected (externally) 8% 8% 5-10%
Number of Sea Containers found with actionable biosecurity material - demand driven 11,600 12,000 10,000-15,000
Number of Sea Cargo consignment lines arriving in NZ - demand driven New measure - 80,000-120,000
Number of Sea Cargo consignment lines found with actionable biosecurity risk material - demand driven New measure - 10,000-20,000
Percentage of Biosecurity Authority clearance certificate applications screened and responded to within timeframe 85% 85% 85%
Percentage of inspections booked within two days of booking request 75% 70% 75%

Mail Clearance

     
International mail item clearances - demand driven 39,400,000 40,000,000 38,000,000-41,000,000
Number of mail items found with actionable biosecurity risk material (see Note 3) demand driven 50,000 16,000 15,000-20,000

Facilities Approvals and Assurance

     
Percentage of annual assessments completed in accordance with prioritised work plan New measure - 90-100%

Biosecurity Enforcement

     

Investigations of Alleged Breaches of the Biosecurity Act and the Hazardous Substances and New Organisms Act

     
Percentage of complaints received and investigated in priority order and in accordance with the MAF compliance and enforcement priority grading framework. 100% 100% 90-100%
Category I - Enforcement intervention requiring statutory action (including warnings and infringement notices) - demand driven (see Note 4) 3,600 3,600-4,000 3,600-4,000
Category II - Enforcement intervention requiring investigation response for lower threshold criminal behaviours (completion in a six month time period) - demand driven (see Note 5) 80 200-250 80-100
Category III - Enforcement intervention addressing organised illegal activity enforcement responses requiring proactive criminal investigation (ie, intelligence gathering, surveillance) and pursuit of deterrent outcomes (usually completion in a 12 month period) - demand driven 4 12-15 4-8

Prosecution of Alleged Breaches of the Biosecurity Act and the Hazardous Substances and New Organisms Act

     
Category I - Prosecution response required from enforcement intervention requiring statutory action (including infringement notices) - demand driven 20 21 20-25
Category II - Prosecution intervention requiring preparation for lower threshold criminal behaviours (usually completion in a six month time period where offender behaviour recognises culpability) - demand driven 20 14 15-25
Category III - Prosecution strategy and preparedness for proactive criminal investigation involving organised illegal activity requiring deterrent outcomes (usually completion in a12 - 18 month time period) - demand driven 4 4 4-8
Percentage of cases lodged with the Court that incurred adverse judicial comment. 0 0 0-5%

Note 1 - Measure has been reworded.

Note 2 - No capacity to capture information to measure this standard, however it is currently being progressed.

Note 3 - Methodology for calculation of this measure has been revised.

Note 4 - The Enforcement Directorate operates within a priority response framework compiled from the various business groups throughout the organisation. The Enforcement Directorate works closely with each business entity to ensure it remains open to any immediate business changes and maintains the flexibility to accommodate these changes.

Note 5 - This Category output has been implemented in order to achieve a more rich and meaningful output achievement including the recording of the different complexities of function within the enforcement environment.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Border Biosecurity Risk Management MCOA (M7) - Biosecurity
Reference Conditions
Development of export assurance standards.
Development of import health standards.
Development of border clearance standards.
Development of surveillance standards.
Development of pest management standards.
Development of standards associated with third-party providers (ie, approved transitional facilities).
Biosecurity Act, 1993.
MAF BNZ standards development process and procedure guidelines (including risk analysis and statistical monitoring processes).
Monitoring/data collection and evaluation activity will be effective and efficient in providing relevant, accurate, comparable and useful data and information across the Biosecurity System.
Standards developed will comply with the requirements of the Biosecurity Act 1993.
Standards to be completed as agreed with the Minister in the 2009/10 output plan (including any subsequent agreed amendments).
Issuance of approvals for export certification. Commensurate with the Biosecurity Act 1993 and the Customs and Excise Act 1996.

Memorandum Account

Memorandum Account - Border Biosecurity Risk Management MCOA (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Phytosanitary Exports Account

     
Opening Balance at 1 July 1,061 1,061 1,205
Revenue 2,085 2,168 2,168
Expenses (2,085) (2,024) (2,168)
Closing Balance at 30 June 1,061 1,205 1,205

Sea Container Levy Account

     
Opening Balance at 1 July (467) (467) 345
Revenue 8,518 8,375 8,375
Expenses (7,608) (7,563) (8,375)
Closing Balance at 30 June 443 345 345

Risk Screen Levy Screening Account

     
Opening Balance at 1 July (1,261) (1,261) (1,355)
Revenue 4,215 4,191 4,191
Expenses (4,311) (4,285) (4,191)
Closing Balance at 30 June (1,357 (1,355) (1,355)

Imported Used Vehicle Inspection Account

     
Opening Balance at 1 July (2,673) (2,673) (4,208)
Revenue 2,603 2,458 2,458
Expenses (3,963) (3,993) (2,458)
Closing Balance at 30 June (4,033) (4,208) (4,208)

Biosecurity Clearance Fees Account

     
Opening Balance at 1 July (686) (686) (837)
Revenue 7,051 7,159 7,159
Expenses (7,320) (7,310) (7,159)
Closing Balance at 30 June (955) (837) (337)

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Border Biosecurity Risk Management MCOA (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Reprioritisation savings through budget alignment process 2010/11 - (993) (963) (965) (965)
Joint Border Management System 2010/11 - 2,534 7,073 8,263 8,302
Trans-Tasman X-Ray Imaging 2010/11 - 500 - - -
Value for money review savings 2009/10 - (340) (176) (176) (176)

Previous Government

           
Effective Border Management 2007/08 - 7,066 7,066 7,066 7,066
Staff Remuneration 2006/07 - 7,655 7,655 7,655 7,655

Domestic Biosecurity Risk Management MCOA (M7)#

Scope of Appropriation

Biosecurity Incursion Response and Long Term Pest Management
This output class is limited to the assessment, containment and possible eradication of suspected risk organisms within New Zealand.
Domestic Biosecurity Surveillance
This output class is limited to domestic biosecurity surveillance activities.

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output appropriation contains output classes that contribute to reducing the unwanted harm caused by organisms already established in New Zealand.

Expenses and Revenue

Expenses and Revenue - Domestic Biosecurity Risk Management MCOA (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 54,362
Biosecurity Incursion Response and Long Term Pest Management - - 12,495
Domestic Biosecurity Surveillance - - 41,867

Revenue from Crown

- - 51,006
Biosecurity Incursion Response and Long Term Pest Management - - 12,271
Domestic Biosecurity Surveillance - - 38,735

Revenue from Other

- - 3,356
Biosecurity Incursion Response and Long Term Pest Management - - 224
Domestic Biosecurity Surveillance - - 3,132

Reasons for Change in Appropriation

New multi-class output expense formed as a consequence of restructure of the Vote.

Output Performance Measures and Standards

Output Performance Measures and Standards - Domestic Biosecurity Risk Management MCOA (M7) - Biosecurity
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Domestic Biosecurity Surveillance      
Incursion investigation and diagnostics      
Number of notifications of suspected risk organisms received and processed - demand driven 11,000 11,000 10,000-12,000
Number of potential incursions investigated - demand driven 600 600 580-640
Number of plant health and environment tests completed from passive surveillance - see Note 6- demand driven 2,800 1,300 1,300-1,900
Number of animal tests completed from passive surveillance (see Note 6) demand driven 1,500 6,010 1,500-2,000
Surveillance Programmes      
Number of targeted surveillance programmes New measure - 27-32
Number of cases investigated from targeted surveillance programmes - demand driven New measure - 10-15
Percentage of Surveillance core work programmes with overall status "on track" to deliver agreed outcomes 90% 90% 85-100%
Number of issues of Surveillance magazine 4 4 4
Internal Pathway and Border      
Number of established internal pathway and border programmes New measure - 2-4
Number of identified high risk vectors New measure - 2-4
Biosecurity Incursion Response and Long Term Pest Management      
Response Preparedness      
Percentage of response programmes with overall status "on track" to deliver agreed outcomes 90% 90% 80-100%
Long Term Management      
Number of Long Term Pest Management Programmes originally transitioned from the Response programme New measure - 3-5
Number of Check, Clean, Dry Programme communications material and collateral (broschures, river signs and posters, spray bottles, pocket cleaning guides, fact sheets etc) distributed 100,000 185,000 100,000-200,000
Number of events and public presentations to support biosecurity communication programmes (Check, Clean, Dry; Declare or dispose; Clean and Antifoul; Report Unusual Finds) 13 14 10-15

Note 6 - Methodology for calculation of this measure has been changed to record only passive (exclude actual) surveillance tests.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Domestic Biosecurity Risk Management MCOA (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Reprioritisation savings through budget alignment process 2010/11 - (1,075) (1,046) (1,049) (1,049)
Government-Industry Agreement 2010/11 - 500 - - -
Transfer of National Saltmarsh Surveillance Programme from Vote Health 2010/11 - 1,300 1,300 1,300 1,300
Government response to phytophthora affecting kauri trees 2009/10 - 1,681 766 749 335
Value for money savings 2009/10 - (266) (281) (326) (326)
Previous Government            
Mediterranean fanworm in Lyttleton Harbour 2008/09 - 838 541 562 -
National Animal Identification Traceability and New Zealand FarmOnline systems 2008/09 - 5,720 4,490 3,490 3,490
Effective border management 2007/08 - 681 681 681 681
Prepardness for major biosecurity responses 2006/07 - 5,500 5,500 5,500 5,500
New pest management functions & ant surveillance 2006/07 - 3,760 3,760 3,760 3,760
Staff remuneration 2006/07 - 1,539 1,539 1,539 1,539

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Biosecurity
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To control the spread of bovine tuberculosis from vectors to farm animals through the implementation of large and small scale control operations against all bovine tuberculosis vectors, including possums, ferrets, stoats, feral deer, rabbits and rats. Control of TB Vectors (M7)

Control of TB Vectors (M7)

Scope of Appropriation

This appropriation is limited to the Crown's contribution to the implementation of the Bovine Tuberculosis National Pest Management Strategy.

Expenses

Expenses - Control of TB Vectors (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 29,739 29,439 30,505

Output Performance Measures and Standards

Output Performance Measures and Standards - Control of TB Vectors (M7) - Biosecurity
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of vector control operations completed as specified in the Animal Health Board approved Vector Control Programme, except where prevented by circumstances outside the control of the Animal Health Board, or where the Crown has been notified of any such variation. 100% 93% 100%
Annual period prevalence of infected cattle and deer herds as a % of herds. 0.4 0.3 0.3

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Control of TB Vectors (M7) - Biosecurity
Reference Conditions
  The Animal Health Board will provide ad hoc reports where reasonably required by the Crown in accordance with the vector funding agreement.
The Animal Health Board will facilitate the carrying out of audits of the Board by the Crown for the purpose of verifying the accuracy and completeness of any information provided to the Crown under the vector control funding agreement, or ascertaining compliance with the vector control funding agreement, or the vector management standard.

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Biosecurity
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Non-government organisations          
Animal Health Board
  • Control of TB Vectors
29,739 29,439 30,505 Section 32A report 2015

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Biosecurity
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impact:
New Zealand gains, maintains or improves qualitative market access for its agriculture, food, forestry and related products.
New Zealand's interests in international agricultural trade disputes are protected.
Full and transparent implementation of World Trade Organisation commitments by member countries.
Subscriptions to International Organisations (M7)
Intermediate outcome:
New Zealand's reputation for the consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and/or enhanced. Market access for New Zealand's animal and plant products is maintained and enhanced.

Subscriptions to International Organisations (M7)

Scope of Appropriation

This appropriation is limited to New Zealand's membership of biosecurity related international organisations.

Expenses

Expenses - Subscriptions to International Organisations (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 130 130 330

Reasons for Change in Appropriation

The increase in appropriation is due to the reclassification of expenditure formerly incurred against a departmental output expense appropriation.

Expected Results

Expected Results - Subscriptions to International Organisations (M7) - Biosecurity
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The provision of input to key international forums:      
Percentage of input provided that will meet Ministerial expectations, consultation requirements of international organisations and will be informed by consultation with relevant affected stakeholders. 100% 100% 90-100%

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Biosecurity
Appropriation Reporting Mechanism
Subscriptions to International Organisations Not reported

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

Performance Information for Appropriations Vote Fisheries#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Fisheries and Aquaculture (M32)

ADMINISTERING DEPARTMENT: Ministry of Fisheries

MINISTER RESPONSIBLE FOR MINISTRY OF FISHERIES: Minister of Fisheries and Aquaculture

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

  • a total of over $9 million (8.6% of the Vote) on the provision of advice on the development of policies, standards and guidelines relating to the sustainable and efficient utilisation of New Zealand's fisheries
  • a total of over $94 million (90% of the Vote) to manage the sustainable use of New Zealand's Fisheries, including Operational advice on sustainability, Enforcement and information, and Aquaculture
  • a total of $272,000 (0.3% of the Vote) for the South Pacific Regional Fisheries Management Organisation interim secretariat costs
  • a total of $375,000 (0.4% of the Vote) on contributions to International Organisations
  • a total of $711,000 (0.7% of the Vote) on the provision for non-departmental debt write-offs
  • a total of $24,000 for Quota shares and Annual Catch Entitlement (ACE) administration costs
  • an estimate of $34.300 million Crown Revenue (non tax) from cost recovery levies applied to the commercial fishing sector
  • an estimate of $2.500 million Crown Revenue (non-tax) from deemed values applied to catch in excess of quota
  • an estimate of $150,000 Crown Revenue (non tax) from forfeitures
  • an estimate of $125,000 Crown Revenue (non tax) from infringement notices.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Fisheries
Government Priorities Government Outcomes Appropriations
Grow the New Zealand economy in order to deliver greater prosperity, security and opportunities for all New Zealanders New Zealanders maximising benefits from the use of fisheries within environmental limits Development of Fisheries Policy
Operational advice on sustainability and management controls in fisheries
Fisheries enforcement and monitoring
Aquaculture

Objectives of the Vote

The Government's priority is to grow the economy in order to deliver greater prosperity, security and opportunities for all New Zealanders. Fisheries 2030 is a long term approach that will enable the wider fisheries sector to provide a significant input to the Government's goal.

Fisheries 2030 is about "New Zealanders maximising benefits from the use of fisheries within environmental limits". The Ministry as the Government's principal adviser on fisheries management and provider of services to maintain effective management of New Zealand's fisheries, has identified the principle areas and outcomes in which its activities contribute to the Fisheries 2030 goal.

These outcomes are:

  • Maximise current benefits from the use of fisheries.
  • Maximise future benefits from the use of fisheries.
  • Better manage the adverse impacts of fishing on the aquatic environment.
  • Deliver the Government's fisheries and aquaculture obligations to Maori more effectively.
  • Build increasingly trusted and effective fisheries management.

The Ministry plays an important role in delivering through Vote Fisheries, the outputs designed to achieve the Ministry's own outcomes and those of the wider fisheries sector.

