Information supporting the estimates of appropriations

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

Formats and related files

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

 

Chapters of the Economic Development and Infrastructure Sector volume of the Information Supporting the Estimates 2009/10 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

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

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

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

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

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,893 2,865 2,741
Revenue from Crown 2,839 2,839 2,716
Revenue from Other 45 37 43

Reasons for Change in Appropriation#

The decrease in appropriation reflects a one-off fiscally neutral adjustment in 2008/09.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice (M44) - Lands
  2008/09 2009/10
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 47 As requested, on time and accurate
Policy advice, reports and draft responses will meet the policy advice and ministerial communication quality and timeliness standards as assessed by the Minister. Minimum rating of good in six monthly assessments by the Minister Minimum rating of good in six monthly assessments by the Minister Minimum rating of good in six monthly assessments by the Minister
Projects in the work programme under the Geospatial Strategy will be delivered in accordance with project plans. N/A Not measured in 2008/09 95% as determined by Geospatial Steering Group
Governance and project activity is undertaken in accordance with an agreed monitoring and evaluation framework. N/A Not measured in 2008/09 Output Plan standards achieved
All policy advice draft responses and Ministerial correspondence will be delivered within 10 working days or to specified deadlines agreed with the Minister. 100% 100% Output Plan standards achieved

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,342 7,338 7,443
Revenue from Crown 3,779 3,779 3,886
Revenue from Other 1,876 1,842 2,103

Reasons for Change in Appropriation#

The change in appropriation reflects a reprioritisation of expenses in 2008/09 only.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Standards and Quality Assurance (M44) - Lands
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of planned regulatory interventions completed. N/A Not measured 2008/09 19 (est)
(range 11-27)
Number of priority regulatory interventions, arising from legislation or other environmental factors, completed. N/A Not measured 2008/09 5 (est)
(range 2-8)
Regulatory interventions will be in accordance with the LINZ regulatory framework. N/A Not measured 2008/09 100%
Assurance will be made in accordance with good practice assurance methodologies. N/A Not measured 2008/09 100%
Planned regulatory interventions will be completed in accordance with Regulatory Frameworks and Processes project plans. N/A Not measured 2008/09 95%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Standards and Quality Assurance (M44) - Lands
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Cessation of the Disposal of Crown Land: Conclusion of Wider Review 2009/10 - (110) (110) (110) (110)
Disposal of Crown Land: Conclusions of Wider Review 2008/09 110 110 110 110 110
NZ Geographic Board- New Legislative Responsibilities 2007/08 455 455 270 270 270
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
The objective of this appropriation is to bring Land Information New Zealand administered camping facilities in the South Island lakes area to the necessary Building Act and Resource Management Act standards. Lakes

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 203 500

Output Performance Measures and Standards

Output Performance Measures and Standards - Contaminated Sites (M44) - Lands
  2008/09 2009/10
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%

Lakes (M44)#

Scope of Appropriation#

Project site work on hydro lakes and surrounding areas to rationalise and maintain lake assets.

Expenses#

Expenses - Lakes (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 243 243 -

Reasons for Change in Appropriation#

This appropriation had one-off funding in 2007/08 for maintenance of lake facilities around Lake Hawea, part of which was carried forward to 2008/09 to enable completion of the project work.

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 arose when legislation to effect the terms of the Deed of Settlement agreed with Central North Island Iwi collective was passed. CNI 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
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 Te Roroa was passed. Te Roroa 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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 25 25 25

Central North Island (CNI) iwi collective settlement - adjustment to land value (M44)#

Scope of Appropriation#

This appropriation is limited to the difference between the current value of the land to be transferred under the Central North Island (CNI) collective settlement and the transfer value of that land transferred as part of that settlement.

Expenses#

Expenses - Central North Island (CNI) iwi collective settlement adjustment to land value (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,905 13,905 0

Reasons for Change in Appropriation#

The appropriation received one-off funding in 2008/09.

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 801 583 500

Reasons for Change in Appropriation#

The change from 2008/09 reflects additional funds carried forward into 2008/09 from the previous year.

Expected Results#

Expected Results - Crown Forest Management (M44) - Lands
  2008/09 2009/10
  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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 467 323 267

Reasons for Change in Appropriation#

The change from 2008/09 reflects additional funds carried forward into 2008/09 from the previous year.

Expected Results#

Expected Results - Crown Obligations Loss on Disposal (M44) - Lands
  2008/09 2009/10
  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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,107 1,003 1,107

Expected Results#

Expected Results - Crown Rates (M44) - Lands
  2008/09 2009/10
  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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 172 135 172

Inventory Write-Offs (M44)#

Scope of Appropriation#

Write-down of maps and charts stock.

Expenses#

Expenses - Inventory WriteOffs (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 44 44 44

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 918 918 843

Reasons for Change in Appropriation#

The change from 2008/09 reflects additional funds carried forward into 2008/09 from the previous year.

Expected Results#

Expected Results - Land Liabilities (M44) - Lands
  2008/09 2009/10
  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%

Ngati Apa (North Island) settlement - adjustment to land value (M44)#

Scope of Appropriation#

This appropriation is limited to the difference between the current value of the land to be transferred under the Ngati Apa (North Island) settlement and the transfer value of that land transferred as part of that settlement.

Expenses#

Expenses - Ngati Apa (North Island) settlement adjustment to land value (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 300

Reasons for Change in Appropriation#

The appropriation received one-off funding in 2009/10.

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,000 12,000 17,000

Reasons for Change in Appropriation#

The appropriation in each year reflects current Transit New Zealand forecasts of revenue from property disposals.

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 421 297 396

Expected Results#

Expected Results - Residual Crown Leasehold Rents (M44) - Lands
  2008/09 2009/10
  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%

Te Arawa iwi/Hapu settlement - adjustment to land value (M44)#

Scope of Appropriation#

This appropriation is limited to the difference between the current value of the land to be transferred under the Te Arawa iwi/Hapu settlement and the transfer value of that land transferred as part of that settlement.

Expenses#

Expenses - Te Arawa iwi/Hapu settlement adjustment to land value (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 900 900 -

Reasons for Change in Appropriation#

The appropriation received one-off funding in 2008/09.

Te Roroa settlement - adjustment to land value (M44)#

Scope of Appropriation#

This appropriation is limited to the difference between the current value of the land to be transferred under the Te Roroa settlement and the transfer value of that land transferred as part of that settlement.

Expenses#

Expenses - Te Roroa settlement adjustment to land value (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,710 3,710 -

Reasons for Change in Appropriation#

The appropriation received one-off funding in 2008/09.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,101 1,101 2,480
Intangibles 2,833 2,833 1,822
Other - - -

Total Appropriation

3,934 3,934 4,302
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,101 1,101 2,480
Intangibles 2,833 2,833 1,822
Other - - -

Total Appropriation

3,934 3,934 4,302

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
The intended outcome of this appropriation is the purchase of land from Territorial Authorities and other Crown agencies to effect boundary adjustments for works such as roading and rail service improvements. Crown Purchases - Land Exchanges

Access rights to crown forest licensed land. (M44)#

Scope of Appropriation

This appropriation is limited to the purchase of access rights over land adjoining Crown forest licensed land in order that the Crown forest licensed land may be more easily accessed.

Capital Expenditure

Capital Expenditure - Access rights to crown forest licensed land. (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,000 - -

Reasons for Change in Appropriation

This was a one off appropriation in 2007/08 for the purchase of access rights to Crown forest licensed land which was carried forward to 2008/09.

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 380 350 500

Reasons for Change in Appropriation#

Funds were transferred in 2008/09 only to the Crown capital appropriation Crown Obligatory Acquisitions.

Expected Results#

Expected Results - Crown Acquisitions Huntly East (M44) - Lands
  2008/09 2009/10
  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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 587 323 267

Reasons for Change in Appropriation#

The change from 2008/09 reflects additional funds carried forward to 2008/09 and a funds transfer in 2008/09 only from Crown appropriation Crown Acquisitions - Huntly East.

Expected Results#

Expected Results - Crown Obligatory Acquisitions (M44) - Lands
  2008/09 2009/10
  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%

Crown Purchases- Land Exchanges (M44)#

Scope of Appropriation#

Acquisition of land from Territorial Authorities and other Crown agencies to effect boundary adjustments for works such as roading and rail service improvements.

Capital Expenditure#

Capital Expenditure - Crown Purchases Land Exchanges (M44) - Lands
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26 - -

Reasons for Change in Appropriation#

This appropriation has funding for 2008/09 only.

Land Tenure Reform Acquisitions (M44)#

Scope of Appropriation and Expenses#

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

Non-Departmental Capital Expenditure

   

Land Tenure Reform Acquisitions (M44) (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 2007/08 -
Adjustments to 2008/09 3,185
Adjusted Appropriation 35,186
Actual to 2007/08 Year End -
Estimated Actual for 2008/09 7,548
Estimated Actual for 2009/10 8,756
Estimated Appropriation Remaining 18,882

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.

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.
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.
New Zealand Food Safety Authority The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Food Safety.
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.

Forecast Financial Statements of Departments#

Statement of Common Accounting Policies#

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

These forecast financial statements are prepared in accordance with section 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 2009 comply with FRS-42 Prospective Financial Statements.

Specific Accounting Policies#

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

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

Judgements and Estimations#

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

Revenue#

Revenue is derived through the provision of outputs to the Crown and 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 a maturity of 3 months or less from date of acquisition.

Debtors and Other Receivables#

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

Inventories#

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

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

Employee Entitlements#

Pension Liabilities

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

Other Employee Entitlements

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

Termination Benefits

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

Onerous Contracts#

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

Foreign Currency#

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

Statement of Cash Flows#

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

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

Taxation#

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

Goods and Services Tax#

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

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

Commitments#

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

Contingent Liabilities and Contingent Assets#

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

 

Changes in Accounting Policies#

Any changes in accounting policies since the date of the last audited financial statements 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 2008) 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 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Agriculture and Forestry
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   174,353 204,039 182,454 186,628
Department(s) 1 13,232 11,845 13,852 13,946
Other revenue 2 31,881 33,776 30,457 34,120
Gains   36 - 260 -
Interest   - - - -
Total Income   219,502 249,660 227,023 234,694

Expenses

         
Personnel   93,660 96,849 105,120 109,166
Operating 3 106,396 138,496 109,354 110,398
Depreciation and amortisation   12,578 11,500 12,000 11,850
Capital charge   2,018 2,415 2,559 2,880
Finance costs   492 400 400 400
Other   85 - - -
Total Expenses 10 215,229 249,660 229,433 234,694
Net Surplus / (Deficit)   - - (2,410) -
Other comprehensive income   - - - -
Total Comprehensive Income   4,273 - (2,410) -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Agriculture and Forestry
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   25,333 31,954 31,953 29,858
Revaluation reserve   251 251 251 100
Other reserves   - - - -
Taxpayers' Funds Opening Balance   25,584 32,205 32,204 29,958

Changes in Taxpayers' Funds

         
Comprehensive income for the period   4,273 - (2,410) -
Repayment of surplus   (4,273) - - -
Capital contribution   7,215 6,809 1,909 6,600
Capital withdrawal   (595) (595) (1,745) (766)
Other   - - - -
Total Changes in Taxpayers' Funds   6,620 6,214 (2,246) 5,834

Balance at 30 June

         
General funds   31,953 38,168 29,858 35,692
Revaluation reserve   251 251 100 100
Other reserves   - - - -
Taxpayers' Funds Closing Balance   32,204 38,419 29,958 35,792

Forecast Statement of Financial Position as at 30 June 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Agriculture and Forestry
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   19,968 7,429 11,016 13,520
Debtors and other receivables 4 17,549 10,350 12,600 12,600
Prepayments   965 1,200 2,000 2,000
Inventories   4,530 4,000 4,000 4,000
Other current assets   - - - -
Total Current Assets   43,012 22,979 29,616 32,120

Non-current Assets

         
Property, plant and equipment 5 32,730 35,832 32,130 31,260
Intangible assets 6 9,180 13,995 9,980 14,280
Other non-current assets   700 - - -
Total Non- current Assets   42,610 49,827 42,110 45,540
Total Assets   85,622 72,806 71,726 77,660

Liabilities

         

Current Liabilities

         
Creditors and other payables   26,634 14,786 20,115 20,115
Repayment of surplus   4,273 - - -
Employee entitlements   9,247 7,600 9,300 9,300
Other current liabilities 7 5,086 4,650 4,960 4,860
Total Current Liabilities   45,240 27,036 34,375 34,275

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   5,379 5,000 5,700 5,900
Other non-current liabilities 8 2,799 2,351 1,693 1,693
Total Non-current Liabilities   8,178 7,351 7,393 7,593
Total Liabilities   53,418 34,387 41,768 41,868

Taxpayers' Funds

         
General funds   31,953 38,168 29,858 35,692
Revaluation reserve   251 251 100 100
Other reserves   - - - -
Total Taxpayers' Funds   32,204 38,419 29,958 35,792
Total Liabilities and Taxpayers' Funds   85,622 72,806 71,726 77,660

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Agriculture and Forestry
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   167,111 203,039 186,219 186,628
Department(s)   10,843 11,845 15,174 13,946
Other   30,930 33,776 30,167 34,020
Interest   - - - -

Payments to:

         
Suppliers   (102,010) (138,696) (116,588) (110,398)
Employees   (89,744) (96,299) (105,336) (108,966)
Capital charge   (2,018) (2,415) (2,559) (2,880)
Goods and services tax (net)   1,150 - - -
Other operating activities   - - - -
Net Cash from Operating Activities 9 16,262 11,250 7,077 12,350

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   114 700 1,660 250
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (2,713) (6,100) (3,830) (4,530)
Intangible assets   (2,556) (8,000) (3,650) (8,000)
Other non-current assets   - - - -
Net Cash from Investing Activities   (5,155) (13,400) (5,820) (12,280)

Cash Flow from Financing Activities

         
Capital contribution   4,757 6,809 1,909 6,600
Other financing cash inflows   - - - -
Repayment of surplus   (2,879) (2,000) (4,273) -
Capital withdrawal   (595) (595) (1,745) (766)
Other financing cash outflows   (4,023) (3,700) (6,100) (3,400)
Net Cash from Financing Activities   (2,740) 514 (10,209) 2,434
Net Increase / (Decrease) in Cash   8,367 (1,636) (8,952) 2,504
Cash at the beginning of the year   11,601 9,065 19,968 11,016
Cash at the end of the year   19,968 7,429 11,016 13,520

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 reductions arising from the value for money review.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 22 April 2009.

Factors that could lead to material differences between the forecast financial statements and the 2009/10 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 MAF, prepared in accordance with section 38 of the Public Finance Act 1989.

The 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 the Ministry of Agriculture and Forestry is a public benefit entity.

