Information supporting the estimates of appropriations

Social Development and Housing Sector - Information Supporting the Estimates 2010/11 - Budget 2010

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

 

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

Using PDF Files

Cover, Contents#

Introduction#

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

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Housing
  • Vote Senior Citizens
  • Vote Social Development
  • Vote Veterans' Affairs - Social Development
  • Vote Youth Development

Statements of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Department of Building and Housing
  • Ministry of Social Development

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

Purpose of Information Supporting the Estimates

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

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

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

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

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

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

 

Votes and Departments in Each Sector

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

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

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

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

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

Environment Sector - B.5A Vol.3

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

External Sector - B.5A Vol.4

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

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

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

Health Sector - B.5A Vol.6

Vote Health Ministry of Health

Justice Sector - B.5A Vol.7

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

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

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

Primary Sector - B.5A Vol.9

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

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

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

Purpose and Nature of Appropriations

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

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

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

Limits Created by Appropriations

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

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

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

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

Responsibility for Appropriations

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

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

 

Types of Appropriation

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

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

Types of Appropriation
Appropriation Type Transaction Status Description

Output Expenses

Departmental

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

Non-Departmental

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

Benefits and Other Unrequited Expenses

Non-Departmental

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

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

Borrowing Expenses

Departmental

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

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

Non-Departmental

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

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

Other Expenses

Departmental

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

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

Non-Departmental

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

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

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

Capital expenditure

Departmental

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

Non-Departmental

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

Expenses or Capital expenditure Incurred by an Intelligence and Security Department

Departmental

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

Types of Output Expense Appropriations

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

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

Standard Output Expense Appropriations

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

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

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

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

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

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

Multi-Class Output Expense Appropriations (MCOA)

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

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

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

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

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

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

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

Revenue-Dependent Appropriations (RDA)

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

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

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

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

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

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

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

Department-to-Department Appropriation (DDA)

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

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

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

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

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

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

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

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

Appropriation Period

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

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

Guide to Reading Information Supporting theEstimates

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

1 Sector Overview Information

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

2 Performance Information Relating to Appropriations in Each Vote

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

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

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

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

Part 2 - Details and Expected Performance for Output Expenses

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses

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

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

Part 4 - Details for Borrowing Expenses

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

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

Part 5 - Details and Expected Results for Other Expenses

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure

This Part provides further details about appropriations for capital expenditure.

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

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

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

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

3 Statement of Forecast Service Performance of Departments

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

4 Forecast Financial Statements of Departments

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

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

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

5 Statements of Intent of Departments

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

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

Terms and Definitions

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

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

Useful Links

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

Ministerial Statements of Responsibility

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the Social Development and Housing Sector is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

Hon Paula Bennett
Responsible Minister for the Ministry of Social Development

27 April 2010

Hon Maurice Williamson
Responsible Minister for the Department of Building and Housing

19 April 2010

Chief Executive Statements of Responsibility

Ministry of Social Development

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

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

Peter Hughes
Chief Executive
Ministry of Social Development

27 April 2010

Nick Gale
Chief Financial Officer
Ministry of Social Development

27 April 2010

Department of Building and Housing

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

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

Katrina Bach
Chief Executive
Department of Building and Housing

16 April 2010

Marion Cowden
Chief Advisor Finance and Administration
Department of Building and Housing

16 April 2010

Performance Information for Appropriations Vote Housing

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)

ADMINISTERING DEPARTMENT: Department of Building and Housing

MINISTER RESPONSIBLE FOR DEPARTMENT OF BUILDING AND HOUSING: Minister for Building and Construction

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

  • A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on delivering regulatory and control services for the building industry under the Building Act 2004 and related consumer information. A total of just under $47 million has been appropriated for a three year period. It is expected that just under $17 million will be spent in 2010/11, leaving a balance of $30 million for the remainder of the three year period.
  • A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers. A total of just over $27 million has been appropriated for a three year period. It is expected that just over $9 million will be spent in 2010/11, leaving a balance of $18 million for the remainder of the three year period.
  • A total of just over $4 million on providing sector and regulatory policy advice on the building and housing sector in New Zealand.
  • A total of just under $41 million on providing assessment and dispute resolution services under the Weathertight Homes Resolution Services Act 2006.
  • A total of just under $7 million on departmental capital expenditure.

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

  • A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on providing services under the Residential Tenancies Act 1986, including advice and guidance, dispute resolution and the administration of residential tenancy bond monies. A total of just under $67 million has been appropriated for a three year period. It is expected that just under $22 million will be spent in 2010/11, leaving a balance of $45 million for the remainder of the three year period.
  • A total of just under $1 million on providing purchase and performance monitoring advice to Government in relation to Housing New Zealand Corporation (HNZC).
  • A total of just over $11 million on purchasing housing support services.
  • A total of just under $3 million on the purchase of housing policy advice from Housing New Zealand Corporation.
  • A total of just over $1 million for the management of Crown owned properties.
  • A total of just over $7 million on contracted housing support services.
  • A total of just under $1 million on housing assistance payments.
  • A total of just under $559 million on purchasing of housing and related services for tenants paying income related rent to Housing New Zealand Corporation.
  • A total of just over $4 million on KiwiSaver deposit subsidy.
  • A total of just under $4 million on the community housing rent relief programme.
  • A total of just over $3 million on increase in provision for doubtful debts on IRR Debt.
  • A total of just over $37 million for Wellington City Council Social Housing Assistance.
  • A total of $8 million on Housing Innovation Fund Grants.
  • A total of $4 million for the impairment of Housing Innovation Fund Term Loans.
  • A total of just over $201 million on capital expenditure, which includes debt refinancing of just under $161 million.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Housing
Government Priorities Government Outcomes Appropriations
To ensure ongoing confidence and investment in the building and construction sector as this is critical in terms of economic activity, jobs and skill retention. A cost effective regulatory environment for the sector that ensures public safety and good quality, affordable homes and buildings Building Regulation and Control
Occupational Licensing
Sector and Regulatory Policy
To drive down the regulatory costs associated with building without compromising building quality and to remove unnecessary regulation that adds cost and delivers little benefit. Building Regulation and Control
Sector and Regulatory Policy
To ensure ongoing confidence and investment in the housing sector as this is critical in terms of economic activity, jobs and skill retention. A market that delivers a range of houses and buildings, at prices and standards that are accessible to all New Zealanders
People participate with confidence in the building and housing market and resolve disputes in timely and cost effective ways
Performance Monitoring and Advice - Housing New Zealand Corporation
Residential Tenancy and Unit Title Services
Sector and Regulatory Policy
To support and encourage improved productivity across the building and construction sector. A productive and innovative building and housing sector that has the right information, skills, systems and technology to do the job well and deliver quality homes and buildings Occupational Licensing
To get better results from the Government's investment in resolving weathertightness issues. People participate with confidence in the building and housing market and resolve disputes in timely and cost effective ways Weathertight Homes Resolution Service
To assist low income and/or vulnerable individuals and families to make the right housing choices and work with other agencies to transition low priority tenants into alternative housing. New Zealanders in need are helped during their pathway towards housing independence Contracted Housing Support Services
HNZC Housing Support Services
Housing Policy Advice
KiwiSaver Deposit Subsidy
Housing Innovation Fund Grants
Housing Innovation Fund Loan Impairments
Loans to support Social and Affordable Housing
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt
Capital Injections to Housing New Zealand Corporation for Housing Activities
To provide cost effective state housing and associated services (as agreed with the Ministers) to those most in need, for the duration of their need. New Zealanders with priority needs are supported for the duration of their need Performance Monitoring and Advice - Housing New Zealand Corporation
Contracted Housing Support Services
HNZC Housing Support Services
Housing Policy Advice
Purchase of Housing and Related Services for Tenants Paying Income Related Rents
Community Housing Rent Relief programme
Increase in Debt Provision
Acquisition and Improvement of Housing New Zealand Corporation State Houses
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt
Capital Injections to Housing New Zealand Corporation for Housing Activities
To facilitate the development of alternative providers of affordable housing, including not-for-profit organisations. New Zealanders with priority needs are supported for the duration of their need
New Zealanders in need are helped during their pathway towards housing independence
The Crown's resources are managed in the most efficient manner
Sector and Regulatory Policy
HNZC Housing Support Services
Housing Policy Advice
Housing Innovation Fund Grants
Housing Innovation Fund Loan Impairments
Wellington City Council Social Housing Assistance
Acquisition and Development of properties under the Housing Act 1955
Loans to support Social and Affordable Housing
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt
Capital Injections to Housing New Zealand Corporation for Housing Activities

Part 1.3 - Trends in the Vote

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 75,831 89,863 90,740 101,873 117,438 117,188 93,412 581,296 674,708 691,923 738,515 789,424
Benefits and Other Unrequited Expenses 400,002 440,371 474,108 512,392 528,666 528,666 N/A 4,790 4,790 5,820 6,420 11,320
Borrowing Expenses - - 3,964 - - - - - - - - -
Other Expenses 4,833 5,575 5,767 12,695 35,760 35,760 - 56,747 56,747 50,929 42,406 35,383
Capital Expenditure 292,251 447,535 321,910 281,729 393,699 393,699 6,503 201,332 207,835 186,310 169,183 169,418
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

772,917 983,344 896,489 908,689 1,075,563 1,075,313 99,915 844,165 944,080 934,982 956,524 1,005,545

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 110,888 135,374 164,763 110,386 246,623 246,623 N/A 165,156 165,156 169,000 169,212 169,323
Capital Receipts - - - - 2,124 2,124 N/A 5,047 5,047 16,873 - 736

Total Crown Revenue and Capital Receipts

110,888 135,374 164,763 110,386 248,747 248,747 N/A 170,203 170,203 185,873 169,212 170,059

New Policy Initiatives

Budget Policy Intiatives - Housing
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Agreed by current government            
Funding of memorandum account deficits Departmental capital injection 3,444 5,997 1,166 1,128 1,106
Funding for Housing Foundation Homeownership partnership Contracted Housing Support Services
Non-Departmental Output Expense
500 - - - -
  Loans to Support Homeownership
Non-Departmental Capital Expenditure
(500) - - - -
Funding for the Housing Shareholders' Advisory Group Performance Monitoring and Advice - Housing New Zealand Corporation
Departmental Output Expense
500 - - - -
  Loans to Support Homeownership
Non-Departmental Capital Expenditure
(500) - - - -
Funding of Housing Innovation Fund Grants and the Impairment on Term Loans Housing Innovation Fund Grants
Non-Departmental Other Expenditure
8,700 8,000 - - -
  Housing Innovation Fund Term Loan Impairment
Non-Departmental Other Expenditure
5,535 4,000 - - -
  Loans to Support Social and Affordable Housing
Non-Departmental Capital Expenditure
(8,700) 8,000 - - -
Fund New Zealand Productivity Commission Sector and Regulatory Policy
Departmental Output Expense
- (70) (140) (150) (150)
  Housing Policy Advice
Non-Departmental Output Expense
- (70) (140) (151) (151)
Set up of National Multi Use Approval Memorandum account activity Building Regulation and Control
Departmental Output Expense
221 925 1,067 1,356 1,636
Funding of Leaky Homes Repair scheme Weathertight Homes Resolution Service
Departmental Output Expense
1,548 25,371 - - -
Bring forward Healthy Housing Capital Expenditure Acquisitions and Improvements of Housing New Zealand Corporation state houses
Non-Departmental Capital Expenditure
- 1,700 (1,700) - -
Reclassify Income Related Rent Subsidy Income Related Rent Subsidy - (558,566) (606,744) (655,005) (705,814)
  Non-Departmental Benefit and Other Unrequited Expenses          
  Purchase of Housing and Related Services for Tenants Paying Income Related Rent - 558,566 606,744 655,005 705,814
  Non-Departmental Output Expense          

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Housing are discussed briefly below.

Output Expenses

In 2006/07 the electrical workers registration system was transferred from the Ministry of Economic Development (Vote Energy).

Commencing in 2009/10, funding has been added to Weathertight Homes Resolution Service to develop a solution to the leaky homes issue.

In 2008/09 the Rural Housing programme was funded through a reduced dividend payment to the Crown equal to $10 million. Funding for the Contracted Housing support services appropriation is forecast to decrease over the next two years.

As part of the bringing forward infrastructure spending package, HNZC State House Upgrades appropriation of $22 million and $20 million in 2008/09 and 2009/10 respectively were established.

The income related rental has grown from approximately $395 million in 2005/06 to approximately $527 million in 2009/10. The subsidy is forecast at $705 million for 2013/14. Growth in the income related rent rental subsidy is due to fewer market rents and more income related rents. This appropriation was previously categorised as a Benefits and Other Unrequited Expenses.

Benefits and Other Unrequited Expenses

The funding for the Income Related Rent Subsidy was reclassified to Output Expenses in 20010/11.

Funding for the Housing Assistance appropriation declined significantly in 2009/10 due to a reduction in interest subsidy payments, and a restructuring of the Housing Innovation Fund.

Other Expenses

In 2008/09 the Non-Departmental Other Expense category of appropriations increased due to the funding contributions to the Wellington City Council Social Housing Assistance programme. This appropriation fluctuates over the future years, rising to $43.500 million in 2011/12.

In 2009/10 the Other Expense component of the Housing Innovation Fund was established for the first time. This is currently a two year appropriation.

Capital Expenditure

In Budget 2008 the Non-Departmental Capital appropriations relating to Housing New Zealand Corporation were restructured as a result of the Review of Accountability Documents (RoADs) project to improve the accuracy and transparency of the appropriations.

In February 2009, Cabinet agreed to appropriate new funding in 2008/09 and 2009/10 to bring forward infrastructure spending. This funding was all appropriated to the capital appropriation Acquisitions and Improvement of Housing New Zealand Corporation State Houses.

Loans to Support Social and Affordable Housing was established in 2009/10. This is currently funded for two years only.

The Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt appropriation is for the roll over of existing Housing New Zealand Corporation loans. It peaks in 2009/10 at $234.600 million, reducing to $160.700 million in out years.

Part 1.4 - Reconciliation of Changes in Appropriation Structure

Reconciliation of Changes in Appropriation Structure - Housing
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Benefits and Other Unrequited Expenses            
Income Related Rent Subsidy 527,851 Purchase of Housing and Related Services for Tenants Paying Income Related Rent 527,851 Purchase of Housing and Related Services for Tenants Paying Income Related Rent 527,851 558,566
    Non-Departmental Output Expense   Non-Departmental Output Expense    

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

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - A cost effective regulatory environment for the sector that ensures public safety and good quality, affordable homes and buildings Building Regulation and Control
  Sector and Regulatory Policy
Outcome - A market that delivers a range of houses and buildings, at prices and standards that are accessible to all New Zealanders Building Regulation and Control
  Performance Monitoring and Advice - Housing New Zealand Corporation
  Sector and Regulatory Policy
Outcome - A productive and innovative building and housing sector that has the right information, skills, systems and technology to do the job well and deliver quality homes and buildings Occupational Licensing
  Sector and Regulatory Policy
Outcome - People participate with confidence in the building and housing market and resolve disputes in timely and cost effective ways Residential Tenancy and Unit Title Services
  Sector and Regulatory Policy
  Weathertight Homes Resolution Service

Building Regulation and Control (M9)

Scope of Appropriation

This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.

Expenses and Revenue

Expenses and Revenue - Building Regulation and Control (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,560 16,310 -
Revenue from Crown 770 770 -
Revenue from Other 18,797 18,797 -

Reasons for Change in Appropriation

This appropriation has now become a multi-year appropriation.

Building Regulation and Control (M9)

Scope of Appropriation and Expenses

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

Departmental Output Expenses

   

Building Regulation and Control (M9)

This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.

Commences: 1 July 2010

Expires: 30 June 2013

Original Appropriation 46,898
Adjustments for 2008/09 -
Adjustments to 2009/10 -
Adjusted Appropriation 46,898
Actual to 2008/09 Year End -
Estimated Actual for 2009/10 -
Estimated Actual for 2010/11 16,771
Estimated Appropriation Remaining 30,127

Revenue

Revenue - Building Regulation and Control (M9) - Housing
  Budget
$000
Revenue from the Crown to end of 2010/11 910
Revenue from Others to end of 2010/11 21,013
Total Revenue 21,923

Reasons for Change in Appropriation

This is a new multi-year appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Building Regulation and Control (M9) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Provide Information, Advice and Guidance

Provide information, advice and guidance to the building sector on regulatory schemes under the Building Act 2004
     

Quality

     
Percentage of users satisfied with information 70% 70% 70%

Set and Review Standards for Buildings

Maintain and review the Building Code and supporting documents; issue warnings and bans as required
     

Quality

     
Standards setting and reviews undertaken in accordance with the requirements of the Building Act 2004 User community is involved in developing the options to address the issues
All proposed changes are cost effective and the benefits outweigh costs
Achieved Revised standard
User communities are involved in identifying issues and developing options to address these.
All proposed changes are cost effective and the benefits outweigh costs

Product Assurance

Provide product assurance support, including administration of the product certification scheme
     

Quality

     
Publish approved Product Certification Bodies and product certificates within 10 working days of receipt 100% 100% 100%
Revised measure
Report annually on the performance of the Product Certification Scheme
Report produced Report produced Report produced by 30 June 2011

Investigate and Issue Determinations

Investigate and issue Determinations under the Building Act 2004. These are demand driven and the Department expects to complete approximately 135 Determinations per year
     

Quality

     
Determinations successfully appealed Less than 2% Less than 2% Less than 2%
Determinations subject to clarification due to inadequate coverage of issues
Revised measure
Less than 3% Less than 3% Less than 3%

Timeliness

     
Determinations completed within the statutory timeframe (60 days) without agreement of the parties to extend timeframes 100% 100% 100%

Building Science and Design Research

Undertake building science and design research that supports the regulatory system
     

Quality

     
Research projects completed in accordance with the terms of reference which include quality standards
Revised measure
Terms of reference met Terms of reference met Terms of reference met

MultiProof Service

Deliver MultiProof approvals of designs indicated to be replicated. These are demand driven and the Department expects to process approximately 200 MultiProof applications in 2010/11
     

Quality

     
No declined applications appealed successfully to the District Court New measure New measure Measure achieved
All applications processed with the statutory timeframe of 40 working days New measure New measure 100%

Consent Authority Performance

Improve the performance of local government consent authorities. This involves undertaking technical reviews and resolving complaints about territorial and building consent authorities
     

Quality

     
Councils provide positive feedback in annual process evaluation survey 80% 80% 80%

Technical Reviews

     

Quantity

     
Technical performance reviews of territorial authority's building control functions relating to life safety issues New measure New measure Three

Timeliness

     
Complete technical reviews New measure New measure By 30 June 2011
All final review reports published within 60 working days of receipt of consultation feedback on the draft review report from Councils
Revised standard
Measure achieved Measure achieved 100%

National Building Consent Authority Competency Assessment System

     

Quantity

     
Implement a National Competency Assessment System for Building Consent Authorities to achieve better consistency, standardisation, cost efficiencies, improved performance and technical capabilities New measure New measure Adoption by 50% metropolitan Building Consent Authorities by June 2011

Complaints about Building Control Authorities

     

Quality

     
Complaints successfully appealed to Ombudsman No more than 2% No more than 2% No more than 2%

Timeliness

     
Complaints formally acknowledged and preliminary enquiries commence within three working days of receipt of complete application 95% 95% 95%
Annual report on trends, issues and learnings identified produced
Revised standard
Measure achieved Measure achieved By 30 June 2011

Building Consent Authority Guidance, Advice and Support

     

Quantity

     
Develop three guidance documents on substantive issues New measure New measure By 30 June 2011

Quality

     
Users of guidance documents and advice provide positive survey feedback 70% 70% 70%

Memorandum Account

Memorandum Account - Building Regulation and Control (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Building Controls

     
Opening Balance at 1 July 9,487 9,487 12,545
Revenue 18,527 18,527 20,038
Expenses 15,469 15,469 14,836

Transfers and Adjustments

     
Closing Balance at 30 June 12,545 12,545 17,747

Memorandum Account

Memorandum Account - Building Regulation and Control (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

National Multi Use Approvals

     
Opening Balance at 1 July - - (51)
Revenue 170 170 875
Expenses 221 221 925

Transfers and Adjustments

     
Closing Balance at 30 June (51) (51) (101)

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Building Regulation and Control (M9) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Set up National Multi Use Approval Memorandum Account 2009/10 221 925 1,067 1,356 1,636
Line by line Savings 2008/09 (1,273) (846) - - -

Previous Government

           
Implementation of Building Code Review 2008/09 1,965 1,720 995 995 995
Implementation of NZ Energy Efficiency Conservation Strategy 2008/09 1,565 750 - - -
Increasing the capability of the Department of Building and Housing 2006/07 492 - - - -

Occupational Licensing (M9)

Scope of Appropriation

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.

Expenses and Revenue

Expenses and Revenue - Occupational Licensing (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,158 8,158 -
Revenue from Crown - - -
Revenue from Other 6,188 6,188 -

Reasons for Change in Appropriation

This appropriation has now become a multi-year appropriation.

Occupational Licensing (M9)

Scope of Appropriation and Expenses

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

Departmental Output Expenses

   

Occupational Licensing (M9)

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.

Commences: 1 July 2010

Expires: 30 June 2013

Original Appropriation 27,341
Adjustments for 2008/09 -
Adjustments to 2009/10 -
Adjusted Appropriation 27,341
Actual to 2008/09 Year End -
Estimated Actual for 2009/10 -
Estimated Actual for 2010/11 9,384
Estimated Appropriation Remaining 17,957

Revenue

Revenue - Occupational Licensing (M9) - Housing
  Budget
$000
Revenue from the Crown to end of 2010/11 -
Revenue from Others to end of 2010/11 9,217
Total Revenue 9,217

Reasons for Change in Appropriation

This is a new multi-year appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Occupational Licensing (M9) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Licensing of Building Practitioners

Administration and development of the occupational licensing scheme for building practitioners under the Building Act 2004. This is a demand driven activity that will involve issuing about 6,700 licences in 2010/11.
     