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 84,716 90,704 88,419 95,619 101,925 97,301 103,694 - 103,694 100,690 100,796 100,123
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 5,397 3,652 70,947 41,487 12,032 1,110 - 1,110 1,110 1,110 1,110 1,110
Capital Expenditure - - - 500 5,400 4,500 2,900 - 2,900 2,900 2,900 2,900
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

90,113 94,356 159,366 137,606 119,357 102,911 106,594 1,110 107,704 104,700 104,806 104,133

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 56,825 47,661 44,570 35,834 33,081 33,081 N/A 37,151 37,151 37,151 37,151 37,151
Capital Receipts 11,593 3,605 - - 100 100 N/A 100 100 100 100 100

Total Crown Revenue and Capital Receipts

68,418 51,266 44,570 35,834 33,181 33,181 N/A 37,251 37,251 37,251 37,251 37,251

New Policy Initiatives

Budget Policy Intiatives - Fisheries
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Aquaculture reform Aquaculture - 1,400 1,500 1,700 1,700
Deepwater research plan Operational advice on sustainability and management controls in fisheries - 4,900 4,900 4,900 4,900
Enhanced aquaculture resourcing and law reform Aquaculture - 341 330 357 357

The aquaculture reform initiative is being fully funded from existing resources within the Ministry of Fisheries and a transfer from the Ministry for the Environment.

The deepwater research plan funding will be recovered from the commercial fishing sector under the cost recovery provisions of the Fisheries Act 1996.

Analysis of Significant Trends

The increases in the output expenses appropriations noted in Part 1.3 are explained within the Budget policy initiatives table.

For 2010/11 the Ministry has changed its appropriation structure as noted in Part 1.4 below.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Fisheries
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Departmental Output Expense            
Aquaculture Settlement 775 Transferred to Departmental Multi Class Output Expense: Implementation of Fisheries Policies (775)      
    Transferred from Aquaculture Settlement 775 Departmental Multi Class Output Expense: Implementation of Fisheries Policies 92,297 94,372
    Transferred from Fisheries Compliance 33,709      
    Transferred from Fisheries Information 35,657      
    Transferred from Fisheries Operations 22,156      
Fisheries Compliance 33,709 Transferred to Departmental Multi Class Output Expense: Implementation of Fisheries Policies (33,709)      
Fisheries Information 35,657 Transferred to Departmental Multi Class Output Expense: Implementation of Fisheries Policies (35,657)      
Fisheries Operations 22,156 Transferred to Departmental Multi Class Output Expense: Implementation of Fisheries Policies (22,156)      
Fisheries Policy Advice 9,199 This appropriation has been renamed - Development of Fisheries Policy 9,199 9,050
Total Changes in Appropriations 101,496   -   101,496 103,422

The changes to the Ministry's output class structure for 2010/11 are designed to more appropriately align the Ministry's contribution to Fisheries 2030 sector outcomes. New performance measures developed for 2010/11 do not readily enable comparisons with previous years.

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 - Fisheries
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Maximise current benefits from the use of fisheries Development of fisheries policy
Operational advice on sustainability and management controls in fisheries
Fisheries enforcement and monitoring
Outcome -Maximise future benefits from the use of fisheries Development of fisheries policy
Operational advice on sustainability and management controls in fisheries
Fisheries enforcement and monitoring
Aquaculture
Outcome - Better manage the adverse impacts of fishing on the aquatic environment Development of fisheries policy
Operational advice on sustainability and management controls in fisheries
Fisheries enforcement and monitoring
Aquaculture
Outcome -Deliver the Government's fisheries and aquaculture obligations to Maori more effectively Development of fisheries policy
Operational advice on sustainability and management controls in fisheries
Fisheries enforcement and monitoring
Aquaculture
Outcome - Build increasingly trusted and effective fisheries management Development of fisheries policy
Operational advice on sustainability and management controls in fisheries
Fisheries enforcement and monitoring
Aquaculture

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see the Statement of Intent for the Ministry of Fisheries.

Development of Fisheries Policy (M32)

Scope of Appropriation

This appropriation is limited to advice on the development of policies, standards and guidelines relating to the sustainable and efficient utilisation of New Zealand's fisheries, promotion of New Zealand's interests in an international context and provision of Ministerial servicing.

Expenses and Revenue

Expenses and Revenue - Development of Fisheries Policy (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 9,050
Revenue from Crown - - 8,966
Revenue from Other - - 84

Reasons for Change in Appropriation

This is a new output appropriation with effect from 1 July 2010.

Output Performance Measures and Standards

Output Performance Measures and Standards - Development of Fisheries Policy (M32) - Fisheries
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality of policy advice improved measured through NZIER benchmark - - Improvement when compared to the 2009/10 rating
Provide advice on aquaculture reform to enable the introduction of the aquaculture reform bill in 2010 - - Advice provided such that a Bill is able to be introduced in 2010
Active participation in the work of the Natural Resources Sector Network - - Develop joint discussion paper on marine issues for the NRS by November 2010
Provide input and support related to achieving government's fisheries goals in relation to Treaty settlements and continue to develop the framework for effective delivery of obligations to Maori
Provide input and support related to achieving government's fisheries goals in relation to Treaty settlements
- - Input provided in accordance with Justice Department timeframes
Successful advancement or achievement of New Zealand's policy positions at international, regional and bilateral level (noting that final outcomes are often beyond NZ control) - - Percentage of outcomes where NZ's policy positions have been successfully advanced or achieved
Fisheries governance at a national and sub-regional level is improved through the capacity building initiatives with Pacific Island countries - - Feedback provided by Pacific countries and NZAID indicates a satisfaction rating of at least 90%
Standards progressed as per agreed work programme, including:      
  • research standard completed
- - By 30 June 2011
  • seabird standard completed
- - By 30 June 2011
  • benthic impact standard completed.
- - By 30 June 2011
Work programme of regulations to be reviewed (based on the scan of regulations due to be completed by 30 June 2010) to be provided to the Minister by August 2010 - - 100% of work delivered as per the programme
Responses to Parliamentary questions delivered error free/on time
Responses to Ministerial correspondence delivered error free
Responses to ministerial correspondence delivered within 15 days
100%
100%
95%
100%
100%
95%
100%
100%
95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Development of Fisheries Policy (M32) - Fisheries
Reference Conditions
Quality standards for policy advice  
Purpose The aim or purpose is clearly stated and it answers the questions set
Logic The assumptions behind the advice are explicit, and the argument logical and supported by facts
Accuracy The facts are accurate and all material facts are included
Options An adequate range of options has been presented and the benefits, costs and consequences of each option are clearly outlined
Consultation There is evidence of adequate consultation with government agencies and affected stakeholders and possible objections to proposals/content are identified or addressed
Practicality The problems of implementation, technical feasibility, timing or consistency with other policies/reports have been considered
Presentation The format meets the stipulated requirements; the material is effectively, concisely and clearly presented, has short sentences in plain English and is free of grammatical or spelling errors
Quality management The product quality will be supported by a process that provides for:
  • internal quality assurance and internal peer review
  • consideration of existing policy and strategic direction
  • consistency with relevant legislative obligations
  • directions from the Minister and decisions by the Government

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Development of Fisheries Policy (M32) - Fisheries
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Enhanced aquaculture resourcing and law reform 2009/10 513 350 - - -
Savings 2009/10 (699) (699) (699) (699) (699)
Settlement negotiations capacity 2006/07 150 150 150 150 150
Increase in international policy capability 2005/06 667 667 667 667 667

Implementation of New Zealand Fisheries Policies MCOA (M32)#

Scope of Appropriation

Aquaculture
This output class is limited to implementing, supporting and monitoring the aquaculture strategy.
Fisheries enforcement and monitoring
This output class is limited to informing, assisting, directing and enforcing adherence to New Zealand fisheries laws.
Operational advice on sustainability and management controls in fisheries
This output class is limited to operational advice to the Minister on sustainability and management controls for New Zealand's fisheries.

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes contribute to the management of the sustainable use of New Zealand's Fisheries.

Expenses and Revenue

Expenses and Revenue - Implementation of New Zealand Fisheries Policies MCOA (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 94,372
Aquaculture - - 2,784
Fisheries enforcement and monitoring - - 33,392
Operational advice on sustainability and management controls in fisheries - - 58,196

Revenue from Crown

- - 91,667
Aquaculture - - 2,780
Fisheries enforcement and monitoring - - 32,915
Operational advice on sustainability and management controls in fisheries - - 55,972

Revenue from Other

- - 2,705
Aquaculture - - 4
Fisheries enforcement and monitoring - - 477
Operational advice on sustainability and management controls in fisheries - - 2,224

Reasons for Change in Appropriation

This is a new Multi Class Output Appropriation effective from 1 July 2010. It combines four previous output classes of Fisheries Information, Fisheries Operations, Fisheries Enforcement and Aquaculture Settlement.

Output Performance Measures and Standards

Output Performance Measures and Standards - Implementation of New Zealand Fisheries Policies MCOA (M32) - Fisheries
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
National Fish Plans and Annual Operating Plans fully developed in time to drive services from 1 July 2011, and judged to be effective in prioritising services - - Five Fish Plans and Annual Operating Plans to be developed by 30 June 2011
Advice on sustainability and regulatory measures clearly covers the balancing of use, sustainability and environmental considerations, and contains robust analysis - - Advice meets the conditions of use set out in the Development of Fisheries Policy Advice output expense
Advice on spatial management measures (eg, marine reserves, mataitai reserves, marine protected areas) clearly covers the balancing of use and environmental considerations, and contains robust analysis - - Advice meets the conditions of use set out in the Development of Fisheries Policy Advice output expense
All statutory requirements (public notifications and consultation timeframes) related to decisions on fisheries management measures are met - - 100% delivery
The number of stocks of known status is increasing - - >117
The 10-year research plan for Deep Water fisheries is implemented - - Research plan made operational by 30 June 2011
Catch reporting systems for amateur charter vessels implemented - - Systems operational by 30 June 2011
Improved mechanisms for estimating amateur catch levels developed - - Mechanisms developed by 30 June 2011
Total observer coverage days delivered - - 7,866 +/- 10%
Observed instances where adverse fishing practices are reported - -  
Iwi Fisheries Plans - 80% coverage of NZ by June 2014 - - Finalise framework. Delivery of up to 10 integrated Iwi Fisheries Plans by 30 June 2011
Quota is allocated for new species coming into the quota management system - - New species are approved for introduction by 1 April or 1 October each year as required
Breaches found in commercial vessel inspections      
Breaches found in Licensed Fish Receiver inspections      
Compliance Information Sheets released to commercial fishers - - 10
Stakeholder and public education activities delivered (eg, school visits, public lectures, attendance at local events) - - 3,000
Number of commercial operations commenced - - 25
Percentage of prosecution cases where a prima facie case has been established - - 100%
Breaches found in non-commercial vessel, vehicle and person inspections      

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Implementation of New Zealand Fisheries Policies MCOA (M32) - Fisheries
Reference Conditions
As per the conditions stated in the Development of Fisheries Policy output expense  

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Implementation of New Zealand Fisheries Policies MCOA (M32) - Fisheries
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Aquaculture reform 2010/11 - 1,400 1,500 1,700 1,700
10 year deepwater research plan 2010/11 - 4,900 4,900 4,900 4,900
Enhanced aquaculture resourcing and law reform 2010/11 - 341 330 357 357
Savings 2009/10 (5,358) (5,358) (5,358) (5,358) (5,358)
Increase in Fishery Officer presence 2009/10 726 956 1,281 1,271 1,271
Science research in support of fisheries management: recreational fishing 2009/10 135 568 635 635 635
Amateur charter vessel catch reporting 2009/10 365 265 265 365 365
Increased Observer coverage 2008/09 2,000 3,000 3,000 3,000 3,000
International polar year - census of Antarctic marine life 2007/08 1,000 1,000 - - -
Inshore trawl catch effort form 2007/08 232 232 232 232 232
Increase Ministry baseline for litigation expenses 2007/08 500 500 500 500 500
Environmental certification of New Zealand fisheries 2007/08 1,150 1,150 1,150 1,150 1,150
Illegal, unregulated, unreported fishing 2006/07 100 - - - -
Implement Government's Marine Protected Area Strategy 2006/07 500 500 500 500 500
Development of objectives-based fisheries management 2006/07 1,500 1,500 1,500 1,500 1,500
Improved information on effects of bottom trawling 2006/07 90 90 90 90 90
Implementation of the provisions of the Maori Commercial Aquaculture Settlement Claims Act 2004 2005/06 1,156 1,156 1,156 1,156 1,156
Poaching and black market deterrence 2005/06 2,889 2,889 2,889 2,889 2,889
Increased observer funding 2005/06 2,489 2,667 2,667 2,667 2,667
Participation by recreational fishers in fisheries management 2005/06 222 222 222 222 222
Fiordland marine management 2005/06 382 382 382 382 382
Growth and innovation framework 2005/06 43 43 43 43 43

Interim Secretariat South Pacific Regional Fisheries Management Organisation (M32)#

Scope of Appropriation

This appropriation is limited to administrative support for the interim secretariat of the South Pacific Regional Fisheries Management Organisation.

Expenses and Revenue

Expenses and Revenue - Interim Secretariat South Pacific Regional Fisheries Management Organisation (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 429 429 272
Revenue from Crown 236 236 152
Revenue from Other 193 193 120

Reasons for Change in Appropriation

The change reflects the agreed appropriation levels for this output expense.

Output Performance Measures and Standards

Output Performance Measures and Standards - Interim Secretariat South Pacific Regional Fisheries Management Organisation (M32) - Fisheries
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Collection and management of data received from member states 100% 100% 100%

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 - Fisheries
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Maintain New Zealand's membership of international fisheries organisations such as the Commission for the Conservation of Southern Bluefin Tuna, the Western and Central Pacific Fisheries Commission, and the Convention for the Conservation of Antarctic Marine Living Resources Contributions to International Organisations
Provision for non-departmental write-offs Provision for Write Downs
Administration costs associated with the sale of Crown Quota Shares and Annual Catch Entitlement Quota Shares/ACE Administration Costs
Recognition of negotiated settlements Settlements

Contributions to International Organisations (M32)

Scope of Appropriation

Contributions to such organisations as the Commission for the Conservation of Southern Bluefin Tuna (CCSBT) and the Convention on the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific.

Expenses

Expenses - Contributions to International Organisations (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 375 375 375

Expected Results

Expected Results - Contributions to International Organisations (M32) - Fisheries
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Payment of New Zealand contribution to meet the Crown's obligations to international fisheries organisations 100% 100% 100%

Provision for Write Downs (M32)#

Scope of Appropriation

Provision for non-departmental debt write-offs.

Expenses

Expenses - Provision for Write Downs (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 473 473 711

Reasons for Change in Appropriation

The appropriation for this item is $711,000, but, for 2009/10, $238,000 was reprioritised on a one-off basis to fund deemed value debt adjustment in that year. For 2010/11 the funding has been reinstated at $711,000.

Quota Shares/ACE Administration Costs (M32)#

Scope of Appropriation

Administration costs associated with the sale of Crown Quota Shares and ACE (Annual Catch Entitlement).

Expenses

Expenses - Quota Shares/ACE Administration Costs (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 24 24 24

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Fisheries
Appropriation Reporting Mechanism
Contributions to Internal Organisations Not reported
Provision for Write-Downs Not reported
Quota Shares/ACE Administration Costs Not reported
Settlements Annual report of the Ministry of Fisheries

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

Ministry of Fisheries - Capital Expenditure PLA (M32)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry of Fisheries Capital Expenditure PLA (M32) - Fisheries
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 2,658 1,758 1,400
Intangibles 2,742 2,742 1,500
Other - - -

Total Appropriation

5,400 4,500 2,900
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 2,658 1,758 1,400
Intangibles 2,742 2,742 1,500
Other - - -

Total Appropriation

5,400 4,500 2,900

Reason for Change in Appropriation

The annual approved baseline for the Ministry is $2.900 million. Changes to the appropriation to include the impact of prior year carried forward capital projects are made at Supplementary Estimates time.