Authorisation Statement

These forecast financial statements were authorised for issue by the Director General of the Ministry of Agriculture and Forestry on 22 April 2009. 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
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Support services to the NZ Food Safety Authority 8,951 8,145 9,400 9,500
State Sector Retirement Savings Scheme recovery 1,741 1,800 2,050 2,100
Sub-leased accommodation 1,150 1,000 1,400 1,400
Other 1,390 900 1,002 946
Total 13,232 11,845 13,852 13,946

Note 2 - Other Revenue#

Note 2 - Other Revenue - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Statutory fees and fines 26,409 28,526 24,457 28,120
Other goods and services 5,472 5,250 6,000 6,000
Total 31,881 33,776 30,457 34,120

Note 3 - Operating Expenses#

Note 3 - Operating Expenses - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Audit fees for financial statements 178 178 178 178
Audit fees for other services 20 - - -
Consultant fees 5,038 4,000 3,000 3,000
Overseas travel 2,271 1,600 2,000 2,600
Domestic travel 4,778 4,300 4,900 5,000
Operating lease payments 6,807 7,200 7,800 7,800
Contract payments 64,756 109,218 71,476 71,820
Other 22,548 12,000 20,000 20,000
Total 106,396 138,496 109,354 110,398

Note 4 - Debtors and Other Receivables#

Note 4 - Debtors and Other Receivables - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Debtor Crown 9,765 4,000 6,000 6,000
Debtor other 7,784 6,350 6,600 6,600
Total 17,549 10,350 12,600 12,600

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 2009 1,523 11,671 10,456 31,022 4,206 58,878
Additions by purchase - 1,700 500 4,400 930 7,530
Disposals - - - - (800) (800)
Balance as at 30 June 2010 1,523 13,371 10,956 35,422 4,336 65,608

Accumulated depreciation and impairment losses

           
Balance as at 1 July 2009 - 980 3,506 20,347 1,915 26,748
Depreciation expense - 520 1,100 5,780 750 8,150
Eliminate on disposal - - - - (550) (550)
Balance as at 30 June 2010 - 1,500 4,606 26,127 2,115 34,348
Carrying amount as at 30 June 2010 1,523 11,871 6,350 9,295 2,221 31,260

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 2009 3,000 15,438 - 18,438
Additions by purchase 500 - - 500
Additions internally developed - 7,500 - 7,500
Balance as at 30 June 2010 3,500 22,938 - 26,438

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2009 1,400 7,058 - 8,458
Amortisation expense 500 3,200 - 3,700
Balance as at 30 June 2010 1,900 10,258 - 12,158
Carrying amount as at 30 June 2010 1,600 12,680 - 14,280

Note 7 - Other Current Liabilities#

Note 7 - Other Current Liabilities - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Finance leases 3,474 3,000 3,500 3,500
Unearned revenue 1,552 1,500 1,400 1,300
ACC partnership programme 60 150 60 60
Total 5,086 4,650 4,960 4,860

Note 8 - Other Non-Current Liabilities#

Note 8 - Other Non-Current Liabilities - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Finance leases 2,799 2,351 1,693 1,693
Total 2,799 2,351 1,693 1,693

Note 9 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ended 30 June 2010#

Note 9 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ended 30 June 2010 - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net surplus/(deficit)

4,273 - (2,410) -

Add/(less) non-cash items

       
Depreciation and amortisation expense 12,578 11,500 12,000 11,850
Transfer to NZ Food Safety Authority 10,753 - - -
Total non-cash items 23,331 11,500 12,000 11,850

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

       
(Gains)/losses on disposal property, plant and equipment (36) - (260) -
Finance lease interest costs 492 400 400 400
Total items classified as investing or financing activities 456 400 140 400

Add/(less) movements in working capital items

       
(Inc)/Dec in debtors and receivables (1,809) (1,000) 4,949 -
(Inc)/Dec in prepayments 427 - (1,035) -
(Inc)/Dec in inventories (752) (200) 530 -
Inc/(Dec) in creditors and payables (5,333) - (7,319) -
Inc/(Dec) in other liabilities (792) - (152) (100)
Inc/(Dec) in employee entitlements (2,320)) 350 53 -
Net movements in working capital items (10,579) (850) (2,974) (100)

Add/(less) movements in non-current liabilities

       
Inc/(Dec) in employment entitlements (1,219) 200 321 200
Net cash from operating activities 16,262 11,250 7,077 12,350

Note 10 - Reconciliation of Departmental Expenses and Appropriations#

Note 10 - Reconciliation of Departmental Expenses and Appropriations - Agriculture and Forestry
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Appropriations for output expenses

       
Total for Vote: Agriculture and Forestry 64,317 89,418 75,668 83,113
Total for Vote Biosecurity 150,292 157,052 153,765 155,081
Total appropriations for output expenses 215,229 246,470 229,433 238,194

Adjustments

       
Appropriation amounts unused - (3,000) - (3,500)
In principle expense transfers - 6,190 - -
Total departmental expenses (as per statement of financial performance) 215,229 249,660 229,433 234,694

Forecast Financial Statements Ministry of Fisheries#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Fisheries
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   87,134 93,544 92,996 96,920
Department(s)   1,565 806 1,880 1,934
Other revenue   515 2,078 967 807
Gains   62 - - -
Interest   - - - -
Total Income   89,276 96,428 95,843 99,661

Expenses

         
Personnel   42,011 41,906 47,462 45,474
Operating 1 43,344 50,875 44,892 49,725
Depreciation and amortisation   2,289 2,650 2,541 3,460
Capital charge   954 997 948 1,002
Finance costs   - - - -
Other   (179) - - -
Total Expenses 2 88,419 96,428 95,843 99,661
Net Surplus / (Deficit)   - - - -
Other comprehensive income   - - - -
Total Comprehensive Income   857 - - -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Fisheries
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   12,658 12,658 12,658 13,361
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   12,658 12,658 12,658 13,361

Changes in Taxpayers' Funds

         
Comprehensive income for the period   857 - - -
Repayment of surplus   (857) - - -
Capital contribution 3 - - 703 60
Capital withdrawal 4 - - - (86)
Other   - - - -
Total Changes in Taxpayers' Funds   - - 703 (26)

Balance at 30 June

         
General funds   12,658 12,658 13,361 13,335
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   12,658 12,658 13,361 13,335

Forecast Statement of Financial Position as at 30 June 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Fisheries
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   1,174 4,423 825 1,359
Debtors and other receivables   20,127 18,791 18,346 18,346
Prepayments   599 300 500 500
Inventories   - - - -
Other current assets   - (960) 1,264 2,926
Total Current Assets   21,900 22,554 20,935 23,131

Non-current Assets

         
Property, plant and equipment   10,096 13,556 13,096 10,874
Intangible assets   1,884 - - -
Other non-current assets   58 - 50 50
Total Non- current Assets   12,038 13,556 13,146 10,924
Total Assets   33,938 36,110 34,081 34,055

Liabilities

         

Current Liabilities

         
Creditors and other payables   13,695 17,371 12,092 12,092
Repayment of surplus   857 - - -
Employee entitlements   3,896 653 4,488 4,488
Other current liabilities   122 - - -
Total Current Liabilities   18,570 18,024 16,580 16,580

Non-current Liabilities

         
Provisions   153 - - -
Employee entitlements   2,557 5,428 4,140 4,140
Other non-current liabilities   - - - -
Total Non-current Liabilities   2,710 5,428 4,140 4,140
Total Liabilities   21,280 23,452 20,720 20,720

Taxpayers' Funds

         
General funds   12,658 12,658 13,361 13,335
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   12,658 12,658 13,361 13,335
Total Liabilities and Taxpayers' Funds   33,938 36,110 34,081 34,055

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Fisheries
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   84,609 93,544 94,627 96,920
Department(s)   1,888 806 1,880 1,934
Other   305 2,078 825 807
Interest   - - - -

Payments to:

         
Suppliers   (51,018) (57,204) (56,944) (59,023)
Employees   (33,692) (35,061) (34,901) (36,176)
Capital charge   (954) (997) (948) (1,002)
Goods and services tax (net)   (399) (216) - -
Other operating activities   - - - -
Net Cash from Operating Activities 5 739 2,950 4,539 3,460

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   198 - - -
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (1,110) (2,900) (4,929) (2,900)
Intangible assets   (708) - - -
Other non-current assets   - - - -
Net Cash from Investing Activities   (1,620) (2,900) (4,929) (2,900)

Cash Flow from Financing Activities

         
Capital contribution   - - 703 60
Other financing cash inflows   - - - -
Repayment of surplus   (189) - (662) -
Capital withdrawal   - - - (86)
Other financing cash outflows   - - - -
Net Cash from Financing Activities   (189) - 41 (26)
Net Increase / (Decrease) in Cash   (1,070) 50 (349) 534
Cash at the beginning of the year   2,244 4,373 1,174 825
Cash at the end of the year   1,174 4,423 825 1,359

Statement of Significant Assumptions#

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

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 455 full time equivalents.
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 1 July 2009.

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

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

Statement of Entity-Specific Accounting Policies#

The Ministry of Fisheries 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 Fisheries, prepared in accordance with section 38 of the Public Finance Act 1989.

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

Authorisation Statement

These forecast financial statements were authorised for issue by Wayne McNee, Chief Executive of the Ministry of Fisheries on 3 April 2009. The Chief Executive 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 as below:

  • Buildings - 10 to 100 years.
  • Plant and equipment - up to 10 years.
  • Motor vehicles - up to 10 years.
  • Vessels - 4-25 years.

The cost of leasehold improvements is capitalised and depreciated over the unexpired period of the lease or useful life, whichever is the shorter.

Intangible Assets

The capitalisation threshold for intangible assets is $5,000.

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

  • Purchased software - up to 10 years.
  • Internally developed software - up to 10 years.

Cost Allocation

Those costs that can be specifically attributed to an output are charged directly to that output. Indirect costs are assigned through a methodology that allocates them to front line outputs based either on the use of full time equivalent staff numbers or specific project costs.

Notes to the Financial Statements#

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Fisheries
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses includes:        
Contracts for services 26,158 32,713 28,386 35,036
Overseas travel 911 985 874 832
Domestic travel 3,593 4,103 4,357 3,663
Other 12,682 13,074 15,275 10,194

Total

43,344 50,875 48,892 49,725

Note 2 - Reconciliation of Departmental Expenses and Appropriations#

Note 2 - Reconciliation of Departmental Expenses and Appropriations - Fisheries
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Appropriation for output expenses        
Aquaculture Settlement 1,626 1,543 2,258 1,740
Fisheries Compliance 29,737 30,121 32,782 30,842
Fisheries Information 26,466 31,011 26,029 34,396
Fisheries Operations 23,599 25,948 25,638 25,033
Fisheries Policy Advice 6,667 7,399 8,658 7,410
Interim Secretariat South Pacific Regional Fisheries Management Organisation 324 406 478 240
Total Appropriations for output expenses 88,419 96,428 95,843 99,661

Total departmental expenses (as per Statement of Financial Performance)

88,419 96,428 95,843 99,661

Note 3 - Reconciliation of Capital Contribution#

Note 3 - Reconciliation of Capital Contribution - Fisheries
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Capital contribution includes funding for        
Waikato River Co-Management Implementation - - 139 -
Ngati Porou and Te Whanau a Apanui Negotiations - - 564 -
Increased fishery officer presence - - - 60

Total

- - 703 60

Note 4 - Reconciliation of Capital Withdrawal#

Note 4 - Reconciliation of Capital Withdrawal - Fisheries
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Transfer to Vote State Services to fund        
Identity Verification Service - - - (86)

Total

- - - (86)

Note 5 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 5 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Fisheries
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Net surplus 857 - - -
Add non-cash items:        
Depreciation 2,289 2,650 2,541 3,460
Total non-cash items 2,289 2,650 2,541 3,460
Movements in working capital items:        
(Increase)/decrease in        
Debtors and receivables (2,359) - (1,776) -
Prepayments 93 - (99) -
Increase/(decrease) in        
Creditors and payables (1,932) (100) (1,441) -
Employee entitlements 1,244 400 5,314 -
Unearned revenue 107 - - -
Provisions 598 - - -
Net increase/(decrease) in working capital items  (2,429) 300 1,998 -
Add/(less) investing activity items:        
Net (gain)/loss on sale of property, plant and equipment 22 - - -
Total investing activity items 22 - - -

Net cash inflow/outflow from operating activities

739 2,950 4,539 3,460

Forecast Financial Statements New Zealand Food Safety Authority#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Food Safety
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   31,595 33,469 33,997 32,296
Department(s)   2,161 1,019 2,839 1,742
Other revenue 1 56,948 61,565 60,895 62,424
Gains   16 - - -
Interest   - - - -
Total Income   90,720 96,053 97,731 96,462

Expenses

         
Personnel   48,318 49,510 51,215 51,215
Operating 2 37,505 38,790 42,896 40,241
Depreciation and amortisation   3,599 4,864 3,292 3,008
Capital charge   2 196 85 200
Finance costs   - - - -
Other   - - - -
Total Expenses   89,424 93,360 97,488 94,664
Net Surplus / (Deficit)   2,693 2,693 243 1,798
Other comprehensive income   - - - -
Total Comprehensive Income   1,296 2,693 243 1,798

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Food Safety
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   - 42 42 3,167
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   - 42 42 3,167

Changes in Taxpayers' Funds

         
Comprehensive income for the period   1,296 2,693 243 1,798
Repayment of surplus   (1,296) (2,693) (243) (1,798)
Capital contribution   4,780 5,125 3,125 950
Capital withdrawal   (4,738) - - -
Other   - - - -
Total Changes in Taxpayers' Funds   42 5,125 3,125 950

Balance at 30 June

         
General funds   42 5,167 3,167 4,117
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   42 5,167 3,167 4,117

Forecast Statement of Financial Position as at 30 June 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Food Safety
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   8,869 14,707 9,769 12,972
Debtors and other receivables   3,718 3,700 6,600 5,586
Prepayments   60 70 24 60
Inventories   126 130 84 120
Other current assets   - - - -
Total Current Assets   12,773 18,607 16,477 18,738

Non-current Assets

         
Property, plant and equipment   2,410 2,224 2,236 1,814
Intangible assets 3 5,077 7,129 5,355 5,869
Other non-current assets   2,189 - - -
Total Non- current Assets   9,676 9,353 7,591 7,683
Total Assets   22,449 27,960 24,068 26,421

Liabilities

         

Current Liabilities

         
Creditors and other payables   7,789 5,400 7,248 5,586
Repayment of surplus   1,296 2,693 243 1,798
Employee entitlements   4,073 4,500 4,350 4,900
Other current liabilities   5,392 6,000 5,700 6,000
Total Current Liabilities   18,550 18,593 17,541 18,284

Non-current Liabilities

         
Provisions   322 300 210 320
Employee entitlements   3,535 3,900 3,150 3,700
Other non-current liabilities   - - - -
Total Non-current Liabilities   3,857 4,200 3,360 4,020
Total Liabilities   22,407 22,793 20,901 22,304

Taxpayers' Funds

         
General funds   42 5,167 3,167 4,117
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   42 5,167 3,167 4,117
Total Liabilities and Taxpayers' Funds   22,449 27,960 24,068 26,421

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Food Safety
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   31,595 33,469 33,997 32,296
Department(s)   1,120 1,019 2,982 1,742
Other   55,538 61,565 59,354 63,738
Interest   - - - -

Payments to:

         
Suppliers   (34,591) (38,790) (42,458) (41,895)
Employees   (46,842) (49,010) (51,323) (50,085)
Capital charge   (2) (196) (85) (200)
Goods and services tax (net)   46 - - -
Other operating activities   - - - -
Net Cash from Operating Activities 4 6,864 8,057 2,467 5,596

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   44 - - -
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (1,004) (1,225) (756) (650)
Intangible assets   (1,815) (4,700) (2,640) (2,450)
Other non-current assets   - - - -
Net Cash from Investing Activities   (2,775) (5,925) (3,396) (3,100)

Cash Flow from Financing Activities

         
Capital contribution   4,780 5,125 3,125 950
Other financing cash inflows   - - - -
Repayment of surplus   - - (1,296) (243)
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   4,780 5,125 1,829 707
Net Increase / (Decrease) in Cash   8,869 7,257 900 3,203
Cash at the beginning of the year   - 7,450 8,869 9,769
Cash at the end of the year   8,869 14,707 9,769 12,972

Statement of Significant Assumptions#

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

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 541 staff positions (520 full time equivalents).
  • Operating costs are based on historical experience and the general historical pattern is expected to continue.
  • Revenue is measured at the fair value of the consideration received.
  • Revenue from levies is recognised as revenue when the obligation to pay the levy is incurred.
  • Revenue from application fees is recognised to the extent that the application has been processed by the Authority.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 20 April 2009.