Timeliness

     
License building practitioners (Design licensing classes) 95% within 35 working days of receipt of a correctly completed application 95% within 35 working days of receipt of a correctly completed application 95% within 35 working days of receipt of a correctly completed application
License building practitioners (Non-Design licensing classes not requiring face to face assessments) 95% within 20 working days of receipt of a correctly completed application 95% within 20 working days of receipt of a correctly completed application 95% within 20 working days of receipt of a correctly completed application
License building practitioners (Non-Design licensing classes that require face to face assessments) 95% within 35 working days of receipt of acceptance of an offer for face-to-face assessment 95% within 35 working days of receipt of acceptance of an offer for face-to-face assessment 95% within 35 working days of receipt of acceptance of an offer for face-to-face assessment

Quality

     
Regulations and rules developed meet our quality standards for policy advice 100% 100% 100%
Justified complaints received by the Registrar related to process abnormalities None None None

Licensing of Electrical Workers

Administer the electrical occupational licensing requirements under the Electricity Act 1992. The licensing component is demand driven and will involve registering about 1,600 electrical workers, issuing about 23,000 practising licences and examining around 3,750 candidates per year.
     

Quality

     
Justified complaints received by the Registrar related to process abnormalities None None None
Provide the Electrical Workers Registration Board with audit programme findings 30 June 2010   30 June 2011
Complaints against registered electrical workers
Disciplinary hearing decisions able to be made by the Electrical Workers Registration Board on first time representation by departmental investigators ie, no further investigation or advice necessary for the Board to make a disciplinary decision.
New measure New measure 90% of complaints received for disciplinary consideration

Timeliness

     
Register electrical workers 95% within 10 working days of receipt of a correctly completed registration application 95% within 10 working days of receipt of a correctly completed registration application 95% within 10 working days of receipt of a correctly completed registration application
Issue practising licences 95% within 10 working days of receipt of a correctly completed licensing application 95% within 10 working days of receipt of a correctly completed licensing application 95% within 10 working days of receipt of a correctly completed licensing application
Release examinations results 100% within 8 weeks of the date of the examination 100% within 8 weeks of the date of the examination 100% within 8 weeks of the date of the examination
Complaints against non-registered electrical workers
Period from the date a complaint is received by the Electrical Workers Licensing Group to be referred to the Registrar for decision on the action to be taken
80% within 12 weeks of receipt 80% within 12 weeks of receipt 80% within 12 weeks of receipt
Complaints against registered electrical workers
Period from the date a complaint is received by the Registrar, Electrical Workers Registration Board to the date of the Electrical Registration Board disciplinary decision.
New measure New measure 90% within 16 weeks of receipt

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Occupational Licensing (M9) - Housing
Reference Conditions
Quality standards for policy advice Refer to Conditions on Use of Appropriation noted under the Building Regulation and Control output expense

Memorandum Account

Memorandum Account - Occupational Licensing (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Building Practitioners

     
Opening Balance at 1 July (12,082) (12,082) (14,095)
Revenue 1,373 1,373 4,196
Expenses 3,386 3,386 4,921

Transfers and Adjustments

     
Closing Balance at 30 June (14,095) (14,095) (14,820)
Memorandum Account - Occupational Licensing (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Electrical Workers

     
Opening Balance at 1 July 3,616 3,616 3,659
Revenue 4,081 4,081 4,287
Expenses 4,038 4,038 3,766

Transfers and Adjustments

     
Closing Balance at 30 June 3,659 3,659 4,915

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Occupational Licensing (M9) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Electrical Workers Registration and Licensing System 2008/09 434 510 510 510 510
Line by line Savings 2008/09 (344) (349) - - -
Licensed Building Practitioners' Scheme 2007/08 (1,571) (745) - - -

Previous Government

           
Increasing the capability of the Department of Building and Housing 2006/07 566 566 566 566 566

Performance Monitoring and Advice - Housing New Zealand Corporation (M37)

Scope of Appropriation

This appropriation is limited to the provision of advice to Ministers arising from the monitoring of Housing New Zealand Corporation's current and expected performance.

Expenses and Revenue

Expenses and Revenue - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,391 1,391 641
Revenue from Crown 1,375 1,375 625
Revenue from Other 16 16 16

Reasons for Change in Appropriation

The increased funding in 2009/10 was for the Housing Shareholders' Advisory Group and enhanced monitoring capability. 2010/11 returns to normal levels.

Output Performance Measures and Standards

Output Performance Measures and Standards - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Performance and Monitoring Advice on Housing New Zealand Corporation

Advice provided to the Minister of Housing demonstrates a sound knowledge of HNZC's business, Ministerial expectations and the environment within which HNZC operates
     

Quality

     
Quality standards for policy advice met 100% 100% 100%
Ministerial satisfaction assessed through regular feedback from the Minister of Housing on the quality of monitoring advice on Housing New Zealand Corporation's performance New measure New measure Measure achieved

Timeliness

     
Advice is timely and meets the needs of the Minister to agreed deadlines 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
Reference Conditions

Quality standards for policy advice

 

Standard quality characteristics

 
Purpose Clear issues definition and relationship to the Government's agreed outcomes and objectives and why it needs Ministerial action.
Cost effectiveness Viable options to address the issue are presented and costs and benefits assessed, and cost-effectiveness confirmed.
Evidence and Accuracy The sources of evidence on the problem and possible solutions are identified and facts are accurately represented.
Practicality The practicalities of implementing the advice and stakeholder views on implementation are clearly explained including any risks that may require management.
Consultation Stakeholder and Cabinet Office requirements for consultation are met and documented.
Presentation Comprehensible, accessible, free from any typographical or spelling errors, and meets Cabinet Office requirements.
Recommendation Recommendations are clear, logical, action-oriented and can stand alone from the rest of the advice.
Timeliness Specified reporting deadlines are met.
Cost Outturn is within budget.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Performance Monitoring and Advice Housing New Zealand Corporation (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Housing Shareholders' Advisory Group 2009/10 500 - - - -
Line by line Savings 2008/09 (4) (4) - - -

Previous Government

           
Increasing the capability of the Department of Building and Housing 2007/08 245 245 245 245 245

Residential Tenancy and Unit Title Services (M37)

Scope of Appropriation

This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority.

Expenses and Revenue

Expenses and Revenue - Residential Tenancy and Unit Title Services (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,222 22,222 -
Revenue from Crown 4,813 4,813 -
Revenue from Other 19,999 19,999 -

Reasons for Change in Appropriation

This appropriation has now become a multi-year appropriation.

Residential Tenancy and Unit Title Services (M37)

Scope of Appropriation and Expenses

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

Departmental Output Expenses

   

Residential Tenancy and Unit Title Services (M37)

This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority.

Commences: 1 July 2010

Expires: 30 June 2013

Original Appropriation 66,550
Adjustments for 2008/09 -
Adjustments to 2009/10 -
Adjusted Appropriation 66,550
Actual to 2008/09 Year End -
Estimated Actual for 2009/10 -
Estimated Actual for 2010/11 21,894
Estimated Appropriation Remaining 44,656

Revenue

Revenue - Residential Tenancy and Unit Title Services (M37) - Housing
  Budget
$000
Revenue from the Crown to end of 2010/11 -
Revenue from Others to end of 2010/11 22,436
Total Revenue 22,436

Reasons for Change in Appropriation

This is a new multi-year appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Residential Tenancy and Unit Title Services (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Residential Tenancies Act and Unit Titles Act statutory functions

Manage bond lodgements, refunds and investment as required under the Residential Tenancies Act 1986 and over 53,000 tenancy tribunal applications. Provide advice, education and information and dispute resolution as required under the Unit Titles Act 2010.
     

Quantity

     
Ensure that departmental advice and information will be provided through a range of channels so that clients can access our services at least 90% of the time on a 24 hours a day, 7 days a week basis New measure New measure 90%

Quality

     
Maintain or improve overall satisfaction of the top 10 landlords (by volume of use) with the Department's delivery of residential tenancy services New measure New measure Achieved
Increase the percentage of clients who use electronic channels to access services, advice and information by 30 June 2011 New measure New measure From 20% to 30%

Residential tenancy dispute resolution

     

Quality

     
Establish a baseline for the settlement rate for residential tenancies dispute resolution New measure New measure Achieved

State Housing Appeal Authority

     

Quality

     
Meet the standards agreed by the Principal member of the State Housing Appeal Authority Met Met Met

Unit titles disputes

     

Quality

     
Meet the performance standards expected to be developed and agreed with the Principal Tenancy Adjudicator New measure New measure Met

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Residential Tenancy and Unit Title Services (M37) - Housing
Reference Conditions

State Housing Appeal Authority

 
Timeliness of hearings The Department schedules hearings which are held within 30 working days of the application being made.
Quality of hearing decisions Decisions are independently reviewed by the Principal Member or Deputy Principal Member of the Authority (quality concerns will be reported monthly by the registrar).

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Residential Tenancy and Unit Title Services (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Line by line Savings 2008/09 (547) (434) - - -

Previous Government

           
Funding to deliver Unit Titles Act 1972 services 2007/08 394 395 395 395 395
Funding for the Residential Tenancies Act Amendment Bill 2007/08 412 311 311 311 311
Increasing the capability of the Department of Building and Housing 2004/05 2,311 2,311 2,311 2,311 2,311
Responding to growth in the Rental Housing Sector 2003/04 1,733 1,733 1,733 1,733 1,733
Assisting Tenancy Tribunal Judgement Creditors to Recover Judgement Debts 2003/04 120 120 120 120 120
Review of the Residential Tenancies Act 1986 2003/04 100 100 100 100 100

Sector and Regulatory Policy (M9)

Scope of Appropriation

This appropriation is limited to the provision of policy advice on the adequacy, efficiency and effectiveness of the building and housing sector in New Zealand; advice on the regulatory framework for the sector; monitoring, analysing and providing information on the sector; and evaluating the effectiveness of the sector and statutory boards.

Expenses and Revenue

Expenses and Revenue - Sector and Regulatory Policy (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,737 4,737 4,163
Revenue from Crown 4,653 4,653 4,079
Revenue from Other 84 84 84

Reasons for Change in Appropriation

2009/10 includes funding for the Building Act review of $500,000 which is not included in 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Sector and Regulatory Policy (M9) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Sector and Regulatory Policy Advice

Provide effective policy advice on building and housing to ensure issues are addressed for the New Zealand environment
     

Quality

     
Provide access to quality and timely information to inform decision making demonstrated through independent assessment New measure New measure Average rating of papers by NZIER at least 7.5 (on a 1 - 10 scale)

Quality and timeliness

     
Meet our quality standards for policy advice 100% 100% 100%

Sector Performance and Trends

Provide high quality, timely information to assist participants in the sector to make informed decisions
     

Quality and timeliness

     
Accurate, timely, credible and valued by sector participants shown by the download and re-use of our information by external parties Measure achieved Measure achieved Measure achieved

Statutory Board Responsibilities

Advice on the efficient and effective regulation of trades and professions operating within the building and housing sector, including monitoring the effectiveness of statutory boards
     

Quality

     
Board member appointments and re-appointments within statutory guidelines and requirements Guidelines and requirements met Guidelines and requirements met Guidelines and requirements met

Timeliness

     
Advice on annual reports on performance Within one month of receipt of report Within one month of receipt of report Within one month of receipt of report

Ministerial Services

This includes:
  • responses to 70 to 90 (forecast) parliamentary questions
  • responses to 600 to 680 (forecast) ministerial correspondence items
  • responses to 440 - 500 (forecast) Official Information Act 1982 and Privacy Act 1993 requests
     

Quality

     
Ministerial satisfaction assessed through regular feedback from Ministers New measure New measure Measure achieved
Responses to Official Information Act 1982 and Privacy Act 1993 requests comply with the legislation 100% 100% 100%

Timeliness

     
Responses to parliamentary questions and ministerial correspondence provided within the deadlines agreed with the Minister 100% 100% 100%
Responses to Official Information Act 1982 and Privacy Act 1993 requests provided within statutory deadlines 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Sector and Regulatory Policy (M9) - Housing
Reference Conditions
Quality standards for policy advice Refer to Conditions on Use of Appropriation noted under the Performance Monitoring and Advice - Housing New Zealand Corporation output expense

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Sector and Regulatory Policy (M9) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Fund New Zealand Productivity Commission 2010/11 - (70) (140) (150) (150)
Funding Weathertightness Review 2009/10 500 - - - -
Line by line Savings 2008/09 (114) (118) - - -

Previous Government

           
Purchasing and Monitoring Advice Transfer 2007/08 (230) (230) (230) (230) (230)
Increasing the capability of the Department of Building and Housing 2004/05 2,249 2,249 2,249 2,249 2,249

Weathertight Homes Resolution Service (M9)

Scope of Appropriation

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims; claim management until resolution and the provision of dispute resolution services.

Expenses and Revenue

Expenses and Revenue - Weathertight Homes Resolution Service (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,275 15,275 40,559
Revenue from Crown 15,165 15,165 40,458
Revenue from Other 207 207 214

Reasons for Change in Appropriation

The appropriation includes an increase of $25.371 million for 2010/11 for the delivery of new services to address weathertight homes claims.

Output Performance Measures and Standards

Output Performance Measures and Standards - Weathertight Homes Resolution Service (M9) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Claims Assessment and Management

Provision of assessment and advisory services to owners of 3,500 to 4,500 potentially affected dwelling houses
     

Quantity

     
Complete assessments of potentially affected dwelling houses New measure New measure 1,500 to 2,000

Quality

     
Percentage of clients who have contacted the Department that are: New measure New measure  
  • satisfied that their service expectations were met
    60%
  • very satisfied that their service expectations were met
    15%
All assessments carried out for buildings affected by weathertightness issues that meet the Department's technical quality standards New measure New measure 100%
Percentage of cases where there is alignment between the assessed total cost of repair and the actual cost of repair of leaky homes New measure New measure 75%

Timeliness

     
Percentage of assessments of stand alone and two unit multi-complexes completed within 90 working days of receipt New measure New measure 75%
Percentage of assessments of multi-complexes with three to nine units completed within 270 working days of receipt New measure New measure 75%
Percentage of assessments of multi-complexes with 10 or more units completed within times agreed with body corporate representative New measure New measure 75%

Dispute Resolution

The Department provides a mediation service on behalf of, and at the direction of the Weathertight Homes Tribunal
     

Quantity

     
The Department expects to provide assessment and advisory services to owners of 4,500 dwellings New measure New measure Met

Quality

     
The mediation service provided meets agreed standards New measure New measure Met

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Weathertight Homes Resolution Service (M9) - Housing
Reference Conditions

Quality standards for Assessment Reports

 
Consistent methodology All assessments carried out according to the Department's methodology described in the Weathertight Services Operational Requirements and Guidelines for Assessors.
Report quality Report contents and presentation meets are review against the following standards:
  • Description of the approach to the investigations
  • Full details of examinations and/or tests on the property
  • Clear record of evidence
  • Documented conclusions
  • Sources and references stated
  • Any qualifications in the opinion
  • Full compliance with the Weathertight Homes Resolution Services Act 2006
  • Quality assurance review of each report.
Accessibility Homeowners, the Tribunal and other respondents are able to use the report to easily identify the extent of weathertight damage, possible liable parties and likely costs of repair.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Weathertight Homes Resolution Service (M9) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Funding for new Weathertight Homes scheme 2009/10 1548 25,371 - - -
Line by line Savings 2008/09 (372) (387) - - -

Previous Government

           
Increasing the capability of the Department of Building and Housing 2006/07 576 576 576 576 576
Weathertightness - Weathertight Homes Resolution Services and related initiatives 2006/07 3,621 3,621 3,621 3,621 3,621
Transfer of Weathertight Homes Resolution Service 2005/06 15,000 15,000 15,000 15,000 15,000

Part 2.2 - Non-Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Housing Policy Advice
  Purchase of Housing and Related Services for Tenants Paying Income Related Rent
Upgrade the current Housing New Zealand stock and acquisition of new housing Contracted Housing Support Services
  HNZC Housing Support Services
  HNZC State House Upgrades
  Housing Policy Advice
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Contracted Housing Support Services
  HNZC Housing Support Services
  Housing Policy Advice
  Management of Crown properties held under the Housing Act 1955

Contracted Housing Support Services (M37)

Scope of Appropriation

This appropriation is limited to the purchase of education, support and other services from third-party and iwi providers, by Housing New Zealand Corporation, to support target groups into improved housing outcomes.

Expenses

Expenses - Contracted Housing Support Services (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation Contracted Housing Support Services 10,166 10,166 7,400
Welcome Home First Steps Home Ownership Education 2,666 2,666 2,400
Rural Housing 7,000 7,000 5,000
Housing Foundation 500 500 -

Reasons for Change in Appropriation

The decrease in appropriation is primarily due to the decrease in funding received for the Housing Foundation and the Rural Housing programme which ends on 30 June 2011. Surplus funds in the Shared Equity Pilot were applied to further development of the Housing Foundation's Homeowner Partnerships proposal by way of a fiscally neutral transfer.

Output Performance Measures and Standards

Output Performance Measures and Standards - Contracted Housing Support Services (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of participants in the Welcome Home First Steps Home Ownership Education programme 4,000-5,000 4,000-5,000 -
Percentage of the Welcome Home First Steps Home Ownership Education programme participants who purchase a home within 12 months New measure New measure More than 5%
Rural Housing - the number of essential and infrastructure repairs 235-270 385-480 175-345
Rural Housing - the number of dwellings repaired 205-230 205-250 150-175

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Contracted Housing Support Services (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Housing Foundation 2009/10 500 - - - -
Rural Housing Programme 2008/09 7,000 5,000 - - -
Line by line Savings 2008/09 (868) (868) (868) (868) (868)

Previous Government

           
Home Ownership Education 2005/06 2,400 2,400 2,400 2,400 2,400

HNZC Housing Support Services (M37)

Scope of Appropriation

This appropriation is limited to the purchase of housing related services from Housing New Zealand Corporation including home ownership initiatives, the Housing Innovation Fund and Healthy Housing.

Expenses

Expenses - HNZC Housing Support Services (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,993 14,993 11,484
Housing Innovation Fund - Administration 1,100 1,100  
Housing Innovation Fund - Maori Demonstration Partnerships 500 500 -
Welcome Home Loan 11,573 11,573 9,100
Non-weathertight homes financial assistance 70 70 40
Healthy Housing 1,418 1,418 1,622
KiwiSaver housing deposit subsidy - Establishment 332 332 722

Reasons for Change in Appropriation

The decreased in the appropriation is impacted by an increase for the Welcome Home Loan programme in 2009/10 not continuing in 20010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - HNZC Housing Support Services (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Housing Innovation Fund loans issued meet the eligibility criteria At least 98% 100% At least 98%
Housing Innovation Fund loans and grants are monitored and meet lending conditions 95% 100% At least 95%
The number of new loans underwritten through the Welcome Home Loan programme A minimum of 1,150 A minimum of 1,700 A minimum of 1,750
Healthy Housing joint assessments undertaken 1,900-2,100 1,900-2,100 450-550

Conditions on Use of Appropriation

Conditions on Use of Appropriation - HNZC Housing Support Services (M37) - Housing
Reference Conditions
Cabinet decision updated by briefing notes to the Minister Welcome Home loans are only available to applicants that meet income and credit criteria set by participating lenders and Housing New Zealand Corporation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - HNZC Housing Support Services (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Fund Monitoring Unit Capability 2009/10 (250) - - - -
Transfer from Shared Equity 2009/10 3,150 532 350 373 396
Increase the supply of affordable housing 2009/10 1,600 - - - -
KiwiSaver Housing deposit subsidy 2009/10 782 1,273 1,289 1,289 1,289
Shared Equity Home Ownership Pilot 2008/09 (227) (1,083) (896) (896) (896)

Previous Government

           
Financial Assistance to owners of non-weathertight homes 2005/06 70 - - - -
Healthy Housing 2005/06 943 972 972 972 972
Welcome Home Loan programme 2005/06 8,700 9,100 9,100 9,100 9,100

HNZC State House Upgrades (M37)

Scope of Appropriation

This appropriation is limited to the upgrading of Housing New Zealand Corporation State Houses to improve the safety, security, function and amenity value to a standard suitable for social housing purposes.

Expenses

Expenses - HNZC State House Upgrades (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Bringing Forward Infrastructure Spending - Upgrades 20,000 20,000 -

Reasons for Change in Appropriation

This appropriation ceased in 2009/10.

Housing Policy Advice (M37)

Scope of Appropriation

Purchase of housing policy advice, research and evaluation from HNZC.

Expenses

Expenses - Housing Policy Advice (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,640 2,640 2,558
Policy Advice and Research and Evaluation 2,254 2,254 2,184
Ministerial Support 300 300 300
KiwiSaver Joint Evaluation Strategy 86 86 74

Reasons for Change in Appropriation

There have been no material changes to this appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Housing Policy Advice (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Policy Advice - Level of satisfaction assessed by the Minister quarterly Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
Policy Advice - Demonstrated through independent assessment Average rating of papers by NZIER at least 7.5 ( on a 1 - 10 scale) Average rating of papers by NZIER at least 7.5 (on a 1 - 10 scale) Average rating of papers by NZIER at least 7.5 (on a 1 - 10 scale)
Ministerial Support - Acceptance rate on first draft responses 95% At least 95% At least 95%
Timeframes set in legislation, by Cabinet or otherwise agreed with the Minister met 95% At least 95% At least 95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Housing Policy Advice (M37) - Housing
Reference Conditions

Quality standard

 
Purpose Aims of the paper clearly stated
Logic Arguments logical and supported by the facts
Accuracy Facts in the paper accurate and assumptions clearly stated
Options An adequate range of options presented and each option assessed for benefits, costs and consequences
Impact Impact of the proposals on specific interest groups considered
Practicality Issues of implementation, costs, feasibility, legality, timing, communications, consistency with other policies considered
Recommendations Recommendations logical and clear and reflect the key points of the paper

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Housing Policy Advice (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Fund New Zealand Productivity Commission 2010/11 - (70) (140) (151) (151)
KiwiSaver Housing deposit subsidy 2009/10 86 74 188 203 -

Previous Government

           
Housing New Zealand Corporation policy unit capability 2005/06 1,138 1,138 1,138 1,138 1,138

Management of Crown Properties held under the Housing Act 1955 (M37)

Scope of Appropriation

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.

Expenses

Expenses - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,296 1,296 1,288
Hobsonville Urban Development 1,262 1,262 1,267
Other properties managed under the Housing Act 1955 34 34 21

Reasons for Change in Appropriation

There have been no material changes to this appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Development projects managed in accordance with the Annual Housing Agency Account work programme Milestones achieved Milestones achieved Milestones achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
Reference Conditions
Housing Act 1955 (section 32) Any money required to carry out works authorised under Part 1 of the housing Act 1955 may be paid out of money appropriated by parliament for the purpose.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Crown Properties held under the Housing Act 1955 (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Hobsonville Urban Development 2008/09 8,376 8,736 8,918 8,918 8,918
Housing Agency Account excluding Hobsonville 2008/08 1,717 1,704 1,691 1,691 1,691

Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37)

Scope of Appropriation

This appropriation is limited to the purchase of housing and related services delivered by Housing New Zealand Corporation to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the Corporation and the income related rents charged.