Performance Information for Appropriations Vote Food Safety#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Food Safety (M33)

ADMINISTERING DEPARTMENT: Ministry of Agriculture and Forestry

MINISTER RESPONSIBLE FOR MINISTRY OF AGRICULTURE AND FORESTRY: Minister of Agriculture

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

  • a total of over $59 million for justifying and delivering assurances to consumers and overseas authorities regarding food compliance with legislation (primary, secondary and tertiary) and for overseas market access requirements includes approval and registration activities
  • a total of over $4 million for providing information to consumers and industry about food safety and suitability issues and opportunities to enable consumers to make appropriate food choices
  • a total of nearly $7 million for policy advice and legal analysis, advice and decision-making support regarding New Zealand's food regulatory framework and international arrangements
  • a total of over $2 million for the investigation and response management of food related events, complaints and suspected breaches of legislation, and includes the management of responses to food and food related incidents and emergencies
  • a total of nearly $24 million for setting standards relating to the development, implementation, monitoring and review of food safety, suitability and production for industry, developing other tools in conjunction with industry to aid compliance, and accessing scientific evidence in support of those standards, and
  • a total of over $2 million to support New Zealand's participation in joint food standards setting with Australia.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Food Safety
Government Priorities Government Outcomes Appropriations
Improving the Regulatory Regime. Improved safety and suitability of food. Policy Advice, Information, Standards, Assurance, Response.
  Enhanced and sustained commerce and market access. Policy Advice, Standards, Assurance, Response.
Maintaining and enhancing market access. Improved safety and suitability of food. Policy Advice, Information, Standards, Assurance, Response.
  Enhanced and sustained commerce and market access. Policy Advice, Standards, Assurance, Response.
Enhancing the Australia-New Zealand Relationship in respect to food issues. Improved safety and suitability of food. Policy Advice, Information, Standards, Assurance, Response.
  Enhanced and sustained commerce and market access. Policy Advice, Standards, Assurance, Response.
  Consumer food practices and choices that support better health. Policy advice, information, Standards.

 

Objectives of the Vote

The Government's priority is to grow the New Zealand economy to deliver prosperity, security, and opportunities for all New Zealanders. Increasing the success of our export sector is a primary mechanism for growing the New Zealand economy. For domestic and export success, food and food related products are the key commodities. Our reputation and our economic advantage is largely based on safe food backed up by reliable systems. Vote Food Safety seeks to create an environment where food is both safe and suitable, but also supports the necessary regulatory platform for improving New Zealand's economic prosperity.

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 76,580 81,079 89,424 95,358 95,041 92,912 96,113 - 96,113 94,488 94,528 94,528
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - 1,771 1,901 1,787 1,787 - 2,150 2,150 1,945 1,945 1,945
Capital Expenditure - - 2,819 2,589 3,876 3,676 - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

76,580 81,079 94,014 99,848 100,704 98,375 96,113 2,150 98,263 96,433 96,473 96,473

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

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

New Policy Initiatives

Budget Policy Intiatives - Food Safety
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
New Zealand Productivity Commission Policy Advice
Departmental Output Expenses
- (35) (70) (75) (75)
Maintenance of Risk Based Testing of Imported Foods Standards
Departmental Output Expenses
- 350 350 350 350
Increase the Scientific Capability of New Zealand Food Safety Authority Standards
Departmental Output Expenses
- 350 350 350 350
Savings from Wine Testing For Export to Fund Risk Based Testing of Imported Food Standards
Departmental Output Expenses
- (700) (700) (700) (700)
New Output Structure Appropriation movement - Increased Appropriation Assurance
Departmental Output Expenses
- 6,859 6,859 6,859 6,859
  Policy Advice
Departmental Output Expenses
- 130 130 130 130
  Response
Departmental Output Expenses
- 338 338 338 338
New Output Structure Appropriation movement - Decreased Appropriation Systems Audit and Enforcement
Departmental Output Expenses
- (4,564) (4,564) (4,564) (4,564)
  Standards
Departmental Output Expenses
- (4,420) (4,420) (4,420) (4,420)
  Response
Departmental Output Expenses
- 1,657 1,657 1,657 1,657

Analysis of Significant Trends

Total Vote: All Appropriations

The departmental and non-departmental appropriations in Vote Food Safety, which are detailed in the Summary of Financial Activity table above, show the significant changes discussed briefly below.

In 2009/10, there was a decrease in crown funding caused primarily by a combination of a cessation of Domestic Food Review funding and the offering of savings back to the Government. However, this reduction has been partly offset by additional funding received for supporting the implementation of free trade agreements in 2009/10 and 2010/11.

In 2010/11, there is an increase in crown funding due to expenditure related to the expected implementation of the Food Bill, resulting from the Domestic Food Review. This is additional to funding received for further development of import systems and protocols and the continuation of risk-based testing of imported foods. There will also be a small decrease in crown funding for the Codex Committee on Milk and Milk Products, the majority of which work has been completed.

Vote trends in actual expenses and capital expenditure by appropriation type
The Vote trends in actual expenses and capital expenditure by appropriation type chart is a Line chart. Sourced from Ministry of Agriculture and Forestry. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 10 series: Departmental Output Expenses covering the 2005 2006  Actual to 2013 2014  Estimated Financial Year, Borrowing Expenses covering the 2005 2006  Actual to 2005 2006  Actual Financial Year,  covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, Departmental Capital Expenditure covering the 2007 2008  Actual to 2009 2010  Est. Actual Financial Year,  covering the 2005 2006  Actual to 2005 2006  Actual Financial Year,  covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, Other Expenses covering the 2007 2008  Actual to 2013 2014  Estimated Financial Year, Non-Departmental Output Expenses covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, Non-Departmental Capital Expenditure covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, and Benefits and Other Unrequited Expenses covering the 2005 2006  Actual to 2005 2006  Actual Financial Year. The values for the Departmental Output Expenses series are: 2005 2006  Actual 76 million, 2006 2007  Actual 81 million, 2007 2008  Actual 89 million, 2008 2009  Actual 95 million, 2009 2010  Est. Actual 92 million, 2010 2011  Budget 96 million, 2011 2012  Estimated 94 million, 2012 2013  Estimated 94 million, 2013 2014  Estimated 94 million. The values for the Borrowing Expenses series are: 2005 2006  Actual 0 million. The values for the  series are: 2005 2006  Actual 0 million. The values for the Departmental Capital Expenditure series are: 2007 2008  Actual 2 million, 2008 2009  Actual 2 million, 2009 2010  Est. Actual 3 million. The values for the  series are: 2005 2006  Actual 0 million. The values for the  series are: 2005 2006  Actual 0 million. The values for the Other Expenses series are: 2007 2008  Actual 1 million, 2008 2009  Actual 1 million, 2009 2010  Est. Actual 1 million, 2010 2011  Budget 2 million, 2011 2012  Estimated 1 million, 2012 2013  Estimated 1 million, 2013 2014  Estimated 1 million. The values for the Non-Departmental Output Expenses series are: 2005 2006  Actual 0 million. The values for the Non-Departmental Capital Expenditure series are: 2005 2006  Actual 0 million. The values for the Benefits and Other Unrequited Expenses series are: 2005 2006  Actual 0 million.
Source: Ministry of Agriculture and Forestry

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Food Safety
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Output Appropriations for New Zealand Food Safety            
Food Safety Information and Participation 4,020 This appropriation has been renamed - Information 4,020 4,110
Monitoring and Assurance 51,287 This appropriation has been renamed - Assurance 53,856 59,121
  53,863 Transferred from Systems Audit and Enforcement 2,569      
Policy Advice on Food Safety and Suitability 6,412 This appropriation has been renamed - Policy Advice 6,412 6,743
Response to Food Related Emergencies and Events 343 This appropriation has been renamed - Response 2,913 2,328
    Transferred from Systems Audit and Enforcement 2,570      
Standards Setting 27,840 This appropriation has been renamed - Standards 27,840 23,841
Systems Audit and Enforcement 5,139 Transferred to Response (2,570) Response - -
    Transfer to Assurance (2,569) Assurance - -
Total Changes in Appropriations 95,041   -   95,041 96,143

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 - Food Safety
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome
  • Improved Safety and Suitability of Food.
Impacts
  • Domestic producers, importers and exporters know what they must do to produce safe and suitable food and systems and processes are monitored to ensure compliance.
Policy Advice, Information, Standards, Assurance, Response.
Outcome
  • Enhanced and sustained commerce and market access.
Impact
  • There are expanded export opportunities for food producers.
  • New market access standards are challenged and current arrangements are maintained.
  • There are expanded export opportunities for food producers.
Policy Advice, Standards, Assurance, Response.
Outcome
  • Consumer food practices and choices that support better health.
Impact
  • Food labelling is sufficient to support healthier and safe food decisions.
  • Science-based and authoritative information is provided to the public.
Policy Advice, Information, Standards.

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see the Statement of Intent for Ministry of Agriculture and Forestry (following amalgamation of New Zealand Food Safety Authority).

Assurance (M33)

Scope of Appropriation

This appropriation is limited to justifying and delivering assurances to consumers, the public, overseas authorities and other stakeholders that food, food-related products and inputs into the production of food (whether undertaken or produced in New Zealand or imported) are managed, audited, approved, registered and/or monitored in accordance with New Zealand legislation and, for exports, relevant importing countries' market access requirements.

Expenses and Revenue

Expenses and Revenue - Assurance (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 51,287 50,467 59,121
Revenue from Crown 2,051 2,051 3,843
Revenue from Other 51,695 49,842 57,430

Reasons for Change in Appropriation

The current Output Class structure has been changed and output class descriptions amended to create more accurate and homogenous output classes. This has resulted in Crown and other revenue moving from output classes Standards and Response to output class Assurance.

Output Performance Measures and Standards

Output Performance Measures and Standards - Assurance (M33) - Food Safety
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The NZFSA Verification Agency (NZFSAVA) is a department within NZFSA, responsible for providing certification and verification services for domestic and export food premises. It is largely funded through revenue from industry.
OUTPUT Certification Services
Issue eligibility documents and export certificates:
The provision of certification of food produced according to domestic and overseas market access requirements is essential for providing assurances and demonstrating to the consumer and overseas authorities that the food is safe and suitable and meets all relevant regulatory requirements. Top performance levels for certifiers indicates that the certifier is consistently approving accurate certificates (including eligibility documents) as assessed by certification audits.
     
The certification audits measure the number of errors missed by the certifier prior to approving.
  • NZFSAVA certifiers operating at the top performance levels.
90% 93% Quality-timeliness: 94% by 2011
Maintain >95% by 2013
Timely certification ensures that product is able to be released for export as soon as possible to minimise any unnecessary financial pressures on the exporter.
  • Eligibility documents or export certificates, submitted by registered exporters, that are processed within 24 hours.
90% 93% Quality-timeliness:
2010/11 93%
2011/12 94%
2012/13 95%
2013+ Maintain 95% or greater
OUTPUT Verification Services
Maintain Quality Assurance:
     
NZFSAVA is audited annually by International Accreditation New Zealand (IANZ) against AS/NZS ISO/IEC 17020 requirements. IANZ assesses NZFSAVA's ability and capability to provide its services while meeting all relevant legislative requirements.
  • Annual IANZ accreditation to AS/NZS ISO/IEC 17020 standard.
Maintain Maintained Quality-timeliness:
Maintain
A Corrective Action Request (CAR) is a significant non-compliance found by the IANZ auditors.
  • IANZ Corrective Action Requests per audit.
Maximum one Nil Quality:
Maximum one
Corrective Action Requests closed out:
Overseas authorities audit NZFSAVA verification and certification programmes to ensure that domestic and overseas market access requirements are being complied with.
     
Corrective Action Requests indicate significant non-compliances found during the audit regarding a NZFSAVA non-compliance.
  • Corrective Action Requests initiated by overseas authorities per audit
n/a Nil Quality:
One or less
  • Corrective Action Requests, initiated by overseas reviewers, closed out within a year of issue.
n/a n/a Quality-timeliness:
All
Close-out of non-compliances:
NZFSAVA and compliance auditors audit export food premises under the Animal Products Act 1999.
     
Where NZFSAVA and compliance auditors find significant non-compliances during an audit of an export food premises, it is essential that the non-compliance is minimised through the timely and effective correction of issues. This works to ensure that food safety issues are minimised in nature through the containment and corrective actions that are carried out.
  • Percentage of issues, identified at verification and internal audits, closed out within agreed timeframes.
n/a Not measured Quality-timeliness:
>90%
Pass rate for USDA and EU FVO audits:
The US and EU are two of our largest animal product export markets. The US (USDA) and EU FVO audits measure New Zealand export premises ability to produce export products while maintaining overseas market access requirements.
A small proportion of premises are audited per visit, and premises are delisted where there are significant non-compliances found that may impact on food safety/suitability. Although this is not strictly a Verification Agency output measure, it does provide an indication of the quality of verification services provided by NZFSAVA.
     
  • Pass rate for USDA audits in 2010 and 2012 with nil premises being delisted due to NZFSAVA shortcomings.
n/a 2008- 100%
2009 - nil audits
Quality-timeliness:
Maintain 100%
  • Pass rate for EU FVO audits with nil premises being delisted due to NZFSAVA shortcomings.
n/a 2008- 100%
2009 - nil audits
Quality-timeliness:
Maintain 100%
Cost-effectiveness of department:
A cost-effectiveness review of NZFSAVA was completed in 2009. As NZFSAVA employs approximately 55% of all NZFSA staff, it was targeted as the department most obviously needing to prove its cost-effectiveness regarding its service delivery. The audit identified a number of measures and standards which NZFSAVA could use to continue to monitor its delivery of front-line services. These measures have also been included in the Statement of Intent to demonstrate our cost-effectiveness.
Another important measurement regarding cost-efficiency and effectiveness is that of real red-meat expenditure per export red-meat plant. Although NZFSAVA cannot control red-meat and/or seafood volume, and therefore not control expenditure per volume of meat exported, it can ensure that real costs remain relatively stable when measured against the plant itself. This however may alter depending on the number of shifts and therefore number of vets needed to service the plant. As the real 2009/10 figures were already approx 5.5% below that of 08/09 and 17.4% below that of 04/05, VA are not envisaging a decrease in per plant costs, but maintaining the real costs within +/- 5% of 09/10 levels. NZFSAVA was also considered (by external audit) to be cost-effective regarding its expenditure per seafood plant and was also praised for significantly decreasing its real costs/store. NZFSAVA will aim to maintain these efficiencies.
     