Factors that could lead to material differences between the forecast financial statements and the 2009/10 actual financial statements include:

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

Statement of Entity-Specific Accounting Policies#

The New Zealand Food Safety Authority 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 New Zealand Food Safety Authority, prepared in accordance with section 38 of the Public Finance Act 1989.

New Zealand Food Safety Authority is a Government Department as defined by Section 2 of the Public Finance Act 1989. For the purposes of financial reporting New Zealand Food Safety Authority is a public benefit entity.

Authorisation Statement

These forecast financial statements were authorised for issue by the New Zealand Food Safety Authority on 20 April 2009. The New Zealand Food Safety Authority 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

Capitalisation thresholds applied are set out below:

  • IT Equipment / Hardware - $5,000.
  • All other property, plant and equipment - $5,000.

Depreciation

  • Leasehold Improvements - 2 to 8 years.
  • Furniture and Office Equipment - 3 to 9 years.
  • Motor Vehicles - 2 to 6 years.

Intangible Assets

Capitalisation thresholds applied are:

  • Purchased software - $5,000.
  • Internally developed software - $5,000.

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

  • Purchased software - 3 years.
  • Internally developed software - 2 to 10 years.

Cost Allocation

The Authority has determined the cost of outputs using the 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 assigned to business groups based on various cost drivers including assessed charges and usage, personnel numbers and estimated allocation of time.

Notes to the Financial Statements#

Note 1 - Other Revenue
Note 1 - Other Revenue - Food Safety
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
NZFSA Standards Setting 17,241 13,715 7,456 6,893
Approvals, Accreditations and Registrations 3,117 - 3,437 3,671
Verification Services to the Animal Products Industries 36,195 47,850 45,633 49,569
Other Revenue 395 - 4,369 2,291
Total 56,948 61,565 60,895 62,424

Note 2 - Operating Expenses#

Note 2 - Operating Expenses - Food Safety
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Consultants fees 352 750 398 400
Overseas travel 1,411 1,400 1,566 1,500
Domestic travel 2,514 2,500 2,681 2,600
Other 33,228 34,140 37,251 33,855
Total 37,505 38,790 41,896 38,355

Note 3 - Intangible Assets#

Note 3 - Intangible Assets - Food Safety
  Acquired software
$000
Internally
generated software
$000
Other
$000
Total
$000

Cost

       
Balance as at 1 July 2009 280 11,084 - 11,364
Additions by purchase - - - -
Additions internally developed - 1,650 - 1,650
Disposals - - - -
Balance as at 30 June 2010 280 12,734 - 13,014

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2009 96 5,033 - 5,129
Amortisation expense 92 1,655 - 1,747
Disposals - - - -
Impairment losses - - - -
Balance as at 30 June 2010 188 6,688 - 6,876
Carrying amount as at 30 June 2010 92 6,046 - 6,138

Note 4 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ended 30 June 2010#

Note 4 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ended 30 June 2010 - Food Safety
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net Surplus

1,296 2,693 243 1,798

Add / (Less) non-cash items

       
Depreciation and amortisation expense 3,085 4,864 3,292 3,008
Property, plant and equipment and intangible asset write-down 514 - - -
Transfer to Ministry of Agriculture and Forestry (10,753) - - -
Establishment of Memorandum Accounts (2,280) - - -
Total non-cash items (9,434) 4,864 3,292 3,008

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

       
(Gains) on disposal of property, plant and equipment (16) - - -

Add / (Less) movements in working capital items

       
(Inc)/ Dec in debtors and other receivables (5,907) - (657) 978
(Inc)/ Dec in prepayments (60) - - -
(Inc) / Dec in inventories (126) - 42 (36)
Inc/ (Dec) in creditors and other payables 11,003 - (336) (152)
Inc/ (Dec) in employee entitlements 4,073 300 - -
Inc/ (Dec) other current liabilities 195 - (117) -
Net movements in working capital items 9,178 300 (1,068) 790

Add / (Less) movements in non-current liabilities

       
Inc/ (Dec) in non-current provisions - - - -
Inc/ (Dec) in employee entitlements 5,840 200 - -
Net movements in non-current liabilities 5,840 200 - -
Net cash from operating activities 6,864 8,057 2,467 5,596

Forecast Financial Statements Land Information New Zealand#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Lands
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   54,548 57,308 53,589 54,708
Department(s)   2,225 939 2,078 1,619
Other revenue   47,161 52,489 38,007 49,174
Gains   - - - -
Interest   - - - -
Total Income   103,934 110,736 93,674 105,501

Expenses

         
Personnel   43,246 44,118 45,864 44,126
Operating 1 63,030 66,014 58,994 66,370
Depreciation and amortisation   9,704 8,268 7,664 6,047
Capital charge   2,937 2,956 2,918 2,956
Finance costs   - - - -
Other   - - - -
Total Expenses   118,917 121,356 115,440 119,499
Net Surplus / (Deficit)   (10,620) (10,620) (21,766) (13,998)
Other comprehensive income   - - - -
Total Comprehensive Income   (14,983) (10,620) (21,766) (13,998)

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Lands
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   38,904 38,904 39,238 37,777
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   38,904 38,904 39,238 37,777

Changes in Taxpayers' Funds

         
Comprehensive income for the period   (14,983) (10,620) (21,766) (13,998)
Repayment of surplus   - - - -
Capital contribution   15,317 10,620 20,305 13,998
Capital withdrawal   - - - -
Other   - - - -
Total Changes in Taxpayers' Funds   334 - (1,461) -

Balance at 30 June

         
General funds   39,238 38,904 37,777 37,777
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   39,238 38,904 37,777 37,777

Forecast Statement of Financial Position as at 30 June 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Lands
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   299 1,075 1,345 2,046
Debtors and other receivables   9,770 4,665 8,310 6,529
Prepayments   1,196 1,245 784 1,245
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   11,265 6,985 10,439 9,820

Non-current Assets

         
Property, plant and equipment   7,031 5,882 4,211 5,161
Intangible assets   47,223 50,154 46,313 43,618
Other non-current assets   - - - -
Total Non- current Assets   54,254 56,036 50,524 48,779
Total Assets   65,519 63,021 60,963 58,599

Liabilities

         

Current Liabilities

         
Creditors and other payables   16,657 13,817 13,295 10,861
Repayment of surplus   - - - -
Employee entitlements   4,805 4,000 5,161 5,161
Other current liabilities   111 1,000 30 100
Total Current Liabilities   21,573 18,817 18,486 16,122

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   4,708 5,300 4,700 4,700
Other non-current liabilities   - - - -
Total Non-current Liabilities   4,708 5,300 4,700 4,700
Total Liabilities   26,281 24,117 23,186 20,822

Taxpayers' Funds

         
General funds   39,238 38,904 37,777 37,777
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   39,238 38,904 37,777 37,777
Total Liabilities and Taxpayers' Funds   65,519 63,021 60,963 58,599

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Lands
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   46,440 49,786 55,193 56,356
Department(s)   2,546 939 2,069 1,652
Other   45,398 49,865 37,791 49,344
Interest   - - - -

Payments to:

         
Suppliers   (59,921) (103,383) (62,581) (69,496)
Employees   (43,267) - (45,265) (43,895)
Capital charge   (3,540) (2,956) (2,918) (2,956)
Goods and services tax (net)   (451) - 386 -
Other operating activities   - - - -
Net Cash from Operating Activities   (12,795) (5,749) (15,325) (8,995)

Cash Flow from Investing Activities

         

Receipts from:

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

Purchase of:

         
Property, plant and equipment   (8,105) (7,333) (3,934) (4,302)
Intangible assets   - - - -
Other non-current assets   - - - -
Net Cash from Investing Activities   (8,105) (7,333) (3,934) (4,302)

Cash Flow from Financing Activities

         
Capital contribution   15,253 10,620 20,305 13,998
Other financing cash inflows   - - - -
Repayment of surplus   - - - -
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   15,253 10,620 20,305 13,998
Net Increase / (Decrease) in Cash   (5,647) (2,462) 1,046 701
Cash at the beginning of the year   5,946 3,537 299 1,345
Cash at the end of the year   299 1,075 1,345 2,046

Statement of Significant Assumptions#

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

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Personnel costs are based upon 539 full time equivalent staff positions.
  • Operating costs are based upon historical experience. The general historical pattern is expected to continue.
  • Estimated year-end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions were adopted as at 31 March 2009.

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

  • Any significant change in property market transaction volumes from that currently forecast could materially impact LINZ's revenue from survey and titles transactions.
  • Expenditure against the land tenure multi-year appropriation is dependant upon lessee's acceptance of proposals. A number of proposals will be put before 2008/09 year-end, but may not be accepted until the 2009/10 year. This could materially impact the expenditure recorded in 2008/09.

Statement of Entity-Specific Accounting Policies#

Land Information New Zealand 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 Land Information New Zealand, prepared in accordance with section 38 of the Public Finance Act 1989.

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

Authorisation Statement

These forecast financial statements are authorised for issue by Colin MacDonald, Chief Executive of Land Information New Zealand on 22 April 2009. The Chief Executive 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

Surplus Leased Accommodation

The provision for surplus leased accommodation represents the Department's liability under lease agreements for surplus leased space. The provision is calculated on a net present value of the rental payable less any revenue expected to be collected. The liability created is then amortised over the term of the lease.

Property, Plant and Equipment

Property, plant and equipment consists of leasehold improvements, furniture and office equipment, computer hardware, and motor vehicles. Property, plant and equipment is shown at cost less accumulated depreciation and impairment losses.

Individual assets, or group of assets, are capitalised if their cost is greater than $3,000. The value of an individual asset that is less than $3,000 and is part of a similar group of assets, is capitalised.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the department and the cost of the item can be measured reliably.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the Statement of Financial Performance.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when is it probable that future economic or service potential associated with the item will flow to the department and the cost of the item can be measured reliably.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment, other than non-current work in progress at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives.

The estimated useful lives of major classes of assets and resulting rates are set out below:

  • Leasehold property improvements Over lease term
  • Motor vehicles 5 to 7 years
  • Computer Hardware 3 to 20 years
  • Plant and equipment 4 to 10 years
  • Furniture and fittings 4 to 10 years

The cost of leasehold improvements is capitalised and depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements, whichever is shorter.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end.

Work in progress

The value of non-current work in progress is the capitalised direct cost of incomplete capital projects.

Intangible Assets 

Software acquisition and development

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by the Department, are recognised as an intangible asset. Direct costs include the software development, employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised as an expense when incurred.

Amortisation

The useful lives and associated amortisation rates of intangible assets have been estimated as three to five years.

Impairment of Non-financial Assets

Intangible assets that are not yet available for use at the balance sheet date are tested for impairment annually.

Property, plant and equipment and intangible assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset's ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits or service potential.

If an asset's carrying amount exceeds it recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the Statement of Financial Performance.

For assets not carried at a revalued amount, the total impairment loss is recognised in the Statement of Financial Performance.

Employee Entitlements

Short-term employee entitlements

Employee entitlements that the Department expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay.

These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

The Department recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that the Department anticipates it will be used by staff to cover those future absences.

The Department recognises a liability and an expense for bonuses where it is contractually obliged to pay them, or where there is a past practice that has created a constructive obligation.

Long-term employee entitlements

Entitlements that are payable beyond 12 months, such as long service leave and retiring leave, have been calculated on an actuarial basis. The calculations are based on:

  • likely future entitlements based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information, and
  • the present value of the estimated future cashflows. A weighted average discount rate of 5.75% and a salary inflation factor of 3% were used. The discount rate is based on the capital charge rate. The inflation factor is based on the expected long-term increase in remuneration for employees.

Statement of Cost Accounting Policies

The Department 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.

(1) Costs that are directly related to an output are allocated directly to that output.

(2) Costs that are not directly related to a single output fall into two categories:

  • Costs that are not related to the production of outputs are defined as overhead costs. These are allocated to Direct output Producing Cost-Centres (DOPCC's) using, as a proxy for consumption, cost drivers such as full-time equivalent staff (FTE), floor area, and estimated usage.
  • Costs that are partially related to the production of outputs are those incurred within DOPCC's that are not sufficiently direct to allocate directly.

All costs that fall into either category under (2) above are allocated from DOPCC's to outputs using a proxy for estimated resource usage, such as FTE staff time.

(1) Costs that are directly related to an output are allocated directly to that output.

(2) Costs that are not directly related to a single output fall into two categories:

  • Costs that are not related to the production of outputs are defined as overhead costs. These are allocated to Direct output Producing Cost-Centres (DOPCC's) using, as a proxy for consumption, cost drivers such as full-time equivalent staff (FTE), floor area, and estimated usage.
  • Costs that are partially related to the production of outputs are those incurred within DOPCC's that are not sufficiently direct to allocate directly.

All costs that fall into either category under (2) above are allocated from DOPCC's to outputs using a proxy for estimated resource usage, such as FTE staff time.

Notes to the Financial Statements#

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Lands
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Consultants' fees 2,019 1,311 1,404 1,200
Overseas travel  223 169 145 100
Domestic travel 1,958 1,330 1,360 1,200
Audit fees 249 201 213 250
Doubtful debts 24 24 24 25
Other 58,557 62,979 55,848 63,595

Total

63,030 66,014 58,994 66,370

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Lands
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Net surplus/(deficit) (14,983) (10,620) (21,766) (13,998)

Add/less non- cash items

       
Depreciation and amortisation expense 9,704 8,268 7,664 6,047
Total non-cash items 9,704 8,268 7,664 6,047

Add/less items classified as investing or financing activities 

       
(Gains)/losses on disposal of property, plant and equipment (51) - - -

Add/(less) movements in working capital items

       
(Inc)/Dec in debtors and other receivables (8,827) - 680 (789)
(Inc)/Dec in prepayments - - (412) 461
Inc/(Dec) in creditors and other payables 1,437 (3,397) (1,807) (609)
Inc/(Dec) in current provisions (75) - 316 (107)
Inc/(Dec) in current employee entitlements - - - -
Net movements in working capital items (7,465) (3,397) (1,223) (1,044)

Net cash from operating activities

(12,795) (5,749) (15,325) (8,995)

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

Purpose and Nature of Appropriations#

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

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

Limits Created by Appropriations#

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

Each appropriation 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 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 normally 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 the Estimates#

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.

The title 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 belonging to the department's Responsible Minister.
    • Information is provided on intended impacts and outcomes of the appropriation, its scope, expenditure analysed by standard asset categories, reasons for material changes in the appropriation, and expected results. The scope statement is in a standard form for all departments. The performance information relates to the department as a whole and is not limited to any specific capital injection.
  • Part 6.2 Non-Departmental Capital Expenditure - Performance information for capital expenditure incurred by the Crown is the same as that for departmental capital expenditure except for not detailing asset categories and the addition of any conditions on use of the appropriation, any current and past policy initiatives, and a summary of the mechanism for reporting to Parliament.
    • The scope statement indicates the form of interest or asset acquired by the Crown, such as a capital injection (equity), loan or shares.

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. Some variations exist for non-standard appropriations, including MCOAs in Parts 2.1 and 2.2 and MYAs in Parts 2.2, 5.2 and 6.2. Furthermore performance information may not be available for some appropriations.