Expenses

Expenses - Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 558,566

Reasons for Change in Appropriation

This appropriation has been reclassified in 2010/11 from being a benefit and other unrequited expense appropriation called Income Related Rent Subsidy.

Output Performance Measures and Standards

Output Performance Measures and Standards - Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37) - Housing
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Correct Income Related Rent assessments (for tenants with verified income) New measure New measure At least 95%
Percentage of Income Related Rent debt under recovery action New measure New measure At least 75%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37) - Housing
Reference Conditions
Cabinet decision Income must be below a specified level to be eligible for this subsidy.
Legislation In accordance with the Housing Restructuring and Tenancy Matters Act 1992, Sections 7 and 65.

Summary of Service Providers for Non-Departmental Outputs

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Housing
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown Entities

         
Housing New Zealand Corporation          
  • Contracted Housing Support Services
10,166 10,166 7,400 HNZC Annual Report  
  • HNZC Housing Support Services
14,993 14,993 11,484 HNZC Annual Report  
  • HNZC State House Upgrades
20,000 20,000 - HNZC Annual Report June 2010
  • Housing Policy Advice
2,640 2,640 2,558 HNZC Annual Report  
  • Management of Crown Properties under the Housing Act 1955
1,296 1,296 1,288 HNZC Annual Report  
  • Purchase of Housing and Related Services for Tenants Paying Income Related Rent
- - 558,566 HNZC Annual Report  

The above table summarises funding to be allocated through Vote Housing 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 - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Income Related Rent Subsidy
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Housing Assistance
  KiwiSaver Deposit Subsidy

Housing Assistance (M37)

Scope of Appropriation

Payments made to HNZC and other mortgage providers to compensate for the difference between the cost of funds and rate at which funds are lent and provide write-offs for loans.

Expenses

Expenses - Housing Assistance (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 815 815 590
Community Owned Rural Rental Housing Loans 345 345 420
Other Subsidies 470 470 170

Reasons for Change in Appropriation

The decrease in the appropriation reflects the maturity of the Special Housing Action Zone (SHAZ) loans and the resulting reduction of the interest subsidy attached to these loans.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Housing Assistance (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Line by line savings 2008/09 (6,122) (6,124) (5,793) (5,793) (5,793)

Income Related Rental Subsidy (M37)

Scope of Appropriation

Subsidy provided to HNZC to compensate for the difference between assessed income-related and market rentals.

Expenses

Expenses - Income Related Rental Subsidy (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 527,851 527,851 -

Reasons for Change in Appropriation

This appropriation has been transferred to Purchase of Housing Related Services for Tenants Paying Income Related Rent.

KiwiSaver Deposit Subsidy (M37)

Scope of Appropriation

To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria.

Expenses

Expenses - KiwiSaver Deposit Subsidy (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 4,200

Reasons for Change in Appropriation

The increase in the appropriation is due to the commencement of the KiwiSaver deposit subsidy scheme on 1 July 2010.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - KiwiSaver Deposit Subsidy (M37) - Housing
Reference Conditions
Cabinet Decisions In April 2005, Cabinet agreed that home ownership assistance for first home buyers participating in KiwiSaver would include a deposit subsidy and first home withdrawal where savers can withdraw part or all of their savings and accumulated interest [ CAB Min (05) 13/10
KiwiSaver Act 2006 First home withdrawal is provided for in the KiwiSaver Act 2006. It is administered by KiwiSaver scheme providers and allows KiwiSaver members to withdraw part or all of their savings (excluding the Government's contribution and tax credits) to put towards the purchase of a first home.
Cabinet Decisions The deposit subsidy is not provided for in legislation. Cabinet approved the deposit subsidy and high level design details outside the KiwiSaver Act 2006, because the Corporation is already authorised to administer suspensory loans under the Housing Corporation Act 1974 [Cab Min (05) 13/10 refers].
Cabinet also delegated authority to the Corporation to apply Schedule 1 (Part 8) of the KiwiSaver Act 2006, where possible, to the deposit subsidy design. Schedule 1 provides, for example, a definition of what constitutes a first home buyer and the type of home that can be purchased.
The deposit subsidy design details were agreed by the Ministers of Finance and Housing through three reports submitted in June 2008, December 2008 and June 2009.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - KiwiSaver Deposit Subsidy (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
KiwiSaver Housing Deposit Subsidy 2010/11 - 4,200 5,200 5,800 10,700

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 - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Community Housing Rent relief Programme
  Increase in Debt Provision
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Housing Innovation Fund Grants
  Housing Innovation Fund Loan Impairments
  Wellington City Council Social Housing Assistance

Community Housing Rent Relief Programme (M37)

Scope of Appropriation

This appropriation is limited to provision of a rent relief fund for service provider tenants of Community Group Housing properties who face difficulties in meeting rental payments.

Expenses

Expenses - Community Housing Rent Relief Programme (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,800 3,800 3,968

Reasons for Change in Appropriation

In the 2009/10 financial year savings were identified in relation to this programme. These included $700,000 in 2009/10 and $532,000 in 2010/11.

Expected Results

Expected Results - Community Housing Rent Relief Programme (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Community Group tenancies assisted with rent relief 700-750 650-700 650-700

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Community Housing Rent Relief Programme (M37) - Housing
Reference Conditions
Ministerial agreement The Community Housing Rent Relief Programme provides rent support to community groups for residential supported living and family and welfare living. Rent support covers:
  • 70 percent of the shortfall between the rent charged by HNZC and the income received by the providers for residential supported living, or
  • 90 percent for family and welfare living for people who require temporary accommodation and respite for people who need temporary support.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Community Housing Rent Relief Programme (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Community Housing Rent Relief 2001/02 4,500 4,500 4,500 4,500 4,500

Housing Innovation Fund Grants (M37)

Scope of Appropriation

This appropriation is limited to the provision of grants directly to housing providers and grants facilitated through Housing New Zealand Corporation to increase the supply of housing for those on low to moderate income with diverse needs.

Expenses

Expenses - Housing Innovation Fund Grants (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,700 8,700 8,000
Housing Innovation Fund 6,000 6,000 6,000
Housing Innovation Fund - Maori Development Partnership 2,700 2,700 2,000

Reasons for Change in Appropriation

The reduction in appropriation is due the reorientation of the Housing Innovation Fund.

Expected Results

Expected Results - Housing Innovation Fund Grants (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of units provided through Housing Innovation Fund grants At least 60 86 At least 47
Crown contributions as a proportion of total project cost does not exceed New measure New measure 45%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Housing Innovation Fund Grants (M37) - Housing
Reference Conditions
Cabinet decisions In December 2009, Cabinet agreed to Housing Innovation Fund Appropriation transfer 2009/2010 SOC (09) 128 and agreed to the establishment of a new Non-Departmental Other Housing Innovation Fund Grant appropriation in Vote Housing.
It is intended that grants be provided for 2009/10. As grants are treated as operational funding, the amount need must be transferred from the Housing Innovation Fund capital appropriation to an operating operation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Housing Innovation Fund Grants (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Housing Innovation Fund 2010/11 - 8,000 - - -
Housing Innovation Fund 2009/10 8,700 - - - -

Housing Innovation Fund Loan Impairments (M37)

Scope of Appropriation

This appropriation is limited to the impairment of term loans made directly to housing providers and term loans facilitated through equity in Housing New Zealand Corporation to increase the supply of housing for those on low to moderate income with diverse needs.

Expenses

Expenses - Housing Innovation Fund Loan Impairments (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,535 5,535 4,000

Reasons for Change in Appropriation

The decreased appropriation is due to lower levels of term loan being paid in 2010/11.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Housing Innovation Fund Loan Impairments (M37) - Housing
Reference Conditions
Cabinet decisions In December 2009, Cabinet agreed to Housing Innovation Fund Appropriation transfer 2009/2010 SOC (09) 128 and agreed to the establishment of a new Non-Departmental Other Housing Innovation Fund Loan Impairment in Vote Housing to account for the impairment of term loans originated in 2009/10.
Noted that the new appropriation, Non-Departmental Other Expense Housing Innovation Loan Impairment, is not cash funded, and that the reduction of the impairment in future years will be treated as revenue.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Housing Innovation Fund Loan Impairments (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Housing Innovation Fund 2010/11 - 4,000 - - -
Housing Innovation Fund 2009/10 5,535 - - - -

Increase in Debt Provision (M37)

Scope of Appropriation

Increase in provision for doubtful debts on Income Related Rents Crown Debt.

Expenses

Expenses - Increase in Debt Provision (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,225 4,225 3,279

Reasons for Change in Appropriation

The decrease in appropriation relates to an increased forecast in 2009/10 based on increasing levels of debt.

Wellington City Council Social Housing Assistance (M37)

Scope of Appropriation

This appropriation is limited to assisting the Wellington City Council upgrade its social housing portfolio under the terms of a Deed of Grant entered into between the Crown, Housing New Zealand Corporation and the Council.

Expenses

Expenses - Wellington City Council Social Housing Assistance (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,500 13,500 37,500

Reasons for Change in Appropriation

The increase in appropriation is due to the budget decision to provide funding for the financial assistance package to Wellington City Council to upgrade the Council's social housing portfolio.

Expected Results

Expected Results - Wellington City Council Social Housing Assistance (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Milestones in the work plan agreed between HNZC and the Wellington City Council under the Deed of Grant are met. Milestones achieved Milestones achieved Milestones achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Wellington City Council Social Housing Assistance (M37) - Housing
Reference Conditions
Deed of Grant Use of funding complies with Deed of Grant.
Report is provided to Parliament on use of grant under section 32(a) of the Public Finance Act 1989.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Wellington City Council Social Housing Assistance (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Wellington City Council Upgrade of Social Housing 2008/09 13,500 37,500 43,500 35,000 37,000

Reporting Mechanisms

Reporting Mechanisms - Reporting Mechanisms - Housing
Appropriation Reporting Mechanism
Community Housing Rent Relief Programme Annual Report of the Housing New Zealand Corporation
Housing Innovation Fund Grants Annual Report of the Housing New Zealand Corporation
Housing Innovation Fund Loan Impairments Annual Report of the Housing New Zealand Corporation
Wellington City Council Social Housing Assistance Report is provided to parliament on use of grant under section 32(a) of the Public Finance Act 1989.

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 - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - A cost effective regulatory environment for the sector that ensures public safety and good quality, affordable homes and buildings Capital Expenditure PLA
Outcome - People can participate with confidence in the building and housing market and resolve disputes in timely and cost effective ways Capital Expenditure PLA

Department of Building and Housing - Capital Expenditure PLA (M9)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Department of Building and Housing Capital Expenditure PLA (M9) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,167 1,167 1,079
Intangibles 4,359 4,359 5,424
Other - - -

Total Appropriation

5,526 5,526 6,503
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,167 1,167 1,079
Intangibles 4,359 4,359 5,424
Other - - -

Total Appropriation

5,526 5,526 6,503

Expected Results

Expected Results - Department of Building and Housing Capital Expenditure PLA (M9) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Implementation of an electronic document and records management system - completed 506 506 -
Completion of a voice and data network upgrade - completed 701 701 -
Development of registration systems for electrical workers and licensed building practitioners - completed 1,132 1,132 350
Implementation of improved financial and human resource management information systems - completed 1,106 1,106 -
Office renovations 87 87 40
IT upgrade / replacement 1,033 1,033 530
Motor vehicles replacements - - 175
Office equipment replacement 47 47 34
Replacement for tenancy services system - - 3,000
Computer software 914 914 550
Leaky Home Repair Scheme - - 1,824

Part 6.2 - Non-Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Housing
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More efficient use of state housing assets by better management of stock and better utilisation of resources Acquisition and Improvement of Housing New Zealand Corporation State Houses
Capital Injection to Housing New Zealand Corporation for Housing Activities
Refinancing of Housing New Zealand Corporation and Housing New Zealand Ltd debt
Quality regulation of the housing market, including regulatory and non regulatory initiatives designed to increase the supply of affordable housing Acquisition and Development of Properties Under the Housing Act 1955
Acquisition and Improvement of Housing New Zealand Corporation State Houses
Loans to Support Homeownership
Loans to Support Social and Affordable Housing

Acquisition and Development of properties under the Housing Act 1955 (M37)

Scope of Appropriation

This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955.

Capital Expenditure

Capital Expenditure - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20,301 20,301 14,548
Hobsonville Urban Development 20,027 20,027 14,548
Other properties managed under the Housing Act 1955 274 274 -

Reasons for Change in Appropriation

The decrease in appropriation for the Hobsonville Urban development largely reflects the approved carry forward from 2008/09 of $3.610 million to fund capital works delayed as a result of a longer than expected process to obtain the resource consent for the Comprehensive Development Plan for 2009/10. The decrease for the other properties managed under the Housing Act 1955 reflects the cessation of the appropriation for planned acquisitions of surplus Crown land in 2009/10.

Expected Results

Expected Results - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Hobsonville developments managed to the performance milestones set out in the Annual Hobsonville work programme Milestones achieved Milestones achieved Milestones achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
Reference Conditions
Housing Act 1955 Section 32 Any money required to carry out works authorised under Part 1 of the Housing Act 1955 may be paid out of money appropriated by Parliament for the purpose.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Acquisition and Development of properties under the Housing Act 1955 (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
Hobsonville Urban Development 2008/09 17,517 13,448 12,142 - -

Acquisition and Improvement of Housing New Zealand Corporation state houses (M37)

Scope of Appropriation

This appropriation is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure Housing New Zealand Corporation state houses.

Capital Expenditure

Capital Expenditure - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 120,610 120,610 18,000
State Housing Acquisitions 10,188 10,188 -
Bringing Forward Infrastructure Spending - Upgrades 65,000 65,000 -
Auckland pensioner housing reconfiguration and development 11,622 11,622 -
Healthy Housing 15,000 15,000 5,700
Bringing Forward Infrastructure Spending - Healthy Housing 6,500 6,500 -
Energy Efficient Retrofits 6,500 6,500 6,500
Community Housing Standard Acquisitions 5,800 5,800 5,800

Reasons for Change in Appropriation

The decrease in appropriation is due largely to the cessation of the appropriation for the State House Acquisitions and Auckland pensioner housing reconfiguration and development programmes together with the Acquisition and Healthy Housing Bringing Forward Infrastructure Spending programmes. The decrease in the Healthy Housing programme reflects the cessation of the appropriation provided as part of Budget 2007.

Expected Results

Expected Results - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
State Housing Acquisitions - number of properties added to portfolio 30 30 -
Bringing Forward Infrastructure Spending - number of properties upgraded - immediate upgrades 6,000-6,500 6,570-7,020 -
Auckland pensioner housing reconfiguration and development - the number of properties redeveloped 66 66 -
Healthy Housing programme - the number of households assisted 1,250-1,350 1,250-1,350 450-550
Healthy Housing programme - Bringing Forward Infrastructure Spending - number of households assisted 650-750 650-750 -
The number of energy efficiency retrofits to properties 1,100-1,250 1,100-1,250 900-1,100
The number of energy efficiency heater installations 800-950 800-950 675-775
Community Group Housing - acquisitions 9-13 9-13 9-13

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
Reference Conditions
Cabinet decisions In February 2009, Cabinet agreed to Bringing forward infrastructure spending CAB Min (09) 3/3
Additional funding be provided for 2008/09 in the following areas:
  • $20 million for building new houses to add to the state housing stock
  • $3 million for the Healthy Housing programme.
Additional funding be provided for 2009/10 in the following areas:
  • $65 million for upgrading existing state housing stock
  • $6.500 million for the Healthy Housing programme.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Acquisition and Improvement of Housing New Zealand Corporation state houses (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Bring forward Healthy Housing Capital Expenditure 2010/11 1,700 (1,700) - - -
Bringing Forward Infrastructure Spending - infrastructural spending 2008/09 71,500 - - - -

Previous Government

           
Energy Efficient Warm Homes 2008/09 6,000 6,000 6,000 6,000 6,000
Healthy Housing 2007/08 15,000 4,000 1,700 - -

Capital Injections to Housing New Zealand Corporation for Housing Activities (M37)

Scope of Appropriation

Capital injections (debt or equity) to HNZC to give effect to Government policy decisions around stock acquisition, modernisation and other housing interventions.

Capital Expenditure

Capital Expenditure - Capital Injections to Housing New Zealand Corporation for Housing Activities (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 620 620 27

Reasons for Change in Appropriation

The decrease in appropriation is due to the one off capital appropriation in 2009/10 to support the increased functionality of information systems within Housing New Zealand Corporation to support the KiwiSaver housing deposit subsidy scheme.

Expected Results

Expected Results - Capital Injections to Housing New Zealand Corporation for Housing Activities (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Enhancements to current information system Achieved Achieved -

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Capital Injections to Housing New Zealand Corporation for Housing Activities (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
KiwiSaver Housing deposit subsidy 2009/10 100 547 27 27 27

Loans to support Homeownership (M37)

Scope of Appropriation

This appropriation is limited to debt or equity in Housing New Zealand Corporation to provide loans to households to help them achieve or sustain home ownership.

Capital Expenditure

Capital Expenditure - Loans to support Homeownership (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 700 700 -

Reasons for Change in Appropriation

The decrease in the appropriation is due to the conclusion of the Shared Equity Home Ownership pilot.

Loans to support Social and Affordable Housing (M37)

Scope of Appropriation

This appropriation is limited to the provision of term loans made directly to housing providers and term loans facilitated through equity in Housing New Zealand Corporation to increase the supply of housing for those on low to moderate income with diverse needs.

Capital Expenditure

Capital Expenditure - Loans to support Social and Affordable Housing (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,300 11,300 8,000
Housing Innovation Fund 9,000 9,000 6,000
Housing Innovation Fund - Maori Demonstration Partnerships 2,300 2,300 2,000

Reasons for Change in Appropriation

The decrease in the appropriation is due to the reorientation of the Housing Innovation Fund.

Expected Results

Expected Results - Loans to support Social and Affordable Housing (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Units provided through Housing Innovation Fund loans At least 60 86 At least 47
Crown contribution as a proportion of total project cost does not exceed New measure New measure 45%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Loans to support Social and Affordable Housing (M37) - Housing
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Fund Housing Innovation Fund 2010/11 - 8,000 - - -
Fund Housing Innovation Fund 2009/10 (8,700) - - - -
Increase the supply of affordable housing 2009/10 20,000 - - - -

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37)

Scope of Appropriation

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt.

Capital Expenditure

Capital Expenditure - Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37) - Housing
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 234,642 234,642 160,757

Reasons for Change in Appropriation

The change in appropriation reflects the funding required for facilities being renewed during the year.

Expected Results

Expected Results - Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37) - Housing
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Refinancing will be according to the agreed policy All All All

Reporting Mechanisms

Reporting Mechanisms - Reporting Mechanisms - Housing
Appropriation Reporting Mechanism
Acquisition and Development of Properties under the Housing Act 1955 Annual Report of Housing New Zealand Corporation
Acquisition and Improvement of Housing New Zealand Corporation State Houses Annual Report of Housing New Zealand Corporation
Capital Injection to Housing New Zealand Corporation for Housing Activities Annual Report of Housing New Zealand Corporation
Loans to support Homeownership Annual Report of Housing New Zealand Corporation
Loans to support Social And Affordable Housing Annual Report of Housing New Zealand Corporation
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt Annual Report of Housing New Zealand Corporation

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 Senior Citizens

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Senior Citizens (M61)

ADMINISTERING DEPARTMENT: Ministry of Social Development

MINISTER RESPONSIBLE FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development and Employment

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister for Senior Citizens is responsible for the appropriation in the Vote for the 2010/11 financial year covering the following:

  • a total of just over $1 million on services from the Office for Senior Citizens in the Ministry of Social Development.

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

Part 1.2 - High-Level Objectives of the Vote

Contribution of Appropriations to Government Priorities and Outcomes

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Senior Citizens
Government Priorities Government Outcomes Appropriations
Support the independence of older people Improved quality of life of older people Senior Citizens Services

The performance measures contained in the Information Supporting the Estimates are the main measures and standards that demonstrate performance for the significant outputs in each appropriation.

Objectives of the Vote

Vote Senior Citizens, on behalf of the Government, supports older New Zealanders to age positively through the provision of policy advice to protect the rights and interests of older people, and their wellbeing. This fits neatly with the Government's goal of supporting the independence of older people.

The impacts that the appropriations in Vote Senior Citizens are intended to have are reflected in the Ministry of Social Development's outcome - improved quality of life for older people.

The table above maps the Ministry of Social Development's outcome and appropriations to the Government's outcome for older people.

Part 1.3 - Trends in the Vote

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 955 988 911 933 1,035 1,035 1,035 - 1,035 1,035 1,035 1,035
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

955 988 911 933 1,035 1,035 1,035 - 1,035 1,035 1,035 1,035

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

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

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental appropriations in Vote Senior Citizens are discussed briefly below.

Output Trends 2005/06 to 2010/11

Changes to expenditure in Vote Senior Citizens reflect the nature of policy advice on matters concerning the welfare of senior citizens and related issues in recent years.

In 2005/06 and 2006/07 one-off transfers occurred from Vote Social Development to Vote Senior Citizens of $151,000 and $107,000 to develop a code of practice for home equity release schemes.

From 2008/09 funding for Vote Senior Citizens is forecast to remain stable.

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 - Senior Citizens
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Improved quality of life for older people Senior Citizens Services

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

Senior Citizens Services (M61)

Scope of Appropriation

Provision of policy advice to protect the rights and interests of older people and their wellbeing. It also includes ministerial services and support for local community involvement in senior citizens' issues.

Expenses and Revenue

Expenses and Revenue - Senior Citizens Services (M61) - Senior Citizens
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,035 1,035 1,035
Revenue from Crown 1,017 1,017 1,017
Revenue from Other 18 18 18

Output Performance Measures and Standards

Output Performance Measures and Standards - Senior Citizens Services (M61) - Senior Citizens
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Policy advice will be delivered in accordance with the work programmes agreed with the Minister for Senior Citizens Standard met Standard met Standard met (see Note 1)
An audit (see Notes 2 and 3) shows that the Ministry of Social Development's policy processes as outlined in the Quality Management System (see Note 4) have been followed in at least 90% of cases 90% of cases 90% of cases
An external independent review of the Ministry of Social Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria (see Note 5) Standard met Standard met Standard met (see Note 6)
Two six-monthly reports on the work programme will be provided within 20 working days from the period end Standard met Standard met Standard met

Note 1 - Standard met means that we have received confirmation from the Minister for Senior Citizens via his office that advice has been delivered in accordance with the work programme.