Expenditure growth of NZFSAVA to match that of Gross Domestic Product (GDP). Although this is not a completely accurate output measure, as GDP is dependent on many variables, this has been included here as a rough guide to measure NZFSAVA's real expenditure against that of real activity in the economy in general.
  • NZFSAVA real expenditure measured against Gross Domestic Product real growth.
n/a 2003-2009 - real expenditure 7% below GDP real growth. Baseline is 2009 levels Cost(Quantity/Quality):
remaining within +/- 5% of baseline annually
  • Total real costs/export red-meat premises/shift as measured against 2009/10 baseline.
n/a $414.4 thousand Cost(Quantity/Quality):
remaining within +/- 5% of baseline annually
  • Total real costs/Seafood premises as measured against 2009/10 baseline.
n/a $12.28 thousand Cost(Quantity/Quality):
remaining within +/-5% of baseline annually
  • Total real costs/Store as measured against 2009/10 baseline.
n/a $15 thousand Cost(Quantity/Quality):
remaining within +/-5% of baseline annually
The NZFSAVA will Initiate new cost efficiency output measures, including baseline and future performance targets, in 2010. Trends in these variables will be combined with other cost-effectiveness measurements to provide a longer time series for analysis. Although these measurements may not be directly attributable to our outputs, due to external circumstances outside of our control (such as rising/decreasing IT platform costs), the joint sum of all variables will allow NZFSAVA to effectively trend and control cost, and so have been included here. These standards include: real remuneration/Full Time Employee (FTA); real other directly controllable expenditure/FTE; real overheads and IT expenditure/FTE; and, total real expenditure/FTE.
  • Completion of additional cost efficiency measures trial.
n/a Not measured Timeliness:
By 2010/11
OUTPUT Imports Clearance
Imports clearance capacity:
Being able to efficiently clear imported food is crucial for maximising potential earning capacity for importers. Clearing imported food in a timely manner is an important standard for measuring this activity. Clearance is currently undertaken by the Auckland Clearance House, and is a function which was taken over by NZFSAVA in 2009.
     
  • Percentage of non-electronic permits processed within 48 hour clearance turnaround time (for electronic permits, the turnaround time shall be 24 hours).
n/a 96% Quality-timeliness:
98% by 2011
99% by 2012
Maintain >99% by 2013
  • Percentage of prescribed foods sampled within 3 days, once confirmation received.
n/a Not measured Quality-timeliness:
90%
OUTPUT Monitor Compliance
Conduct Audits (Compliance Monitoring Capacity):
NZFSA can measure the capacity to carry out and complete monitoring requirements through the ability to complete a certain indicative proportion of audits each year. Actual demands vary each year, which has led to a change in standard for the 2010/11 time-frame to better measure our capacity for completing audits of food sectors and food businesses based on priority, rather than size and/or complexity. Priority is assessed in terms of the potential level of food safety and suitability effects on human health or the level of risk to our trade.
     
  • Percentage of all high priority external audits completed within the prescribed schedule time-frames.
n/a Not measured Quantity-timeliness:
100%
  • Percentage of all medium priority external audits completed within the prescribed schedule time-frames.
n/a Not measured Quantity-timeliness:
80%
OUTPUT Issue Approvals
Process approvals, registrations, accreditations, appointments and applications under all NZFSA administered legislation:
Applications received need to be processed accurately and in accordance with legislative and internal policy time-frames. Accuracy and timeliness of approvals are important measures, since both have an impact on facilitation of operators in their food businesses.
     
  • Percentage of correctly completed applications for routine administrative approvals that are processed within the appropriate legislative or internal policy time-frames. This is measured by the internal monthly self-assessment procedures, timeliness monitoring and dashboard reporting.
A system for tracking applications was set up in the 2nd quarter 2009/10 to improve timeliness of application approval.
95% 99.5% for ACVM applications and 88% for all others Quality-timeliness:
>99.5% for ACVM for all years
90% for all others by 2011
95% for all others by 2012
97% for all others by 2013
Accuracy of approvals minimises both the causes of foodborne illnesses and denial of overseas market access of products being directly attributable to an inadequate approval tool or process. Accuracy includes the correct: approval type, fee amount, period of approval, legislative empowerment, decision making criteria, delegated authority and peer review procedures.
  • Applications for registrations and approvals that are processed accurately as measured by the internal monthly self-assessment procedures.
100% 98% Quality-timeliness:
99% by 2011
100% by 2012
Availability of public registers for approvals/registrations/accreditations/appointments under NZFSA administered legislation:
The ability for the public to access up-to-date information on approvals is a requirement under some of NZFSA administered legislation. NZFSA makes this available via the public website and is sourced directly from our approvals management databases.
     
  • Availability of publicly available registers and lists as measured by monthly monitoring and reporting.
99.5% 96.7% Quality-timeliness:
97% by 2011
98% by 2012
99% by 2013
Monitor events associated with the use of ACVMs:
From time to time adverse events are recorded by registrants of ACVMs and they are required to report these to NZFSA as condition of registration (they are also required to report on those events arising from exempt ACVMs).
     
Percentage of adverse events associated with ACVMs, reported to NZFSA, that are recorded in a register and investigated, with follow-up action taken being appropriate to the scale of the event. This is measured by internal self assessment and Good Manufacturing Practice audits for New Zealand manufacturers. n/a 99% Quality-timeliness:
100% by 2011
Maintain 100% 2012+

Memorandum Account

Memorandum Account - Assurance (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Verification of the Food Regulatory Programme

     
Opening Balance at 1 July (8,754) (8,754) (7,854)
Revenue 39,200 37,500 38,500
Expenses (37,100) (36,600) (35,100)
Transfers and Adjustments - - -
Closing Balance at 30 June (6,544) (7,854) (4,454)

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Assurance (M33) - Food Safety
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
New Output Structure Appropriation Movement - Increased Appropriation 2010/11 - 6,859 6,859 6,859 6,859
Reduction in Contracts with Health Boards 2009/10 (150) - - - -

Previous Government

           
NZFSA Contractual and Treaty Obligations 2008/09 126 126 126 126 126
Staff Remuneration 2007/08 35 42 42 42 42
Population Based Funding Arrangements for PHU and ESR Contracts 2006/07 105 105 105 105 105
Alignment of NZFSA Public Health Unit and ESR Ltd Contracts 2005/06 148 148 148 148 148

Information (M33)#

Scope of Appropriation

This appropriation is limited to engagement of and information for stakeholders about food safety and suitability, to encourage participation in, and compliance with, the food regulatory programme, and to enable consumers to make appropriate food choices.

Expenses and Revenue

Expenses and Revenue - Information (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,020 3,813 4,110
Revenue from Crown 3,531 3,531 3,427
Revenue from Other 496 447 690

Reasons for Change in Appropriation

The current Output Class structure has been changed and output class descriptions amended to create more accurate and homogenous output classes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Information (M33) - Food Safety
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
OUTPUT Respond to enquiries
Response to calls and emails to NZFSA helpline:
The helpline is NZFSA's main point of contact with consumers across New Zealand. This is a frontline service and is our primary point of contact with consumers with food safety concerns or complaints for investigation. The helpline provides public access to the department's activities and builds consumer trust and confidence in the New Zealand food supply. The service also provides a central point of contact for industry, helping businesses meet domestic and overseas market requirements.
     
  • Number of emails that we have the capacity to respond to annually.
2,500-4,000 4,000 Quantity:
3,500-4,500
  • Number of phone calls that we have the capacity to respond to annually.
3,000-5,000 3,500 Quantity:
3,500-5,000
  • Phone calls responded to within one working day.
90% 92% Quality-timeliness:
93% by 2011
94% by 2012
95% by 2013
  • Emails responded to within five working days.
95% 96% Quality-timeliness:
97% by 2011
Maintain >97% by 2013
Response to enquiries from the media:
The media is a prime conduit for information to New Zealand consumers. Issues of concern to media reflect consumer concerns and have ability to impact on New Zealand's international reputation and access to markets. It is vital that the media is provided with relevant, rapid and reliable information that meets their deadlines and addresses the concerns of New Zealanders.
     
  • Media queries responded to with accurate information.
90% 100% Quality-timeliness:
maintain 100%
  • Media enquiries responded to within 24 hours.
90% 99% Quality-timeliness:
maintain >99%
OUTPUT Develop, review and place information
Revise and reissue targeted information when and where users need it:
This performance measure gauges the provision and effectiveness of food safety and suitability information provided to consumers and industry stakeholders. After a review of NZFSA's publications, a decision was taken in 2010 to cease our quarterly publication. Instead there will be more targeted placement of articles and advertising as required in relevant media.
Other outputs will also be reviewed, including industry communications.
Consumer messaging has been revised including an updated television campaign.
     
The effectiveness of consumer messaging will be assessed by a survey of the target audience.
  • Percentage of target audience that surveys indicate information is relevant and useful to.
n/a Not measured Quality-timeliness:
75%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Information (M33) - Food Safety
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Implementation of Food Reviews 2009/10 (500) - - - -

Previous Government

           
Staff Remuneration 2007/08 224 276 276 276 276
Transfer from Vote Health to Vote Food Safety 2006/07 40 40 40 40 40

Policy Advice (M33)#

Scope of Appropriation

This appropriation is limited to analysis, policy, strategic and legal advice and decision making support relating to domestic and international arrangements concerning food safety, food suitability, enforcement, inputs related to food production and ministerial services.

Expenses and Revenue

Expenses and Revenue - Policy Advice (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,412 6,252 6,708
Revenue from Crown 6,358 6,358 6,687
Revenue from Other 148 42 115

Reasons for Change in Appropriation

The current Output Class structure has been changed and output class descriptions amended to create more accurate and homogenous output classes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice (M33) - Food Safety
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
OUTPUT - Policy and legal advice to support changes to the regulatory framework
Policy and legal advice:
The Policy Group is required to provide high quality, timely and accurate policy and legal advice within all relevant areas of NZFSA's area of responsibility and accountability. Standards that are used to measure against this requirement relate to the: timeliness of advice; quality of advice; and, ability of the advice to follow good/best practice.
Performance indicators to be reassessed after the cost-effectiveness review in 2012/13.
     
  • Percentage of cabinet papers submitted to Cabinet Committee by due date.
n/a 90% Quality-timeliness:
95% by 2011
96% by 2012
97% by 2013
  • Number of reviews that indicate good quality policy when compared with best practice, as indicated by feedback from Treasury Regulatory Impact Analysis Group, feedback from Officials' Committees on quality of Cabinet papers, and internal peer reviews.
all all Quality-timeliness:
all
Of particular relevance to our regulatory impact, the New Zealand Institute of Economic Research (NZIER) takes a sample of policy, and measures the quality of the policy advice. The rating for 2009/10 was 'adequate' in terms of NZIER scoring. The Policy Group will be aiming for an improved rating in 2010/11.
  • NZIER external reviews of Regulatory Impact Analysis adequacy. NZIER external reviews of Regulatory Impact Analysis adequacy.
n/a 6.5 (adequate) Quality-timeliness:
7 by 2011
7.2 by 2012
7.5 by 2013
  • Percentage of regulations which the Review Committee considers follows good practice and that are not brought to the attention of the House in accordance with Standing Orders.
100% 100% Quality-timeliness:
100%
OUTPUT Review cost-recovered fees, levies and charges
Review fees, levies and charges:
The Policy Group annually reviews the current level of fees, charges and levies applied by NZFSA to industry. The standards measure the robustness of the methodologies used to determine our final outputs of effective, efficient and justifiable fees, levies and charges.
     
  • Charging methodology that is consistent with legislative, Treasury and Audit Office guidelines.
n/a 95% Quality:
100%
  • Percentage of fees, charges and levies set for 2010/11 that have the correct charging methodology applied.
n/a 100% Quality-timeliness
100%
OUTPUT Ministerial Services
Provide replies to Official Information Act requests:
NZFSA is tasked with providing replies to OIA requests.
Responding to OIA requests is demand driven, and therefore the standard measures our capacity to reply to the estimated number of OIA requests. These requests are also expected to be timely and meet legislative requirements.
     
  • Number of OIA requests that we have the capacity to reply to.
n/a 68 Quantity:
65-75
  • Percentage which meet legislative requirements.
n/a 100% Quality:
100%
  • Percentage of OIA requests answered within 20 working days of receipt.
100% 93% Quality-timeliness:
95% by 2011
97% by 2012
99% by 2013
Policy advice to the Minister:
NZIER is used by NZFSA to provide strategic and essential policy quality advice. The measure assesses the Policy Group's ability to improve on past performances pertaining to our policy advice to the Minister. The 2009 review indicated that NZFSA services placed us in the average range for quality Ministerial advice when compared against 11 other agencies. We aim to be in the "good to excellent" range of 7.5-7.8 in the next few years.
     
  • NZIER policy advice quality review score.
n/a 7.2 Quality-timeliness:
7.5 by 2011
7.8 by 2012

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice (M33) - Food Safety
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
New Zealand Productivity Commission 2010/11 - (35) (70) (75) (75)
New Output Structure Appropriation Movement - Increased Appropriation 2010/11 - 130 130 130 130

Previous Government

           
Identity Verification Service : Adjustments to Department Levy Contributions and Impact on Departmental Appropriations 2008/09 (8) - - - -
Staff Remuneration 2007/08 341 417 417 417 417

Response (M33)#

Scope of Appropriation

This appropriation is limited to the investigation of, preparedness for, and response to, food related events, incidents, emergencies, complaints and suspected breaches of legislation and taking appropriate sanctions and enforcement action.

Expenses and Revenue

Expenses and Revenue - Response (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 343 327 2,333
Revenue from Crown 331 331 2,302
Revenue from Other 12 5 31

Reasons for Change in Appropriation

The current Output Class structure has been changed and output class descriptions amended to create more accurate and homogenous output classes. The new Response output class combines the previous output classes Systems Audit and Enforcement and Food Safety Response.

Output Performance Measures and Standards

Output Performance Measures and Standards - Response (M33) - Food Safety
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
OUTPUT Respond to Consumer Complaints
Internal and external response to customer complaints:
NZFSA responds to complaints from a variety of sources including public health units, our 0800 and email help-lines.
Agreed procedures include the relevant sections of the Food Administration Manual, the Operational Response Manual and Information Leader process documentation.
     
When responding to complaints, NZFSA is required to meet agreed procedures, policies and work within agreed legal powers. NZFSA prioritises the level of response, and ensures that the priority system is applied in accordance with Operational Response and Enforcement policies. The priority system allocates a high, medium or low priority on incoming complaints that dictates the subsequent direction and timeframes within which the complaint is responded to.
  • Percentage of incidents responded to in accordance with agreed procedures and legal powers, recorded on Information Leader and prioritised.
n/a 97% Quality-timeliness:
98% by 2011
99% by 2012
100% by 2013
Having all complaints go through the priority system correctly is pivotal to ensuring that the correct response is made, by the right people, and within appropriate timeframes.
  • Percentage of complaints that correctly go through the priority system.
n/a 97% Quality-timeliness:
98% by 2011
99% by 2012
100% by 2013
OUTPUT Investigate alleged breaches
Lawfulness and timeliness of responses and sanctions:
Responses to investigations and sanction application must be carried out according to legal requirements and must be accurate and timely in order to be considered just and fair. These measures are specific to the Compliance and Investigation Group within NZFSA.
     
  • Percentage of investigations conducted in accordance with internal standards (best practice) for investigation.
n/a 99% Quality-timeliness:
100%
  • Percentage of sanctions and enforcement actions which are placed according to timeframes set down in relevant policies, and that have been conducted within the powers and delegations allowed for under the Acts NZFSA administer.
100% 99% Quality-timeliness:
100%
OUTPUT Prepare for emergencies and events
Review of systems and post-event response:
Accurate and sound systems are essential for limiting the impact of events that pose a threat to human health, trade or to the integrity of the New Zealand food safety programmes.
This standard in 2009/10 measured the quality of the system to ensure that it continued to represent best practice and was consistent with the New Zealand Government's Emergency Management programme.
     