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.
  • Additionalinformationand 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 Supplementary Estimates and the Information Supporting the Supplementary 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 and capital receipts Flows accounted for as revenue and capital receipts on behalf of the Crown rather than as departmental revenue.
DDA Department-to-department appropriation - as authorised by section 20(2) of the PFA.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the PFA.
Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year.  Expenses are an accrual concept measured in accordance with generally accepted accounting practice.
GST Goods and services tax.  Appropriations are stated GST- exclusive.
MCOA Multi-class output expense appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Outcomes States or conditions of society, the economy or the environment, including changes in those states or conditions.
Outputs Goods or services supplied by departments and other entities to external parties.  Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989
PLA Permanent legislative authority - a traditional term for a permanent appropriation, ie, one that is authorised for an indefinite period by legislation other than an Appropriation Act.
Minister The Minister responsible for specific appropriations being sought within a Vote.  As several Ministers may 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 appropriation - as authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity.  In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the Responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown.  These flows are accounted for as departmental revenue.  Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties. Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by the one department.

The suite of Budget 2009 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2009. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Sector Overview#

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 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
22 April 2009

Hon Phil Heatley
Responsible Minister for the Ministry of Fisheries
22 April 2009

Hon Kate Wilkinson
Responsible Minister for the New Zealand Food Safety Authority
22 April 2009

Hon Dr Richard Worth
Responsible Minister for Land Information New Zealand
22 April 2009

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 (2009/10 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
22 April 2009

Patricia McAuliffe
Chief Financial Officer
Ministry of Agriculture and Forestry
22 April 2009
Counter-signed

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 (2009/10 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
22 April 2009

Paul Laplanche
Chief Financial Officer
Ministry of Fisheries
22 April 2009
Counter-signed

New Zealand Food Safety Authority#

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 New Zealand Food Safety Authority and for the Vote for which the New Zealand Food Safety Authority is the administering department. Specifically, this information is contained in the New Zealand Food Safety Authority'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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Andrew McKenzie
Chief Executive
New Zealand Food Safety Authority
22 April 2009

Gary Lewis
Director Finance
New Zealand Food Safety Authority
22 April 2009
Counter-signed

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 (2009/10 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
22 April 2009

Brian Usherwood
General Manager Business Support
Land Information New Zealand
22 April 2009
Counter-signed

Performance Information for Appropriations Vote Agriculture and Forestry#

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

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 Vote Agriculture and Forestry for the 2009/10 financial year covering the following:

  • A total of over $24 million for policy advice with respect to the agricultural, forestry and horticultural sectors.
  • A total of over $38 million to support the Government's commitment on climate change under the Kyoto Protocol.
  • A total of nearly $2 million for administering the legislative provisions relating to the management of indigenous forests.
  • A total of over $3 million for setting of animal welfare standards, provision of animal welfare policy advice and investigations and prosecutions of breaches of the Animal Welfare Act 1999.
  • A total of nearly $4 million for management of Crown forestry assets, the East Coast Forestry Project and the Sustainable Farming Fund.
  • A total of over $11 million for providing support services and infrastructure to other agencies.
  • A total of over $95 million on purchasing forest management and wood production services from sector contractors for Crown forests.
  • A total of $30 million for the Primary Growth Partnership.
  • A total of over $19 million for East Coast forestry grants, Sustainable Farming Fund grants, community irrigation fund and the afforestation grants scheme.
  • A total of nearly $2 million for the operation of the New Zealand Walking Access Commission.
  • A total of over $3 million on other non-departmental expenses, including subscriptions to international organisations, possible adverse climatic events and community irrigation scheme.
  • A total of nearly $16 million for departmental capital expenditure on property, plant, equipment and IT software.
  • A total of nearly $1 million for Crown capital expenditure on forestry assets and the New Zealand Walking Access Commission.

Crown Revenue and Capital Receipts

The Ministry expects to collect over $116 million of Crown revenue and capital receipts in 2009/10, made up as follows:

  • A total of over $110 million for the sale of logs from Crown forests.
  • A total of over $5 million from forestry encouragement loan interest and loan repayments.
  • A total of nearly $1 million 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 - 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:
  • Agriculture and forestry sector competitiveness and innovation.
  • Animal welfare.
  • Climate change.
  • Water policy and infrastructure.
  • Rural proofing.
  • Trade.
  • New Zealand's integrity and global reputation.
  • Maori participation in agriculture and forestry.
End Outcome - Sustainable economic growth and prosperity for New Zealanders through:
  • Implementing research, development, and innovation initiatives to support New Zealand's food and pastoral industries.
  • Business sustainability and capitalising on commercial opportunities.
  • Maintained and/or enhanced market access for New Zealand goods and services.
Agriculture and Forestry Policy Advice
The sustainable commercialisation of indigenous forestry species. Administration of Indigenous Forestry Provisions
Maintained and/or enhanced market access for New Zealand goods and services due to our ability to adapt to changing consumer demand and ethics in key markets. Animal Welfare
Business sustainability and capitalising on commercial opportunities associated with the global focus on climate change.
Implementation of an Emissions Trading Scheme.
Climate Change
Effective stewardship of the Crown's forestry and related assets. Contract, Grant and Asset Management
The provision of cost-effective information management, financial and procurement, contract and payroll services to other agencies. Support Services and Infrastructure to Other Agencies
End Outcome - A vibrant rural community by means of ensuring that the circumstances and needs of the rural community (people and businesses) are taken into account when developing and implementing policy. Agriculture and Forestry Policy Advice
End Outcome - Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment through a viable indigenous forestry sector based on the sustainable management of indigenous forests. Administration of Indigenous Forestry Provisions
Seeking long-term solutions to reduce animal methane emissions, and to aim for world leadership in this area of science.
Lowering greenhouse gas emissions and New Zealand's carbon footprint.
Implementation of the plan of action on sustainable land management and climate change to improve the environmental performance of our land-based industries and to assist them to adapt to climate change.
Climate Change

Summary of Financial Activity#

Summary of Financial Activity - Agriculture and Forestry
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  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 86,998 89,411 98,650 130,245 168,297 153,005 83,113 95,008 178,121 151,669 153,556 141,089
Benefits and Other Unrequited Expenses - - - - - - N/A 770 770 1,100 1,430 1,760
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 50,707 22,522 13,850 14,602 18,810 14,049 - 53,711 53,711 63,949 73,726 93,475
Capital Expenditure 7,058 26,859 19,967 11,039 756,350 754,621 15,530 800 16,330 15,030 13,730 13,330
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

144,763 138,792 132,467 155,886 943,457 921,675 98,643 150,289 248,932 231,748 242,442 249,654

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 81,594 81,549 88,179 87,844 99,654 97,400 N/A 113,365 113,365 99,570 101,861 82,634
Capital Receipts 9,399 2,015 1,959 2,154 706,566 706,566 N/A 2,950 2,950 2,870 3,630 3,310

Total Crown Revenue and Capital Receipts

90,993 83,564 90,138 89,998 806,220 803,966 N/A 116,315 116,315 102,440 105,491 85,944

New Policy Initiatives#

Budget Policy Intiatives - Agriculture and Forestry
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Primary growth partnership to drive economic growth and sustainability in the primary and food sectors through research and innovation.

Primary Growth Partnership (M2)

Non-Departmental Other Expense
- 30,000 40,000 50,000 70,000
Transfer of Timberlands West Coast Limited operations to MAF.

Management of Crown Forestry Assets (M2)

- 16,000 - -  
  Non-Departmental Output Expense          
 

Crown Forestry Assets (M2)

- 300 - - -
  Non-Departmental Capital Expenditure          
Implementation of free trade agreements.

Agriculture and Forestry Policy Advice (M2)

- 370 355 - -
  Departmental Output Expense          
Rural veterinarians bonding scheme.

Rural Veterinarians Bonding Scheme (M2)

- 770 1,100 1,430 1,760
  Benefits and Other Unrequited Expenses          
 

Agriculture and Forestry Policy Advice (M2)

- (100) (100) (221) (221)
  Departmental Output Expense          
 

Climate Change (M2)

- - - (39) (39)
  Departmental Output Expense          
 

Contract, Grant and Asset Management (M2)

- - - (3) (3)
  Departmental Output Expense          
 

East Coast Afforestation Grants (M2)

- - - - (222)
  Non-Departmental Other Expense          
 

Sustainable Farming Fund (M2)

- (444) (444) (444) (444)
  Non-Departmental Other Expense          
Wind up of the New Zealand Fast Forward Fund.

New Zealand Fast Forward Fund

(700,000) - - - -
  Crown Capital Receipt          
Value for money review savings and reprioritisation.

Administration of Indigenous Forestry Provisions (M2)

- (4) (2) (2) (2)
  Departmental Output Expense          
 

Agriculture and Forestry Policy Advice (M2)

- 204 245 409 409
  Departmental Output Expense          
 

Animal Welfare (M2)

- 600 - - -
  Departmental Output Expense          
 

Climate Change (M2)

(1,600) (2,730) (2,700) (1,700) (1,700)
  Departmental Output Expense          
 

Contract, Grant and Asset Management (M2)

- (14) (7) (7) (7)
  Departmental Output Expense          
 

East Coast Afforestation Grants (M2)

(6,000) (1,278) (1,278) (1,278) (1,056)
  Non-Departmental Other Expense          
 

Afforestation Grants Scheme (M2)

(3,600) (3,000) (3,000) (3,000) (3,000)
  Non-Departmental Other Expense          
 

Sustainable Farming Fund (M2)

- (1,000) (1,000) (1,000) (1,000)
  Non-Departmental Other Expense          
 

New Zealand Walking Access Commission (M2)

- (1,000) - - -
  Non-Departmental Other Expense          
Purchase of Matahi and Oponare forests.

Management of Crown Forestry Assets (M2)

125 125 125 125 125
  Non-Departmental Output Expense          
 

Crown Forestry Assets (M2)

11,830 - - - -
  Non-Departmental Capital Expenditure          
Transfer of Timberlands West Coast Limited operations to MAF.

Management of Crown Forestry Assets (M2)

10,000 - - - -
  Non-Departmental Output Expense          
 

Purchase of Assets from Timberlands West Coast Limited (M2)

30,000 - - - -
  Non-Departmental Capital Expenditure          
 

Contract, Grant and Asset Management (M2)

200 200 200 200 200
  Departmental Output Expense          
New Zealand Emissions Trading Scheme.

Climate Change (M2)

1,100 800 300 300 300
  Departmental Output Expense          
 

Departmental Capital Injection

1,000 - - - -

Total Initiatives

  (656,945) 39,799 33,794 44,770 65,100

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 is mainly due to the transfer of Timberlands West Coast Limited's forestry operations to the Ministry of Agriculture and Forestry (MAF).

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 increase in 2009/10 is 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 funds departmental capital expenditure and Crown forestry capital expenditure.

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 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
Immediate Outcome or Impact
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 Zealanders increasing engage in regulatory-focused activities and initiatives, and voluntarily change their behaviour to comply with regulatory frameworks.
New Zealand gains, maintains or improves quantitative 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.
Public sector organisations apply a 'rural proofing' lens during operational policy development and implementation.
Rural communities have access to new generation communications technologies.
Intermediate Outcomes
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.
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.
End Outcome
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.
Agriculture and Forestry Policy Advice (M2)
Immediate Outcome or Impact
Animals are treated in a humane and ethical manner.
New Zealand's animal welfare framework is updated and further developed to reflect domestic and international societal expectations regarding the ethical and humane treatment of production and domestic animals.
Increased awareness of MAF's programmes, initiatives and regulatory framework associated with Animal Welfare.
New Zealanders increasingly appreciate their duty of care obligations under the Animal Welfare Act 1999, and voluntarily change their behaviour to comply with regulatory frameworks.
Compliance with New Zealand animal welfare legislative framework (stemming from the enforcement of regulatory provisions for non-compliance).
Intermediate Outcomes
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 and regulations is maintained and/or enhanced.
New Zealanders are informed and involved participants in MAF's regulatory systems.
End Outcomes
Sustainable economic growth and prosperity for New Zealanders.
Animal Welfare (M2)
Immediate Outcome or Impact
Indigenous forests are managed sustainably and wood is milled and exported legally.
Increased awareness amongst industry participants of MAF's programmes, initiatives and regulatory framework associated with Indigenous Forestry.
Compliance with aspects of New Zealand indigenous forestry legislative framework (stemming from the enforcement of regulatory provisions for non-compliance).
Intermediate Outcomes
New Zealanders are informed and involved participants in MAF's regulatory systems.
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
Sustainable economic growth and prosperity for New Zealanders.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Administration of Indigenous Forestry Provisions (M2)
Intermediate Outcomes/Objectives
Effective stewardship of the Crown's forestry assets.
The effective and efficient administration of the Sustainable Farming Fund and the East Coast Forestry Project.
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.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
Connected and resilient rural communities.
End Outcome
Sustainable economic growth and prosperity for New Zealanders.
Vibrant Rural Communities.
Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment.
Contract, Grant and Asset Management (M2)
Objective
The provision of cost-effective information management, financial, procurement, contract management and payroll services to other agencies (ie, the New Zealand Food Safety Authority).
Support Services and Infrastructure to Other Agencies (M2)
Immediate Outcome or Impact
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.
A consistent approach to climate change policy development across government.
Information on emissions reduction/sink establishment is available and understood by land owners.
Increased awareness of MAF's programmes, initiatives and regulatory framework associated with climate change.
New Zealanders increasing engage in regulatory-focused activities and initiatives, and voluntarily change their behaviour to comply with regulatory frameworks.
The establishment of permanent indigenous and exotic forests.
Intermediate Outcomes
New Zealanders are informed and involved participants in MAF's regulatory systems.
Forests and forestry products are widely used in adapting to, and reducing, the impacts of climate change.
New Zealand is recognised as a world leader in the development of practical technologies and management practices for farmers to measure and reduce agricultural emissions.
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high performance.
Sectors are positioned to take better advantage of the economic opportunities arising from climate change and changing consumer preferences.
Enhanced prosperity for Maori engaged in the agriculture, food, forestry and related sectors.
Connected and resilient rural communities.
End Outcomes
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.
Climate Change (M2)

Administration of Indigenous Forestry Provisions (M2)

Scope of Appropriation

Administration of the indigenous forestry provisions of the Forests Act 1949, with the purpose of promoting the sustainable forest management of indigenous forest land.

Expenses and Revenue

Expenses and Revenue - Administration of Indigenous Forestry Provisions (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,064 2,044 1,969
Revenue from Crown 2,002 1,982 1,907
Revenue from Other 62 62 62

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Indigenous Forestry Provisions (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Promotion of Sustainable Management of Indigenous Forestry

     
Approval of draft sustainable forest management plans and review of registered sustainable forest management plans. 10 1 5
Approval of sustainable forest management permit applications. 30 26 25
Registration of sawmills. 200 200 200
Issuing of other milling statements. 200 180 200
Approval of annual logging plans. 50 46 45
Approval and monitoring of indigenous timber export consignments. 75 50 50
Hectares of land covered by sustainable management plans and permits. NA 122,000 122,000
Cubic metres of indigenous timber approved for milling in sustainable forest management plans and permits. NA 80,000 80,000
Cubic metres of indigenous timber approved for export. NA 1,000 1,000
Percentage of annual logging plans inspected that comply. NA 80 80
Percentage of sawmills inspected that comply. NA 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. NA 100 100

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). NA 5 5
Category II - Enforcement intervention requiring criminal investigation response resulting in formal warning (completion in an eight month time period). NA 5 5
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). NA 4 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). NA 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). NA 6 6
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). NA 3 3
Percentage of cases lodged with the Court that incurred adverse judicial comment. - - -

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Indigenous Forestry Provisions (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 - Administration of Indigenous Forestry Provisions (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Staff remuneration 2005/06 98 132 165 165 165

Agriculture and Forestry Policy Advice (M2)#

Scope of Appropriation#

Policy advice in regard to the agricultural, forestry and horticultural sectors, and ministerial services.