Note 2 - The work in relation to the internal audit, review or survey for these measures will be conducted during the year and reported on an annual basis.

Note 3 - Under the audit, a random sample of reports is presented to the Minister over the year to assess if they comply with minimum standard.

Note 4 - The quality characteristics in the Ministry's Quality Management System are based on decision making (defining, debating and deciding) and communication (capturing issues, convincing and confirming).

Note 5 - As set out in the Cabinet Guidelines.

Note 6 - The standard for this measure is based on a continuum of standard not met, standard met and standard exceeded.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Senior Citizens Services (M61) - Senior Citizens
Reference Conditions
Work Programme Work programme includes the Minister for Senior Citizens' Delivering our Priorities letter to the Prime Minister dated December 2009.

Performance Information for Appropriations Vote Social Development

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Disability Issues (M23), Minister for Social Development and Employment (M63)

ADMINISTERING DEPARTMENT: Ministry of Social Development

MINISTER RESPONSIBLE FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development and Employment

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister for Social Development and Employment is responsible for the appropriations in the Vote for the 2010/11 financial year covering the following:

  • a total of over $467 million on Child Youth and Family related services including responding to and preventing child abuse and neglect, managing adoptions and youth justice services
  • a total of over $570 million on services to assist people into employment, and to assess and pay the appropriate entitlement of social assistance to beneficiaries, and to protect the integrity of the benefit system, including collection of debt
  • a total of nearly $79 million on specialised services, including services for students, seniors and administration of community services and SuperGold cards
  • a total of nearly $48 million on social policy advice and crown entity monitoring
  • a total of over $43 million on leadership and coordination services to support and strengthen families, communities and whanau
  • a total of over $292 million on services from other organisations
  • a total of nearly $16 million purchasing services from the Children's Commissioner, the Retirement Commissioner, and the Families Commission
  • a total of $947 million on debt write-downs, and a series of assistance programmes
  • a total of $8,822 million on payments of New Zealand Superannuation
  • a total of $4,878 million on payments for the working age benefits - Domestic Purposes, Unemployment, Sickness, Invalid's and Widow's benefits
  • a total of $1,957 million on payments for assistance with expenses related to accommodation, disability, hardship and entering or remaining in the workforce
  • a total of $732 million on payments to assist people to obtain a qualification or independent youth to continue education/training or obtain work
  • a total of $511 million on other forms of financial assistance such as childcare, care of unsupported children, payments to Australia and special circumstances
  • a total of $1,616 million on payments for student loans, and
  • a total of $179 million on advances of benefits and other recoverable payments to assist with hardship.

The Minister for Disability Issues is responsible for the appropriation in the Vote for the 2010/11 financial year covering the following:

  • a total of just over $1 million on promoting positive outcomes for disabled people.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Social Development
Government Priorities Government Outcomes Appropriations
Unrelenting focus on work More people get into work and stay in work Departmental Output Expenses
Collection of Balances Owed by Former Clients and Non-beneficiaries, Management of Service Cards (MCOA) - Administration of Community Services Card output class, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class, Promoting Positive Outcomes for Disabled People, Services to Protect the Integrity of the Benefit System, Tailored Sets of Services to Help People into Work or Achieve Independence, and Vocational Skills Training.
Non-Departmental Output Expenses
Assistance to Disadvantaged Persons, Life Skills and Employment-Related Training Activities, Student Placement Services, and Vocational Services for People with Disabilities.
Non-Departmental Benefits and Other Unrequited Expenses
Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Employment Related Training Assistance, Family Start/NGO Awards, Hardship Assistance, Invalid's Benefit, Redundancy Assistance, Sickness Benefit, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, Transition to Work, Unemployment Benefit and Emergency Benefit, and Widow's Benefit.
Non-Departmental Other Expenses
Debt Write-downs, Employment Assistance, Job Support Scheme, Mainstream Supported Employment Programme, and Out of School Care Programmes.
Departmental Capital Expenditure
Ministry of Social Development - Capital Expenditure PLA.
Non-Departmental Capital Expenditure
Recoverable Assistance, and Student Loans.
Protecting our children More children are safe Departmental Output Expenses
Adoption Services, Care and Protection Services, Family and Community Services, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, and Prevention Services.
Non-Departmental Output Expenses
Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, and Strengthening Providers and Communities.
Non-Departmental Benefits and Other Unrequited Expenses
Childcare Assistance, Disability Assistance, Family Start/NGO Awards, and Orphan's/Unsupported Child's Benefit.
Non-Departmental Other Expenses
Out of School Care Programmes.
Departmental Capital Expenditure
Ministry of Social Development - Capital Expenditure PLA
Opportunities for youth More young people stay on track Departmental Output Expenses
Family and Community Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Tailored Sets of Services to Help People into Work or Achieve Independence, and Vocational Skills Training.
Non-Departmental Output Expenses
Assistance to Disadvantaged Persons, Children's Commissioner, Families Commission, Family Wellbeing Services, Life Skills and Employment-Related Training, Strengthening Providers and Communities, Student Placement Services, and Vocational Services for People with Disabilities.
Non-Departmental Benefits and Other Unrequited Expenses
Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.
Departmental Capital Expenditure
Ministry of Social Development - Capital Expenditure PLA.
Non-Departmental Capital Expenditure
Recoverable Assistance, and Student Loans.
Opportunities for youth Reduced re-offending by young people Departmental Output Expenses
Family and Community Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Tailored Sets of Services to Help People into Work or Achieve Independence, Vocational Skills Training, and Youth Justice Services.
Non-Departmental Output Expenses
Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Families Commission, Family Wellbeing Services, Life Skills and Employment-Related Training, Strengthening Providers and Communities, Student Placement Services, and Vocational Services for People with Disabilities.
Non-Departmental Benefits and Other Unrequited Expenses
Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.
Departmental Capital Expenditure
Ministry of Social Development - Capital Expenditure PLA.
Non-Departmental Capital Expenditure
Recoverable Assistance, and Student Loans.
Support the independence of older people Improved quality of life for older people Departmental Output Expenses
Income Support and Assistance to Seniors, Management of Service Cards (MCOA) - Administration of Community Services Card output class and Management of SuperGold Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class, and Crown Entity Monitoring output class.
Non-Departmental Output Expenses
Assistance to Disadvantaged Persons, and Retirement Commissioner.
Non-Departmental Benefits and Other Unrequited Expenses
Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Invalid's Benefit, New Zealand Superannuation, Special Circumstance Assistance, Student Allowances, and Unemployment Benefit and Emergency Benefit.
Non-Departmental Other Expenses
Debt Write-downs.
Departmental Capital Expenditure
Ministry of Social Development - Capital Expenditure PLA.
Non-Departmental Capital Expenditure
Recoverable Assistance.
Communities - getting on with it Communities are better able to support themselves Departmental Output Expenses
Care and Protection Services, Development and Funding of Community Services, Family and Community Services, Management of Service Cards (MCOA) - Administration of Community Services Card output class, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class, Prevention Services, and Promoting Positive Outcomes for Disabled People, Tailored Sets of Services to Help People into Work or Achieve Independence and Youth Justice Services.
Non-Departmental Output Expenses
Connected Communities, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities, Strong Families, and Student Placement Services.
Non-Departmental Benefits and Other Unrequited Expenses
Accommodation Assistance, Childcare Assistance, Family Start/NGO Awards, Redundancy Assistance, Special Circumstance Assistance, and Study Scholarships and Awards.
Departmental Capital Expenditure
Ministry of Social Development - Capital Expenditure PLA.

The performance measures contained in the Information Supporting the Estimates are the main measures and standards that demonstrate performance for the significant outputs in each appropriation.

Objectives of the Vote

The Government's overarching priority is economic growth for New Zealand to ensure jobs are available to give families and individuals security and a good standard of living. We believe that paid work is the best route to independence and well being for most people. The Government aims to have an active welfare system that assists people into work as well as alleviating the impact of financial and social pressures on families in genuine need.

The Government's priorities for the Ministry of Social Development are:

  • Unrelenting focus on work.
  • A fair system.
  • Delivering our services better.
  • Protecting our children.
  • Opportunities for youth.
  • Communities - getting on with it.

The impacts that the appropriations in Vote Social Development are intended to have are reflected in the Ministry of Social Development's outcomes:

  • more people get into work and stay in work
  • more children are safe
  • more young people stay on track
  • reduced re-offending by young people
  • improved quality of life for older people
  • communities are better able to support themselves
  • ensure value for money in everything we do by running efficient programmes and keeping overhead costs low.

The table above maps the Ministry of Social Development's outcomes and appropriations to the Government's priorities. Most of the Ministry's appropriations contribute to more than one outcome.

Part 1.3 - Trends in the Vote

Summary of Financial Activity

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

Appropriations

                       
Output Expenses 1,255,523 1,302,499 1,363,119 1,430,951 1,505,084 1,505,084 1,208,094 307,812 1,515,906 1,496,836 1,500,839 1,514,780
Benefits and Other Unrequited Expenses 12,401,311 12,837,285 13,372,348 14,275,892 15,966,403 15,893,741 N/A 16,900,354 16,900,354 17,615,037 18,148,498 18,795,885
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 451,019 620,740 529,953 647,027 988,768 961,488 - 946,856 946,856 924,390 931,443 936,378
Capital Expenditure 1,221,079 1,343,077 1,319,975 1,578,842 1,876,029 1,838,248 75,356 1,795,175 1,870,531 1,888,828 1,901,656 1,920,765
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

15,328,932 16,103,601 16,585,395 17,932,712 20,336,284 20,198,561 1,283,450 19,950,197 21,233,647 21,925,091 22,482,436 23,167,808

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 50,617 52,872 54,850 74,039 76,503 76,503 N/A 78,260 78,260 78,089 78,039 77,963
Capital Receipts 481,740 501,704 499,615 544,061 585,731 585,731 N/A 613,865 613,865 642,539 662,698 676,356

Total Crown Revenue and Capital Receipts

532,357 554,576 554,465 618,100 662,234 662,234 N/A 692,125 692,125 720,628 740,737 754,319

New Policy Initiatives

Budget Policy Intiatives - Social Development
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Achieving Government's Priorities in Early Childhood Education Childcare Assistance (M 63) - - 600 600 600
  Non-Departmental Benefits and Other Unrequited Expenses          
Budget 2010 Tax Package Special Compensation Payment for GST Increase (M 63) - 130,929 - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Care and Protection Services (M 63) - 607 810 810 810
  Departmental Output Expenses          
  Invalid's Benefit (M 63) - (4,289) (5,041) (5,636) (6,046)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Widow's Benefit (M 63) - (146) (150) (148) (153)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Orphan's/Unsupported Child's Benefit (M 63) - 2,164 2,278 2,384 2,419
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment Benefit and Emergency Benefit (M 63) - (2,953) (2,923) (2,714) (2,772)
  Non-Departmental Benefits and Other Unrequited Expenses          
  New Zealand Superannuation (M 63) - 42,218 178,498 187,929 189,513
  Non-Departmental Benefits and Other Unrequited Expenses          
  Domestic Purposes Benefit (M 63) - (7,928) (8,951) (9,719) (10,259)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Sickness Benefit (M 63) - (1,603) (1,647) (1,672) (1,702)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Independent Youth Benefit (M 63) - (47) (48) (47) (47)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Student Allowances (M 63) - (373) (1,506) (1,163) (844)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Accommodation Assistance (M 63) - (2,572) (8,941) (8,167) (8,220)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Disability Assistance (M 63) - 6,117 8,686 8,878 9,119
  Non-Departmental Benefits and Other Unrequited Expenses          
  Hardship Assistance (M 63) - (1,062) (5,127) (5,473) (5,651)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Childcare Assistance (M 63) - 3,033 4,055 4,215 4,342
  Non-Departmental Benefits and Other Unrequited Expenses          
  Transition to Work (M 63) - 386 538 547 559
  Non-Departmental Benefits and Other Unrequited Expenses          
  Employment Related Training Assistance (M 63) - 301 333 298 308
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M 63) - 11,600 17,100 17,300 17,500
  Non-Departmental Other Expenses          
  Student Loans (M 63) - 21,200 31,100 31,500 31,900
  Non-Departmental Capital Expenditure          
Children's Health Camps Family Wellbeing Services (M 63) - 1,000 1,000 1,000 1,000
  Non-Departmental Output Expenses          
  Strong Families (M 63) 1,000 - - - -
  Non-Departmental Output Expenses          
Community Response Contingency Drawdown Strong Families (M 63) 19,666 - - - -
  Non-Departmental Output Expenses          
Community Response Model NGO Quality Services Fund Family and Community Services (M 63) - 5,128 5,628 5,828 7,098
  Departmental Output Expenses          
  Strong Families (M 63) - 4,629 13,995 20,565 27,615
  Non-Departmental Output Expenses          
Teen Parents Programme of Action Strong Families (M 63) - 1,402 2,416 2,416 2,416
  Non-Departmental Output Expenses          
  Family Wellbeing Services (M 63) - 893 1,786 1,786 1,786
  Non-Departmental Output Expenses          
Early Childhood Education: Budget Decisions Childcare Assistance (M 63) - (51) (125) (129) (133)
  Non-Departmental Benefits and Other Unrequited Expenses          
Early Childhood Education: Funding Rates and Policy Changes Childcare Assistance (M 63) - (2,186) (2,761) (2,839) (2,839)
  Non-Departmental Benefits and Other Unrequited Expenses          
Early Years Service Hubs Strong Families (M 63) - 524 524 524 524
  Non-Departmental Output Expenses          
Employment Initiatives Employment Assistance (M 63) - 31,840 - - -
  Non-Departmental Other Expenses          
  Job Support Scheme (M 63) (8,400) (4,200) - - -
  Non-Departmental Other Expenses          
  Unemployment Benefit and Emergency Benefit (M 63) - (11,429) - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
Expansion of the Settling In Programme Family and Community Services (M 63) - 444 418 418 -
  Departmental Output Expenses          
  Connected Communities (M 63) - 556 582 582 -
  Non-Departmental Output Expenses          
Family Violence Whanau Ora Fund Strong Families (M 63) 879 859 859 859 859
  Non-Departmental Output Expenses          
  Connected Communities (M 63) (721) (721) (721) (721) (721)
  Non-Departmental Output Expenses          
  Family and Community Services (M 63) (98) (78) (78) (78) (78)
  Departmental Output Expenses          
  Policy Advice and Support to Ministers (M 63)          
 
  • Social Policy Advice Output Class
(60) (60) (60) (60) (60)
  Departmental Output Expenses          
Fresh Start for Young People Strong Families (M 63) 1,500 3,000 3,000 3,000 3,000
  Non-Departmental Output Expenses          
  Youth Justice Services (M 63) (75) (3,000) (3,000) (3,000) (3,000)
  Departmental Output Expenses          
Future Focus Childcare Assistance (M 63) - (1,124) (10,239) (17,125) (24,182)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Disability Assistance (M 63) - 60 60 60 60
  Non-Departmental Benefits and Other Unrequited Expenses          
  Domestic Purposes Benefit (M 63) - 6,334 8,504 8,522 8,534
  Non-Departmental Benefits and Other Unrequited Expenses          
  Hardship Assistance (M 63) - (536) (827) (905) (1,028)
  Non-Departmental Benefits and Other Unrequited Expenses          
  Invalid's Benefit (M 63) - 4,066 5,503 5,563 5,625
  Non-Departmental Benefits and Other Unrequited Expenses          
  New Zealand Superannuation (M 63) - 1,620 2,238 2,328 2,412
  Non-Departmental Benefits and Other Unrequited Expenses          
  Widow's Benefit (M 63) - 694 875 824 774
  Non-Departmental Benefits and Other Unrequited Expenses          
Future Focus - Study Support Debt Write-downs (M 63) - 404 710 724 724
  Non-Departmental Other Expenses          
  Recoverable Assistance (M 63) - 1,010 1,776 1,809 1,809
  Non-Departmental Capital Expenditure          
Government Partnership with Lifetime Design Homes Assistance to Disadvantaged Persons (M 23) - 500 500 500 -
  Non-Departmental Output Expenses          
Improving Attitudes Towards Disabled People Promoting Positive Outcomes for Disabled People (M 23) - 1,000 1,000 1,000 -
  Departmental Output Expenses          
Limited Service Volunteer Programme Tailored Sets of Services to Help People into Work or Achieve Independence (M 63) 4,750 9,500 4,750 - -
  Departmental Output Expenses          
Monitoring the UN Convention on the Rights of People with Disabilities Promoting Positive Outcomes for Disabled People (M 23) - 250 250 250 -
  Departmental Output Expenses          
NZ Productivity Commission Policy Advice and Support to Ministers (M 63)          
 
  • Social Policy Advice Output Class
- (70) (140) (150) (150)
  Departmental Output Expenses          
Opportunities for Young People During the Economic Downturn Employment Assistance (M 63) 42,375 3,225 - - -
  Non-Departmental Other Expenses          
  Independent Youth Benefit (M 63) (572) (191) - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment Benefit and Emergency Benefit (M 63) (7,603) (2,534) - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Assistance to Disadvantaged Persons (M 63) (500) (500) - - -
  Non-Departmental Output Expenses          
Pathway to Partnership Unallocated Funding Family and Community Services (M 63) - - (5,427) (5,427) (5,427)
  Departmental Output Expenses          
  Strong Families (M 63) - - (91,786) (116,266) (116,266)
  Non-Departmental Output Expenses          
Plan of Action to Prevent People Trafficking Hardship Assistance (M 63)
Non-Departmental Benefits and Other Unrequited Expenses
30 30 30 30 30
             
Reducing Youth Offending Programme Youth Justice Services (M 63) - 1,400 1,400 1,400 1,400
             
Removing Childcare Subsidy from Unlicensed Limited Attendance Centres Childcare Assistance (M 63) - (563) (572) (579) (588)
  Non-Departmental Benefits and Other Unrequited Expenses          
Ring-Fenced Funding for Family Support Services Strong Families (M 63) - 6,658 17,009 27,294 35,675
  Non-Departmental Output Expenses          
Return of Balance Sheet Cash - Capital Repayment Net Asset Schedule of the Ministry of Social Development (M 63) (27,000) - - - -
  Capital Expenditure to be Incurred by the Department          
Return of Balance Sheet Cash - Retain Associated Capital Charge Policy Advice and Support to Ministers (M 63) - (70) (70) (70) (70)
 
  • Social Policy Advice Output Class
         
  Departmental Output Expenses          
  Care and Protection Services (M 63) - (490) (490) (490) (490)
  Departmental Output Expenses          
  Development and Funding of Community Services (M 63) - (50) (50) (50) (50)
  Departmental Output Expenses          
  Income Support and Assistance to Seniors (M 63) - (85) (85) (85) (85)
  Departmental Output Expenses          
  Management of Student Support (M 63) - (55) (55) (55) (55)
  Departmental Output Expenses          
  Services to Protect the Integrity of the Benefit System (M 63) - (75) (75) (75) (75)
  Departmental Output Expenses          
  Tailored Sets of Services to Help People into Work or Achieve Independence (M 63) - (1,000) (1,000) (1,000) (1,000)
  Departmental Output Expenses          
  Youth Justice Services (M 63) - (200) (200) (200) (200)
  Departmental Output Expenses          
Review of Contracted Services Counselling and Rehabilitation Services (M 63) - (182) (182) (182) (182)
  Non-Departmental Output Expenses          
  Education and Prevention Services (M 63) - (563) (563) (563) (563)
  Non-Departmental Output Expenses          
  Family Wellbeing Services (M 63) - (552) (552) (552) (552)
  Non-Departmental Output Expenses          
  Strengthening Providers and Communities (M 63) - (2,756) (3,536) (3,536) (3,536)
  Non-Departmental Output Expenses          
  Strong Families (M 63) - (561) (1,130) (1,240) (1,288)
  Non-Departmental Output Expenses          
  Vocational Services for People with Disabilities (M 63) - (2,552) (2,552) (2,552) (2,552)
  Non-Departmental Output Expenses          
  Contingency and Innovations Fund (M 63) - (365) (365) (365) (365)
  Non-Departmental Other Expenses          
  Mainstream Supported Employment Programme (M 63) - (1,020) (1,020) (1,020) (1,020)
  Non-Departmental Other Expenses          
  Out of School Care Programmes (M 63) - (432) (734) (1,034) (1,584)
  Non-Departmental Other Expenses          
Social Workers in Hospitals Care and Protection Services (M 63) - 1,405 1,732 1,732 1,732
  Departmental Output Expenses          
Student Job Search and Additional Job Ops Places Employment Assistance (M 63) 8,889 - - - -
  Non-Departmental Other Expenses          
  Student Placement Services (M 63) 785 - - - -
  Non-Departmental Output Expenses          
  Assistance to Disadvantaged Persons (M 63) - - (500) (500) (500)
  Non-Departmental Output Expenses          
  Unemployment Benefit and Emergency Benefit (M 63) (1,989) - - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Management of Student Support (M 63) (150) - - - -
  Departmental Output Expenses          
  Net Asset Schedule of the Ministry of Social Development (M 63) (6,035) - - - -
  Capital Expenditure to be Incurred by the Department          
Study Costs for Beneficiaries: Time-limited and Targeted Recoverable Assistance Recoverable Assistance (M 63) 205 223 - - -
  Non-Departmental Capital Expenditure          
  Debt Write-downs (M 63) 82 89 - - -
  Non-Departmental Other Expenses          
  Job Support Scheme (M 63) (287) (312) - - -
  Non-Departmental Other Expenses          
Transfer of Funds from Families Commission to Children's Commissioner Children's Commissioner (M 63) 400 400 400 400 400
  Non-Departmental Output Expenses          
  Families Commission (M 63) (400) (400) (400) (400) (400)
  Non-Departmental Output Expenses          
Wananga Response to Job Summit and Enrolment Pressures Accommodation Assistance (M 63) 1 1 - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment and Emergency Benefit (M 63) 8 8 - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Student Allowances (M 63) 477 154 - - -
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M 63) 210 69 - - -
  Non-Departmental Other Expenses          
  Student Loans (M 63) 512 169 - - -
  Non-Departmental Capital Expenditure          
Work and Income Volume Pressures Tailored Sets of Services to Help People into Work or Achieve Independence (M 63) 17,200 12,600 9,200 - -
  Departmental Output Expenses          
Increasing Medical Training Places Accommodation Assistance (M 63) - - - - 1
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment and Emergency Benefit (M 63) - - 2 3 5
  Non-Departmental Benefits and Other Unrequited Expenses          
  Student Allowances (M 63) - 28 89 149 198
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M 63) - 73 180 291 401
  Non-Departmental Other Expenses          
  Student Loans (M 63) - 153 380 614 846
  Non-Departmental Capital Expenditure          
Maintain 2010 EFTS in the University and Polytechnic Sectors Accommodation Assistance (M 63) - 14 25 21 21
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment and Emergency Benefit (M 63) - 82 144 124 120
  Non-Departmental Benefits and Other Unrequited Expenses          
  Student Allowances (M 63) - 3,413 6,839 5,757 5,492
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M 63) - 7,228 8,610 7,891 7,781
  Non-Departmental Other Expenses          
  Student Loans (M 63) - 15,747 18,758 17,191 16,951
  Non-Departmental Capital Expenditure          
Meet Some Additional Demand for Tertiary Education Accommodation Assistance (M 63) - 6 11 11 10
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment and Emergency Benefit (M 63) - 30 61 61 60
  Non-Departmental Benefits and Other Unrequited Expenses          
  Student Allowances (M 63) - 1,326 2,959 2,935 2,880
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M 63) - 2,894 4,132 4,203 4,280
  Non-Departmental Other Expenses          
  Student Loans (M 63) - 6,305 9,002 9,157 9,324
  Non-Departmental Capital Expenditure          
Relax Fee Regulation Debt Write-downs (M 63) - 3,086 10,118 17,094 25,087
  Non-Departmental Other Expenses          
  Student Loans (M 63) - 5,610 18,392 31,074 45,604
  Non-Departmental Capital Expenditure          
Student Support Savings Package Management of Student Support (M 63) - 4,584 3,142 3,672 3,712
  Departmental Output Expenses          
  Accommodation Assistance (M 63) - 22 40 36 37
  Non-Departmental Benefits and Other Unrequited Expenses          
  Unemployment and Emergency Benefit (M 63) - 135 230 211 212
  Non-Departmental Benefits and Other Unrequited Expenses          
  Student Allowances (M 63) - 4,706 10,292 9,267 9,298
  Non-Departmental Benefits and Other Unrequited Expenses          
  Debt Write-downs (M 63) (6,585) (43,290) (59,924) (59,443) (63,219)
  Non-Departmental Other Expenses          
  Student Loans (M 63) - (65,936) (93,547) (91,697) (98,386)
  Non-Departmental Capital Expenditure          
Total Initiatives   38,494 206,979 106,449 106,510 126,525

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Social Development, are discussed briefly below.