This standard will compare the System against the New Zealand Interagency Emergency Response Co-ordination system by 2011 to identify any discrepancies, and update as needed.
  • System compared and reviewed.
n/a Completed 2009 Quality-timeliness:
by end of 2011 with subsequent reviews each year
OUTPUT Manage emergencies and events
Respond to food safety incidents:
Where a food or food related incident has the potential to impact on human health, it is imperative that NZFSA handles the incident in a systematic and timely manner to reduce the impact.
A food safety incident refers to the contamination or inherent risk associated with a food or food-related substance. It also can refer to the presence of an exotic-disease within New Zealand which may impact on food safety and trade.
     
  • Percentage of responses that are initiated within 6 hours of notification.
100% 97% Quality-timeliness:
99% by 2011
100% by 2012

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Response (M33) - Food Safety
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
New Output Structure Appropriation Movement - Increased Appropriation 2010/11 - 338 338 338 338
New Output Structure Appropriation Movement - Decreased Appropriation 2010/11 - 1,657 1,657 1,657 1,657

Standards (M33)#

Scope of Appropriation

This appropriation is limited to the scientific inputs and development and implementation of food related standards (including as appropriate international and joint Australia/New Zealand standards) and standards related to inputs into food production, imports, exports, new and emerging issues and the domestic market.

Expenses and Revenue

Expenses and Revenue - Standards (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 27,840 27,343 23,841
Revenue from Crown 16,676 16,676 16,358
Revenue from Other 11,578 10,608 8,356

Reasons for Change in Appropriation

The current Output Class structure has been changed and output class descriptions amended to create more accurate and homogenous output classes. This has resulted in Crown and other revenue moving from output classes Standards and Response to output class Assurance.

Output Performance Measures and Standards

Output Performance Measures and Standards - Standards (M33) - Food Safety
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
OUTPUT Science based standards and non-regulatory tools to support and drive industry compliance
Imported foods standards and guidance:
NZFSA facilitates clearance of low and high regulatory interest imported food. NZFSA is moving towards recognising systems and programme's operating in exporting countries as one means of being confident that the food has been produced under controlled conditions, assuring food safety is achieved at import. Part of this work includes appropriately categorising imported foods into low and high regulatory interest. Foods with high regulatory interest are considered to contain 'food safety and suitability risks' that need regulatory control.
     
  • High-risk foods categorised and work programmes initiated for high-risk foods for system and programme recognition.
n/a 8 Quantity:
4
  • Development and application of an import risk assessment (science and risk-based) for each high regulatory interest food, with subsequent recommendations for import risk management.
n/a n/a Quality-timeliness:
By 2011
  • Existing imported food requirements, to be revoked that are not supported by high regulatory interest categorisation, removing routine clearance intervention requirements.
n/a n/a Quality-timeliness:
within 2 months of completion of a valid import risk assessment
Labelling standards and guidance:
Baseline data will be collected to allow measures/standards to be developed regarding how well due diligence is applied during the development of food labels. Improving the way labels are developed will improve the level of consumer access to information on labels by ensuring they are consistent with regulation and in line with sound and accurate scientific and safety elements.
     
  • Industry compliance of scientific and risk-based labelling requirements, and
  • Consumer awareness and use of labelling advice, allowing decisions to be made for personal food safety, suitability and health decisions.
n/a n/a Quantity/Quality/Timeliness:
Baseline data to be established by 2011
Voluntary Implementation Programme (VIP):
The VIP was developed by NZFSA due to unexpected delays with the passage of the Food Bill, and commenced on 1 August 2008. The programme implements the proposed regulatory regime among food service (restaurants, cafes, bars, take-aways) as far as possible under the Food Act 1981. This has been made possible through the support of staff from Territorial Authorities. VIP is an implementation test of Food Bill proposals and concepts in a small business context.
     
We aim to implement VIP in all territorial authorities and increase the number of business voluntary undertaking the VIP.
  • Number of businesses voluntarily implementing the proposed regulatory regime.
n/a 1,500 (approx) Quantity-timeliness:
Increase of 750 per annum
The audit standard gives guidance on whether or not the templates are understandable, tailored for the correct food sector and whether critical food safety issues remain unresolved. The audit findings will then input into the annual review of the templates.
  • Percentage of registered VIP businesses that have a satisfactory audit within 6 months.
n/a 95% Quality-timeliness:
95%
National programme development under the new Food Act:
One of the main risk measures to be established is the national programme. It is proposed that a 'national programme' will be the predominant risk management measure under the new Food Act. The national programme(s) will be expected to manage compliance costs within the domestic sector, while concurrently addressing the risk aspects of food processing. The standards address the need for adequate food safety and suitability hazards and hazard control identification, and measures the time-frame for this identification.
     
  • National programme pilot developed and implemented.
n/a n/a Quality-timeliness:
One sector national programme by 2010/11
Two sector national programmes by 2011/12
  • Percentage of national programme development time-frames met.
  • All target time-frames to be finalised once the new Food Act has been passed.
n/a n/a Quality-timeliness:
95% by 2011
97% by 2012
99% by 2013
  • Completion of survey on user awareness, understanding and industry acceptance.
n/a n/a Quality-timeliness:
By 2012
Monitor food safety through National Monitoring Programmes:
NZFSA annually monitors food safety elements of food and food products. Each day samples are collected and analyses are performed in laboratories across the country. This monitoring then tests our ability to provide accurate and timely information for notification and investigation where aberrant results are found, leading to minimisation of potential harm to consumers and overseas trade. Monitoring information includes residue monitoring reports, National Microbiological Database (NMD) quarterly profiles and the results from contracted laboratories.
     
  • Percentage of reports prepared on-time with nil numerical errors post release/per report.
n/a 98% Quality-timeliness:
98% by 2011
99% by 2012
100% by 2013
OUTPUT Develop and implement standards for emerging issues
Response to market access/certification requirements:
As overseas markets require new or amended market access requirements for our food exports, NZFSA is tasked with disseminating this information to industry. This standard is proposed around the ability of the NZFSA's market access group to disseminate information which is timely, accurate and understandable, as measured through industry survey. The survey will then be used to improve the quality of information that is disseminated to industry.
     
  • Development and implementation of survey for market access information.
n/a n/a Quality-timeliness:
By 2011
Repeated 2012
Free Trade Agreement and Closer Economic Partnership negotiations and implementation:
Free Trade Agreements (FTAs) and Closer Economic Partnerships (CEPs) allow New Zealand's voice to be heard by its trading partners and provide a framework for ongoing trade cooperation. They identify who we need to talk to on the rules affecting trade in food. They allow both parties to describe exactly what they understand or mean by 'equivalence' and record mutually agreed rules relating to food safety and animal or plant health. The aim is to provide transparency and commercial certainty.
     
  • Number of FTAs/CEPs negotiated and implemented.
n/a FTAs/CEPs negotiated and/or implemented with 6 countries including China Quality-timeliness:
Negotiate, finalise and/or implement FTAs/CEPs with 23 countries by 2010/11, including; China, Thailand, ASEAN, Malaysia, Gulf Cooperation Council, Chile, Singapore and Brunei
OUTPUT Contribute to Joint Food Standards setting
Refer to non-departmental output for measures.
   

Memorandum Account

Memorandum Account - Standards (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Approvals, Accreditations and Registrations

     
Opening Balance at 1 July 764 764 604
Revenue 3,498 3,528 3,500
Expenses (3,711) (3,688) (3,700)
Transfers and Adjustments - - -
Closing Balance at 30 June 551 604 404

Standards Setting for the Food Industry

     
Opening Balance at 1 July 3,386 3,386 3,153
Revenue 16,456 17,276 16,115
Expenses (17,799) (17,509) (17,262)
Transfers and Adjustments - - -
Closing Balance at 30 June 2,043 3,153 2,006

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Standards (M33) - Food Safety
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Increase the Scientific capability of New Zealand Food Safety Authority 2010/11 - 350 350 350 350
Maintenance of Risk Based Testing of Imported Foods 2010/11 - 350 350 350 350
Savings from Wine Testing for Export to Fund Risk Based Testing of Imported Food 2010/11 - (700) (700) (700) (700)
New Output Structure Appropriation Movement - Decreased Appropriation 2010/11 - (4,420) (4,420) (4,420) (4,420)
Inter Agency Resource Needs for Trade Agreements 2009/10 1,000 (1,000) - - -
Savings - Random Testing of Imported Foods 2009/10 (475) (175) (175) - -

Previous Government

           
Identity Verification Service : Adjustment to Department Levy Contributions and Impact on Departmental Appropriations 2008/09 (70) - - - -
NZFSA Contractual and Treaty Obligations 2008/09 141 141 141 141 141
Mid-cycle New Zealand Total Diet Survey 2008/09 300 - - - -
Staff Remuneration 2007/08 1,611 1,965 1,965 1,965 1,965
Establishment of NZFSA as a Standalone Department 2007/08 130 130 130 130 130
Funding for Wine Export Certification and Testing 2006/07 1,985 1,985 1,985 1,985 1,985
Population Based funding arrangements for Public Health Units and Institute of Environmental Science and Research Ltd Contracts 2006/07 120 120 120 120 120
Transfer from Vote Health to Vote Food Safety 2006/07 360 360 360 360 360
New Zealand Manufactured Food Database 2006/07 100 100 100 100 100

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 - Food Safety
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcomes: Improved safety and suitability of food, enhanced and sustained commerce and market access and consumer food practices and choices that support better health. New Zealand and Australian Joint Food Standards Setting Treaty.

Note - For further information on the intended impacts, outcomes and objectives of the non-departmental output expenses appropriation please see the Statement of Intent for Ministry of Agriculture and Forestry (following amalgamation of New Zealand Food Safety Authority).

Joint Food Standards Setting Treaty (NDOC) (M33)

Scope of Appropriation

This appropriation is limited to the development of joint food standards, codes of practice, and guidance material for Australia and New Zealand by Food Standards Australia New Zealand in accordance with the Joint Food Standards Setting Treaty.

Expenses

Expenses - Joint Food Standards Setting Treaty (NDOC) (M33) - Food Safety
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,787 1,787 2,150

Reasons for Change in Appropriation

The increase in appropriation is due to the Authority re-negotiating its contract with Food Standards Australia and New Zealand (FSANZ), as part of the agreement between the Government of Australia and New Zealand concerning joint food standards.

Expected Results

Expected Results - Joint Food Standards Setting Treaty (NDOC) (M33) - Food Safety
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Completion of Ministerial Council Responses:
Ministerial Council members are required to respond to FSANZ notification of proposed changes to the Food Standards Code within 60 days. The response process involves briefing the Minister on the proposal changes and recommending a New Zealand response.
     
  • Percentage of annual work programme completed within agreed time-frames.
100% 100% Quality- timeliness:
100%
  • Percentage of joint-food standards applications and/or proposals that are responded to within agreed timeframes established by FSANZ.
n/a 100% Quality- timeliness:
100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Joint Food Standards Setting Treaty (NDOC) (M33) - Food Safety
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government:            
NZFSA Contractual and Treaty Obligations 2008/09 77 77 77 77 77
Joint Australia and New Zealand Food Standard Setting Treaty 2007/08 500 500 500 500 500

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Food Safety
Appropriation Reporting Mechanism
New Zealand and Australian Joint Food Standards Setting Treaty. Section 32A report prepared by the Minister of Food Safety.

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

Performance Information for Appropriations Vote Lands#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Land Information (M44)

ADMINISTERING DEPARTMENT: Land Information New Zealand

MINISTER RESPONSIBLE FOR LAND INFORMATION NEW ZEALAND: Minister for Land Information

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

  • a total of just over $2.800 million for policy advice about land information
  • a total of over $8.300 million for standards and quality assurance for the regulation of (i) Crown property management, acquisition and disposal; (ii) property valuation for rating purposes; (iii) the collection, authorisation, management and dissemination of information associated with the lands rights register, geodetic and cadastral survey reference systems, and topographic and hydrographic information systems
  • a total of just under $2.600 million for provision of advice and decisions regarding overseas investment in New Zealand
  • a total of just over $68 million for services associated with the collection, authorisation, management and dissemination of land information
  • a total of just over $18 million for the delivery of Crown property management, acquisition and disposal services
  • a total of under $800,000 for the administration of the New Zealand Geographic Board
  • a total of $500,000 for remedial work on Crown and private land and property
  • a total of just under $43 million on other expenses to be incurred by the Crown, including (i) a total of $39 million to pay Transit New Zealand the equivalent of what the Crown has received from the sales of Transit properties; (ii) a total of just over $1 million for the payment of rates on Crown-owned land; (iii) a total of almost $1 million for the investigation and resolution of land related liabilities administered by the department; and (iv) other expenses including the loss on disposal of properties arising from Crown obligations, management of Crown forest properties, bad and doubtful debts, depreciation of buildings on Crown land, and the payment of leasehold liabilities on residual surplus government accommodation administered by the Department
  • a total of just under $800,000 for Crown capital expenditure for the purchase of properties to meet Crown obligations
  • a total of $2.700 million for departmental capital expenditure on property, plant, equipment and intangible assets, and
  • a total of just over $23 million for capital expenditure on the acquisition of lessees' interests in pastoral leases (through a multi-year appropriation) as well as the acquisition of properties arising from Crown obligations.

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 - Lands
Appropriations Government Priorities Government Outcomes
Administration of the New Zealand Geographic Board (Nga Pou Taunaha a Aotearoa) Act 2008 (see Note 1) Authoritative land information
Administration of the Overseas Investment Act 2005 (see Note 1) Effective management of Crown assets
Crown Property Management and Disposal Services Implementing the South Island High Country Policy
Contributing to the Office of Treaty Settlements in progressing Treaty claims
Effective management of Crown assets
Land and Seabed Data Capture and Processing Implementing the New Zealand Geospatial Strategy Build and maintain certainty of property rights
Authoritative land information
Available, accessible and shared geospatial information
Land and Seabed Information Access and Dissemination Implementing the New Zealand Geospatial Strategy Build and maintain certainty of property rights
Authoritative land information
Available, accessible and shared geospatial information
Land and Seabed Information Storage and Management Implementing the New Zealand Geospatial Strategy Build and maintain certainty of property rights
Authoritative land information
Available, accessible and shared geospatial information
Effective management of Crown assets
Ocean Survey 20/20 Programme (see Note 1) Available, accessible and shared geospatial information
Policy Advice Implementing the South Island High Country Policy
Contributing to the Office of Treaty Settlements in progressing Treaty claims
Build and maintain certainty of property rights
Authoritative land information
Effective management of Crown assets
Standards and Quality Assurance (see Note 1) Build and maintain certainty of property rights
Authoritative land information

Note 1 - All LINZ appropriations contribute to LINZ's core government administrative functions. Those appropriations that contribute to particular Government priorities have been noted.