Expenses and Revenue#

Expenses and Revenue - Agriculture and Forestry Policy Advice (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 27,197 24,863 24,816
Revenue from Crown 26,868 25,118 24,487
Revenue from Other 329 245 329

Reasons for Change in Appropriation#

The reduction in this appropriation is mainly due to the completion of a four-year programme to support a generic forestry market development programme.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Agriculture and Forestry Policy Advice (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

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

     
Number of ministerial briefing papers or reports provided. NA 560 560
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). NA 4 4

Provision of Ministerial Services

     
Number of ministerial letters prepared. NA 330 330
Number of official information request responses provided. NA 120 120
Number of parliamentary question responses provided. NA 235 235
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). NA 4 4
Percentage of ministerial correspondence completed within 15 working days. NA 90 95
Percentage of ministerial correspondence completed within 20 working days. NA 100 100
Percentage of ministerial correspondence accepted without amendments. NA 95 95
Percentage of OIA requests completed within 15 working days. NA 50 95
Percentage of OIA requests completed within 20 working days. NA 80 100

Coordinating 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. NA 5 4

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. NA 5 4

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

     
Number of forums covered. NA 7 7

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Agriculture and Forestry Policy Advice (M2) - Agriculture and Forestry
Reference Conditions

Quality standards for analysis and advice

 
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 - Agriculture and Forestry Policy Advice (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings and reprioritisation 2009/10 - 204 245 409 409
Inter-agency resource needs for trade agreements 2008/09 150 370 355 - -
Fonterra capital structure review 2007/08 730 - - - -
Sustainable land management programme 2007/08 2,300 3,900 2,500 2,500 2,500
Building rural capacity to respond to adverse events 2007/08 430 360 360 360 360
Policy advice capability 2006/07 600 600 600 600 600
Organic sector advisory programme 2006/07 50 - - - -
Water programme of action 2006/07 190 100 - - -
Sustainable water development 2005/06 444 444 444 444 444
Development of walking access policy 2005/06 200 100 100 100 100
Pursuing trade agreements and maximising gains 2005/06 1,350 1,350 1,350 1,350 1,350
Design innovation and excellence for timber products scheme 2005/06 595 267 142 - -
Generic forestry market development 2005/06 3,140 80 - - -
Staff remuneration 2005/06 1,339 1,845 2,295 2,295 2,295

Animal Welfare (M2)#

Scope of Appropriation#

Setting of animal welfare standards and investigations and prosecutions of breaches of the Animal Welfare Act 1999.

Expenses and Revenue#

Expenses and Revenue - Animal Welfare (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,907 2,877 3,200
Revenue from Crown 2,847 2,847 3,140
Revenue from Other 60 30 60

Reasons for Change in Appropriation#

The increase in this appropriation for 2009/10 funds an expected increase in the level of animal welfare investigations arising from drought conditions.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Animal Welfare (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and Provision of Animal Welfare Related Policy Advice

     
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). NA 4 4
Number of issues of Welfare Pulse issued. NA 1-2 2

Provision of Ministerial Services

     
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). NA 4 4

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. NA 100 100

Investigations of Alleged Breaches of the Animal Welfare Act 1999

     
Category I - Enforcement intervention requiring statutory action regulatory response. 700 800-1000 800-1000
Category II - Enforcement intervention requiring investigation response for lower threshold criminal behaviours (including section130 instructions acknowledgement of culpability, and warnings, search warrants, court enforcement orders, (usually completion in a six month time period). NA 180 180
Category III - Enforcement intervention involving large scale mitigation of animal suffering and investigation, establishing criminal liability (usually completion in a 12-18 month time period). NA 5 5

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

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

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Animal Welfare (M2) - Agriculture and Forestry
Reference Conditions
Development and provision of policy advice. See conditions of use under Agriculture and Forestry Policy Advice output expense above.
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.

Climate Change (M2)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Climate Change (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 37,752 30,614 38,041
Revenue from Crown 37,482 30,944 37,699
Revenue from Other 270 270 342

Reasons for Change in Appropriation#

The increase in this appropriation mainly relates to the plan of action for sustainable land management and climate change and implementation of the New Zealand emissions trading scheme.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Climate Change (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and Provision of Climate Change Related Policy Advice

     
Number of ministerial briefing papers or reports provided. NA 60 60
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). NA 4 4

Provision of Ministerial Services

     
Number of ministerial letters prepared. NA 40 50
Number of official information request responses provided. NA 15 20
Number of parliamentary question responses provided. NA 15 20
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). NA 4 4
Percentage of ministerial correspondence completed within 15 working days. NA 60 95
Percentage of ministerial correspondence completed within 20 working days. NA 85 100
Percentage of ministerial correspondence accepted without amendments. NA 95 95
Percentage of OIA requests completed within 15 working days. NA 30 95
Percentage of OIA requests completed within 20 working days. NA 70 100
Percentage of parliamentary questions completed within specified timeframes. NA 100 100

Implementation of the New Zealand Emissions Trading Scheme

     
The emissions trading scheme is currently under review. New performance measures will be developed once the review is completed and legislation changes are introduced. - - -

Implementation of the Permanent Forest Sink Initiative

     
Number of new covenants signed. NA 20 50
Hectares covered by covenants. NA 4,700 10,000

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Climate Change (M2) - Agriculture and Forestry
Reference Conditions
Development and provision of policy advice. Refer Agriculture and Forestry Policy Advice output expense above.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Climate Change (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2008/09 (1,600) (2,730) (2,700) (1,700) (1,700)
Implementation of the New Zealand emissions trading scheme 2007/08 6,175 5,535 3,770 3,780 4,060
International leadership on climate change research in agriculture and forestry 2007/08 1,000 1,300 1,000 1,000 1,000
Permanent forest sink 2007/08 253 72 - - -
Sustainable land management and climate change plan of action 2006/07 27,138 32,497 28,432 27.575 27,626

Contract, Grant and Asset Management (M2)#

Scope of Appropriation#

Management of the Crown's ownership interest in forests established on Crown-Owned and leased Maori land. Management of the Sustainable Farming Fund, East Coast Forestry Project and flood relief programmes.

Expenses and Revenue#

Expenses and Revenue - Contract, Grant and Asset Management (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,877 3,720 3,832
Revenue from Crown 3,840 3,833 3,795
Revenue from Other 37 37 37

Output Performance Measures and Standards#

Output Performance Measures and Standards - Contract, Grant and Asset Management (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Management of Crown Forests

     
Number of forests under administration and management. 25 25 39
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. - - -
Contracting, evaluation/auditing and payment of forest managers. 6 6 6
Number of hectares of Crown forestry interests surrendered or sold. 900 900 900

Management Forestry Encouragement Loans

     
Number of forestry encouragement loan grantees. 11 11 6
Number of forestry encouragement loans. 31 31 20
Total value of outstanding forestry encouragement loans. $24m $24m $22m

Management of the Sustainable Farming Fund

     
Value of Sustainable Farming Fund grants allocated. $8.444m $6m $7m
Percentage of result for Sustainable Farming Fund applications for $20,000 or less that were announced after 15 April. NA - -
Number of Sustainable Farming Fund applications received for $20,000 or less. NA 37 48
Percentage of applicants that were invited to submit a phase-two proposal. NA 61 45
Total number of funding contracts under management. NA 277 220
Percentage of result for Sustainable Farming Fund applications over $20,000 that was announced after 30 June. NA - -
Percentage of non-performing funding contracts that were suspended. NA - -

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Contract, Grant and Asset Management (M2) - 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.
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 - Contract, Grant and Asset Management (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Transfer of Timberlands West Coast Limited operations to MAF 2008/09 200 200 200 200 200
Purchase of Matahi and Oponae forests 2008/09 125 125 125 125 125
Staff remuneration 2005/06 163 218 267 267 267

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,255 11,550 11,255
Revenue from Crown - - -
Revenue from Other 11,255 11,550 11,255

Output Performance Measures and Standards#

Output Performance Measures and Standards - Support Services and Infrastructure to Other Agencies RDA (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of respondents that rated the information management services provided by MAF as 4 or higher on a scale of 1 to 5. 85 85 85
Percentage of respondents that rated the financial and procurement services provided by MAF as 4 or higher on a scale of 1 to 5. 85 85 85
Percentage of respondents that rated contract management services provided by MAF as 4 or higher on a scale of 1 to 5. 85 85 85
Percentage of respondents that rated payroll services provided by MAF as 4 or higher on a scale of 1 to 5. 85 85 85

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Support Services and Infrastructure to Other Agencies RDA (M2) - Agriculture and Forestry
Reference Conditions
Information management, financial, procurement, contract management and payroll services. In accordance with Government policy, legislation, regulations and MAF financial policies and internal processes.
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
The effective and efficient management (ie, cultivation, pruning, harvesting) of the Crown's forests. Management of Crown Forestry Assets (M2)

Management of Crown Forestry Assets (M2)#

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 (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 83,245 77,337 95,008

Reasons for Change in Appropriation

The increased appropriation for 2009/10 is mainly due to the transfer of Timberlands West Coast Limited's operations to MAF, with effect from 1 January 2009.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Crown Forestry Assets (M2) - Agriculture and Forestry
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Hectares of net stocked forest. 33,887 63,128 63,128
Hectares of silviculture tending. 6,400 5,000 11,900
Log volume supplied in cubic metres. 1,288,200 1,190,000 1,400,000
Average stumpage price per cubic metre of logs sold. $31 $28 $26
Management fee (per net stocked hectare) exclusive of harvesting and re-investment fees. $20 $15 $20
Fixed cost per net stocked hectare. $50 $29 $38
Hectares lost from fire attributable to the quality of Crown Forestry's response and systems. NA - -

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Crown Forestry Assets (M2) - 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 (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Transfer of Timberlands West Coast Limited assets to MAF 2008/09 10,000 16,000 - - -
Purchase of Matahi and Oponae forests 2008/09 125 125 125 125 125

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Agriculture and Forestry
Provider 2008/09
Budgeted
$000
2008/09
Estimated Actual
$000
2009/10
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Non-government organisations         Annual contracts with 1-3 month
termination.
NZ Forest Managers Limited 38,327 40,167 41,191 Section 32A report
P F Olsen Limited 10,180 18,909 25,965  
Northland Forest Managers Limited 4,181 3,010 4,950  
Fortus Forestry Limited 10,414 5,867 8,449  
Ngati Porou Limited 275 226 374  
Taitokerau Forest Limited
  • Management of Crown Forestry Assets
144 131 292  
       

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
Veterinary professionals are available in difficult to staff rural areas. 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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 770

Reasons for Change in Appropriation

This is a new appropriation for 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 twelve 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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Rural veterinarians bonding scheme 2009/10 - 770 1,100 1,430 1,760

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
Rural communities are prepared should adverse climatic events occur. Adverse Climatic Events (M2)
Sectors and their communities are less vulnerable and better able to adapt to a changing climate.
A vibrant rural community characterised by connected and resilient rural communities.
 
Annual planting or natural regeneration of new indigenous and exotic forests. Afforestation Grants Scheme (M2)
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
New Zealanders are informed and involved participants in New Zealand's climate change response initiatives.
Forests and forest products are widely used in adapting to, and reducing, the impacts of climate change.
 
Effective and efficient operational maintenance of the Beggs irrigation scheme. Community Irrigation Schemes (M2)
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high-performance.
New Zealanders are informed and involved participants in New Zealand's climate change response initiatives.
New Zealand land-based primary producers can position themselves for longer-term sustainable economic growth and competitive advantage.
Sectors and their communities are less vulnerable and better able to adapt to a changing climate.
Sectors are positioned to take better advantage of the economic opportunities arising from climate change and changing consumer preferences.
Connected and resilient rural communities.
Sectors are internationally competitive and land use flexibility is maintained, taking into account the environmental impacts of land use decisions.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
Community Irrigation Fund (M2)
Severely eroded hill country in the Gisborne district is afforested to stem erosion following cyclone Bola. East Coast Afforestation Grants (M2)
Forestry is fully integrated into land use decisions to help deliver sustainable land management practices.
Forests and forest products are widely used in adapting to, and reducing, the impacts of climate change.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
 
New Zealand land-based primary producers can position themselves for longer-term sustainable economic growth and competitive advantage. Primary Growth Partnership (M2)
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high-performance.  
Sectors are internationally competitive and land use flexibility is maintained, taking into account the environmental impacts of land use decisions.  
Sectors are positioned to take better advantage of the economic opportunities arising from climate change and changing consumer preferences.  
New Zealand's reputation for consistent and principled application of international trade, SPS, environmental sustainability and climate change rules, regulations and practices is maintained and/or enhanced. Subscriptions to International Organisations (M2)
Novel production systems.
The development of niche crops.
Sustainable Farming Fund (M2)
A (sustainable) business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high-performance.
Sustainable use of resources (and the natural systems on which they are based) by the agriculture, food, forestry and related sectors.
Enhanced (sustainable) prosperity for Maori engaged in the agriculture, food, forestry and related sectors.
Sectors are internationally competitive and land use flexibility is maintained, taking into account the environmental impacts of land use decisions.
New Zealand land-based primary producers can position themselves for longer-term sustainable economic growth and competitive advantage.
 
New Zealanders have greater certainty regarding rural walking access.
New Zealanders have increased opportunities for recreation and outdoor activities.
New Zealand Walking Access Commission (M2)

Adverse Climatic Events (M2)

Scope of Appropriation

Support to the agriculture and horticulture industries in the aftermath of adverse climatic events.

Expenses

Expenses - Adverse Climatic Events (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 736 550 496

Reasons for Change in Appropriation

The decrease in this appropriation is due to one-off funding in 2007/08 and 2008/09 to build capability in rural support groups to assist in the response to adverse events experienced by the rural sector.

Expected Results

Expected Results - Adverse Climatic Events (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of regions with active rural support trusts or similar entities. NA 13 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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Building rural capacity to respond to adverse events 2007/08 380 140 - - -

Afforestation Grants Scheme (M2)#

Scope of Appropriation#

Payment of grants under the Afforestation Grants Scheme.

Expenses#

Expenses - Afforestation Grants Scheme (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,400 500 7,000

Reasons for Change in Appropriation#

The appropriation increases in 2009/10 to fund an expected increase in planting of new forests under the Afforestation Grants Scheme.

Expected Results#

Expected Results - Afforestation Grants Scheme (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Public Tender Rounds

     
Hectares formally approved. NA 3,000 3,000
Average $/ha grant rate approved. NA 1,500 1,500
Number of grants approved. NA 50 50
Percentage of annual funding provided to the public tender pool. NA 50 50

Regional Council Tender Rounds

     
Hectares formally approved. NA 2,000 3,000
Number of grants approved. NA 50 75
Average grant rate ($/ha). NA 1,500 1,500

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Afforestation Grants Scheme (M2) - 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 Grants Scheme (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2008/09 (3,600) (3,000) (3,000) (3,000) (3,000)
Sustainable land management and climate change plan of action 2008/09 5,000 10,000 10,000 10,000 10,000

Community Irrigation Fund (M2)#

Scope of Appropriation#

Payment of grants under the Community Irrigation Fund.

Expenses#

Expenses - Community Irrigation Fund (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 443 443 881

Reasons for Change in Appropriation#

The increase in appropriation for 2009/10 is due to a change in the eligibility and assessment criteria for the Community Irrigation Fund.

Expected Results#

Expected Results - Community Irrigation Fund (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Increases in the potential overall area of land irrigated. Achieved Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Community Irrigation Fund (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 (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Sustainable land management and climate change plan of action. 2008/09 443 881 1,259 1,036 785

Community Irrigation Schemes (M2)#

Scope of Appropriation#

Operating and maintaining Crown irrigation schemes.