On 1 July 2008 Vote Child, Youth and Family Services merged with Vote Social Development. Data in Part 1.3 Trends in the Vote includes the trends in Vote Child, Youth and Family Services for the period 2004/05 to 2007/08 before the Votes were merged. This data is also reflected in the relevant graphs below, but the numbers quoted in the written trend analyses for 2005/06 to 2007/08 refer only to changes in Vote Social Development before the Votes were merged.

Trends in total voted and actual expenses and capital expenditure
The Trends in total voted and actual expenses and capital expenditure chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 3 series: Actual covering the 2005 2006 to 2008 2009 Financial Year, Budget covering the 2005 2006 to 2010 2011 Financial Year, and Estimated covering the 2011 2012 to 2013 2014 Financial Year. The values for the Actual series are: 2005 2006 15328.932 million, 2006 2007 16103.601 million, 2007 2008 16585.395 million, 2008 2009 17932.712 million. The values for the Budget series are: 2005 2006 15736.180 million, 2006 2007 16371.308 million, 2007 2008 16949.182 million, 2008 2009 18219.343 million, 2009 2010 20336.284 million, 2010 2011 21233.647 million. The values for the Estimated series are: 2011 2012 21925.091 million, 2012 2013 22482.436 million, 2013 2014 23167.808 million.
Source: Ministry of Social Development

The movements in departmental and non-departmental appropriations in Vote Social Development, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in Benefits and Other Unrequited Expenses, in particular New Zealand Superannuation. Capital Expenditure and Other Expenses also contributed to growth in the period up to 2009/10.

Departmental Output Expenses

Departmental Output Expenses
The Trends in departmental output expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 1069.586 million, 2006 2007  Actual 1089.174 million, 2007 2008  Actual 1124.881 million, 2008 2009  Actual 1146.522 million, 2009 2010  Est. Actual 1186.979 million, 2010 2011  Budget 1208.094 million, 2011 2012  Estimated 1168.042 million, 2012 2013  Estimated 1154.380 million, 2013 2014  Estimated 1154.022 million.
Source: Ministry of Social Development

Departmental output expenses decreased by $11.174 million between 2005/06 and 2006/07 mainly because after the merger between the Ministry of Social Development and the Department of Child, Youth and Family Services on 1 July 2006. There was no need to appropriate funding for Information Technology Services to the Department of Child, Youth and Family Services in Vote Social Development. Accordingly this departmental output expense is no longer reported.

Departmental output expenses increased by $22.369 million between 2006/07 and 2007/08 mainly because of additional funding for Working New Zealand.

Departmental output expenses increased by $448.701 million between 2007/08 and 2008/09 mainly because Vote Child, Youth and Family Services merged with Vote Social Development, on 1 July 2008 (approximately $420 million).

Departmental output expenses remained stable between 2008/09 and 2009/10 with a slight decrease of $2.925 million.

Departmental output expenses increased by $20.508 million between 2009/10 and 2010/11 mainly because funding for A Fresh Start for Young Offenders increased in 2010/11 compared with 2009/10, and a Budget 2008 decision to increase funding for the Youth Justice Central Residential facility in 2010/11 compared with 2009/10.

Non-Departmental Output Expenses

Non-Departmental Output Expenses
The Trends in non-departmental output expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 185.937 million, 2006 2007  Actual 213.325 million, 2007 2008  Actual 238.238 million, 2008 2009  Actual 284.429 million, 2009 2010  Est. Actual 318.105 million, 2010 2011  Budget 307.812 million, 2011 2012  Estimated 328.794 million, 2012 2013  Estimated 346.459 million, 2013 2014  Estimated 360.758 million.
Source: Ministry of Social Development

Non-departmental outputs increased by $31.255 million between 2005/06 and 2006/07. The main reasons for this increase were a further transfer of funding from Vote Child, Youth and Family Services for services purchased from NGOs that fitted better with the outcomes sought from Vote Social Development ($10.762 million) and a transfer of funding from Vote Health for services purchased from NGOs ($7.454 million).

Non-departmental outputs increased by $25.840 million between 2006/07 and 2007/08. The main reasons for this were the transfer of contract management for Children's Health Camps from Vote Health ($12.183 million) and new initiatives funding of $9.748 million for the Pathway to Partnership initiative.

Non-departmental output expenses increased by $109.616 million between 2007/08 and 2008/09 mainly because Vote Child, Youth and Family Services merged with Vote Social Development, on 1 July 2008 (approximately $67 million). The other main reason was increased funding for the Pathway to Partnership initiative for 2008/09 and outyears.

Non-departmental output expenses increased by $9.264 million between 2008/09 and 2009/10 mainly because funding for the Pathway to Partnership initiative increased in 2009/10 compared with 2008/09.

Non-departmental output expenses decreased by $10.293 million between 2009/10 and 2010/11 mainly as a result of the Review of Contracted Services.

Non-Departmental Other Expenses

Non-Departmental Other Expenses
The Trends in non-departmental other expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 451.019 million, 2006 2007  Actual 620.740 million, 2007 2008  Actual 529.953 million, 2008 2009  Actual 647.027 million, 2009 2010  Est. Actual 961.488 million, 2010 2011  Budget 946.856 million, 2011 2012  Estimated 924.390 million, 2012 2013  Estimated 931.443 million, 2013 2014  Estimated 936.378 million.
Source: Ministry of Social Development

The increase in Other Expenses between 2006/07 and 2010/11 is mainly due to an increase in Debt Write-downs to reflect the growth in Student Loans over recent years.

Non-Departmental Capital Expenditure

Non-Departmental Capital Expenditure
The Trends in non-departmental capital expenditure chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 1158.611 million, 2006 2007  Actual 1287.978 million, 2007 2008  Actual 1319.975 million, 2008 2009  Actual 1507.159 million, 2009 2010  Est. Actual 1720.675 million, 2010 2011  Budget 1795.175 million, 2011 2012  Estimated 1828.389 million, 2012 2013  Estimated 1844.217 million, 2013 2014  Estimated 1863.326 million.
Source: Ministry of Social Development

 

Capital Expenditure is dominated by Student Loans, with the next largest item, Recoverable Assistance, making up about 10% of the total, but reaching over 11% in 2008/09. Recoverable Assistance grew rapidly in 2008/09 reflecting sharp price increases in items such as food and fuel as well as the impact of the recession. This latter effect has continued to drive demand up during 2009/10. The increase in capital expenditure up to 2007/08 reflects greater Student Loan borrowing following the introduction of the no interest on loans policy from April 2006. Growth during 2008/09 and 2009/10 arises from the recession related increase in the proportion of eligible students that take up Student Loans combined with cost increases (particularly in 2008/09) and reduced earnings from other sources. These underlying factors combine with policy changes listed in the previous section to produce more subdued growth from 2010/11.

Non-Departmental Benefits and Other Unrequited Expenses

Non-Departmental Benefits and Other Unrequited Expenses
The Trends in non-departmental benefits and other unrequited expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 12401.311 million, 2006 2007  Actual 12837.285 million, 2007 2008  Actual 13372.348 million, 2008 2009  Actual 14275.892 million, 2009 2010  Est. Actual 15893.741 million, 2010 2011  Budget 16900.354 million, 2011 2012  Estimated 17615.037 million, 2012 2013  Estimated 18148.498 million, 2013 2014  Estimated 18795.885 million.
Source: Ministry of Social Development

New Zealand superannuation accounted for nearly 52% of total expenditure in 2005/06 and grew to 55% by 2007/08. This reduced to 52% in 2009/10 but is expected to rise to over 57% by 2013/14. The movement in expenditure between 2005/06 and 2007/08 was mostly driven by New Zealand Superannuation. The net decrease in Unemployment Benefit and Emergency Benefit expenditure during the 2005/06 to 2007/08 period was largely offset by increases in Invalid's Benefit, Sickness Benefit and second tier assistance (Accommodation Assistance, Disability Assistance and Childcare Assistance). This left New Zealand Superannuation as the main driver of the increase in expenditure over those years. During the 2007/08 to 2010/11 periods growth in New Zealand Superannuation was relatively eclipsed by growth in Unemployment Benefit and Emergency Benefit, Domestic Purposes Benefit, Student Allowances, Accommodation Assistance and Hardship Assistance, which all rose primarily as a response to the economic cycle. Nearly 65% of growth in expenditure between 2005/06 and 2013/14 is caused by the cost of living indexation adjustments made each April and includes the impact on the cost of living of the Tax Reform Package for Budget 2010.

New Zealand Superannuation

New Zealand Superannuation
The Trends in New Zealand Superannuation chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 6413.619 million, 2006 2007  Actual 6809.938 million, 2007 2008  Actual 7348.172 million, 2008 2009  Actual 7744.149 million, 2009 2010  Est. Actual 8287.230 million, 2010 2011  Budget 8822.221 million, 2011 2012  Estimated 9559.693 million, 2012 2013  Estimated 10148.510 million, 2013 2014  Estimated 10780.693 million.
Source: Ministry of Social Development

About 63% of the $4,370 million increase over the 2005/06 to 2013/14 period is explained by annual cost of living indexation adjustments. These include wage floor impacts where relevant, for example the 66% wage floor applied in April 2007 and in April 2010. Tax cuts, for example in October 2008, add directly to gross expenditure through applying the next indexation adjustment to a higher net rate while tax cuts to higher tax brackets (eg, as in April 2009) raise the level at which future wage floors are applied. In particular, the Tax Reform Package for Budget 2010 is expected to cause expenditure to jump to $740 million in 2011/12 (from the year before) compared $530 million in 2010/11 and then back to $590 million in 2012/13. Over the full nine year period the number of recipients is expected to rise by 140,000 or 29% to reach an average of 622,000 during the 2013/14 year. This growth is in line with the projected growth in the New Zealand population aged 65 years and over.

Invalid's Benefit

Invalid's Benefit
The Trends in Invalid's Benefit chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 1073.267 million, 2006 2007  Actual 1132.012 million, 2007 2008  Actual 1215.895 million, 2008 2009  Actual 1259.625 million, 2009 2010  Est. Actual 1302.459 million, 2010 2011  Budget 1319.236 million, 2011 2012  Estimated 1374.38 million, 2012 2013  Estimated 1394.199 million, 2013 2014  Estimated 1416.657 million.
Source: Ministry of Social Development

Annual expenditure is projected to increase by $343 million or 32% between 2005/06 and 2013/14. Cost of living indexation adjustments account for nearly all of the increase. This effect varies from year to year, being smaller in earlier years but is projected to be significant in the future. Effects such as income tax cuts reduce the gross of tax expenditure shown in Figure 8 (without reducing net of tax expenditure) while increases in indirect taxes raise the reported consumers price index, affecting the annual cost of living adjustment to Invalid's Benefit. When combined with the expected flatter trend in the number of recipients these factors produce a very high impact from cost of living adjustments. The number of recipients has increased from an average of 75,700 in 2005/06 to an expected 87,500 in 2009/10 and a projected 88,300 on average in 2013/14.

Domestic Purpose Benefit

Domestic Purpose Benefit
The Domestic Purpose Benefit chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 1492.593 million, 2006 2007  Actual 1467.726 million, 2007 2008  Actual 1478.192 million, 2008 2009  Actual 1530.294 million, 2009 2010  Est. Actual 1694.360 million, 2010 2011  Budget 1756.450 million, 2011 2012  Estimated 1847.112 million, 2012 2013  Estimated 1890.138 million, 2013 2014  Estimated 1938.240 million.
Source: Ministry of Social Development

Annual expenditure is expected to rise by nearly $446 million or about 30% between 2005/06 and 2013/14. This increase includes cost of living adjustments of about $450 million over the nine year period. The average number of recipients in 2005/06 was 105,600 and fell steadily to a low of 97,500 in 2007/08, reflecting both a strong labour market for most of that period and the impact of the Working for Families package. Since the onset of the economic recession the number of recipients has increased and is expected to average 109,600 in 2009/10, just above the 2004/05 level. A further increase to reach 113,600 on average during the 2013/14 year is projected. A rise in births, especially in the 18 to 24 year age group, and the deteriorating economy contributed to the rise in recipients over the past two years.

Unemployment Benefit and Emergency Benefit

Unemployment Benefit and Emergency Benefit
The Trends in Unemployment Benefit and Emergency Benefit chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actuals and its values are: 2005 2006  Actual 711.812 million, 2006 2007  Actual 612.525 million, 2007 2008  Actual 457.680 million, 2008 2009  Actual 585.867 million, 2009 2010  Est. Actual 938.662 million, 2010 2011  Budget 969.194 million, 2011 2012  Estimated 931.208 million, 2012 2013  Estimated 848.645 million, 2013 2014  Estimated 774.411 million.
Source: Ministry of Social Development

Annual expenditure is expected to rise by about $63 million or nearly 9% between 2005/06 and 2013/14. Cost of living indexation adjustments each April account for nearly treble the overall change during the nine years, at $172 million. Also over the nine year period the number of recipients is expected to reduce by about 7% from an average of 64,300 to 59,900. This purely reflects the starting point, which was much higher in earlier years back to 1998/99. The number of recipients reached a low of 37,400 on average during 2007/08 and is expected to peak at 80,500 on average during 2010/11, up slightly from the current year, before falling in line with an improving economic outlook.

Sickness Benefit

Sickness Benefit
The Trends in Sickness Benefit chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial year; The Y axis shows millions of dollars. The first series is actual and its values are: 2005 2006  Actual 541.143 million, 2006 2007  Actual 572.691 million, 2007 2008  Actual 581.868 million, 2008 2009  Actual 613.471 million, 2009 2010  Est. Actual 713.516 million, 2010 2011  Budget 760.431 million, 2011 2012  Estimated 795.534 million, 2012 2013  Estimated 814.370 million, 2013 2014  Estimated 832.210 million.
Source: Ministry of Social Development

Annual expenditure is expected to rise by 54% from $541 million in 2005/06 to $832 million in 2013/14. Nearly 65% of this increase relates to the cost of living adjustment of benefit rates each April. The number of recipients rose steadily from 46,700 on average in 2005/06 to reach 50,000 in 2007/08. This accelerated from late 2008/09 and is anticipated to reach an average of 58,200 in 2010/11 before continuing to rise steadily to reach 62,200 during 2013/14. The strong increase over the past eighteen months is mainly due to economic conditions.

Accommodation Assistance

Accommodation Assistance
The Trends in Accommodation Assistance chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 843.169 million, 2006 2007  Actual 876.995 million, 2007 2008  Actual 891.054 million, 2008 2009  Actual 989.385 million, 2009 2010  Est. Actual 1157.683 million, 2010 2011  Budget 1220.758 million, 2011 2012  Estimated 1236.594 million, 2012 2013  Estimated 1239.991 million, 2013 2014  Estimated 1250.797 million.
Source: Ministry of Social Development

Annual expenditure will increase from $843 million in 2005/06 to an estimated $1,251 million in 2013/14, an increase of over $400 million or 48%. Expenditure reached $1,000 million in the twelve months to July 2009 and is expected to reach $1,158 million in 2009/10. There were 249,400 recipients in 2005/06 and are expected to be 312,400 in 2009/10 and 320,900 recipients on average in 2013/14. This 29% increase over nine years reflects two different trends. Between 2005/06 and 2007/08 the fall in Unemployment Benefit and Emergency Benefit recipients was partly offset by a rise in the uptake of Accommodation Assistance by working households, while the rise between 2008/09 and 2010/11 reflects the rise in the number of main benefit recipients. The average amount paid per recipients rose by about 10% in each of 2004/05 and 2005/06 mainly due to Working for Families changes. Since then the increase has been a slower 2% per year, with the 2009/10 year expected to be flat. Overall the average amount paid per week is expected to rise from $65 in 2005/06 to $75 by 2013/14.

Student Allowances

Student Allowances
The Trends in Student Allowances chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 354.132 million, 2006 2007  Actual 382.324 million, 2007 2008  Actual 385.724 million, 2008 2009  Actual 444.268 million, 2009 2010  Est. Actual 589.311 million, 2010 2011  Budget 656.272 million, 2011 2012  Estimated 626.056 million, 2012 2013  Estimated 575.851 million, 2013 2014  Estimated 552.156 million.
Source: Ministry of Social Development

Annual expenditure will increase by $198 million from $354 million in 2005/06 to an estimated $552 million in 2013/14, a rise of 56%. The average number of recipients was 32,400 in 2005/06, though the number during term time has typically been 40% greater than the annual average, and shows evidence of growing toward 50% with more summer semesters. The average number of recipients was little changed at 32,300 in 2007/08. It grew rapidly to 36,700 in 2008/09 (a combination of fewer jobs in early 2009 and changes to parental income rules) and is expected to continue its growth to reach 52,800 during 2010/11. This rapid growth over the current and next year are responses to the recession. This higher uptake rate occurs when the under 25 year population is also near a decade high. From 2011/12 the number of recipients is expected to decline back toward its longer term trend. Costs of living adjustments to weekly allowance payment rates accounts for about 53% of the total nine year change in expenditure.

Other Benefits

Other Benefits
The Trends in Other Benefits chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2005 2006  Actual 971.576 million, 2006 2007  Actual 983.074 million, 2007 2008  Actual 1013.763 million, 2008 2009  Actual 1108.833 million, 2009 2010  Est. Actual 1210.520 million, 2010 2011  Budget 1395.792 million, 2011 2012  Estimated 1244.460 million, 2012 2013  Estimated 1236.794 million, 2013 2014  Estimated 1250.721 million.
Source: Ministry of Social Development

This section covers the other 18 benefits and other unrequited expense appropriations not already discussed. The largest item, Disability Assistance, has about 35% of the annual expenditure in the 'Other Benefits' category and grew at a steady pace of about $20 million per year between 2005/06 ($330 million) and 2009/10 (reaching $390 million). It is expected to grow at a lesser pace of nearer $13 million per year out to 2013/14 (growing to $465 million). About 32% of the growth between 2005/06 and 2013/14 is caused by the cost of living indexation of Disability Assistance. The next three largest contributors are Hardship Assistance, Childcare Assistance and Orphan's Benefit/Unsupported Child's Benefit. Hardship Assistance includes third tier assistance such as Special Needs Grants and Temporary Additional Support, both of which are sensitive to economic conditions. Special Needs Grants rose sharply from late 2008 following policy changes that particularly increased available food grants. After falling until 2006/07, Hardship Assistance stabilised in 2007/08 before increasing to an expected $273 million in 2009/10. It is forecast to peak at $288 million next year before levelling out. Childcare Assistance grew quickly following the introduction of Working for Families in 2004/05. Expenditure was $110 million in 2005/06 and has continued to grow. Expenditure is expected to reach $190 million in 2010/11 and then level out, with a downward drift. Cost of living indexation adjustments account for over 50% of the increase in annual expenditure between 2005/06 and 2013/14. Orphan's Benefit/Unsupported Child's Benefit has grown at an average pace of about $7 million per year from $64 million in 2005/06 to an expected $101 million in 2009/10 and a forecast $126 million in 2013/14. Cost of living adjustments account for about 44% of the nine year growth. These four items account for 74% of the 'Other Benefits' category in 2005/06 and will grow to account for 85% by 2013/14. The exception is 2010/11 when they account for 72%. This is the year when an estimated $160 million will be spent on the new appropriation "Special compensation payment for GST increase". The next most significant items are Widow's Benefit and Payments to Australia, both on a downward trend over the nine year period.

Performance Improvement Actions

Performance Improvement Actions - Social Development
Action Short-Term Deliverables Timing Medium Term Impact Measures (by 2013)
Contract out services where these can be more efficiently or cost effectively delivered through outsourced suppliers Review the Ministry 's Corporate support functions to determine the optimised mix of what is delivered in house and what is outsourced 31 December 2010 Ministry's corporate support insourcing/outsourcing mix is independently assessed to identify cost efficiencies by December 2010

 

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 - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More people get into work and stay in work Collection of Balances Owed by Former Clients and Non-beneficiaries, Management of Service Cards (MCOA) - Administration of Community Services Card output class, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class, Promoting Positive Outcomes for Disabled People, Services to Protect the Integrity of the Benefit System, Tailored Sets of Services to Help People into Work or Achieve Independence, and Vocational Skills Training.
More children are safe Adoption Services, Care and Protection Services, Family and Community Services, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, and Prevention Services.
More young people stay on track Family and Community Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Tailored Sets of Services to Help People into Work or Achieve Independence, and Vocational Skills Training
Reduced re-offending by young people Family and Community Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Tailored Sets of Services to Help People into Work or Achieve Independence, Vocational Skills Training, and Youth Justice Services.
Improved quality of life for older people Income Support and Assistance to Seniors, Management of Service Cards (MCOA) - Administration of Community Services Card output class and Management of SuperGold Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class, and Crown Entity Monitoring output class.
Communities are better able to support themselves Care and Protection Services, Development and Funding of Community Services, Family and Community Services, Management of Service Cards (MCOA) - Administration of Community Services Card output class, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class, Prevention Services, and Promoting Positive Outcomes for Disabled People, Tailored Sets of Services to Help People into Work or Achieve Independence and Youth Justice Services.