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Lands
Government Priorities Government Outcomes Appropriations
Implementing the New Zealand Geospatial Strategy Economic Growth Output Classes:
Land and Seabed Data Capture and Processing
Contributing to the Office of Treaty Settlements in progressing Treaty claims Economic Growth Output Classes:
Policy Advice
Crown Property Management and Disposal Services
Implementing the South Island High Country policy Economic Growth Output Classes:
Policy
Crown Property Management and Disposal Services

Objectives of the Vote

Land Information New Zealand (LINZ) carries out a range of activities that underpin social and economic activity and public service that benefit New Zealanders every day. Our work supports activities as diverse as buying a house, navigating the seas and sending emergency services to the right place.

LINZ's purpose is to

  • build and maintain confidence in property rights in land and geographic information, and
  • encourage the widespread use of geospatial information New Zealand.

We carry out three core roles relating to our purpose:

  • transaction management - maintaining and operating the regulatory framework and systems for rights and transactions involving land
  • information management - generating, collecting, compiling and providing geographic information and information relating to property rights and transactions, and facilitating more widespread use of New Zealand's broad range of geospatial information, and
  • land management - administering a range of Crown-owned lands for the benefit of the New Zealand public.

Through carrying out these three roles, LINZ delivers the four lasting outcomes we seek for New Zealand:

  • build and maintain certainty of property rights
  • available, accessible and shared geospatial information
  • authoritative land information, and
  • effective management of Crown assets.

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 104,960 109,642 119,440 115,890 109,539 102,111 104,922 500 105,422 112,499 101,159 100,493
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 13,821 17,392 12,092 37,068 32,339 22,067 - 42,644 42,644 36,644 20,644 20,644
Capital Expenditure 8,009 16,039 29,656 16,872 11,446 11,296 6,933 24,039 30,972 14,685 13,335 13,785
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

126,790 143,073 161,188 169,830 153,324 135,474 111,855 67,183 179,038 163,828 135,138 134,922

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 18,583 20,991 14,195 21,011 29,692 19,746 N/A 43,187 43,187 37,208 21,209 21,209
Capital Receipts 7,535 7,014 7,064 240,373 16,942 17,157 N/A 6,966 6,966 6,959 6,000 6,000

Total Crown Revenue and Capital Receipts

26,118 28,005 21,259 261,384 46,634 36,903 N/A 50,153 50,153 44,167 27,209 27,209

 

Analysis of Significant Trends

The increase in output expense in 2007/08 was to fund the implementation of the 100% e-lodgement programme. Gradual reductions in output expenses since then reflect the efficiency savings generated since implementation, and savings offered back in Budget 2009.

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 - Lands
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Build and maintain certainty of property rights:
  • Our aim is to ensure people know what their land property rights are, where their rights are (ie, the boundaries of their properties) and how their properties are valued for rating purposes. In turn, this provides confidence that property rights are clear and certain and can be brought, sold and traded efficiently.
Land & seabed data capture and processing
Land & seabed information storage & Management
Land & seabed information access & dissemination
Policy advice
Standards & Quality Assurance
Outcome: Authoritative land information:
  • The results we want under this outcome are to improve New Zealanders' ability to access LINZ's land and seabed information, and ensure New Zealanders are confident that it is reliable, up-to-date and fit for purpose.
Administration of the New Zealand Geographic Board Act 2008
Land & seabed data capture and processing
Land & seabed information storage & Management
Land & seabed information access & dissemination
Policy advice
Standards & Quality Assurance
Outcome: Available, accessible and shared geospatial information:
  • Under this outcome, we seek to ensure that New Zealand's wider geospatial data holding are available, accessible and able to be shared. We do this through our leadership and coordination of the New Zealand Geospatial Strategy.
Land & seabed data capture and processing
Oceans survey 20/20 programme
Outcome: Effective management of Crown assets:
  • This outcome relates to our land management functions, where we aim to manage Crown land efficiently and effectively. We also want to ensure that Crown land is bought and sold in accordance with the legislative framework.
Crown property management & disposal services
Land & seabed information access & dissemination
Policy advice
For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see the Statement of Intent for Land Information New Zealand.

Administration of the New Zealand Geographic Board (Nga Pou Taunaha o Aotearoa) Act 2008 (M44)

Scope of Appropriation

This appropriation is limited to the expenses incurred under the New Zealand Geographic (Nga Pou Taunaha o Aotearoa) Act 2008, including: Board/Committee meetings, secretariat personnel, consultation, public advertising and publicity, national and international liaison and representation, and Board publications.

Expenses and Revenue

Expenses and Revenue - Administration of the New Zealand Geographic Board (Nga Pou Taunaha o Aotearoa) Act 2008 (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,621 1,333 786
Revenue from Crown 1,621 1,333 786
Revenue from Other - - -

Reasons for Change in Appropriation

The decrease in appropriation reflects one-off transitional expenses in 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of the New Zealand Geographic Board (Nga Pou Taunaha o Aotearoa) Act 2008 (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of official place name proposals considered by the Board (range 75-150). 150(est)
(range 1-250)
550 100(est)
The number of new official place name proposals for Treaty of Waitangi settlements considered by the Board (range30-300). New measure New measure 70 (est)
The number of historic official place names brought under the Act reviewed by the Board (range 2000-2500). New measure New measure 2250 (est)
All consultation on official place names will be carried out in accordance with good practice for consultation and the Board policies. 100% 100% 100%
Percentage of new official place name proposals (including Treaty of Waitangi settlements) received before the deadline set by the Board will be considered at the next Board meeting. 100% 99% 95%

Administration of the Overseas Investment Act 2005 (M44)#

Scope of Appropriation

This appropriation is limited to the assessing of applications, for consent to the acquisition of investments in New Zealand land, significant business assets and fishing quota; monitoring and enforcement.

Expenses and Revenue

Expenses and Revenue - Administration of the Overseas Investment Act 2005 (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,582 2,374 2,582
Revenue from Crown - - -
Revenue from Other 2,572 2,572 2,404

Reasons for Change in Appropriation

The change in appropriation reflects changes in the cost allocation model.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of the Overseas Investment Act 2005 (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The quality of advice provided to the Minister on application is clear, well-written and based on evidence that supports the conclusions reached and is returned without substantive change. New measure New measure 95%
OIO processes are perceived by applicants' solicitors to be effective - target rating score of 3-5. New measure New measure Quarterly survey results
The percentage of advice and information provided to support the Treasury policy process is accurate and timely. New measure New measure 95%
The percentage of accepted applications that are under active consideration by the OIO are processed in 20 working days or less. New measure New measure 90%
Applications are accepted for registration, or rejected for re-work within five working days. New measure New measure 100%
The percentage of applications for consent are monitored for compliance against the conditions for consent. New measure New measure 100%

Memorandum Account

Memorandum Account - Administration of the Overseas Investment Act 2005 (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Overseas Investment Office

     
Opening Balance at 1 July (1,104) (1,341) (1,102)
Revenue 2,404 2,612 2,404
Expenses (2,404) (2,373) (2,582)
Transfers and Adjustments - - -
Closing Balance at 30 June (1,104) (1,102) (1,280)

Crown Property Management and Disposal Services (M44)#

Scope of Appropriation

The management and disposal of the Crown's interest in land and property (outside of the conservation estate) and acquisition, management and disposal of land and property administered by the department on behalf of the Crown.

Expenses and Revenue

Expenses and Revenue - Crown Property Management and Disposal Services (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20,285 18,747 18,218
Revenue from Crown 20,159 18,747 17,660
Revenue from Other 967 967 1,413

Reasons for Change in Appropriation

The decrease in appropriation reflects changes in the cost allocation model, and savings to reprioritise towards costs in future years.

Output Performance Measures and Standards

Output Performance Measures and Standards - Crown Property Management and Disposal Services (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Pastoral Lease and License Management      
Number of property inspections completed. Target
(range 25-35)
50 25
Number of applications/ requests for discretionary actions processed(range 150-300). New measure New measure 200
The percentage of property inspection reports submitted to the Commissioner for Crown Lands (CCL) within six weeks of inspection. New measure New measure 90%
The percentage of reports on applications/ requests for discretionary actions are submitted to the CCL within seven weeks of receipt. New measure New measure 90%
The percentage of decisions on discretionary actions made within seven weeks from receipt of completed application. Subject to applications received
range (200-300)
160 95%
The percentage of property inspections and decisions on Discretionary Actions are undertaken in accordance with regulatory and statutory framework and consistent with government policy. Output Plan standards achieved Output Plan standards achieved 100%
Tenure review      
The number of proposals (preliminary and substantive) produced (range 10-20). New Measure New Measure 12
The percentage of tenure review preliminary and substantive proposals are assessed according to LINZ Crown Pastoral Land Standards and are compliant with the Crown Pastoral Land Act. Output Plan standards achieved Output Plan standards achieved 100%
The percentage of proposals produced within timeframes in approved operational project plan. New Measure New Measure 80%
Management of land-related liabilities      
Revenue sales target for the year from properties available for disposal. $6m (+/-) $3m(+/-) $3.0m (± 10%)
The number of properties leased or licensed
(range 700 - 850).
775 776 775
The number of Crown forest licenses managed
(range 35 - 55).
72 (range 65-75) 72 49
The percentage of management activity complies with the specifications in Part 2 of the Crown Forestry Licence Management Agreement.
The number of justifiable complaints received from CFRT or Iwi.
New Measure New Measure 100% compliance

No justifiable complaints received
The number of land-related liabilities managed
(range 300 - 500).
350 (range 300-500) 500 350
The percentage of Crown land and land-related liabilities are efficiently managed in accordance with statutory requirements, property and Crown management contracts and LINZ operating frameworks to the standard agreed to with the Minister. Output Plan standards achieved Output Plan standards achieved 100%
Biosecurity      
The number of annually established weed and pest control targets met. New Measure New Measure  
  • Aquatic weed control annually (range 300 - 500 hectares).
    400 hectares of aquatic weed control annually
  • Terrestrial weed control annually (range 30,000 - 40,000 hectares).
    35,000 hectares of terrestrial weed control annually
The percentage rate that weed and pest management complies with the LINZ Biosecurity Operational Plan. New Measure New Measure 100%
  • The percentage of stakeholders surveyed annually with an overall rating of 3 out of 5 or greater.
    Results achieved
Treaty Settlements      
The number of properties included in Treaty of Waitangi Settlement redress (range 10 - 50 properties to become unconditional). New Measure New Measure 29
The percentage of work that complies with LINZ Treaty settlement contractual and legislative compliance plans. New Measure New Measure 100%
The percentage of timeframes for the disposal, management and purchase of properties are met in accordance with statutory and contractual conditions. New Measure New Measure 100%
The percentage of work completed within the timeframes of LINZ Treaty settlement contractual and legislative compliance plans. New Measure New Measure 100%
Crown Property Clearance Service      
The percentage of decisions are made in accordance with Crown property standards. Output Plan standards achieved Output Plan standards achieved 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Crown Property Management and Disposal Services (M44) - Lands
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Savings offered back 2008/09 (1,000) (400) (400) (400) (400)
Previous Governments            
Crown Managed Pests on its Land to Support Regional Pest Management 2008/09 444 444 444 444 444
Crown property disposal programme 2007/08 400 400 400 400 400
Eradication of weeds on Crown land 2004/05 267 267 267 267 267
South Island High Country Objectives 2003/04 1,496 1,496 1,496 1.496 1.496

Land and Seabed Data Capture and Processing (M44)#

Scope of Appropriation

The collection and authorisation of land data and information in accordance with the regulatory frameworks.

Expenses and Revenue

Expenses and Revenue - Land and Seabed Data Capture and Processing (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 39,798 36,549 39,083
Revenue from Crown 15,445 13,845 16,855
Revenue from Other 23,764 24,006 39,332

Reasons for Change in Appropriation

The decrease in appropriation reflects efficiency savings resulting from the implementation of the 100% e-lodgement programme.

Output Performance Measures and Standards

Output Performance Measures and Standards - Land and Seabed Data Capture and Processing (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Delivery of the Land Rights Registration and Cadastral Survey Systems      
The number of titles documents registered, cadastral survey datasets approved and new land titles issued are processed in accordance with the quantity agreed to with the Minister: Standard achieved as per Output Plan measures Output Plan standards achieved  
  • Titles documents (instruments) registered. (range 518,500 - 701,500).
    610,000(est)
  • Cadastral survey datasets approved. (range 8,500 - 11,500).
    10,000 (est)
  • New land titles issued. (range 31,500 - 42,500).
    37,000 (est)
The percentage of title documents and cadastral survey datasets processed within the timeframes agreed to with the Minister. Standard achieved as per Output Plan measures Output Plan standards achieved 100%
The percentage of time the Landonline system is available to customers 7am to 9pm Monday-Thursday, 7am to 7pm Friday and 9am to 5pm Saturday. 99.5% 99% 99.5%
Rating achieved in the quality category of monthly surveys of randomly selected regular customers. Average rating of "good' or better Output Plan standards achieved Average rating of "good' or better
The percentage of all title documents and cadastral survey datasets processed in accordance with the standards set by the respective regulators (Registrar-General of Land and Surveyor General). 100% 100% 100%
Generation of the National Authorative Geospatial Record      
The national authoritative geospatial record (the geodetic reference system, topographic and hydrographic information and the electoral spatial reference dataset) is delivered according to quantity measures and standards agreed with the Minister. Standard achieved as per Output Plan measures Output Plan standards achieved Standard achieved as per Output Plan measures
All topographic, hydrographic and geodetic data generated will meet the quality standards as assessed by Quality Assurance audit. Actions are undertaken in accordance with the standards and are confirmed by QA audits Output Plan standards achieved Actions are undertaken in accordance with the standards and are confirmed by QA audits
All Electoral Spatial Reference Dataset actions will meet the quality standards in the MoUs with Statistics NZ, the Electoral Enrolment Centre, the Chief Electoral Officer and the Surveyor General as assessed by Quality Assurance audit. Actions are undertaken in accordance with the standards and are confirmed by QA audits Audit not required this year based on the level of risk & previous audit coverage Actions are undertaken in accordance with the standards and are confirmed by QA audits
The national authoritative geospatial record (the geodetic reference system, topographic and hydrographic information and the electoral spatial reference dataset) is delivered according to timeliness measures and standards agreed with the Minister. Standard achieved as per Output Plan measures Output Plan standards achieved Standard achieved as per Output Plan measures
Implementation of the Geospatial Strategy      
The percentage of projects in the work programme under the Geospatial Strategy delivered in accordance with project plans. 95% as determined by Geospatial Steering Group Work programme has been refreshed and detailed project plans are being prepared. Work programme delayed 95% as determined by Geospatial Steering Group
The percentage of governance and project activity undertaken in accordance with an agreed monitoring and evaluation framework. Output Plan standards achieved Output Plan standards achieved 100%

Memorandum Account

Memorandum Account - Land and Seabed Data Capture and Processing (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

LandOnLine

     
Opening Balance at 1 July (10,813) (10,813) (27,676)
Revenue 34,365 34,347 49,589
Expenses (51,725) (51,204) (49,395)
Transfers and Adjustments - - -
Closing Balance at 30 June (28,173) (27,670) (27,482)

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Land and Seabed Data Capture and Processing (M44) - Lands
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Savings offered back 2009/10 (1,550) (1,550) (1,550) (1,550) (1,550)

Previous Governments

           
Improved sea-level monitoring to enhance tsunami warning systems 2005/06 500 500 500 500 500
Landonline - mandatory use 2005/06 2,971 2,935 2,540 2,540 2,540
Landonline - implementation of stage two 2003/04 2,042 1,838 1,757 1,757 1,757

Land and Seabed Information Access and Dissemination (M44)#

Scope of Appropriation

The provision of access to, and dissemination of, information held by LINZ.