Expenses#

Expenses - Community Irrigation Schemes (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17 2 17

Expected Results#

Expected Results - Community Irrigation Schemes (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Effective and efficient operational maintenance of the Beggs irrigation scheme. Achieved Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Community Irrigation Schemes (M2) - Agriculture and Forestry
Reference Conditions
Operational maintenance of the Beggs irrigation scheme. Management will be in accordance with Government policy, legislation, regulations and MAF financial policies and internal processes.

East Coast Afforestation Grants (M2)#

Scope of Appropriation#

Grants to approved private forest growers under the Forestry (East Coast) Grants Regulations 1992.

Expenses#

Expenses - East Coast Afforestation Grants (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,803 1,700 4,500

Reasons for Change in Appropriation#

The increase in this appropriation is due to operational and administrative changes to the East Coast Forestry Project which are expected to result in increased demand for grants in 2009/10.

Expected Results#

Expected Results - East Coast Afforestation Grants (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Provision of Grant Funding to Approved Forest Growers in the Gisborne District

     
Hectares of annual grant area treated. 6,000 900 3,000
Grant funding ($000) approved for the year. NA 1,700 4,500
Total hectares of area in the scheme. NA 33,900 36,900

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - East Coast Afforestation Grants (M2) - 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 (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2008/09 (6,000) (1,278) (1,278) (1,278) (1,278)

New Zealand Walking Access Commission (M2)#

Scope of Appropriation#

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

Expenses#

Expenses - New Zealand Walking Access Commission (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,189 2,189 1,789

Reasons for Change in Appropriation#

The appropriation decreases in 2009/10 due to savings identified in the value for money review.

Expected Results#

Expected Results - New Zealand Walking Access Commission (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Walking access issues resolved NA - 20

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - New Zealand Walking Access Commission (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2009/10 - (1,000) - - -
Walking access 2008/09 2,189 2,789 1,789 1,789 1,789

Primary Growth Partnership (M2)#

Scope of Appropriation#

This appropriation is limited to primary and food sector investment in education and skills development, research and development, product development, commercialisation, market development and technology transfer, in partnership with relevant industry groups.

Expenses#

Expenses - Primary Growth Partnership (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 30,000

Reasons for Change in Appropriation#

This is a new appropriation for 2009/10.

Expected Results#

Expected Results - Primary Growth Partnership (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Governance arrangements for the Primary Growth Partnership are currently being developed.      
The Primary Growth Partnership will be fully operational. NA NA Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Primary Growth Partnership 2009/10 - 30,000 40,000 50,000 70,000

Subscriptions to International Organisations (M2)#

Scope of Appropriation#

Membership of various international organisations in particular the Food and Agriculture Organisation of the United Nations (FAO).

Expenses#

Expenses - Subscriptions to International Organisations (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,028 1,915 2,028

Expected Results#

Expected Results - Subscriptions to International Organisations (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provision of input to key international forums will meet Ministerial expectations as well as domestic and international organisations' time/schedule or notification requirements. 100% 100% 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#

Contestable fund for community driven programmes aimed at improving economic and environmental performance of land-based productive sectors.

Expenses#

Expenses - Sustainable Farming Fund (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,444 6,000 7,000

Reasons for Change in Appropriation#

The appropriation decreases in 2009/10 due to savings identified in the value for money review,

Expected Results#

Expected Results - Sustainable Farming Fund (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of funding contracts successfully negotiated for $20,000 or less. NA 22 28
Number of funding contracts successfully negotiated over $20,000. NA 37 30
Value of funding provided. NA $6m $7m
Grant funding provided as a proportion of total available funding pool. NA 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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2009/10 - (1,444) (1,444) (1,444) (1,444)

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Agriculture and Forestry
Appropriation Reporting Mechanism
Adverse Climatic Events Not reported
Afforestation Grants Scheme Not reported
Community Irrigation Fund Not reported
Community Irrigation Schemes Not reported
East Coast Afforestation Grants Not reported
New Zealand Walking Access Commission Annual Report of the New Zealand Walking Access Commission
Primary Growth Partnership Not reported
Subscriptions to International Organisations Not reported
Sustainable Farming Fund 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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 9,300 8,900 7,530
Intangibles 5,000 4,000 8,000
Other - - -

Total Appropriation

14,300 12,900 15,530
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 9,300 8,900 7,530
Intangibles 5,000 4,000 8,000
Other - - -

Total Appropriation

14,300 12,900 15,530

Reasons for Change in Appropriation

The increase in departmental capital expenditure reflects the continued development of IT software to support new MAF initiatives, particularly national animal identification traceability and MAF/Bank of New Zealand (BNZ) information management systems.

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
Objective - Effective stewardship of the Crown's forestry assets. Crown Forestry Assets (M2)
New Zealanders have greater certainty regarding rural walking access
New Zealanders have increased opportunities for recreation and outdoor activities.
New Zealand Walking Access Commission (M2)

Crown Forestry Assets (M2)#

Scope of Appropriation

This appropriation is limited to capital expenditure on Crown forests, including roading, bridges, fencing and fire equipment.

Capital Expenditure

Capital Expenditure - Crown Forestry Assets (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,900 11,900 300

Reasons for Change in Appropriation

The 2008/09 appropriation was for the purchase of Matahi and Oponae forests and to build a bridge across the Waihua stream to allow mature pine trees to be harvested from Te Manawa-O-Tuhoe forest. The 2009/10 appropriation is for a replacement bridge in Westland to access areas of forest that are scheduled for harvest.

Expected Results

Expected Results - Crown Forestry Assets (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Harvest of mature pine trees in Westland. NA NA Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Crown Forestry Assets (M2) - Agriculture and Forestry
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Management of West Coast forests 2009/10 - 300 - - -
Purchase of Matahi and Oponae forests 2008/09 11,830 - - - -
Te Manawa-O-Tuhoe forest bridge 2008/09 70 - - - -

New Zealand Walking Access Commission (M2)#

Scope of Appropriation#

This appropriation is limited to the establishment of IT infrastructure and facilities for the provision of walking access information and mapping.

Capital Expenditure#

Capital Expenditure - New Zealand Walking Access Commission (M2) - Agriculture and Forestry
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 150 150 500

Reasons for Change in Appropriation#

The appropriation increases in 2009/10 for the establishment of IT infrastructure and facilities for the provision of walking access information and mapping.

 

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Agriculture and Forestry
Appropriation Reporting Mechanism
Crown Forestry Assets Not reported
New Zealand Walking Access Commission 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

The Minister for Biosecurity is responsible for appropriations in Vote Biosecurity for the 2009/10 financial year covering the following:

  • a total of over $42 million for surveillance of new organisms in the terrestrial and aquatic environments, maintenance of the capability to investigate and respond to new organisms and if necessary the delivery of services for their eradication or management
  • a total of nearly $69 million for the management of biosecurity risks at the border
  • a total of nearly $25 million for monitoring of border pathways, undertaking risk analysis to support standard development and setting biosecurity standards
  • a total of over $3 million on the administration of biosecurity standards and export certification
  • a total of nearly $12 million for policy advice with regard to biosecurity issues and ministerial servicing
  • a total of nearly $4 million for investigation and (where appropriate) prosecution of breaches of biosecurity legislation
  • a total of over $30 million for the Crown's contribution to implementation of the Bovine Tuberculosis National Pest Management Strategy
  • a total of $130,000 on subscriptions to international organisations.

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 - 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:
Biosecurity border operations
Biosecurity incursion response management
Trade
New Zealand's integrity and global reputation
End outcome - Sustainable economic growth and prosperity for New Zealanders through the effective and efficient implementation of the New Zealand Biosecurity Strategy.
End outcome - Healthy New Zealanders through the effective and efficient implementation of the New Zealand Biosecurity Strategy.
End outcome - Maintained and enhanced economic, social and cultural benefits for New Zealanders from the environment through the effective and efficient implementation of the New Zealand Biosecurity Strategy
(The New Zealand Biosecurity Strategy, MAF's Outcomes Performance Monitoring Framework).
Biosecurity Policy Advice
Biosecurity Approvals and Assurance
Biosecurity Enforcement
Biosecurity Standards
Biosecurity Surveillance and Incursion Response
Border Clearance Services (see Note 1)

Note 1 - Although this Vote consists of a number of appropriations, the outcomes associated with this Vote are the result of the effective and efficient functioning of the biosecurity system as a whole. The outcomes identified here therefore cover those associated with the entire Vote and not necessarily (individual) appropriations.

Summary of Financial Activity#

Summary of Financial Activity - Biosecurity
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  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 151,103 174,364 175,448 180,962 187,694 183,765 155,081 30,419 185,500 184,916 181,689 180,471
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 91 80 117 126 130 126 - 130 130 130 130 130
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

151,194 174,444 175,565 181,088 187,824 183,891 155,081 30,549 185,630 185,046 181,819 180,601

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 1,574 1,236 866 812 850 750 N/A 850 850 850 850 850
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

1,574 1,236 866 812 850 750 N/A 850 850 850 850 850

New Policy Initiatives#

Budget Policy Intiatives - Biosecurity
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Implementation of free trade agreements.

Biosecurity Policy Advice (M7)

- 630 645 - -
  Departmental Output Expenses          
Value for money review savings.

Biosecurity Policy Advice (M7)

- (268) (248) (231) (108)
  Departmental Output Expense          
 

Biosecurity Standards (M7)

- (581) (280) (116) (116)
  Departmental Output Expense          
 

Biosecurity Surveillance and Incursion Response (M7)

- (415) (266) (281) (326)
  Departmental Output Expense          
 

Border Clearance Services (M7)

- (120) (60) (60) (60)
  Departmental Output Expense          
Government response to mediterranean fanworm in Lyttleton Port.

Biosecurity Surveillance and Incursion Response (M7)

717 906 838 541 562
  Departmental Output Expense          
Total Initiatives   717 152 629 (147) (48)

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 2004/05 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 and stylea clava.

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
Immediate outcome or impact Biosecurity Policy (M7)
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.  
Increased awareness of MAF's programmes, initiatives and regulatory framework associated with biosecurity.  
New Zealanders increasingly engage in regulatory-focused activities and initiatives, and voluntarily change their behaviour to comply with regulatory frameworks.  
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 WTO commitments by member countries.  
Intermediate outcomes  
A business environment for the agriculture, food, forestry and related sectors that supports innovation, enterprise and high performance.  
New Zealanders are informed and involved participants in MAF's regulatory systems.  
Immediate outcome or impact Biosecurity Approvals and Assurance (M7)
New Zealand exporters of animal and plant products are able to trade their live animal, and plant products in foreign markets.  
New Zealand maintains market access by providing timely and accurate export assurances to other regulatory authorities.  
Intermediate outcomes
Market access for New Zealand's animal and plant products is maintained through the administration of biosecurity standards, and the provision of export certification. It involves auditing against biosecurity regulatory standards and providing assurance to trading partners that New Zealand exporters are complying with the relevant regulations.
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and/or enhanced through the provision of approvals and assurance to trading partners that New Zealand exporters are complying with the relevant regulations.
End outcome
Market access for New Zealand's animal and plant products is maintained and/or enhanced.
 
Immediate outcome or impact Biosecurity Enforcement (M7)
Compliance with the regulatory framework implemented by MAF.  
Intermediate Outcomes
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and/or enhanced through the investigation and (where appropriate) prosecution of individuals and organisations who breach biosecurity legislation.
New Zealanders are informed and involved participants in MAF's regulatory systems.
 
Immediate outcome or impact
The development (and subsequent implementation) of the New Zealand Biosecurity System is based on scientific evidence and current research. This is reflected in the development of system-wide standards (and subsequent implementation) that are integrated, adaptive, and timely in protecting New Zealand's natural advantage. This process relies on MAF BNZ undertaking risk analysis to support standard development, administration of biosecurity standards and export certification, and monitoring of border pathways.
End outcome
Market access for New Zealand's animal and plant products is maintained.
New Zealand's reputation for consistent and principled application of international trade, sanitary and phytosanitary rules, regulations and/or standards is maintained and/or enhanced.
Biosecurity Standards (M7)
Immediate outcome or impact
New Zealand is prepared to manage the risk, and to implement rapid response biosecurity interventions should serious biosecurity status breached occur.
Potentially harmful pests and diseases are detected (and/or eradicated) through the implementation of surveillance activity in the terrestrial and aquatic environments and, if necessary, pests are eradicated or managed.
The biosecurity status of managed sites is restored, maintained or enhanced.
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.
Biosecurity Surveillance and Incursion Response (M7)
Immediate outcome or impact
Potentially harmful pests and diseases are intercepted at main (border) entry points through the identification and management of all biosecurity risk goods, and goods that may be contaminated with biosecurity risk organisms. It includes the inspection and clearance of aircraft, vessels, cargo, containers, mail and passengers, and the audit and approval of transitional facilities, in accordance with biosecurity legislation and standards.
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.
Border Clearance Services (M7)

 

Biosecurity Approvals and Assurance (M7)

Scope of Appropriation

Administration of biosecurity standards and export certification. Involves auditing against biosecurity regulatory standards and providing assurance to trading partners that New Zealand exporters are complying with the relevant regulations.

Expenses and Revenue

Expenses and Revenue - Biosecurity Approvals and Assurance (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,415 2,965 3,432
Revenue from Crown 775 775 792
Revenue from Other 2,640 2,240 2,640

Output Performance Measures and Standards

Output Performance Measures and Standards - Biosecurity Approvals and Assurance (M7) - Biosecurity
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of export certificates processed, approved and issued. 30,000 56,000 56,000
Percentage of phytosanitary export assurances meeting importing country requirements. NA 99 95
Percentage of zoosanitary export assurances meeting importing country requirements. NA 98 98

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Biosecurity Approvals and Assurance (M7) - Biosecurity
Reference Conditions
Monitoring and auditing of export certification processes and procedures. Commensurate with the Biosecurity Act 1999 and Customs and Excise Act 1996.
All audits associated with the agreed audit schedule are completed in accordance with MAF procedures and audit policy, and will include constructive suggestions for improvement.
Export certification of live animals and animal products (including germ plasma). Commensurate with the Animal Welfare Act 1999, the Animal Products Act 1999, the Veterinary Council of New Zealand Code of Professional Conduct for Veterinarians, the Biosecurity Act 1999, and the Customs and Excise Act 1996.

Memorandum Account

Memorandum Account - Biosecurity Approvals and Assurance (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Phytosanitary Exports Account

     
Opening Balance 1 July 924 924 1,105
Revenue 1,832 1,871 1,948
Expenses (1,688) (1,690) (1,806)
Closing Balance at 30 June 1,068 1,105 1,247

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Biosecurity Approvals and Assurance (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Staff remuneration 2005/06 80 106 130 130 130

Biosecurity Enforcement (M7)#

Scope of Appropriation#

Investigation and (where appropriate) prosecution of individuals and organisations who breach biosecurity legislation.