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

Adoption Services (M63)

Scope of Appropriation

The management of services, incorporating education, assessment, reporting, counselling, and mediation, to all people who are party to adoption-related matters, past or present.

Expenses and Revenue

Expenses and Revenue - Adoption Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,808 8,808 9,078
Revenue from Crown 8,762 8,762 9,032
Revenue from Other 46 46 46

Reasons for Change in Appropriation

This appropriation increased largely because a fiscally neutral reallocation of overheads increased costs in 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Adoption Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of adopted parents evaluating the education programme as achieving its objectives (see Note 1) 95% 95% 95-100%

Note 1 - Research shows educating and preparing prospective adoptive parents, results in more stable adoptions and that there is less placement disruption.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Adoption Services (M63) - Social Development
Reference Conditions
Adoption Act 1955 The Adoption Act 1955 provides for the management of the adoption process for the placement of New Zealand children in New Zealand.
Adoption (Inter-Country) Act 1997 The Adoption (Inter-Country) Act 1997 sets out processes for managing inter-country adoptions and provides for the Chief Executive to exercise responsibilities and to manage the adoption process where international parties are involved under the Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption.
Adult Adoption Information Act 1985 The Adult Adoption Information Act 1985 provides for adult adopted persons and their birth parents to request and receive information about their adoptions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Adoption Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2011/12 - - (30) (71) (71)

Previous Government

           
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 264 264 264 264 264
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 145 145 145 145 145

Care and Protection Services (M63)

Scope of Appropriation

Social work services, both statutory and informal, that protect and assist children and young people who are in need of care and protection.

Expenses and Revenue

Expenses and Revenue - Care and Protection Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 317,782 317,782 315,885
Revenue from Crown 315,186 315,186 313,289
Revenue from Other 2,596 3,596 2,596

Reasons for Change in Appropriation

This appropriation decreased mainly because a Budget 2009 decision provided less funding in 2010/11 than in 2009/10 as a result of the Value for money exercise carried out by the Ministry ($4.144 million). This was partially offset by additional funding for Social Workers in Hospitals ($1.405 million).

Output Performance Measures and Standards

Output Performance Measures and Standards - Care and Protection Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Engagement and Assessment

     
Notifications that require further action are allocated to a social worker within the timeframe appropriate to the safety of the child or young person:      
  • Critical (less than 24 hours)
95-100% 95-100% 95-100%
  • Very urgent (up to 48 hours)
90-95% 90-95% 90-95%
Action taken at sites by social workers to establish the immediate safety of the child or young person, and to confirm the response time and further action required, within timeframes:      
  • Urgent (up to 7 days)
50-85% 50-85% 80-95%
  • Low urgent (up to 28 days)
50-85% 50-85% 80-95%
Percentage of investigations, child and family assessments completed within 60 days for those aged five and over is no less than: New measure New measure 80%

Seeking Safety and Security

     
Percentage of children and young people whose care and protection Family Group Conference plans were completed and the objectives were assessed as being met 80% 80% 80%
Percentage of Care and Protection Family Group Conference plans reviewed by the agreed due date 90% 90% 95-100%
Assessments (see Note 2) and reports provided to Courts are delivered on time 90% 90% 90%

Securing Stability and Wellbeing

     
Percentage of Family Court plans reviewed on time (see Note 3) 90% 90% 95-100%

Note 2 - The act of assessing information in order to acquire an understanding of a situation or problem, or to estimate the suitability of something or someone.

Note 3 - The timeliness of Family Court planned reviews are directed by the Family Court (eg, Children under seven years old have planned reviews every six months or as directed by the Court. Children and young people over seven years old have planned reviews every 12 months or as directed by the Court).

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Care and Protection Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 The Children, Young Persons, and Their Families Act 1989 serves to protect and assist children and young people in need of care and protection. Care and Protection Services provided by Child, Youth and Family under the Act include:
  • notification, investigation and assessment of reports about children and young people at risk
  • management of casework where Child, Youth and Family intervenes to achieve care and protection outcomes
  • coordination of Family Group Conferences
  • supporting families to improve their capacity to meet their care, control and support responsibilities
  • the provision of care in the nature of foster care and residential services
  • the provision of resolution services to assist achieving care and protection needs.
Care of Children Act 2004 The Care of Children Act 2004 provides for the recognition of certain rights of children and provides for appropriate arrangements to be in place for the guardianship and care of children.
Domestic Violence Act 1995 The Domestic Violence Act 1995 provides legal protection to victims of domestic violence.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Care and Protection Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - 607 810 810 810
Return of Balance Sheet - Retain Associated Capital Charge 2010/11 - (490) (490) (490) (490)
Social Workers in Hospitals 2010/11 - 1,405 1,732 1,732 1,732
Value for Money (VFM) Departmental Spending Pressures and Savings 2009/10 6,800 2,656 (1,774) (1,774) (1,774)
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 251 - - - -

Previous Government

           
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 5,371 5,371 5,371 5,371 5,371
Care and Protection System Service Response to Demand 2006/07 20,444 20,444 20,444 20,444 20,444
Child, Youth and Family Services Reprioritisation 2005/06 (889) (889) (889) (889) (889)
Implement Adoptions Law Reform Proposals 2005/06 137 137 137 137 137
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 19 19 19 19 19

Collection of Balances Owed by Former Clients and Non-beneficiaries (M63)

Scope of Appropriation

Services to manage the collection of overpayments and recoverable assistance loans from former clients and other balances owed comprising of Student Allowance overpayments, Liable Parent Contributions, and court ordered Maintenance.

Expenses and Revenue

Expenses and Revenue - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,682 16,682 16,632
Revenue from Crown 16,502 16,502 16,452
Revenue from Other 180 180 180

Output Performance Measures and Standards

Output Performance Measures and Standards - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The actual amount of money collected by the Collection Units is expected to be between: $77-$82m $77-$82m $78-$85m
The cost per dollar of collecting balances owed will be no less than: $0.25 $0.25 $0.24
The percentage of clients on arrangement to pay, or paid in full within four months of the balances owed transferring to the Collection Units will be no less than: 82% 82% 82%
The percentage of clients on arrangement to pay, or paid in full within 12 months of balances owed transferring to the Collection Units will be no less than: 85% 85% 85-90%
The percentage of work completed accurately by the Collection Units will be no less than: 95% 95% 95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
Reference Conditions
Sections 85A to 86J of the Social Security Act 1964 and the Ministerial Direction for section 86 pursuant to section 5 of the Social Security Act 1964 The Social Security Act 1964 provides for the recovery of payments made in excess of authorised rates and for recoverable assistance loans.
The Ministerial Direction for section 86A is in relation to the Chief Executive's powers to recover monies as debts due to the Crown.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (63) (152) (152) (152)

Development and Funding of Community Services (M63)

Scope of Appropriation

Management of Government funding of community-based social and welfare services.

Expenses and Revenue

Expenses and Revenue - Development and Funding of Community Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,370 8,370 8,394
Revenue from Crown 8,311 8,311 8,335
Revenue from Other 59 59 59

Output Performance Measures and Standards

Output Performance Measures and Standards - Development and Funding of Community Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All funding agreements will have their provider monitoring reports reviewed and assessed at least once a year for funding agreement compliance 100% 100% 100%
All contracted providers will be assessed at least once every two years against Child, Youth and Family Approval Standards (see Note 4) 100% 100% 100%

Note 4 - This covers all providers contracted under sections 396 and 403 of the Children, Young Persons, and Their Families Act 1989.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Development and Funding of Community Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 Part 8 of the Children, Young Persons, and Their Families Act 1989 comprises provisions relating to iwi social services, cultural social services, child and family support services, and community services.
Child Youth and Family Services develop and fund Community Services through:
  • community services planning
  • working with the community sector and other government agencies to develop service frameworks for community-based social service
  • provider development
  • quality assurance processes to ensure providers meet quality standards
  • the management of service provider funding agreements.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Development and Funding of Community Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (26) (63)) (63) (63)
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (50) (50) (50) (50)

Previous Government

           
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 128 128 128 128 128
Services for Children Witnessing Family Violence 2005/06 71 71 71 71 71

Family and Community Services (M63)

Scope of Appropriation

Provision of leadership and co-ordination services to support and strengthen families and whanau; including providing information and advice that assists families, young people and communities and managing preventative social services programmes.

Expenses and Revenue

Expenses and Revenue - Family and Community Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 31,318 31,318 34,752
Revenue from Crown 31,189 31,189 34,623
Revenue from Other 129 129 129

Reasons for Change in Appropriation

This appropriation increased largely because additional funding was agreed to establish the NGO Quality Services Fund, to promote efficiencies from community-based social service providers, and to expand the Settling In Programme. This was partially offset by time-limited funding in 2009/10 and an increase in funding removed for the Community Response Contingency in 2010/11 compared with 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Family and Community Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Social Support Services Sector Leadership and Co-ordination

     

Heartland Services

     
The percentage of surveyed clients agreeing that Heartlands had improved access to government and community services in their community New measure New measure 70%
The percentage of surveyed agencies agreeing that they were satisfied or very satisfied with Heartlands Centres accessibility, range of services and facilities, will be no less than: New measure New measure 70%

Supporting Families and Communities

     

Strategies for Kids, Information for Parents (SKIP)

     
The percentage of community projects funded through SKIP that meets its objectives as agreed by the selection panel will be: New measure New measure 90-95%

Campaign for Action Against Family Violence

     
The level of public awareness of the key messages of the campaign will be no less than: 80% 80% 85-90%

Youth Gangs Project

     
The number of young people supported through group activities and events by Youth Workers will be between: New measure New measure 3,600-4,500

Management of Social Services Funding Agreements

     
The number of funding agreements will be between: New measure New measure 1,200-1,600

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family and Community Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Pathway to Partnership Unallocated Funding 2011/12 - - (5,427) (5,427) (5,427)
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (59) (141) (141) (141)
Community Response Model: NGO Quality Services Fund 2010/11 - 5,128 5,628 5,828 7,098
Expansion of the Settling In Programme 2010/11 - 444 418 418 -
Family Violence Whanau Ora Fund 2009/10 (98) (78) (78) (78) (78)
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 1,121 - - - -
Community Response Contingency: Responding to Urgent Funding Issues 2009/10 (3,787) (4,657) - - -

Previous Government

           
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 5,262 6,132 6,902 6,902 6,902
Continue Strategies with Kids Information for Parents (SKIP) Programme 2006/07 3,684 3,684 3,684 3,684 3,684
Expansion of Youth Transitions 2006/07 2,500 2,500 2,500 2,500 2,500
Reducing Violence Within Families 2006/07 1,046 - - - -
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 245 245 245 245 245
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 221 221 221 221 221
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 202 202 202 202 202
Families Programme of Action - Families Innovation Fund 2005/06 444 444 444 444 444
Increase in Funding for Elder Abuse and Neglect Prevention 2005/06 116 116 116 116 116
Increase Strengthening Families Co-ordinators' Paid Hours 2005/06 581 581 581 581 581
NGO Study Awards 2005/06 79 79 79 79 79
Strengthening Families Review 2005/06 646 646 646 646 646

Income Support and Assistance to Seniors (M63)

Scope of Appropriation

This appropriation is limited to paying New Zealand Superannuation and social security entitlements (including administering related international social security agreements) and providing advice to help older people maintain independence and social participation; and administering international social security agreements relating to non-superannuitants.

Expenses and Revenue

Expenses and Revenue - Income Support and Assistance to Seniors (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 34,439 34,439 34,667
Revenue from Crown 34,027 34,027 34,255
Revenue from Other 412 412 412

Output Performance Measures and Standards

Output Performance Measures and Standards - Income Support and Assistance to Seniors (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Services to Seniors

     
The percentage of clients satisfied with the quality of service provided will be no less than: 90-95% 90-95% 90-95%
The percentage of entitlement assessments completed accurately will be no less than: New measure New measure 90%
The percentage of entitlement assessments for payment of New Zealand Superannuation (in New Zealand and overseas) and residential subsidies, finalised within required timeframes will be no less than (see Note 5) New measure New measure 85-90%

Note 5 - This combines timeliness measures for all activities in this output expense. Timeframes standards for each component are as follows:

  • Five working days for New Zealand Superannuation entitlement assessments completed for payment in New Zealand.
  • Twenty working days for New Zealand Superannuation entitlement assessments completed for payment overseas.
  • Twenty working days for residential subsidy entitlement assessments.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Income Support and Assistance to Seniors (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (126) (301) (301) (301)
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (85) (85) (85) (85)

Previous Government

           
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 233 227 228 228 228

Management of Service Cards MCOA (M63)

Scope of Appropriation

Administration of Community Services Card
This output class is limited to assessing entitlement, issuing cards, and promoting and distributing information about the Community Services Card.
Management of SuperGold Card
This output class is limited to management of the SuperGold Card and the Veteran SuperGold Card comprising assessing entitlement for, and issuing cards, distributing information about the Card, enlisting business partners to provide discounts to cardholders, and promoting use of the Card and related discounts.

Explanation for Use of Multi-Class Output Expense Appropriation

The two output classes grouped together under this MCOA are both related to Service Cards and as such involve similar services.

Expenses and Revenue

Expenses and Revenue - Management of Service Cards MCOA (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

7,123 7,123 7,103
Administration of Community Services Card 5,702 5,702 5,682
Management of SuperGold Card 1,421 1,421 1,421

Revenue from Crown

7,087 7,087 7,067
Administration of Community Services Card 5,666 5,666 5,646
Management of SuperGold Card 1,421 1,421 1,421

Revenue from Other

36 36 36
Administration of Community Services Card 36 36 36
Management of SuperGold Card - - -

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Service Cards MCOA (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Administration of Community Services Card Output Class

     
The percentage of Community Services Card entitlement assessments (see Note 6) completed accurately will be no less than: 95% 95% 95%
The percentage of Community Services Card entitlement assessments completed within two working days of receipt will be no less than: 90% 90% 90-95%

Management of SuperGold Card Output Class

     
The percentage of SuperGold Card entitlement assessments (see Note 7) completed accurately will be no less than: 95% 95% 95-100%
The percentage of SuperGold Card entitlement assessments completed within two working days of receipt will be no less than: 90% 90% 95-100%
The number of new business partners engaged will be no fewer than: New measure New measure 150

Note 6 - This assessment relates to cards where an entitlement assessment is required. Some cards are issued automatically without requiring an assessment, for example where the recipient commences receiving a benefit.

Note 7 - Recipients of New Zealand Superannuation and Veteran's Pension are automatically issued with a SuperGold card. However, around six per cent of card recipients require their entitlement to be assessed as they either elected not to apply for New Zealand Superannuation upon turning 65, or do not meet the New Zealand Superannuation residency requirements.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Service Cards MCOA (M63) - Social Development
Reference Conditions

Administration of Community Services Card Output Class

 
Health Entitlement Cards Regulations 1993 pursuant to section 52 of the Health and Disability Services Act 1993, section 25(1)(c) of the Health Reforms (Transitional Provisions) Act 1993, and section 132A of the Social Security Act 1964 The Health Entitlement Cards Regulations 1993 provide for the assessment, issue, and administration of Community Services Cards.

Management of SuperGold Card Output Class

 
Social Security (SuperGold Card) Regulations 2007 pursuant to section 132A of the Social Security Act 1964 and the Health Entitlement Cards Regulations 1993 pursuant to section 52 of the Health and Disability Services Act 1993, section 25(1)(c) of the Health Reforms (Transitional Provisions) Act 1993, and section 132A of the Social Security Act 1964 The Social Security (SuperGold Card) Regulations 2007 and the Health Entitlement Cards Regulations 1993 provide for the assessment, issue and administration of SuperGold Cards.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Service Cards MCOA (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (20) (47) (47)) (47)

Previous Government

           
Implementing a "Golden Age" Card 2006/07 1,210 1,210 1,210 1,210 1,210

Management of Student Support (M63)

Scope of Appropriation

This appropriation is limited to managing financial support to students involving assessing and paying student allowances to eligible secondary and tertiary students, student loans to tertiary students, and Government scholarships and awards for tertiary students, and, as part of managing this support, providing related guidance to students making financial and study decisions.

Expenses and Revenue

Expenses and Revenue - Management of Student Support (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 32,400 32,400 36,977
Revenue from Crown 32,236 32,236 36,813
Revenue from Other 164 664 164

Reasons for Change in Appropriation

The increase in this appropriation is largely due to additional funding to implement the Student Support Savings package.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Student Support (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Student Allowances and Student Loans

     
The percentage of surveyed students satisfied with the quality of service provided will be no less than: 80-85% 80-85% 85-90%

Student Allowances

     
The percentage of students who receive their correct Student Allowance entitlement on their first payment will be no less than: 95% 95% 95%
The initial entitlement assessment for a Student Allowance will be completed within five working days of application receipt 90% 90% 90-95%

Student Loans

     
The percentage of students who receive their correct Student Loan entitlement (living cost component) on their first payment will be no less than: 95% 95% 95%
The initial entitlement assessment for a Student Loan will be completed within three working days of application receipt 90% 90% 90-95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Student Support (M63) - Social Development
Reference Conditions
Education Act 1989 Part 25 of the Education Act 1989 provides for the administration of Student Loans and Student Allowances and scholarships.
Student Loan Scheme Act 1992 The Student Loan Scheme Act 1992 provides for the collection of Student Loan repayments and Bonded Scholarships.
Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of Hardship pursuant to section 5 of the Social Security Act 1964 The Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of Hardship provides that students may be eligible for Unemployment Benefit Student Hardship if they meet certain criteria.
Student Allowance Regulations 1998 pursuant to sections 303, 306, and 307 of the Education Act 1989 Student Allowances are governed by the Student Allowance Regulations 1998 and are paid to assist eligible students with their living expenses whilst they undertake full-time study.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Student Support (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (100) (239) (239) (239)
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (55) (55) (55) (55)
Student Support Savings Package 2010/11 - 4,584 3,142 3,672 3,712
Student Job Search and Additional Job Ops Places 2009/10 (150) - - - -
Reversing Unfunded Budget 2008 Commitments for Economic Transformation: Innovation 2009/10 (935) (1,131) (1,254) (1,286) (1,286)

Previous Government

           
Expansion of Bonded Merit Scholarship Scheme 2008/09 130 170 215 215 215
Increasing the student allowance parental income threshold by 10% 2008/09 690 745 775 775 775
Lowering the age limit for student allowance parental income testing by one year 2008/09 950 995 1,045 1,045 1,045
Expansion and Redesign of Step Up Scholarships 2007/08 503 527 527 527 527
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 116 119 119 119 119
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 187 187 187 187 187
Enhance and Extend the Integrated Data Set of Student Loan Scheme Borrowers 2005/06 80 80 80 80 80
Establish a Pilot Student Finance Advisory Service 2005/06 1,460 1,460 1,460 1,460 1,460
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 116 116 116 116 116
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 213 213 213 213 213
Introduce Bonded Merit Scholarships 2005/06 311 311 311 311 311

Policy Advice and Support to Ministers MCOA (M63)

Scope of Appropriation

Crown Entity Monitoring
This output class is limited to the purchase, appointment and monitoring advice for social development and employment Crown entities, and appointment advice for social development and employment statutory tribunals.
Social Policy Advice
This output class is limited to policy advice and servicing support comprising advice on cross-sectoral and long term social policy matters; advice on the design and operation of social development programmes and initiatives; the provision of information to, and discussion fora for, the public and other agencies on social policy issues; and ministerial servicing.

Explanation for Use of Multi-Class Output Expense Appropriation

The two output classes under the MCOA both relate to the same broad service of providing advisory support to Ministers.

Expenses and Revenue

Expenses and Revenue - Policy Advice and Support to Ministers MCOA (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

44,561 44,561 47,847
Crown Entity Monitoring 337 337 337
Social Policy Advice 44,224 44,224 47,510

Revenue from Crown

43,016 43,016 46,302
Crown Entity Monitoring 337 337 337
Social Policy Advice 42,679 42,679 45,965

Revenue from Other

1,545 2,045 1,545
Crown Entity Monitoring - - -
Social Policy Advice 1,545 2,045 1,545

Reasons for Change in Appropriation

The increase in the Social Policy Advice output class output class is largely due to the transfer of Historical Claims funding ($5 million) from 2009/10 to 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and Support to Ministers MCOA (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Social Policy Advice Output Class

     
Policy advice will be delivered in accordance with work programmes agreed with their respective Ministers (see Note 8) Standard met Standard met Standard met (see note 9)
An audit (see Notes 10 and 11) shows that the Ministry of Social Development's policy and research processes as outlined in the Quality Management System (see Note 12) have been followed in at least 90% of cases 90% of cases 90% of cases
An external independent review of the Ministry of Social Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria (see Note 13) Standard met Standard met Standard met (see Note 14)

Ministerial Servicing Output

     
The percentage of all drafts provided for the Minister's signature that are factually accurate, meet any legislative requirements, and contain no avoidable errors will be no less than:      
  • Ministerial correspondence replies
95% 95% 95%
  • Parliamentary question responses
100% 100% 100%
  • Ministerial Official Information Act request replies
100% 100% 100%
  • Select Committee Estimates examination responses
100% 100% 100%
The percentage of all drafts provided for the Minister's signature within the following timeframes will be no less than:      
  • Ministerial correspondence replies completed within 20 working days of receipt by the Ministry, unless otherwise agreed
95% 95% 95%
  • Parliamentary question responses provided to the Minister's office so that answers can meet the timeframe set in Parliamentary Standing Orders
100% 100% 100%
  • Ministerial Official Information Act request replies completed five days prior to the statutory time limit, unless otherwise agreed
100% 100% 100%
  • Responses to Select Committee examinations provided to the Minister's office so that answers can meet the timeframe set by the Committee(s)
100% 100% 100%

Crown Entity Monitoring Output Class

     
Provide advice to the Minister on the development of Crown entity statements of intent and output agreements 10 10 10
Provide monitoring advice on each Crown entity's performance reports against their statements of intent and output agreements Minimum 10 Minimum 10 Minimum of 10
Provide advice to the Minister on Crown entity and Statutory Board appointments, as required Standard met Standard met Standard met (see Note 15)
The percentage of all reports provided to the Minister that are factually accurate, meet any legislative requirements, and contain no avoidable errors will be no less than: 95% 95% 95%
Purchase advice will be delivered to Ministers within negotiated deadlines will be no less than: 100% 100% 100%
Advice to Ministers on draft statements of intent for the five Crown entities for the next year is provided by no later than 31 May 2011 will be no less than: 100% 100% 100%
Advice to Ministers on draft output agreements (see Note 16) for the five Crown entities for the next year is provided by no later than 30 June 2011 will be no less than: 100% 100% 100%
Performance reports are reviewed no later than 20 working days from receipt of the final Crown entity reports will be no less than: 100% 100% 100%

Note 8 - The Ministers who receive services are the Minister for Social Development and Employment, the Minister for Disability Issues, and the Minister for the Community and Voluntary Sector.