Expenses and Revenue

Expenses and Revenue - Land and Seabed Information Access and Dissemination (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,362 5,341 5,125
Revenue from Crown 1,366 1,366 168
Revenue from Other 9,907 9,907 13,235

Reasons for Change in Appropriation

The decrease in appropriation reflects changes in the cost allocation model.

Output Performance Measures and Standards

Output Performance Measures and Standards - Land and Seabed Information Access and Dissemination (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Land title, and cadastral and geodetic survey information

     
Title and survey records are supplied in the quantities agreed to with the Minister. Standard achieved as per Output Plan measures Output Plan standards achieved Standard achieved as per Output Plan measures
Rating achieved in the quality category of monthly independent telephone surveys of randomly selected survey and conveyancing practitioner customers. New Measure New Measure Average rating of "good" or better

Topographic and hydrographic information (maps, charts and information)

     
All printed topographic map sheets and hydrographic charts as well as electronic navigational charts produced are supplied in the quantities agreed to with the Minister. Standard achieved as per Output Plan measures Output Plan standards achieved Standard achieved as per Output Plan measures
The percentage of all electronic navigational charts that will meet the quality standards as set by International Hydrographic Office. 100% 100% 100%

Land and Seabed Information Storage and Management (M44)#

Scope of Appropriation

Ensuring that the security and management of LINZ's databases and systems for land information are managed effectively and efficiently.

Expenses and Revenue

Expenses and Revenue - Land and Seabed Information Storage and Management (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,732 21,426 24,250
Revenue from Crown 2,275 970 3,189
Revenue from Other 1,192 1,192 29

Reasons for Change in Appropriation

The increase in appropriation reflects changes in the cost allocation model.

Output Performance Measures and Standards

Output Performance Measures and Standards - Land and Seabed Information Storage and Management (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The integrity and security of LINZ's authorative databases is protected through ensuring:
  • IT infrastructure is future-proofed to maintain system availability and sustainability.
IT infrastructure is managed In accordance with LINZ IT Architecture standards and principles
Service is delivered in accordance with LINZ ITIL based processes
Output Plan standards achieved IT Architectural principles and standards are maintained, reviewed and communicated at least annually
The Enterprise Architecture components, including the Architecture Principles, are reviewed based on project change and in line with business planning process to ensure ongoing alignment with LINZ's strategic direction.
An external IT Security Audit is performed.
The IT architecture standards are reviewed at least annually to ensure alignment with relevant government and international standards
An Audit is performed annually
Output Plan standards achieved IT Architectural principles and standards are maintained, reviewed and communicated at least annually
The IT infrastructure is maintained to ensure that it is available to the business systems that utilise it. The service level agreements for the business systems are met each month Output Plan standards achieved Output Plan standards achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Land and Seabed Information Storage and Management (M44) - Lands
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Savings offered back 2009/10 (1,600) (1,600) (1,600) (1,600) (1,600)
Previous Governments            
Landonline - mandatory use 2005/06 2,971 2,935 2,540 2,540 2,540
Maori Freehold Land Registration project 2004/05 74 - - - -
Landonline - implementation of stage two 2003/04 2,042 1,838 1,757 1,757 1,757

Oceans Survey 20/20 Programme (M44)#

Scope of Appropriation

This appropriation is limited to the undertaking of initiatives within the Oceans Survey 20/20 Programme.

Expenses and Revenue

Expenses and Revenue - Oceans Survey 20/20 Programme (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,809 7,759 3,726
Revenue from Crown 7,809 7,759 3,726
Revenue from Other - - -

Reasons for Change in Appropriation

The decrease in appropriation reflects the one-off funding in 2009/10 to complete the bay of Islands biodiversity survey.

Output Performance Measures and Standards

Output Performance Measures and Standards - Oceans Survey 20/20 Programme (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The percentage of surveys completed by the RV Tangaroa within the allocated days for survey projects. Phase 2 survey completed Output Plan standards achieved 100%
The percentage that the RV Tangaroa is utilised for survey projects in accordance with the standards set out in the contract for the utilisation of RV Tangaroa between LINZ and NIWA Vessel Management. Standards and specifications met Output Plan standards achieved Standards and specifications met
The percentage of milestones for survey projects achieved. New Measure New Measure 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Oceans Survey 20/20 Programme (M44) - Lands
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Governments            
Ocean survey 20/20: Bay of Islands survey 2008/09 2,790 - - - -
Marine science and information 2005/06 3,071 3,071 3,071 3,071 3,071

Policy Advice (M44)#

Scope of Appropriation

Policy advice to the Government and Minister, relating to land and property information and providing support to the Minister.

Expenses and Revenue

Expenses and Revenue - Policy Advice (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,059 2,001 2,847
Revenue from Crown 2,034 2,001 2,822
Revenue from Other 43 43 43

Reasons for Change in Appropriation

The increase in appropriation reflects a change in the cost allocation model, and additional resource allocated to policy advice.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Policy advice, briefings and support on matters relating to departmental functions provided to the Minister. As requested, on time and accurate Output Plan standards achieved As requested, on time and accurate
The percentage of draft cabinet papers, briefings and responses accepted by the Minister without substantive amendment to the underlying policy (ie, excluding minor editorial or style changes). New Measure New Measure 90% of papers accepted without substantive change
The percentage of draft policy advice responses and Ministerial correspondence delivered within 10 working days or to specified deadlines agreed with the Minister. Output Plan standards achieved Output Plan standards achieved 100%

Standards and Quality Assurance (M44)#

Scope of Appropriation

Ensuring that the regulatory frameworks that create and protect property rights, and protect the public interest in Crown property management, rating valuations and the land information for which LINZ is responsible, are managed effectively and that delivery against the frameworks is quality assured.

Expenses and Revenue

Expenses and Revenue - Standards and Quality Assurance (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,968 6,314 8,305
Revenue from Crown 1,595 1,595 1,909
Revenue from Other 1,639 1,639 1,630

Reasons for Change in Appropriation

The increase in appropriation reflects a change in the cost allocation model.

Output Performance Measures and Standards

Output Performance Measures and Standards - Standards and Quality Assurance (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of planned reviews of existing regulatory interventions completed (range eleven-twenty seven). 19 (est)
(range 2-7)
20 5
The number of priority regulatory interventions, arising from legislation or other environmental factors, completed (range two-eight). 5 (est)
(range 10- 20)
10 15
The percentage of regulatory interventions that will be in accordance with the LINZ regulatory framework. 100% 100% 100%
The percentage of planned regulatory interventions that will be completed in accordance with Regulatory Frameworks and Processes project plans. 95% 100% 95%

Planned interventions are those that rise up from a rolling review of our current regulatory intervention programme. Priority interventions reflect those arising because of legislation activity eg, Treaty Settlements, the generation of Registrar General of Lands guidelines for processing centres, and rulings arising from Court case decisions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Standards and Quality Assurance (M44) - Lands
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Cessation of the Disposal of Crown Land: Conclusion of Wider Review 2009/10 (110) (110) (110) (110) (110)

Previous Governments

           
Disposal of Crown Land: Conclusions of Wider Review 2008/09 110 110 110 110 110
NZ Geographic Board- New Legislative Responsibilities 2007/08 455 270 270 270 270
Implementation of the Foreshore and Seabed Act 2004 2005/06 89 89 89 89 89

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Lands
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The objective of this appropriation is to: (i) facilitate the letting of contracts by competitive tender for the investigation and analysis of possible contamination on former Crown owned land (now in private ownership) and Crown land held by Land Information New Zealand; and (ii) ensure that identified areas of contamination that the Crown has accepted responsibility for are further investigated and appropriate remedial action taken. Contaminated sites

Contaminated Sites (M44)

Scope of Appropriation

Analysis, investigation and, where necessary, appropriate remedial action on contaminated sites for which the Crown has accepted responsibility.

Expenses

Expenses - Contaminated Sites (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 323 500

Output Performance Measures and Standards

Output Performance Measures and Standards - Contaminated Sites (M44) - Lands
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All contracts for investigation, analysis and remediation action are let by competitive tender. 100% 100% 100%

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 - Lands
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The intended impact of this appropriation is the efficient management of Crown forest land and associated Crown Forestry Licences pending disposal of the land through the Treaty Settlement process; and maximising the return to the Crown and future owners bearing in mind the interests involved and minimising the cost of any disputes that may arise. Crown Forest Management
The intended impact of this appropriation is the recognition of the loss on disposal that occurs when there is an obligation to sell surplus land of the Crown at less than fair market value or to return surplus land to a former owner at nil cost because the Crown's ownership of the land has arisen from a gifting. Crown Obligations - Loss on Disposal
The intended impact of this appropriation is to enable LINZ to meet its obligations under the Local Government (Rating) Act 2002. Crown Rates
The objective of this appropriation is the resolution of land-related claims against the Crown which have arisen from perceived errors or omissions by the Crown. Land Liabilities
The objective of this appropriation is to ensure contractual obligations with respect to Crown leasehold obligations administered by the department are met. Residual Crown Leasehold Rents
The intended impact of this appropriation is the recognition of the loss on disposal that arose when legislation to effect the terms of the Deed of Settlement agreed with Te Pumautanga o Te Arawa was passed. Te Arawa Iwi writedown
The intended impact of this appropriation is the recognition of the loss on disposal that will arise when legislation to effect the terms of the Deed of Settlement agreed with Ngati Apa is passed. Ngati Apa writedown

Bad and Doubtful Debts (M44)

Scope of Appropriation

This appropriation is limited to the provision for writing off bad and doubtful debts.

Expenses

Expenses - Bad and Doubtful Debts (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 25 25 25

Crown Forest Management (M44)#

Scope of Appropriation

Management of Crown forest properties and licences, including settling reviews, interest liability and GST on refunded fees.

Expenses

Expenses - Crown Forest Management (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 620 620 780

Reasons for Change in Appropriation

The change reflects additional funds carried forward into 2009/10 from the prior year.

Expected Results

Expected Results - Crown Forest Management (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All specifications and timeframes set out in Part 2 of the Crown Forest Licence Management Agreement are met. 100% 100% 100%

Crown Obligations - Loss on Disposal (M44)#

Scope of Appropriation

Loss on disposal of properties arising from Crown obligations including the return of gifted land to the donor at nil value.

Expenses

Expenses - Crown Obligations Loss on Disposal (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,397 4,249 267

Reasons for Change in Appropriation

The change reflects additional funds required to settle the Lakes DHB application in the 2009/10 year.

Expected Results

Expected Results - Crown Obligations Loss on Disposal (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All cases are approved at the appropriate level. 100% 100% 100%

Crown Rates (M44)#

Scope of Appropriation

Payment of rates on Crown land and surplus government properties administered by the department on behalf of the Crown.

Expenses

Expenses - Crown Rates (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,107 982 1,107

Expected Results

Expected Results - Crown Rates (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All Crown rates on land administered by the Department are paid on time. 100% 100% 100%

Depreciation (M44)#

Scope of Appropriation

This appropriation is limited to depreciation of buildings on surplus Crown land.

Expenses

Expenses - Depreciation (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 333 329 359

Reasons for Change in Appropriation

The change reflects additional depreciation expense for easement purchased.

Land Liabilities (M44)#

Scope of Appropriation

Investigation and resolution, including legal costs and settlement, of land-related liabilities administered by the department.

Expenses

Expenses - Land Liabilities (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 843 597 843

Expected Results

Expected Results - Land Liabilities (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The requirements of the LINZ "Operating Framework for the investigation and management of land-related Crown Liabilities" are met. 100% 100% 100%

Proceeds from Sale of Transit NZ Properties (M44)#

Scope of Appropriation

To pay Transit NZ the equivalent of what the Crown has received from the sales of Transit properties.

Expenses

Expenses - Proceeds from Sale of Transit NZ Properties (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 24,000 14,109 39,000

Reasons for Change in Appropriation

Adjustment to the revenue forecast due for Transit Sales.

Residual Crown Leasehold Rents (M44)#

Scope of Appropriation

Leasehold liabilities paid on residual surplus government accommodation administered by the department on behalf of the Crown.

Expenses

Expenses - Residual Crown Leasehold Rents (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 233 233 263

Reasons for Change in Appropriation

Budget transferred to the Inventory write down appropriation to fund the write off of old maps.

Expected Results

Expected Results - Residual Crown Leasehold Rents (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Payments of rent are actioned in accordance with the timeframes and terms of the lease. 100% 100% 100%

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 - Lands
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations

Land Information New Zealand - Capital Expenditure PLA (M44)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Land Information New Zealand Capital Expenditure PLA (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 921 1,830 2,506
Intangibles 1,687 778 4,427
Other - - -

Total Appropriation

2,608 2,608 6,933
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 921 1,830 2,506
Intangibles 1,687 778 4,427
Other - - -

Total Appropriation

2,608 2,608 6,933

Reasons for Change in Appropriation

The estimated level of capital expenditure for intangible assets is below budget, as the bulk of costs associated with the Digitisation and the National Property and Land Information System projects are now expected to incur in the 2010/11 Financial Year.

The estimated capital expenditure for Property, Plant and Equipment is tracking above budget due to increase in costs associated with the refitting and refurbishment of the Christchurch and Hamilton Processing Centres.

No major variances against capital expenditure appropriate are expected overall.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Lands
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The intended outcome of this appropriation is the purchase of subsidence-affected properties from owners in accordance with the Government's Huntly East Subsidence Policy. Affected owners initiate purchase requests, the government's position is reactive. Crown Acquisitions - Huntly East
The intended outcome of this appropriation is the purchase of properties from vendor agencies when directed (as in the Crown's) "Gifted Lands Policy" or from private owners when an obligation arises. Crown Obligatory Acquisitions

Crown Acquisitions - Huntly East (M44)

Scope of Appropriation

Acquisition of properties falling within Cabinet's approved policy area for Huntly East subsidence zone.

Capital Expenditure

Capital Expenditure - Crown Acquisitions Huntly East (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 648 648 500

Expected Results

Expected Results - Crown Acquisitions Huntly East (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All acquisitions are undertaken in accordance with the Government's Huntly East Subsidence Policy. 100% 100% 100%

Crown Obligatory Acquisitions (M44)#

Scope of Appropriation

Acquisition of properties arising from Crown obligations including gifted land.

Capital Expenditure

Capital Expenditure - Crown Obligatory Acquisitions (M44) - Lands
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,117 3,966 267

Reasons for Change in Appropriation

The change reflects additional funds required to settle Lakes DHB application in the 2009/10 year.

Expected Results

Expected Results - Crown Obligatory Acquisitions (M44) - Lands
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All acquisitions undertaken in accordance with Crown or Government Policy and in accordance with appropriate statutory authority. 100% 100% 100%

Land Tenure Reform Acquisitions (M44)#

Scope of Appropriation and Capital Expenditure

Multi-Year Appropriations - Lands
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Capital Expenditure

   

Land Tenure Reform Acquisitions (M44)

This appropriation is limited to the acquisition of the lessees' interest in pastoral lease land and purchase of any land and/or assets required to complete the acquisition of lessee interest in order to achieve Tenure Review outcomes under the Crown Pastoral Land Act 1998, or to achieve Government high country objectives.