Expenses and Revenue#

Expenses and Revenue - Biosecurity Enforcement (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,516 3,336 3,698
Revenue from Crown 3,346 3,346 3,528
Revenue from Other 170 20 170

Reasons for Change in Appropriation#

The increase in this appropriation is to maintain and improve the effectiveness of MAF's border management and operations and staff remuneration increases.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Biosecurity Enforcement (M7) - Biosecurity
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

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. NA 100 100
Category I - Enforcement intervention requiring statutory action (including warnings, infringement notices). NA 3,400 3,600
Category II - Enforcement intervention requiring investigation response for lower threshold criminal behaviours (completion in 6 month time period). NA 160 80
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 12 month time period). NA 2 4

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). NA 5 20
Category II - Prosecution intervention requiring preparation for lower threshold criminal behaviours (usually completion in 6 month time period where offender behaviour recognises culpability). NA 10 20
Category III - Prosecution strategy and preparedness for proactive criminal investigation involving organised illegal activity requiring deterrent outcomes (usually completion in 12-18 month time period). NA 2 4
Percentage of cases lodged with the Court that incurred adverse judicial comment. 5 0 0

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Biosecurity Enforcement (M7) - Biosecurity
Reference Conditions
Investigation and prosecution of alleged breaches of the Biosecurity Act and the Hazardous Substances and New Organisms Act. Matters investigated comply with the Biosecurity Act and Hazardous Substances and New Organisms Act, investigation will not have abuse of process found by any criminal or civil tribunal.
Investigations are undertaken in accordance with the MAF's compliance and enforcement priority grading system.
Criminal investigations prepared for prosecution will meet prima facie requirements (sufficient evidence to initiate criminal proceedings).
All prosecution proceedings commenced comply with required policy set out within MAF corporate policy (prosecution).

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Biosecurity Enforcement (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Effective border management 2007/08 345 347 347 347 347
Staff remuneration 2005/06 254 351 439 439 439

Biosecurity Policy (M7)#

Scope of Appropriation#

Policy advice in regard to biosecurity issues and ministerial servicing.

Expenses and Revenue#

Expenses and Revenue - Biosecurity Policy (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,764 11,574 12,168
Revenue from Crown 11,544 11,544 11,948
Revenue from Other 220 130 220

Output Performance Measures and Standards#

Output Performance Measures and Standards - Biosecurity Policy (M7) - Biosecurity
  2008/09 2009/10
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. NA 200 200
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). NA 4 4

Provision of ministerial services

     
Number of ministerial letters prepared. NA 200 200
Number of official information request responses provided. NA 100 100
Number of parliamentary question responses provided. NA 150 150
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). NA 4 4
Percentage of ministerial correspondence completed within 15 working days. NA 85 95
Percentage of ministerial correspondence completed within 20 working days. NA 95 100
Percentage of ministerial correspondence accepted without amendments. NA 95 95
Percentage of OIA requests completed within 15 working days. NA 55 95
Percentage of OIA requests completed within 20 working days. NA 90 100

Implementation of biosecurity-related information and communication services and initiatives

     
Number of issues of Biosecurity magazine. NA 8 8
Number of issues of Surveillance magazine. NA 4 4
Number of Check, Clean, Dry Programme communications material and collateral (brochures, river signs and posters, spray bottles, pocket cleaning guides, fact sheets etc) distributed. NA 120,000 100,000
Number of Protect New Zealand brochures distributed. NA 150,000 150,000
Number of Passenger Compliance Programme (Declare or Dispose) communications material and collateral (signs, postcards etc) distributed. NA 40,000 70,000
Number of detector dog programme awareness programmes. NA 20,000 10,000
Number of events and public presentations to support biosecurity communication programmes (Check, Clean, Dry; Declare or Dispose; Clean and Antifoul; Report Unusual Finds). NA 16 13
Number of episodes of Border Patrol TV series and new TV series Dog Squad, coordinated and reviewed. NA 10 20
Percentage increase in the number of visitors to the MAFBNZ website. NA 5 5

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Biosecurity Policy (M7) - Biosecurity
Reference Conditions

Quality standards for analysis and advice

 
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 (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2009/10 - (268) (248) (231) (108)
Inter-agency resource needs for trade agreements 2008/09 300 630 645 - -
Effective border management 2007/08 2,198 2,202 2,202 2,202 2,202
Staff remuneration 2005/06 630 1,017 1,275 1,275 1,275

Biosecurity Standards (M7)#

Scope of Appropriation#

Setting biosecurity standards, undertaking risk analysis to support standard development and monitoring border pathways.

Expenses and Revenue#

Expenses and Revenue - Biosecurity Standards (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,150 21,650 24,585
Revenue from Crown 19,600 19,600 22,035
Revenue from Other 2,550 2,050 2,550

Reasons for Change in Appropriation#

The increase in this appropriation is to maintain and improve the effectiveness of MAF's border management and operations.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Biosecurity Standards (M7) - Biosecurity
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
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 80
Percentage of risk analysis work programme completed within estimated timelines. 75 75 80
Percentage of border pathway monitoring projects completed as agreed in the prioritised work plan (including any subsequent agreed amendments). 80 100 80

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Biosecurity Standards (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.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Biosecurity Standards (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2009/10 - (581) (280) (116) (116)
Effective border management 2007/08 2,394 2,408 2,408 2,408 2,408
Staff remuneration 2005/06 1,164 1,583 1,954 1,954 1,954
Assessing world leading genetic material 2005/06 889 889 889 889 889
Maximising gains from negotiations 2005/06 230 230 230 230 230

Biosecurity Surveillance and Incursion Response (M7)#

Scope of Appropriation#

Surveillance for new organisms in the terrestrial and aquatic environments, maintenance of the capability to investigate and respond to new organisms and if necessary the delivery of services for their eradication or management.

Expenses and Revenue#

Expenses and Revenue - Biosecurity Surveillance and Incursion Response (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 47,618 45,708 42,238
Revenue from Crown 43,318 42,333 36,737
Revenue from Other 4,300 3,475 5,501

Reasons for Change in Appropriation#

The decrease in this appropriation is mainly due to reduced funding for didymo, red imported fire ant and southern saltmarsh eradication programmes.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Biosecurity Surveillance and Incursion Response (M7) - Biosecurity
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of notifications of suspected risk organisms received and processed. 11,000 13,300 11,000
Number of potential incursions investigated. 590 650 600
Number of diagnostic tests completed from active and passive surveillance for suspected risk organisms affecting animals. NA 5,300 1,500
Number of identifications completed from active and passive surveillance for suspected risk organisms affecting plants or the environment. NA 5,900 2,800
Percentage of response core work programmes with overall status "on track" to deliver agreed outcomes. NA 90 90
Percentage of surveillance core work programmes with overall status "on track" to deliver agreed outcomes. NA 90 90

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Biosecurity Surveillance and Incursion Response (M7) - Biosecurity
Reference Conditions
Biosecurity pest management (pre-border, border, and post-border) activities, initiatives and/or programmes. Programmes will be designed, implemented and documented using the principles of the Biosecurity Decision-making Framework. Programmes will have well defined objectives and performance measures.
Recording of suspected potentially harmful pests and diseases will be in accordance with current policies, standards and procedures.
Investigation of suspected potentially harmful pests and diseases will be in accordance with current policies, standards and procedures.
Diagnoses of suspected potentially harmful pests and diseases will be in accordance with current policies, standards and procedures.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Biosecurity Surveillance and Incursion Response (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2009/10 - (415) (266) (281) (326)
Mediterranean fanworm in Lyttleton 2008/09 717 906 838 541 562
National animal identification and traceability/New Zealand FarmsOnline 2008/09 2,110 2,920 3,720 4,490 4,490
Effective border management 2007/08 681 681 681 681 681
Preparedness for major biosecurity responses 2006/07 5,500 5,500 5,500 5,500 5,500
New pest management functions and ant surveillance 2006/07 3,760 3,760 3,760 3,760 3,760
Southern saltmarsh mosquito eradication programme 2006/07 4,465 2,840 - - -
Nelson varroa incursion control programme 2006/07 565 515 - - -
Red imported fire ant infestation surveillance and treatment programme 2006/07 2,296 - - - -
Development of a long-term management programme for didymo 2005/06 1,918 1,136 1,136 1,136 1,136
Post-border pest detection in high risk sites 2005/06 889 889 889 889 889
Staff remuneration 2005/06 755 1,063 1,339 1,339 1,339
Maintenance of the National Centre for Disease Investigation at Wallaceville 2005/06 548 548 548 548 548

Border Clearance Services (M7)#

Scope of Appropriation#

This appropriation is limited to the management of biosecurity risks at the border. Comprises the inspection and clearance of aircraft, vessels, cargo, containers, mail and passengers in accordance with biosecurity legislation and standards.

Expenses and Revenue#

Expenses and Revenue - Border Clearance Services (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 68,532 68,532 68,960
Revenue from Crown 40,132 40,132 40,560
Revenue from Other 28,400 24,200 28,400

Reasons for Change in Appropriation#

The increase in this appropriation is to maintain and improve the effectiveness of MAF's border management and operations.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Border Clearance Services (M7) - Biosecurity
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Biosecurity clearance of marine vessels and inbound cargo

     
Number of international vessels cleared. NA 2,830 2,800
Number of sea containers arriving in New Zealand. NA 582,000 580,000
Percentage of sea containers inspected. NA 7 8
Number of sea containers found with actionable biosecurity risk material. NA 10,600 11,600
Percentage of Biosecurity Authority clearance certificate applications screened and responded to within timeframe. NA 80 85
Percentage of inspections booked within two days of booking request. NA 70 75

Biosecurity clearance of inbound international mail

     
International mail item clearances. 45,000,000 38,300,000 39,400,000
Number of mail items found with actionable biosecurity risk material. NA 49,800 50,000

Biosecurity clearance of passengers and crew arriving by air and sea

     
Flight arrivals. 30,000 30,000 29.900
Air passenger clearances. 5,000,000 4,650,000 4,700,000
Cruise vessel port calls. NA 370 320
Cruise vessel passenger clearances. NA 517,000 400,000
Air passengers found with biosecurity risk material per 1000 clearances. NA 24 23

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Border Clearance Services (M7) - Biosecurity
Reference Conditions
Biosecurity border clearance activities. Biosecurity Act 1993 and the Customs Excise Act 1996.
Approval and ongoing monitoring of approved transitional facilities. All audits associated with the agreed audit schedule are completed in accordance with MAF procedures (ISO 19011) and the MAF audit policy.
  Clearance activities will conform with MAF's compliance and enforcement policies and procedures.
  Completion of independent annual audits of export certification processes will conclude that export assurance management practices and procedures are sound and that statutory obligations have been met.

Memorandum Account#

Memorandum Account - Border Clearance Services (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Sea Container Levy Account

     
Opening Balance at 1 July (361) (361) (221)
Revenue 9,742 9,187 9,270
Expenses (9,392) (9,047) (9,270)
Closing Balance at 30 June (11) (221) (221)

Risk Screen Levy Screening Account

     
Opening Balance at 1 July (49) (49) (1,018)
Revenue 4,442 4,157 5,253
Expenses (5,322) (5,126) (5,253)
Closing Balance at 30 June (929) (1,018) (1,018)

Imported Used Vehicle Inspection Account

     
Opening Balance at 1 July (3) (3) (2,637)
Revenue 4,621 2,342 4,439
Expenses (5,661) (4,976) (4,439)
Closing Balance at 30 June (1,043) (2,637) (2,637)

Biosecurity Clearance Fees Account

     
Opening Balance at 1 July (38) (38) (1,307)
Revenue 7,839 7,235 9,324
Expenses (8,716) (8,504) (9,324)
Closing Balance 30 June (915) (1,307) (1,307)

The above memorandum accounts cover fees collected under the Biosecurity Costs Regulations 2006. The fee rates and structure are currently being reviewed and any resulting changes are likely to apply from 1 November 2009. The 2009/10 budget figures provided above are based on the current fees.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Border Clearance Services (M7) - Biosecurity
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Value for money review savings 2009/10 - (120) (60) (60) (60)
Effective border management 2007/08 4,607 4,311 4,311 4,311 4,311
Staff remuneration 2005/06 3,166 4,309 5,332 5,332 5,332
Courier mail clearance 2005/06 227 227 227 227 227
Passenger clearance services at regional airports 2005/06 546 546 546 546 546

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

Crown contribution to the implementation of the Bovine Tuberculosis National Pest Management Strategy.

Expenses

Expenses - Control of TB Vectors (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 30,699 30,000 30,419

Output Performance Measures and Standards

Output Performance Measures and Standards - Control of TB Vectors (M7) - Biosecurity
  2008/09 2009/10
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. 100 100 100
Annual period prevalence of infected cattle and deer herds as a % of herds. NA 0.35 0.4

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 2008/09
Budgeted
$000
2008/09
Estimated Actual
$000
2009/10
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Non-government organisations          
Animal Health Board
  • Control of TB Vectors
30,699 30,000 30,419 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

Immediate outcome or impact

Subscriptions to International Organisations (M7)
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 outcome

New Zealand's reputation for the consistent and principled application of international trade, sanitary and phytosanitary rules is maintained and/or enhanced.

Subscriptions to International Organisations (M7)

Scope of Appropriation

Subscriptions to international organisations such as the OIE.

Expenses

Expenses - Subscriptions to International Organisations (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 130 126 130

Expected Results

Expected Results - Subscriptions to International Organisations (M7) - Biosecurity
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The provision of input to key international forums:      
Input provided will meet Ministerial expectations, consultation requirements of international organisations and will be informed by consultation with relevant affected stakeholders. 100% 100% 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 (M32)

ADMINISTERING DEPARTMENT: Ministry of Fisheries

MINISTER RESPONSIBLE FOR MINISTRY OF FISHERIES: Minister of Fisheries

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister of Fisheries is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:

  • a total of over $7 million on the provision of policy advice for the sustainable and efficient use of fisheries resources
  • a total of over $34 million on research about New Zealand's fisheries to support decisions for sustainable use, and the provision of information on the biodiversity of New Zealand's marine environment
  • a total of $25 million for the development of standards, guidelines, regulations, fisheries plans and processes that support the operation of the fisheries policy framework
  • a total of just under $31 million to promote compliance with fisheries laws
  • a total of just under $2 million for the implementation of the Maori Commercial Aquaculture Claims Settlement Act 2004
  • a total of $240,000 for the South Pacific Regional Fisheries Management Organisation interim secretariat costs
  • a total of $300,000 on contributions to International Organisations
  • a total of $24,000 on costs associated with the sale of Crown quota shares and ACE
  • a total of just over $700,000 on the provision for non-departmental debt write-offs
  • an estimate of $2.500 million Crown Revenue (non-tax) from deemed values applied to catch in excess of quota
  • an estimate of $28.300 million Crown Revenue (non tax) from cost recovery levies applied to the commercial fishing sector.

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 - Fisheries
Government Priorities Government Outcomes Appropriations
Grow the New Zealand economy in order to deliver greater prosperity, security and opportunities for all New Zealanders Improved performance of aquaculture and commercial fisheries Fisheries Information
Fisheries Operations
Fisheries Compliance
Fisheries Policy
Aquaculture Settlement

Summary of Financial Activity#

Summary of Financial Activity - Fisheries
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
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 75,653 84,716 90,704 88,419 102,747 95,843 99,661 - 99,661 95,586 94,930 94,947
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 3,362 5,397 3,652 70,947 44,017 43,974 - 11,957 11,957 1,035 1,035 1,035
Capital Expenditure - - - - 6,425 5,554 2,900 - 2,900 2,900 2,900 2,900
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

79,015 90,113 94,356 159,366 153,189 145,371 102,561 11,957 114,518 99,521 98,865 98,882

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 46,004 56,825 47,661 44,570 34,938 34,938 N/A 32,151 32,151 32,151 32,151 32,151
Capital Receipts 2,307 11,593 3,605 - 100 100 N/A 100 100 100 100 100

Total Crown Revenue and Capital Receipts

48,311 68,418 51,266 44,570 35,038 35,038 N/A 32,251 32,251 32,251 32,251 32,251

New Policy Initiatives#

Budget Policy Intiatives - Fisheries
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Increased Observer coverage Fisheries Information 1,000 2,000 3,000 3,000 3,000
Enhanced aquaculture resourcing and law reform Fisheries Policy - 513 350 - -
Fisheries Operations - - 341 330 357
Increased Fishery Officer presence Fisheries Compliance - 726 956 1,281 1,271
Science research in support of fisheries management - recreational fisheries Fisheries Information - 135 568 635 635
Amateur charter vessel catch reporting Fisheries Operations - 365 265 365 365
Maori Aquaculture Settlement Settlements 4,939 10,922 - - -
Savings Fisheries Policy - (699) (699) (699) (699)
Fisheries Information - (1,843) (1,843) (1,843) (1,843)
Fisheries Operations - (3,305) (3,305) (3,305) (3,305)
Fisheries Compliance - (148) (148) (148) (148)
Aquaculture Settlement - (62) (62) (62) (62)
Cost recovery revenue -Crown - (1,727) (1,727) (1,727) (1,727)

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

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

The increase in the other expenses (non-department appropriations) for 2008/09 and 2009/10 reflects the terms of the Maori Commercial Aquaculture Claims Settlement Act 2004, which provides for settlement of Maori claims to commercial aquaculture since 21 September 1992. The Act creates a financial liability for the Crown, because if the settlement cannot be achieved through a transfer of 'space', then it must be resolved through a financial transfer to iwi.