Note 9 - Standard met means that we have received confirmation from the Ministers via their offices that advice has been delivered in accordance with a work programme.

Note 10 - The work in relation to the internal audit, review or survey for these measures is conducted during the year and reported on an annual basis.

Note 11 - Under the audit, a random sample of reports is presented to the Minister over the year to assess if they comply with minimum standards.

Note 12 - The quality characteristics in the Ministry's Quality Management System are based on decision making (defining, debating and deciding) and communication (capturing issues, convincing and confirming).

Note 13 - As set out in the Cabinet Guidelines.

Note 14 - The standard for this measure is based on a continuum of standard not met, standard met and standard exceeded.

Note 15 - Standard met means that all appointments identified in the report to Cabinet at the start of each calendar year are actioned as agreed with the Minister.

Note 16 - Output agreement also refers to memoranda of understanding where funding is not paid via Vote Social Development.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Policy Advice and Support to Ministers MCOA (M63) - Social Development
Reference Conditions
Work Programme Work programme includes the Minister for Social Development and Employment's Delivering our Priorities letter to the Prime Minister dated December 2009.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice and Support to Ministers MCOA (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (94) (226) (226) (226)
NZ Productivity Commission 2010/11 - (70) (140) (150) (150)
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (70) (70) (70) (70)
Family Violence Whanau Ora Fund 2009/10 (60) (60) (60) (60) (60)
Strengthening Relationships: Government, and the Community and Voluntary Sector 2009/10 400 400 400 - -
Carers Strategy Information Pack for informal carers 2009/10 130 80 80 80 80

Previous Government

           
Longitudinal Study of New Zealand Children and Families 2008/09 4,750 3,100 - - -
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 335 335 355 335 335
Working New Zealand: Work-Focused Support: Support and Services 2007/08 504 297 297 297 297
Reducing Violence Within Families 2006/07 295 - - - -
Disabled Persons Nomination Register 2005/06 142 142 142 142 142

Prevention Services (M63)

Scope of Appropriation

Education and advice services for the prevention of child abuse and neglect, and the promotion of the wellbeing of children, young people and their families

Expenses and Revenue

Expenses and Revenue - Prevention Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,381 4,381 4,673
Revenue from Crown 3,767 3,767 4,059
Revenue from Other 614 614 614

Reasons for Change in Appropriation

This appropriation increased because a fiscally neutral reallocation of overheads was larger in 2009/10 than in 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Prevention Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
At least 95 per cent of key stakeholders (see Note 17) will have been engaged with each year New measure New measure 95-100%

Note 17 - Key stakeholders include: New Zealand Police, District Health Board, Ministry of Health, and Ministry of Education, ACC and Office of Children's Commissioner, key NGO providers, Ministry of Justice and Department of Corrections.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Prevention Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 Part 1 section 7 of the Children, Young Persons, and Their Families Act 1989 sets out the general duties of the Chief Executive which include promoting the provision and establishment of support services, as well as raising awareness, by education and publicity, of child abuse.
Prevention Services include:
  • activities to promote and support stronger communities
  • public education programmes to promote the importance of child and family wellbeing
  • Everyday Communities programme, which focuses on ensuring all New Zealanders act to achieve wellbeing and safety for New Zealand children.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Prevention Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (8) (19) (19) (19)

Previous Government

           
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 130 130 130 130 130

Promoting Positive Outcomes for Disabled People (M23)

Scope of Appropriation

This appropriation is limited to promoting positive outcomes for disabled people and comprises of: enabling the involvement of disabled people in the monitoring and implementation of the United Nations Convention on the Rights of Disabled Persons; and changing negative attitudes towards disabled people.

Expenses and Revenue

Expenses and Revenue - Promoting Positive Outcomes for Disabled People (M23) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,250
Revenue from Crown - - 1,250
Revenue from Other - - -

Reasons for Change in Appropriation

This is a new appropriation in 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Promoting Positive Outcomes for Disabled People (M23) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A monitoring report by disabled people on their rights under the United Nations Convention on the Rights with Persons with Disabilities New measure New measure 1 report (see Note 18)
The number of partners engaged to promote positive attitudes with whom agreements are established will be no fewer than: New measure New measure 4
National and community-driven projects funded New measure New measure 4-6

Note 18 - Based on 50-100 interviews with disabled people.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Promoting Positive Outcomes for Disabled People (M23) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Improving Attitudes Towards Disabled People 2010/11 - 1,000 1,000 1,000 -
Monitoring the UN Convention on the Rights of People with Disabilities 2010/11 - 250 250 250 -

Services to Protect the Integrity of the Benefit System (M63)

Scope of Appropriation

Services to minimise errors, fraud and abuse of the benefit system.

Expenses and Revenue

Expenses and Revenue - Services to Protect the Integrity of the Benefit System (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 35,453 35,453 36,672
Revenue from Crown 35,107 35,107 36,326
Revenue from Other 346 346 346

Reasons for Change in Appropriation

This appropriation increased mainly because a one-off fiscally neutral transfer reduced the appropriation in 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Services to Protect the Integrity of the Benefit System (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Of all the cases we prosecute, the percentage of successful prosecutions concluded will exceed: 90% 90% 95%
The percentage of cases referred to the National Fraud Investigators that are "fully investigated" (see Note 19) is between: New measure New measure 95-100%
The percentage of cases (see Note 20) completed within a 12 month period will be no less than: 95% 95% 95%

Note 19 - Response categories range from 'Closed', 'no further action' to 'full investigation'.

Note 20 - This includes cases referred by all sources for further enquiry for example, fraud allegations and data matches.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Services to Protect the Integrity of the Benefit System (M63) - Social Development
Reference Conditions
Crimes Act 1961 The Crimes Act 1961 provides for criminal offences including dishonestly using a document.
Education Act 1989 and the Student Allowance Regulations 1998 pursuant to sections 303, 306, and 307 of the Education Act 1989 The Education Act 1989 and the Student Allowances Regulations 1998 provide for the investigation of Student Allowance and Student Loan applications.
Privacy Act 1993 The Privacy Act 1993 establishes principles for the collection, storage, security, and access to personal information about individuals. The Privacy Act 1993 also prescribes rules for establishing and maintaining information matching programmes.
Social Security Act 1964 The Social Security Act 1964 provides for offences and the investigation of claims and grants of benefits, including the power to obtain information and apply financial sanctions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services to Protect the Integrity of the Benefit System (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (119) (282)) (282) (282)
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (75) (75) (75) (75)

Tailored Sets of Services to Help People into Work or Achieve Independence (M63)

Scope of Appropriation

This appropriation is limited to delivering tailored sets of services to individuals to help them into sustainable employment, participate more fully in their community or achieve a greater level of social independence; and the management of related non-departmental output contracts. The composition of each set of services is determined by the individual's needs and selected from a mix of employment readiness training and support, employment placement, social support services, payment of income support and training support benefits, and referrals to other employment or social support providers.

Expenses and Revenue

Expenses and Revenue - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 440,004 440,004 431,130
Revenue from Crown 425,546 425,546 416,672
Revenue from Other 14,458 14,958 14,458

Reasons for Change in Appropriation

The decrease in this appropriation is largely due to a reduction in funding in 2010/11 for Work and Income volume pressures compared with funding in 2009/10 and one off funding in 2009/10 to meet increased costs. This was partially offset by increased funding for the Limited Service Volunteer Programme in 2010/11 compared with 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Jobseekers not coming onto a benefit

     
The proportion of Work for You seminar (see Note 21) attendees who do not require a benefit within 28 days of attending the seminar will be: 30-35% 30-35% 35-40%

Sustainable employment

     
The average cumulative time that UB jobseekers, who exit a main benefit into work, spend in employment over the course of a year (see Note 22) will be: 35 weeks 35 weeks 36-38 weeks
The average cumulative time that work-ready DPB (see Note 23) and SB clients, who exit a main benefit into work, spend in employment over the course of a year will be: 39 weeks 39 weeks 36-39 weeks
The proportion of UB jobseekers who exit a main benefit into employment and achieve six months employment will be: 53-55% 53-55% 55-57%
The proportion of work-ready DPB and SB clients who exit a main benefit into employment and achieve six months employment will be: 59-61% 59-61% 59-61%

Benefit entitlement

     
The percentage of entitlement assessments completed accurately will be no less than (see Note 24) 90% 90% 90%
The percentage of entitlement assessments completed within five working days will be no less than: 85% 85% 85%

Note 21 - The work-focused Job Search Service is aimed at helping people get a job rather than needing a benefit. Jobseekers applying for a benefit are generally required to attend a Work for You seminar where they are assisted with their job-search skills and advised of their responsibilities and obligations.

Note 22 - This measures the total number of weeks a client is in employment through a 12 month period following exit from a core benefit up to 24 months prior.

Note 23 - DPB clients include DPB-Sole Parent, DPB-Women Alone, Widow's Benefit and Emergency Maintenance Allowance.

Note 24 - An assessment of benefit entitlement is deemed accurate when the assessment is financially correct, which means that the right person is receiving the correct benefit, at the correct rate and from the correct commencement date.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (1,480) (3,534) (3,534) (3,534)
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (1,000) (1,000) (1,000) (1,000)
Limited Service Volunteer Programme 2009/10 4,750 9,500 4,750 - -
Work and Income Volumes Pressures 2009/10 17,200 12,600 9,200 - -

Previous Government

           
Expansion of Youth Transitions 2007/08 2,500 2,500 2,500 2,500 2,500
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 315 315 315 315 315
Working New Zealand: Work-Focused Support and Services 2007/08 14,652 14,652 14,652 14,652 14,652
Implementing Free Early Childhood Education 2006/07 1,058 1,058 1,058 1,058 1,058
Accommodation Supplement (Retirement Villages) 2005/06 23 23 23 23 23
Automated Reassessment of Accommodation Supplement Entitlement in Line with the Annual General Adjustment 2005/06 (572) (572) (572) (572) (572)
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 280 280 280 280 280
Enhancing Parents' Work Choices 2005/06 680 680 680 680 680
New Services for Sickness and Invalid's Benefit Recipients 2005/06 1,053 1,053 1,053 1,053 1,053
New Services for Sickness and Invalid's Benefit Recipients 2005/06 2,228 2,228 2,228 2,228 2,228

Vocational Skills Training (M63)

Scope of Appropriation

This appropriation is limited to vocationally based skills training for working-age people through the Training Opportunities Programme.

Expenses and Revenue

Expenses and Revenue - Vocational Skills Training (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 86,024 86,024 85,635
Revenue from Crown 86,024 86,024 85,635
Revenue from Other - - -

Reasons for Change in Appropriation

The decrease in this appropriation is largely due to additional funding in 2008/09 only.

Output Performance Measures and Standards

Output Performance Measures and Standards - Vocational Skills Training (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The proportion of programmes delivered by NZQA registered and accredited training providers will be no less than: 100% 100% 100%
The percentage of learners who move on to employment or further tertiary training outside of Training Opportunities within two months of leaving the programme will be no less than: 60% 60% 60%
The percentage of training providers monitored and programme performance evaluated including outcome achievement will be no less than: 100% 100% 100%
The average number of learners in training at any one time will be: 7,000 7,000 7,000

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Vocational Skills Training (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Expanding the Community Organisation Grants Scheme 2008/09 (2,192) (2,065) (2,065) (2,065) (2,065)
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 (5,581) (5,581) (5,581) (5,581) (5,581)

Youth Justice Services (M63)

Scope of Appropriation

Social work and other services to manage and resolve offending behaviour by children and young people, by providing assessment, support, programmes, containment and care of young offenders.

Expenses and Revenue

Expenses and Revenue - Youth Justice Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 119,634 119,634 137,399
Revenue from Crown 119,237 119,237 137,002
Revenue from Other 397 1,897 397

Reasons for Change in Appropriation

This increase in this appropriation is largely due to increased funding for A Fresh Start for Young Offenders in 2010/11 compared with 2009/10, and a Budget 2008 decision to increase funding for the Youth Justice Central Residential facility in 2010/11 compared with 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Youth Justice Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Youth Justice Safety and Belonging

     
Percentage of children and young people whose Youth Justice Family Group Conference plans were completed and the objectives were assessed as being met 80% 80% 80%
Percentage of Youth Justice Family Group Conferences are held within statutory timeframes (unless there are special reasons for delay) 95-100% 95-100% 95-100%

Youth Justice Changing Behaviour and Enhancing Wellbeing

     
Percentage of Youth Justice Family Conference Plans reviewed on time 90% 90% 95-100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Youth Justice Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 Part 4 of the Children, Young Persons, and Their Families Act 1989 provides for social work and other services to manage and resolve offending behaviour by children and young persons.
Youth Justice Services include assessment, support, programmes, and containment and care of young offenders.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Youth Justice Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Value for Money (VFM) Departmental Spending Pressures and Savings 2010/11 - (311) (741) (741) (741)
Reducing Youth Offending Programme 2010/11 - 1,400 1,400 1,400 1,400
Return of Balance Sheet Cash - Retain Associated Capital Charge 2010/11 - (200) (200) (200) (200)
Fresh Start for Young People 2009/10 (75) (3,000) (3,000) (3,000) (3,000)
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 1,400 - - - -
A Fresh Start for Young Offenders 2009/10 8,684 22,360 22,050 22,050 22,050
Operating Funding for Additional Beds at Youth Justice Central Residences 2009/10 1,309 1,309 2,617 2,617 2,617

Previous Government

           
Youth Justice Central Residential Facility 2008/09 6,754 11,089 11,089 11,089 11,089
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 1,864 1,864 1,864 1,864 1,864
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 397 397 397 397 397

Part 2.2 - Non-Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More people get into work and stay in work Assistance to Disadvantaged Persons, Life Skills and Employment Related Training Activities, Student Placement Services, and Vocational Services for People with Disabilities.
More children are safe Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, and Strengthening Providers and Communities.
More young people stay on track Assistance to Disadvantaged Persons, Children's Commissioner, Families Commission, Family Wellbeing Services, Life Skills and Employment Related Training Activities, Strengthening Providers and Communities, Student Placement Services, and Vocational Services for People with Disabilities.
Reduced re-offending by young people Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Life Skills and Employment Related Training Activities, Strengthening Providers and Communities, Student Placement Services, and Vocational Services for People with Disabilities.
Improved quality of life for older people Assistance to Disadvantaged Persons, and Retirement Commissioner.
Communities are better able to support themselves Connected Communities, Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities, Strong Families, and Student Placement Services.

For further information on the intended impacts, outcomes and objectives of the non-departmental output expense appropriations, please see the Statements of Intent for the Children's Commissioner, the Families Commission and the Retirement Commissioner.

Assistance to Disadvantaged Persons (M63)

Scope of Appropriation

This appropriation is limited to the provision of resources and assistance to disadvantaged and disabled people in the community and comprises: distribution of talking books and articles for the blind; advocacy assistance to people seeking entitlements from government agencies; and supporting and promoting the development of more houses accessible by disabled and older people.

Expenses

Expenses - Assistance to Disadvantaged Persons (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 950 950 1,450

Reasons for Change in Appropriation

The increase in this appropriation is due to additional funding for Lifetime Design Homes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Assistance to Disadvantaged Persons (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of talking books delivered and returned will be no fewer than: 370,000 370,000 330,000 (see Note 25)
The number of articles for the blind delivered will be no fewer than: 8,000 8,000 8,000
Provide advocacy services in each of the Work and Income regions will be no fewer than: 11 11 11
Complete a business plan to make the design standard brand self-sustaining New measure New measure 1

Note 25 - The reduction in Talking Book volumes is due to the Royal New Zealand Foundation for the Blind transitioning to digital recordings which enables multiple titles to be delivered on one postal item.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Assistance to Disadvantaged Persons (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Government Partnership with Lifetime Design Homes 2010/11 - 500 500 500 -
Opportunities for Young People During the Economic Downturn 2009/10 (500) (500) - - -
Student Job Search and Additional Job Ops Places 2009/10 - - (500) (500) (500)

Previous Government

           
Funding for the Red Cross 2005/06 500 500 500 500 500

Children's Commissioner (M63)

Scope of Appropriation

Provision of services from the Children's Commissioner including the discharge of the Commissioner's duties under the Children, Young Persons and Their Families Act 1989, the Children's Commissioner Act, identification of aspects of law, policy and practice that might adversely affect children and the development and proposal of remedies.

Expenses

Expenses - Children's Commissioner (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,157 2,157 2,157

Output Performance Measures and Standards

Output Performance Measures and Standards - Children's Commissioner (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of Child, Youth and Family site visits undertaken New measure New measure 6
Number of performance reports on Child, Youth and Family sites completed and delivered to the Deputy Chief Executive of the Ministry of Social Development responsible for Child, Youth and Family New measure New measure 6
Number of Child, Youth and Family residence visits undertaken New measure New measure 8
Number of performance reports on Child, Youth and Family residences completed and delivered to the Deputy Chief Executive of the Ministry of Social Development responsible for Child, Youth and Family New measure New measure 8
Monitoring of Child, Youth and Family complies with agreed standards and processes established by the Memorandum of Understanding between the Office and Child, Youth and Family, reported against in the site and residence reports New measure New measure 100%
Submissions, reports and advice produced within required timeframe where information is clear, accurate and accessible New measure New measure 100%
Respondents' satisfaction with the advice and information provided via the Child Rights Line is rated as satisfactory or better New measure New measure 80%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Children's Commissioner (M63) - Social Development
Reference Conditions
Children's Commissioner Act 2003 The Children's Commissioner Act 2003 provides for the appointment, functions, and powers of Commissioner.
Children, Young Persons, and Their Families Act 1989 The Children, Young Persons, and Their Families Act 1989 provides for the wellbeing of children, young persons, and their families and family groups.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Output Agreement Outlines the commitments and standards required.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Children's Commissioner (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Transfer of Funds from Families Commission to Children's Commissioner 2009/10 400 400 400 400 400

Previous Government

           
Children's Commissioner: Operating Pressures 2005/06 71 71 71 71 71

Connected Communities (M63)

Scope of Appropriation

Funding of services that strengthen and support communities and community functioning, and which assist communities to support families in improving their family circumstances.

Expenses

Expenses - Connected Communities (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,109 4,109 4,753

Reasons for Change in Appropriation

The increase in this appropriation is largely due to additional funding to expand the Settling In programme.

Output Performance Measures and Standards

Output Performance Measures and Standards - Connected Communities (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Settling In

     
The number of refugee and migrant projects funded each year will be between: New measure New measure 20-25

Sector Co-ordination and Capability

     
The number of provider organisations who receive capability support will be between: New measure New measure 500-600

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Connected Communities (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Expansion of the Settling in Programme 2010/11 - 556 582 582 -
Family Violence Whanau Ora Fund 2009/10 (721) (721) (721) (721) (721)

Counselling and Rehabilitation Services (M63)

Scope of Appropriation

Purchase of services, including family counselling and other post-crisis interventions that restore the wellbeing of children, young people and families who have suffered harm and abuse or other forms of family breakdown or youth justice issues.

Expenses

Expenses - Counselling and Rehabilitation Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,739 17,739 17,859

Output Performance Measures and Standards

Output Performance Measures and Standards - Counselling and Rehabilitation Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of clients completing an intervention 80-90% 80-90% 80-90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Counselling and Rehabilitation Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service or Child and Family Support Service (under section 396), or a Community Service (under section 403).
The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Counselling and Rehabilitation Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Review of Contracted Services 2010/11 - (182) (182) (182) (182)

Previous Government

           
Care and Protection System Service Response to Demand 2006/07 988 988 988 988 988

Education and Prevention Services (M63)

Scope of Appropriation

Purchase of education and prevention programmes and initiatives that aim to provide skills to children, young people and families who are at risk of harm or abuse, which will help them reduce the risk of that abuse or harm.

Expenses

Expenses - Education and Prevention Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,184 9,184 8,762

Reasons for Change in Appropriation

The decrease in this appropriation is largely due savings identified in the Review of Contracted Services.

Output Performance Measures and Standards

Output Performance Measures and Standards - Education and Prevention Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of clients completing an intervention 75-85% 75-85% 80-90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Education and Prevention Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 The general duties of the Chief Executive as set out in section 7 of the Children, Young Persons, and Their Families Act 1989 cover the provision of education and advice services for the prevention of child abuse and neglect, and the promotion of the wellbeing of children, young people and their families.
Education and Prevention Services include:
  • community liaison presentations
  • community liaison networking
  • every community programme
  • promotional services.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Education and Prevention Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Review of Contracted Services 2010/11 - (563) (563) (563) (563)

Previous Government

           
Care and Protection System Service Response to Demand 2006/07 363 363 363 363 363

Families Commission (M63)

Scope of Appropriation

Provision of services from the Families Commission to promote the interests of the full range of New Zealand families and promote better understanding of family issues and needs amongst government agencies and in the wider community, and to undertake a research programme.

Expenses

Expenses - Families Commission (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,770 7,770 7,770

Output Performance Measures and Standards

Output Performance Measures and Standards - Families Commission (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All published research reports are formally peer reviewed by at least one external expert and one internal expert in the field of study and comments incorporated into the final report where appropriate New measure New measure 100%
Research reports from awarded research fund grants are available for release within 60 business working days of completion of final report from grant recipient New measure New measure 95%
Reported events held nationwide for White Ribbon Day 2010, that promotes intolerance of violence towards woman New measure New measure 90-100

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Families Commission (M63) - Social Development
Reference Conditions
Families Commission Act 2003 The Families Commission Act 2003 provides for the establishment, functions, and powers of Commission.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Output Agreement Outlines the commitment and standards required.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Families Commission (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Transfer of Funds from Families Commission to Children's Commissioner 2009/10 (400) (400) (400) (400) (400)

Family Wellbeing Services (M63)

Scope of Appropriation

Purchase of services that aim to improve the life outcomes for children, young people and families through support and development programmes, and programmes that will prevent any future harm or abuse.