Commences: 1 July 2008

Expires: 30 June 2011

Original Appropriation 32,001
Adjustments for 2008/09 3,185
Adjustments to 2009/10 -
Adjusted Appropriation 35,186
Actual to 2008/09 Year End 7,841
Estimated Actual for 2009/10 4,073
Estimated Actual for 2010/11 23,272
Estimated Appropriation Remaining -

Reasons for Change in Appropriation

The changes are due to amendments to the forecasted completed date of Tenure reviews.

Statements of Forecast Service Performance#

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

The following table identifies the classes of outputs incorporated in the Statement of Forecast Service Performance for each department in the Primary Sector.

Department Composition of Statement of Forecast Service Performance
Ministry of Agriculture and Forestry

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

  • Vote Agriculture and Forestry
  • Vote Biosecurity
  • Vote Food Safety.
Ministry of Fisheries The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Fisheries.
Land Information New Zealand The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Lands.

Statement of Common Accounting Policies#

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

These forecast financial statements are prepared in accordance with section 41(1)(a)-(f) of the Public Finance Act 1989. The purpose of the forecast financial statements is to facilitate Parliament's consideration of appropriations for, and planned performance of, departments and offices of Parliament. Use of this information for other purposes may not be appropriate. It is not intended that these forecast financial statements be updated subsequent to publication.

Statement of Compliance

These forecast financial statements for the year ended 30 June 2010 comply with FRS-42 Prospective Financial Statements.

Specific Accounting Policies#

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

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

Judgements and Estimations

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

Revenue

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

Leases

Operating Leases

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

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

Finance Leases

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

Borrowing Costs

Borrowing costs are recognised as an expense when incurred.

Property, Plant and Equipment

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

Depreciation

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

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

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

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

Intangible Assets

Intangible assets with finite useful lives (such as computer software) are recorded at cost less accumulated amortisation and impairment losses. Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

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

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

Intangible assets with indefinite useful lives are not amortised, but are tested at least annually for impairment. Where there is an active market for an intangible asset, the asset is recorded at a revalued amount, being fair value less any subsequent accumulated amortisation and accumulated impairment losses.

Cash and Cash Equivalents

Cash includes cash on hand and funds on deposit with banks with an original maturity of 3 months or less.

Debtors and Other Receivables

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

Inventories

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

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

Employee Entitlements

Pension Liabilities

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

Other Employee Entitlements

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

Termination Benefits

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

Onerous Contracts

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

Foreign Currency

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

Statement of Cash Flows

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

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

Taxation

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

Goods and Services Tax

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

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

Commitments

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

Contingent Liabilities and Contingent Assets

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

Changes in Accounting Policies#

Any changes in accounting policies since the date of the last audited financial statements prepared under New Zealand generally accepted accounting practice are described in the statement of entity-specific accounting policies. The last audited financial statements (30 June 2009) were prepared in accordance with NZ IFRS (New Zealand Equivalents to International Financial Reporting Standards) as appropriate for public benefit entities.

Forecast Financial Statements Ministry of Agriculture and Forestry#

Statement of Forecast Comprehensive Income for the year ending 30 June 2011

Statement of Forecast Comprehensive Income for the year ending 30 June 2011 - Agriculture and Forestry
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   181,834 186,628 185,710 216,842
Department(s) 1 13,718 13,946 12,799 17,108
Other revenue 2 30,393 34,120 29,282 93,309
Gains   477 - 129 -
Interest   - - - -
Total Income   226,422 234,694 227,920 327,259

Expenses

         
Personnel   102,994 109,166 103,254 159,371
Operating 3 105,813 110,398 108,495 147,876
Depreciation and amortisation   12,065 11,850 11,419 13,601
Capital charge   2,350 2,880 2,399 3,206
Finance costs   400 400 224 79
Other   98 - - -
Total Expenses 10 223,720 234,694 225,791 324,133
Net Surplus / (Deficit) 9 - - 2,129 3,126
Other comprehensive income   - - - -
Total Comprehensive Income   2,702 - 2,129 3,126

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011 - Agriculture and Forestry
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   31,953 29,858 32,268 31,502
Revaluation reserve   251 100 100 100
Other reserves   - - - -
Taxpayers' Funds Opening Balance   32,204 29,958 32,368 31,602

Changes in Taxpayers' Funds

         
Comprehensive income for the period   2,702 - 2,129 3,126
Repayment of surplus   (2,702) - (2,129) (3,126)
Capital contribution   1,909 6,600 - 20,678
Capital withdrawal   (1,745) (766) (766) (595)
Other   - - - -
Total Changes in Taxpayers' Funds   164 5,834 (766) 20,083

Balance at 30 June

         
General funds   32,268 35,692 31,502 51,585
Revaluation reserve   100 100 100 100
Other reserves   - - - -
Taxpayers' Funds Closing Balance   32,368 35,792 31,602 51,685

Forecast Statement of Financial Position as at 30 June 2011#

Forecast Statement of Financial Position as at 30 June 2011 - Agriculture and Forestry
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   11,219 13,520 11,985 20,721
Debtors and other receivables 4 10,998 12,600 12,600 12,803
Prepayments   3,398 2,000 1,200 1,460
Inventories   3,682 4,000 4,000 4,092
Other current assets   - - - -
Total Current Assets   29,297 32,120 29,785 39,076

Non-current Assets

         
Property, plant and equipment 5 31,599 31,260 28,225 32,937
Intangible assets 6 9,166 14,280 8,183 33,792
Other non-current assets   - - - -
Total Non- current Assets   40,765 45,540 36,408 66,729
Total Assets   70,062 77,660 66,193 105,805

Liabilities

         

Current Liabilities

         
Creditors and other payables   14,414 20,115 13,659 19,276
Repayment of surplus   2,702 - 2,129 3,126
Employee entitlements   8,774 9,300 9,300 12,972
Other current liabilities 7 3,919 4,860 2,414 5,667
Total Current Liabilities   29,809 34,275 27,502 41,041

Non-current Liabilities

         
Provisions   - - - 394
Employee entitlements   6,568 5,900 6,800 11,794
Other non-current liabilities 8 1,317 1,693 289 891
Total Non-current Liabilities   7,885 7,593 7,089 13,079
Total Liabilities   37,694 41,868 34,591 54,120

Taxpayers' Funds

         
General funds   32,268 35,692 31,502 51,585
Revaluation reserve   100 100 100 100
Other reserves   - - - -
Total Taxpayers' Funds   32,368 35,792 31,602 51,685
Total Liabilities and Taxpayers' Funds   70,062 77,660 66,193 105,805

Statement of Forecast Cash Flows for the year ending 30 June 2011#

Statement of Forecast Cash Flows for the year ending 30 June 2011 - Agriculture and Forestry
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   186,651 186,628 183,658 221,842
Department(s)   15,174 13,946 13,465 17,139
Other   30,100 34,020 28,987 93,514
Interest   - - - -

Payments to:

         
Suppliers   (117,592) (110,398) (107,640) (151,523)
Employees   (103,138) (108,966) (102,226) (159,005)
Capital charge   (2,350) (2,880) (2,399) (3,206)
Goods and services tax (net)   (1,206) - - 25
Other operating activities   - - - -
Net Cash from Operating Activities   7,639 12,350 13,845 18,786

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   1,299 250 174 300
Sale of intangible assets   - - - -
Sale of other non-current assets   22 - - -

Purchase of:

         
Property, plant and equipment   (4,453) (4,530) (3,886) (8,307)
Intangible assets   (3,113) (8,000) (2,788) (25,685)
Other non-current assets   - - - -
Net Cash from Investing Activities   (6,245) (12,280) (6,500) (33,692)

Cash Flow from Financing Activities

         
Capital contribution   1,909 6,600 - 30,329
Other financing cash inflows   - - - -
Repayment of surplus   (4,273) - (2,702) (3,858)
Capital withdrawal   (1,745) (766) (766) (595)
Other financing cash outflows   (6,034) (3,400) (3,111) (2,234)
Net Cash from Financing Activities   (10,143) 2,434 (6,579) 23,642
Net Increase / (Decrease) in Cash   (8,749) 2,504 766 8,736
Cash at the beginning of the year   19,968 11,016 11,219 11,985
Cash at the end of the year   11,219 13,520 11,985 20,721

Statement of Significant Assumptions#

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

The main assumptions are as follows:

  • The Ministry's activities will remain substantially the same as for the previous year.
  • Personnel and operating costs are based on historical experience. The general historical pattern is expected to continue after allowing for new initiatives, one-off funding and baseline reprioritisations arising from the Baseline Alignment Proposal.
  • Estimated year end information for 2009/10 is used as the opening position for the 2010/11 forecasts.

These assumptions are adopted as at 19 April 2010.

Factors that could lead to material differences between the forecast financial statements and the 2010/11 actual financial statements include changes in activities required by the Government, demand for third-party funded activities and technical adjustments.

The Ministry does not intend to update the forecast financial statements subsequent to presentation on Budget day.

Statement of Entity-Specific Accounting Policies#

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

Reporting Entity

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

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

Vote Food Safety was administered by the New Zealand Food Safety Authority until 1 July 2010 and has now been incorporated in Ministry of Agriculture and Forestry financial statements for the 2010/11 financial year. Prior year comparisons exclude Vote Food Safety.

Authorisation Statement

These forecast financial statements were authorised for issue by the Director General of the Ministry of Agriculture and Forestry on 19 April 2010. The Director General is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and all other required disclosure.

Specific Accounting Policies

Property, Plant and Equipment

The capitalisation threshold for property, plant and equipment is $5,000.

Depreciation

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

  • Buildings - 10 to 50 years.
  • Leasehold improvements - 2 to 10 years.
  • IT equipment / hardware - 3 to 6 years.
  • Motor vehicles - 4 to 8 years.
  • Furniture and office equipment - 4 to 10 years.

Intangible Assets

The capitalisation threshold for purchased and internally developed software is $50,000.

The estimated useful lives of intangible assets range from 3 to 7 years.

Cost Allocation

The Ministry has determined the cost of outputs using the cost allocation system outlined below.

Direct costs are those costs directly attributed to an output. Indirect costs are those costs that cannot be identified in an economically feasible manner, with a specific output.

Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on cost drivers and related activity/usage information. Depreciation and capital charge are charged on the basis of asset utilisation. Indirect costs are assigned to outputs based on various cost drivers including assessed usage, staff numbers, direct expenditure and estimated allocation of time.

Notes to the Financial Statements#

Note 1 - Departmental Revenue
Note 1 - Departmental Revenue - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Support services to other agencies 9,149 9,500 9,400 9,400
State Sector Retirement Savings Scheme and KiwiSaver recovery 2,087 2,100 1,917 3,323
Sub-leased accommodation 1,649 1,400 1,256 1,300
Other 833 946 226 3,085

Total

13,718 13,946 12,799 17,108

`

Note 2 - Other Revenue#

Note 2 - Other Revenue - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Statutory fees and fines 24,917 28,120 25,000 26,000
NZFSA standards setting - - - 16,115
Approvals, accreditations and registrations - - - 3,500
Verification services to the animal products industries - - - 38,500
Other goods and services 5,476 6,000 4,282 9,194

Total

30,393 34,120 29,282 93,309

Note 3 - Operating Expenses#

Note 3 - Operating Expenses - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Audit fees for financial statements 176 178 178 318
Consultants fees 2,457 3,000 2,500 2,930
Overseas travel 2,100 2,600 2,300 3,535
Domestic travel 4,610 5,000 4,300 6,786
Operating lease payments 7,509 7,800 6,600 9,188
Contract payments 67,058 71,820 72,000 55,000
Other 21,903 20,000 20,617 70,119

Total

105,813 110,398 108,495 147,876

Note 4 - Debtors and Other Receivables#

Note 4 - Debtors and Other Receivables - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Debtor Crown 4,948 6,000 7,000 2,000
Debtor other 6,050 6,600 5,600 10,803

Total

10,998 12,600 12,600 12,803

Note 5 - Property, Plant and Equipment#

Note 5 - Property, Plant and Equipment - Agriculture and Forestry
  Land
$000
Buildings
$000
Leasehold improvements
$000
Furniture/office equipment
$000
Other
$000
Total
$000

Cost or revaluation

           
Balance as at 1 July 2010 1,523 12,895 10,637 26,612 4,887 56,554
Additions through business combination - - 542 10 1,995 2,547
Additions by purchase - 400 775 7,484 1,905 10,564
Disposals - - - - (900) (900)

Balance as at 30 June 2011

1,523 13,295 11,954 34,106 7,887 68,765

Accumulated depreciation and impairment losses

           
Balance as at 1 July 2010 - 1,448 4,484 19,883 2,514 28,329
Depreciation expense - 504 1,408 4,921 1,266 8,099
Eliminate on disposal - - - - (600) (600)

Balance as at 30 June 2011

- 1,952 5,892 24,804 3,180 35,828

Carrying amount as at 30 June 2011

1,523 11,343 6,062 9,302 4,707 32,937

Note 6 - Intangible Assets#

Note 6 - Intangible Assets - Agriculture and Forestry
  Acquired software
$000
Internally
generated software
$000
Other
$000
Total
$000

Cost

       
Balance as at 1 July 2010 6,891 13,954 - 20,845
Additions through business combination - 5,426 - 5,426
Additions by purchase 850 - - 850
Additions internally developed - 24,835 - 24,835

Balance as at 30 June 2011

7,741 44,215 - 51,956

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2010 5,102 7,560 - 12,662
Amortisation expense 947 4,555 - 5,502

Balance as at 30 June 2011

6,049 12,115 - 18,164

Carrying amount as at 30 June 2011

1,692 32,100 - 33,792

Note 7 - Other Current Liabilities#

Note 7 - Other Current Liabilities - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Finance leases 2,820 3,500 1,394 894
Unearned revenue 1,079 1,300 1,000 4,600
ACC partnership programme 20 60 20 173

Total

3,919 4,860 2,414 5,667

Note 8 - Other Non-Current Liabilities#

Note 8 - Other Non-Current Liabilities - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Finance leases 1,317 1,693 289 891

Total

1,317 1,693 289 891

Note 9 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011#

Note 9 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011 - Agriculture and Forestry
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net surplus / (deficit)

2,702 - 2,129 3,126

Add/ (less) non-cash items

       
Depreciation and amortisation expense 12,065 11,850 11,419 13,601
(Gain)/loss on movement of insurance liability - - - 3
Net foreign exchange (gains)/losses (22) - - -

Total non-cash items

12,043 11,850 11,419 13,604

Add/ (less) items classified as investing or financing activities

       
(Gains)/ losses on disposal property, plant and equipment (455) - (129) -
Finance lease interest costs 400 400 224 79

Total items classified as investing or financing activities

(55) 400 95 79

Add/ (less) movements in working capital items

       
(Inc)/ Dec in debtors and other receivables 6,551 - (1,602) 5,218
(Inc)/ Dec in prepayments (2,433) - 2,198 (50)
(Inc)/ Dec in inventories 848 - (318) (4)
Inc/ (Dec) in creditors and other payables (13,211) - 407 (3,218)
Inc/ (Dec) in other liabilities 478 (100) (1,241) (335)
Inc/ (Dec) in employee entitlements (473) - 526 72

Net movements in working capital items

(8,240) (100) (30) 1,683