Crown Revenue and Capital Receipts#

Crown revenue and capital receipts - Fisheries
  2008/09 2009/10  
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Description of 2009/10 Crown Revenue

Non-Tax revenue

       
Conservation Levy 1,053 1,053 1,053 Revenue from the costs of Government approved conservation services that is able to be recovered from the commercial fishing sector
Cost Recovery 28,000 28,000 28,273 Revenue from the costs of Government approved fisheries services that is able to be recovered from the commercial fishing sector
Deemed Values 5,000 5,000 2,500 Revenue forecast to be paid by quota holders who have overfished
Forfeitures 150 150 150 Revenue from forfeit property, whether by sale or through redemption fees
Infringement Notices 125 125 125 Revenue relating to the issue of Infringement Notices under the Fisheries Act 1996
Other Revenue 70 70 50 Miscellaneous revenues

Total Non-Tax Revenue

34,398 34,398 32,151  

Capital receipts

       
Proceeds from Quota Shares and ACE 100 100 100 Revenue from the disposal of Crown-owned quota and ACE

Total Capital Receipts

100 100 100  

Total Crown Revenue and Receipts

34,498 34,498 32,251  

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 - Fisheries resources utilised in a sustainable manner
Impact - Maximising the value New Zealanders obtain through the sustainable use of fisheries resources and protection of the aquatic environment
Fisheries Policy
Fisheries Information
Fisheries Operations
Fisheries Compliance
Outcome - Improved international market access for New Zealand seafood Fisheries Policy
Outcome - Sustainable aquaculture
Impact - Maximising the long term value of aquaculture to New Zealand
Fisheries Policy
Fisheries Operations
Aquaculture Settlement
Outcome - Improved fisheries management in the South Pacific high seas South Pacific Regional Fisheries Management Organisation

Aquaculture Settlement (M32)

Scope of Appropriation

Services to implement the Maori Commercial Aquaculture Claims Settlement Act 2004, which provides for a settlement of Maori interests in commercial aquaculture, including the provision of 20% of new space in aquaculture management areas and the provision of 20% equivalent of existing space allocated since September 1992.

Expenses and Revenue

Expenses and Revenue - Aquaculture Settlement (M32) - Fisheries
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,258 2,258 1,740
Revenue from Crown 2,254 2,254 1,736
Revenue from Other 4 4 4

Reasons for Change in Appropriation

The change from 2008/09 to 2009/10 reflects a reduction in the funding for 2009/10 as a result of an approved transfer from outyears into 2008/09 in order to advance the settlement process.

Output Performance Measures and Standards

Output Performance Measures and Standards - Aquaculture Settlement (M32) - Fisheries
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The register is maintained in an accurate and up to date manner As confirmed by external audit Audit confirmation of register accuracy As confirmed by external audit
All statutory obligations are being met All legislative obligations are met All legislative obligations are met All legislative obligations are met
The Trustee is delivering on all its obligations both in terms of funding and performance of the statutory role As determined by quarterly and annual reports As determined by quarterly and annual reports As determined by quarterly and annual reports
The early settlement of the South Island and Coromandel is progressed according to Cabinet approval N/A N/A Legislation introduced and early settlement achieved by 31 December 2009
The Ministry engages with all other regions on the possibility of early settlement N/A N/A All other regions provided opportunity for an agreement by 31 December 2009

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Aquaculture Settlement (M32) - Fisheries
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Savings 2009-10 - (62) (62) (62) (62)
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

Fisheries Compliance (M32)#

Scope of Appropriation#

Services to promote high levels of voluntary compliance with fisheries laws and create effective deterrence against illegal fisheries activity.

Expenses and Revenue#

Expenses and Revenue - Fisheries Compliance (M32) - Fisheries
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 32,782 32,782 30,842
Revenue from Crown 32,321 32,321 30,381
Revenue from Other 461 461 461

Reasons for Change in Appropriation#

The change reflects an increase in funding for the 2009 Budget initiative for increased Fishery Officer presence and a reduction for the 2009/10 expenditure review.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Fisheries Compliance (M32) - Fisheries
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Improving Levels of Voluntary Compliance

     
Breaches found in commercial vessel inspections   130 in 1,350 inspections  
Breaches found in Licensed Fish Receiver inspections   25 in 250 inspections  
Breaches found in non-commercial inspections   1,000 in 15,000 inspections  
Number of Kaitaiki trained and/or further developed 100 100 100
Number of warranted fishery officers N/A 90 95
Number of honorary fishery officers N/A 160 200

Creating an Effective Deterrent

     
Number of commercial investigations commenced 10 15 11
Number of investigations finalised (where a decision to prosecute or otherwise has made) N/A 10 10
Number of poaching and black market patrols to be undertaken 400-500 450 500

Prosecutions

     
Number of Fisheries Act 1996 prosecutions commenced N/A 230 230
Number of Fisheries regulations prosecutions commenced N/A 155 155

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Fisheries Compliance (M32) - Fisheries
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Increase in Fishery Officer presence 2009/10 - 726 956 1,281 1,271
Savings 2009-10 - (148) (148) (148) (148)
Illegal, unregulated, unreported fishing 2006/07 100 100 - - -
Poaching and black market deterrence 2005/06 2,889 2,889 2,889 2,889 2,889
Health and safety of fishery officers 2004/05 916 916 916 916 916
Implementation of Fisheries Deed of Settlement 2004/05 400 400 400 400 400
Increase in capacity in the Serious Offences Unit 2004/05 388 388 388 388 388
Corporate infrastructure 2004/05 148 148 148 148 148
Health and safety of fishery officers 2003/04 2,251 2,251 2,251 2,251 2,251

Fisheries Information (M32)#

Scope of Appropriation#

Services to provide for scientific research (primarily stock assessment and environmental assessment) about New Zealand's fisheries resources, and observer activities on commercial fishing vessels.

Expenses and Revenue#

Expenses and Revenue - Fisheries Information (M32) - Fisheries
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 31,524 26,029 34,396
Revenue from Crown 29,933 24,438 32,683
Revenue from Other 1,591 1,591 1,713

Reasons for Change in Appropriation#

The change reflects an increase for carry forward of committed expenditure on research projects from 2008/09 into 2009/10 and a reduction for the 2009/10 expenditure review.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Fisheries Information (M32) - Fisheries
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Fisheries Research

     
Planned and timely requests for assessments of stock status completed and incorporated into the main and mid-year Fishery Assessment Plenary in accordance with specified quality standards 100% 100% 100%
Research programme funding managed      
  • percentage of contracted research milestones completed during the year (including prior year carry forward funding), with allowance for approved variations
>98% >80% >95%
  • unplanned carry forward for future commitments
     
Tier 1 research projects tendered, evaluated and contracts awarded 100% 100% 100%
Completed research projects for which objectives were fully achieved >95% >95% >95%
Final research reports submitted by research providers for which review and quality assurance is provided in a timely fashion >90% >90% >90%
By April 2010, design the survey and conduct feasibility studies for measures to develop national statistics on recreational fishing N/A N/A Survey design approved and ready for implementation

Observer Services

     
Average daily cost of coverage provided to support stock assessment N/A 628 $598 +/- 10%
Average daily cost of coverage provided to Department of Conservation to support their Conservation Services Plan N/A 735 $728 +/- 10%
Total number of Observer coverage days delivered 8,085 +/-10% 8009 7,866 +/- 10%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Fisheries Information (M32) - Fisheries
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Science research in support of fisheries management: recreational fishing 2009/10 - 135 568 635 635
Savings - Research 2009/10 - (843) (843) (843) (843)
Savings - Observers 2009/10 - (1,000) (1,000) (1,000) (1,000)
Increased Observer coverage 2008/09 1,000 2,000 3,000 3,000 3,000
International polar year - census of Antarctic marine life 2007/08 1,000 1,000 1,000 - -
Improved information on effects of bottom trawling 2006/07 90 90 90 90 90
Increased observer funding 2005/06 2,489 2,667 2,667 2,667 2,667
Implementation of Fisheries Deed of Settlement 2004/05 25 25 25 25 25
Improved information on recreational fishing 2004/05 889 889 889 889 889
Corporate infrastructure 2004/05 149 149 149 149 149
International conservation and management of highly migratory species 2003/04 267 267 267 267 267
Building capacity for monitoring of registry based services 2003/04 52 52 52 52 52
Increased science capability 2003/04 278 278 278 278 278
Increased funding for fisheries research projects 2002/03 5,000 5,000 5,000 5,000 5,000

Fisheries Operations (M32)#

Scope of Appropriation#

Services to provide advice to the Minister on appropriate standards defining acceptable impacts of fishing, appropriate allocation of rights to utilise fisheries and services to assist tangata whenua to better contribute to the sustainable management of New Zealand's fisheries.

Expenses and Revenue#

Expenses and Revenue - Fisheries Operations (M32) - Fisheries
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26,932 25,638 25,033
Revenue from Crown 26,358 25,064 24,550
Revenue from Other 574 574 483

Reasons for Change in Appropriation#

The change from 2008/09 to 2009/10 reflects a reduction in outyears funding for the Ngati Porou and Te Whanau a Apanui Deed of Agreement, and the Waikato River Co-management Settlement, the Budget 2009 funding for Amateur Charter Vessel catch reporting, and a reduction for the 2009/10 expenditure review.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Fisheries Operations (M32) - Fisheries
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Sustainability Advice And Management Controls

     
Fish plans development:      
  • Number with approved objectives and management strategies
  • Initiate development of further inshore fisheries plans
5 by 30 June 2009
5 by 30 June 2009
Plans expected to be completed using current management approach An additional 7 by 30 June 2010, consistent with the review of the way in which fisheries plans will be developed
Plans reviewed for consistency with fisheries standards All plans reviewed All plans reviewed All plans reviewed
Fisheries standards: - Standards approved (harvest strategy, benthic impacts, seabirds, Hectors/Maui dolphins, and sealions) 5 Harvest strategy standard approved 4
Progress regulations required to implement catch reporting systems for amateur charter vessels N/A N/A Regulations give effect to government policy
Progress government's recreational only areas policy N/A N/A Minister approves an implementation plan by 30 June 2010

Settlements

     
Input and participation of tangata whenua into fisheries management processes by engaging with hapu and iwi through the enhancement and maintenance of Regional Iwi Forums and Clusters 11 11 Support operation of eleven forums and seven clusters

Monitoring Of Contracted And Devolved Services

     
Services delivered are materially error free and delivered in a timely manner Services are monitored against Ministry standards and specifications Services are monitored against Ministry standards and specifications Services are monitored against Ministry standards and specifications
All significant errors are corrected 100% 100% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Fisheries Operations (M32) - Fisheries
Reference Conditions
Policy advice The same criteria as are used for the Fisheries Policy Advice expense output

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Fisheries Operations (M32) - Fisheries
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Enhanced aquaculture resourcing and law reform 2010/11 - - 341 330 357
Amateur charter vessel catch reporting 2009/10 - 365 265 265 365
Savings 2009/10 - (3,305) (3,305) (3,305) (3,305)
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
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
Participation by recreational fishers in fisheries management 2005/06 222 222 222 222 222
Fiordland marine management 2005/06 369 382 382 382 382
Growth and innovation framework 2005/06 22 43 43 43 43
Corporate infrastructure 2004/05 121 121 121 121 121
Implementation of Fisheries Deed of Settlement 2004/05 4,020 4,020 4,020 4,020 4,020
Building capacity for monitoring of registry based services 2003/04 150 150 150 150 150
Increased fisheries management capability 2003/04 648 648 648 648 648
Resourcing for the future management of cost recovery 2003/04 500 500 500 500 500
International conservation and management of highly migratory species 2003/04 250 250 250 250 250
Aquaculture reforms 2002/03 400 400 400 400 400

Fisheries Policy Advice (M32)#

Scope of Appropriation#

Advice on the development of policies relating 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 - Fisheries Policy Advice (M32) - Fisheries
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,773 8,658 7,410
Revenue from Crown 8,556 8,441 7,330
Revenue from Other 217 217 80

Reasons for Change in Appropriation#

The change from 2008/09 to 2009/10 reflects a reduction in outyears funding for the Ngati Porou and Te Whanau a Apanui Deed of Agreement, and the Waikato River Co-management Settlement, the Budget 2009 funding for Enhanced Aquaculture resourcing, and a reduction for the 2009/10 expenditure review.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Fisheries Policy Advice (M32) - Fisheries
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

New Zealand Fisheries

     
Work programme is agreed between the Minister of Fisheries and the Chief Executive of the Ministry and amended during the year as required As agreed with the Minister As agreed with the Minister As agreed with the Minister
Minister's expression of satisfaction with the quality of the reports and achievement of deadlines - a six-monthly satisfaction rating of reports meeting the required policy advice quality standards 90% 90% 90%
Develop a long-term fisheries management strategy with the final strategy reflected in the Ministry SOI 2009/10 2010/11 2010/11
Establish a framework and indicators to monitor performance of fisheries by 30 June 2009 30 June 2010 30 June 2010
Review the Fisheries Act      
  • Advice on reforms provided to the Minister by
30 June 2009 October 2009 October 2009
Aquaculture: Advice to support the introduction of a Bill N/A N/A September 2009

International Fisheries

     
Advancement of New Zealand's policy positions within international forums and bilaterally (noting that final outcomes often rest on factors beyond New Zealand control) As agreed with the Minister As agreed with the Minister The extent to which New Zealand's policy positions have been successfully advanced or achieved
Minister's expression of satisfaction with the quality of the reports and achievement of deadlines - a six-monthly satisfaction rating of reports meeting the required policy advice quality standards 90% 90% 90%
Advice papers for international meetings provided to the Minister in advance of the meeting by at least 2 weeks 2 weeks 2 weeks
International Strategy agreed by joint Ministers of Fisheries and Foreign Affairs and the development of action plans N/A N/A By March 2010
Feedback on the Ministry's capacity building initiatives with Pacific Island countries will be sought, both from the countries themselves and from NZAID, on the extent to which the Ministry's capacity building work is achieving positive results and contributing to desired outcomes - with a satisfaction rating of at least 90% 90% 90%

Ministerial Correspondence

     
Drafts provided to the Minister that are:      
Error free 100% 83% 100%
Within 15 working days of receipt unless urgent 95% 90% 95%
Urgent replies completed error free and within 5 days 100% 100% 100%

Parliamentary Questions

     
Draft responses provided for the Minister's signature:      
Error free 100% 86% 100%
Delivered on time 100% 100% 100%

Select And Cabinet Committees

     
Advice delivered to Select and Cabinet Committees:      
Within prescribed requirements 100% 100% 100%
Error free 100% 100% 100%
On time 100% 100% 100%

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Fisheries Policy Advice (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
Practical