Expenses

Expenses - Family Wellbeing Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 69,573 69,573 71,028
Children's Health Camps 13,975 13,975 13,975
Social Workers in Schools 10,148 10,148 10,310
Multi-Agency Support Services in Secondary Schools 1,992 1,992 2,024

Reasons for Change in Appropriation

The increase in this appropriation is mainly due to additional funding for the Teen Parents Programme of Action and a fiscally neutral transfer of funding for Consumer Price Index adjustments to some social service providers. This was partially offset by savings identified in Review of Contracted Services.

Output Performance Measures and Standards

Output Performance Measures and Standards - Family Wellbeing Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number full-time equivalent social workers employed in the Social Workers in Schools programme will be: 118-125 118-125 118-125
The percentage of clients/families completing a planned intervention will be: 85-90% 85-90% 85-90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Family Wellbeing Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service, or Child and Family Support Service (under section 396), or a Community Service (under section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.
Family Wellbeing Services include:
  • funding planning
  • service and provider development
  • funding agreements
  • provider assessment and approval.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family Wellbeing Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Children's Health Camps 2010/11 - 1,000 1,000 1,000 1,000
Community Response Model: Teen Parents Programme of Action 2010/11 - 893 1,786 1,786 1,786
Review of Contracted Services 2010/11 - (552) (552) (552) (552)

Previous Government

           
Care and Protection System Service Response to Demand 2006/07 700 700 700 700 700

Life Skills and Employment-Related Training Activities (M63)

Scope of Appropriation

This appropriation is limited to the provision of life-skills and employment-related training activities for at-risk youth within the Eastern Bay of Plenty.

Expenses

Expenses - Life Skills and EmploymentRelated Training Activities (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 543 543 543

Output Performance Measures and Standards

Output Performance Measures and Standards - Life Skills and EmploymentRelated Training Activities (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The provision of services within the Eastern Bay of Plenty will be delivered annually to a minimum of: 20 young people 20 young people 20 young people
The percentage of participants aged 16 to 17 years who start either full-time paid employment or further training within eight weeks of completing training will be no less than: New measure New measure 75%
The percentage of participants aged 14 to 15 years who either re-engage in education or a positive alternative activity agreed by the Ministry within eight weeks of completing training will be no less than: New measure New measure 75%

Retirement Commissioner (M63)

Scope of Appropriation

Provision of services from the Retirement Commissioner to develop and promote methods of improving the effectiveness of retirement income policies. This is achieved through the publishing of information and the delivery of a comprehensive public education programme on retirement savings issues.

Expenses

Expenses - Retirement Commissioner (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,682 5,682 5,782

Output Performance Measures and Standards

Output Performance Measures and Standards - Retirement Commissioner (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Report to the Minister for Social Development and Employment on the review of retirement income policies as required by the New Zealand Superannuation and Retirement Income Act 2001 New measure New measure By 31 December 2010
The report on the review of retirement income policies meets the terms of reference set by the Government New measure New measure 100%
The percentage of users of the Sorted resources (see Note 26) that rate it as useful or better (survey result) New measure New measure 65%

Note 26 - The Retirement Commissioner provides independent financial information through Sorted resources including www.sorted.org.nz and www.m.sorted.org.nz, as well as printed material.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Retirement Commissioner (M63) - Social Development
Reference Conditions
New Zealand Superannuation and Retirement Income Act 2001 Part 4 of the New Zealand Superannuation and Retirement Income Act 2001 provides for the constitution, appointment, functions, powers, and duties of the Commissioner.
Retirement Villages Act 2003 Part 3 provides for the monitoring and other functions of the Retirement Commissioner.
Part 4 provides for the Commissioner to approve members eligible for appointment to a disputes panel.
Part 5 provides for the Commissioner to make recommendations to the Minister on any draft Code of Practice or variation, and to publish information and receive submissions on any Codes of Practice or variation.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Output Agreement Outlines the commitments and standards required.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Retirement Commissioner (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
KiwiSaver Financial Education Programme 2008/09 1,900 2,000 2,000 2,000 2,000
Retirement Village Dispute Panel Functions and Registration Fees 2006/07 (105) (105) (105) (105) (105)
Retirement Commissioner - Retirement Villages Act 2003 2005/06 204 204 204 204 204
Retirement Commissioner Capability 2005/06 200 200 200 200 200

Strengthening Providers and Communities (M63)

Scope of Appropriation

Purchase of services that contribute to strengthening the capacity and capability of providers to deliver strong and effective social services.

Expenses

Expenses - Strengthening Providers and Communities (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,885 5,885 3,162

Reasons for Change in Appropriation

The decrease in this appropriation is due to savings identified in the Review of Contracted Services.

Output Performance Measures and Standards

Output Performance Measures and Standards - Strengthening Providers and Communities (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The percentage of national body organisations who develop, implement and maintain sector based practice for their members (eg, supporting a provider to develop new service strategies) will be: 80-90% 80-90% 80-90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Strengthening Providers and Communities (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989 Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service and Family Support Service (section 396), or a Community Service (section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.
Strengthening Providers and Communities Services include:
  • funding planning
  • service and provider development
  • funding agreements
  • provider assessment and approval.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strengthening Providers and Communities (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Review of Contracted Services 2010/11 - (2,756) (3,536) (3,536) (3,536)

Strong Families (M63)

Scope of Appropriation

Purchase of services to improve outcomes for families and their members. These services aim to support vulnerable families with a focus on prevention and early intervention.

Expenses

Expenses - Strong Families (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 101,976 101,976 94,426
Family Start (Early Start) 30,169 30,169 30,652
Budget Services 8,662 8,662 8,986
Parents as First Teachers (PAFT) 7,161 7,161 7,275
Children and Young People Who Witness Family Violence (Child Advocates) 4,150 4,150 4,217
Family Violence Whanau Ora Fund 2,000 2,000 2,000
Elder Abuse and Neglect Prevention Services 1,732 1,732 1,763
Family Services Centres 1,686 1,686 1,713
Early Years Service Hubs 1,580 1,580 1,605

Reasons for Change in Appropriation

The decrease in this appropriation is largely due to more funding allocated to the Community Response Contingency in 2010/11 than in 2009/10, the drawdown of funds from the Community Response Contingency in 2009/10 and a transfer of funds in 2010/11 for community based social services in other appropriations for the Consumer Price Index adjustment to ensure providers are paid from the same appropriation as existing contracts.. This was partially offset by more funding in 2010/11 than 2009/10 for the Pathway to Partnership initiative and new funding for the NGO Quality Services Fund, the Teen Parents programme of Action and Ring-Fenced Funding for Family Support Services.

Output Performance Measures and Standards

Output Performance Measures and Standards - Strong Families (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Family Start (Early Start)

     
Between 5,500 to 6,000 families will receive Family Start Services 5,500-6,000 5,500-6,000 5,500-6,000
Family Start Services will be provided in at least 32 sites across New Zealand 32 32 32
The percentage of families who will receive at least one visit per month will be no less than: New measure New measure 70-80%
The percentage of children participating in the Family Start programme who are enrolled with Primary Health Organisations will be no less than: New measure New measure 90-100%
The percentage of children aged between 18 months and five years participating in the Family Start programme who are enrolled with early childhood education will be no less than: New measure New measure 50-60%
The percentage of children participating in the Family Start programme who have up-to-date vaccinations will be no less than: New measure New measure 70-80%
The percentage of children receiving scheduled Well Child visits will be no less than: New measure New measure 65-75%

Parents as First Teachers (PAFT)

     
The number of families enrolled in each financial year will be between: New measure New measure 6,000-6,500

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strong Families (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Pathway to Partnership Unallocated Funding 2011/12 - - (91,786) (116,266) (116,266)
Community Response Model: NGO Quality Services Fund 2010/11 - 4,629 13,995 20,565 27,615
Community Response Model:Teen Parents Programme of Action 2010/11 - 1,402 2,416 2,416 2,416
Early Years Service Hubs 2010/11 - 524 524 524 524
Review of Contracted Services 2010/11 - (561) (1,130) (1,240) (1,288)
Ring-Fenced Funding for Family Support Services 2010/11 - 6,658 17,009 27,294 35,675
Community Response Contingency Drawdown 2009/10 19,666 - - - -
Family Violence Whanau Ora Fund 2009/10 879 859 859 859 859
Fresh Start for Young People 2009/10 1,500 3,000 3,000 3,000 3,000
Increase in Children's Health Camps Funding 2009/10 1,000 - - - -
Time Limited Programmes to Support Families, Children and Young People at Risk 2009/10 1,423 - - - -
Community Response Contingency: Responding to Urgent Funding Issues 2009/10 (12,171) (57,375) (24,480) - -

Previous Government

           
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 66,847 119,256 175,206 175,206 175,206
Reducing Violence Within Families 2006/07 1,699 199 199 199 199
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 1,376 1,376 1,376 1,376 1,376
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 786 786 786 786 786
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 3,348 3,348 3,348 3,348 3,348
Increase in Funding for Elder Abuse and Neglect Prevention 2005/06 627 627 627 627 627
NGO Study Awards 2005/06 988 988 988 988 988
Strengthening Families Review 2005/06 2,750 2,750 2,750 2,750 2,750

Student Placement Services (M63)

Scope of Appropriation

Provision of placement services for students for holiday and term employment.

Expenses

Expenses - Student Placement Services (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,297 4,297 3,512

Reasons for Change in Appropriation

The decrease in this appropriation is due to one-off funding in 2009/10 for an advertising campaign to create additional jobs for tertiary students over the summer break.

Output Performance Measures and Standards

Output Performance Measures and Standards - Student Placement Services (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
In 2010/2011 Student Job Search will:      
  • connect students to between 160,000 and 165,000 weeks of work through the placement of tertiary students in work over the period 1 July 2010 to 30 June 2011
160,000-165,000 weeks of work 160,000-165,000 weeks of work 160,000-165,000 weeks of work
  • through these placements, generate between $67m and $72m in earnings for students
$67- $72m $67- $72m $67- $72m
  • confirm through an independently-conducted client satisfaction survey that 80-85% of student clients are satisfied with the service they receive from Student Job Search
80-85% 80-85% 80-85%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Student Placement Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Student Job Search and Additional Job Ops Places 2009/10 785 - - - -

Vocational Services for People with Disabilities (M63)

Scope of Appropriation

Provision of vocational services for people with disabilities including community participation and employment services.

Expenses

Expenses - Vocational Services for People with Disabilities (M63) - Social Development
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 88,240 88,240 86,608
Participation of people with disabilities in employment 39,540 39,540 38,806
Participation of people with disabilities in their communities 48,700 48,700 47,802

Reasons for Change in Appropriation

This appropriation decreased due to savings identified in the Review of Contracted Services which was partially offset by additional funding for high needs school leavers.

Output Performance Measures and Standards

Output Performance Measures and Standards - Vocational Services for People with Disabilities (M63) - Social Development
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of individuals placed or supported to remain in open paid employment will be: 9,300 9,300 9,300
The number of people with disabilities who participate in their communities New measure New measure 10,700
The number of individuals receiving a range of vocational services will be: 20,000 20,000 20,000
Independent reviews to build capacity and quality will be completed for: 20 reviews completed 20 reviews completed 20 service providers

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Vocational Services for People with Disabilities (M63) - Social Development
Reference Conditions
Cabinet decision as set out in Pathways to Inclusions: Improving Vocational Services for People with Disabilities Pathways to Inclusion sets out the government strategy for vocational services. It aims to increase:
  • the participation of people with disabilities in employment
  • the participation of people with disabilities in their communities.
Standard for independent quality reviews These service evaluations are based on the principles and philosophy promoted by the Standards and Monitoring Services Trust.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Vocational Services for People with Disabilities (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Review of Contracted Services 2010/11 - (2,552) (2,552) (2,552) (2,552)

Previous Government

           
Disability Allowance for Vocational Services - Streamlining payments to Vocational Services providers and improving service delivery to clients 2005/06 15,252 15,252 15,252 15,252 15,252
New Services for Sickness and Invalids' Benefit Recipients 2005/06 2,667 2,667 2,667 2,667 2,667
Vocational Services for Very High Needs School Leavers 2005/06 4,272 4,272 4,272 4,272 4,272

Summary of Service Providers for Non-Departmental Outputs

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Social Development
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown entities

         
Children's Commissioner          
  • Children's Commissioner
2,157 2,157 2,157 Office of the Children's Commission Annual Report Ongoing
Families Commission          
  • Families Commission
7,770 7,770 7,770 Families Commission Annual Report Ongoing
Retirement Commission          
  • Retirement Commission
5,682 5,682 5,782 Retirement Commission Annual Report Ongoing

Non-government organisations

         
Intellectual Disability Empowerment in Action (IDEA) Services Limited          
  • Family Wellbeing Services (part)
138 138 138 Section 32A report  
  • Strong Families (part)
24 24 12 Section 32A report  
  • Vocational Services for People with Disabilities (part)
27,377 27,377 Not yet known Section 32A report  
Total IDEA Services Limited 27,539 27,539 150    
Workbridge Incorporated          
  • Vocational Services for People with Disabilities (part)
18,213 18,213 Not yet known Section 32A report  
National Collective of Independent Women's Refuge          
  • Strong Families (part)
2,170 2,170 Not yet known Section 32A report  
  • Counselling and Rehabilitation Services (part)
401 401 Not yet known Section 32A report  
  • Education and Prevention Services (part)
629 629 Not yet known Section 32A report  
  • Strengthening Providers and Communities (part)
1,465 1,465 Not yet known    
  • Family Wellbeing Services (part)
11,528 11,528 Not yet known Section 32A report  
Total National Collective of Independent Women's Refuge 16,193 16,193      
The Glenelg Children's Health Camp Charitable Trust          
  • Strong Families (part)
33 33 33 Section 32A report  
  • Family Wellbeing Services (part)
15,206 15,206 1,109 Section 32A report  
Total Glenelg Children's Health Camp Charitable Trust 15,239 15,239 1,142    
Barnardos New Zealand Incorporated          
  • Strong Families (part)
2,970 2,970 429 Section 32A report  
  • Counselling and Rehabilitation Services (part)
284 284 261 Section 32A report  
  • Family Wellbeing Services (part)
5,189 5,189 4,323 Section 32A report  
  • Education and Prevention Services (part)
84 84 46 Section 32A report  
Total Barnardos New Zealand 8,527 8,527 5,059    
Presbyterian Support Services Northern          
  • Education and Prevention Services (part)
157 157 157 Section 32A report  
  • Family Wellbeing Services (part)
5,584 5,584 5,704 Section 32A report  
  • Vocational Services for People with Disabilities (part)
4 4 Not yet known Section 32A report  
  • Strong Families (part)
1,776 1,776 398 Section 32A report  
Total Presbyterian Support Services Northern 7,521 7,521 6,259    
Student Job Search          
  • Student Placement Services
4,297 4,297 3,512    
The Salvation Army New Zealand Trust          
  • Strong Families (part)
1,026 1,026 26 Section 32A report  
  • Counselling and Rehabilitation Services (part)
227 227 Not yet known Section 32A report  
  • Vocational Services for People with Disabilities (part)
800 800 Not yet known Section 32A report  
  • Family Wellbeing Services (part)
1,941 1,941 Not yet known Section 32A report  
Total Salvation Army New Zealand Trust 3,994 3,994 26    
Family Start Manukau          
  • Strong Families (part)
3,758 3,758 3,860 Section 32A report  
Relationship Services Inc          
  • Strong Families (part)
608 608 64 Section 32A report  
  • Counselling and Rehabilitation Services (part)
2,771 2,771 Not yet known Section 32A report  
  • Family Wellbeing Services (part)
271 271 Not yet known Section 32A report  
  • Strengthening Providers and Communities (part)
45 45 Not yet known    
  • Education and Prevention Services (part)
8 8 Not yet known Section 32A report  
Total Relationship Services Inc 3,703 3,703 64    
Te Whanau O Waipareira Trust          
  • Strong Families (part)
2,038 2,038 1,443 Section 32A report  
  • Education and Prevention Services (part)
40 40 Not yet known Section 32A report  
  • Counselling and Rehabilitation Services (part)
922 922 Not yet known Section 32A report  
  • Family Wellbeing Services (part)
167 167 Not yet known Section 32A report  
Total Te Whanau O Waipareira Trust 3,167 3,167 1,443    
Open Home Foundation Canterbury Branch          
  • Education and Prevention Services (part)
25 25 13 Section 32A report  
  • Family Wellbeing Services (part)
2,237 2,237 2,187 Section 32A report  
  • Strong Families (part)
776 776 3 Section 32A report  
  • Counselling and Rehabilitation Services (part)
91 91 91 Section 32A report  
Total Open Home Foundation Canterbury Branch 3,129 3,129 2,294    
Anglican Trust for Women & Children          
  • Strong Families (part)
2,064 2,064 1,988 Section 32A report  
  • Family Wellbeing Services (part)
915 915 871 Section 32A report  
  • Counselling and Rehabilitation Services (part)
134 134 Not yet known Section 32A report  
Total Anglican Trust for Women & Children 3,113 3,113 2,859    
Kirikiriroa Family Services Trust          
  • Strong Families (part)
3,024 3,024 3,017 Section 32A report  
Royal New Zealand Plunket Society (Palmerston North Branch) Inc          
  • Strong Families (part)
2,598 2,598 2,548 Section 32A report  
CCS Disability Action Incorporated          
  • Vocational Services for People with Disabilities (part)
2,135 2,135 Not yet known Section 32A report  
Anglican Family Care Centre          
  • Counselling and Rehabilitation Services (part)
116 116 116 Section 32A report  
  • Strong Families (part)
1,180 1,180 1,174 Section 32A report  
  • Family Wellbeing Services (part)
748 748 748 Section 32A report  
  • Education and Prevention Services
25 25 25 Section 32A report  
Total Anglican Family Care Centre 2,069 2,069 2,063    

This table presents the 20 major service providers Vote Social Development has funding arrangements with. Contracts are issued to providers for a multi year period. These contracts expire progressively and are considered for renewal. Until renewal of a provider's contract is confirmed the funding is not shown in the table above. The table shows information current at 31 March 2010.

The above table summarises funding to be allocated through Vote Social Development 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 - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
More people get into work and stay in work Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Employment Related Training Assistance, Family Start/NGO Awards, Hardship Assistance, Invalid's Benefit, Redundancy Assistance, Sickness Benefit, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, Transition to Work, Unemployment Benefit and Emergency Benefit, and Widow's Benefit.
More children are safe Childcare Assistance, Disability Assistance, Family Start/NGO Awards, and Orphan's/Unsupported Child's Benefit.
More young people stay on track Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.
Reduced re-offending by young people Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.
Improved quality of life for older people Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, Invalid's Benefit, New Zealand Superannuation, Special Circumstance Assistance, Student Allowances, and Unemployment Benefit and Emergency Benefit.
Communities are better able to support themselves Accommodation Assistance, Childcare Assistance, Family Start/NGO Awards, Redundancy Assistance, Special Circumstance Assistance, and Study Scholarships and Awards.

Appropriations for Benefits and Other Unrequited Expenses and for Capital Expenditure items in this Vote are forecast on a mid-point basis. This means it is to be expected that actual expenditure on some of the forecast items will be more than the mid-point forecast and on other forecast items less than the mid-point forecast. As an appropriation is a legal upper limit on expenditure, using a mid-point forecast to determine the amount of the appropriation inevitably means that there will be unappropriated expenditure for some forecast items, requiring separate ministerial approval and parliamentary confirmation, or parliamentary validation.

To reduce the likelihood of unappropriated expenditure on forecast items in this Vote, the cumulative appropriation for each forecast item in this Vote in the 2009/10 Supplementary Estimates includes for the last three months of 2009/10 not the mid-point forecast but a reasonable upper bound of the forecast range. The estimated actual amounts for 2009/10 and the amounts to be appropriated for 2010/11 shown in the 2010/11 Estimates of Appropriations and here in the Information Supporting the Supplementary Estimates for forecast items in this Vote continue to be on a mid-point forecast basis. These are the amounts that continue to be used in the fiscal forecasts in the Budget Economic and Fiscal Update.

In cases where the amounts have been split into subset parts below, the 2009/10 Budgeted figures all exclude any such additional amounts and so equal the Estimated Actual amounts.

Accommodation Assistance (M63)

Scope of Appropriation

This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to persons to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Accommodation Assistance (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,164,493 1,157,683 1,220,758 1,236,594 1,239,991 1,250,797
Accommodation Supplement (incorporating Away From Home Allowance) 1,157,599 1,157,599 1,220,687 1,236,534 1,239,941 1,250,754
Special Transfer Allowance 84 84 71 60 50 43

Reasons for Change in Appropriation

Increases in Accommodation Supplement recipients and a rising average payment are expected to increase expenditure from 2009/10 to 2011/12. Expenditure continues rising through to 2013/14 as the rising average payment more than offsets the decreasing trend in the number of recipients.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Accommodation Assistance (M63) - Social Development
Reference Conditions
Accommodation Supplement is paid under sections 61DH to 61EC of the Social Security Act 1964 The Accommodation Supplement provides a 70% subsidy for housing costs that exceed 25% of the recipient's income (for renters or boarders) or 30% of the recipient's income (for homeowners), up to a set maximum amount. The level of assistance depends on the recipient's accommodation costs, benefit payment rate, where the recipient lives and on his or her family size. The Supplement is a non-taxable payment that is asset and (for non-beneficiaries) income tested.
Away from Home Allowance is paid under the Away from Home Allowance Welfare Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Away from Home Allowance provides assistance with accommodation costs for the caregivers of dependent 16-17 year olds who move away from home to undertake tertiary study or an approved employment related training course. The level of Allowance is based on the same formula as for Accommodation Supplement. The Allowance is a non-taxable payment.
Special Transfer Allowance is paid under the Special Transfer Allowance Programme 2000 pursuant to section 124(1)(d) of the Social Security Act 1964 The Special Transfer Allowance provides assistance with accommodation costs to recipients of the Special Transfer Allowance prior to November 2000 and to former Tenure Protection Allowance recipients who have had their present house sold to a private landlord by Housing New Zealand Corporation. Tenure Protection Allowance ceased to exist with the introduction of the Income Related Rental Subsidy in November 2000. This Allowance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Accommodation Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Increasing Medical Training Places 2013/14 - - - - 1
Budget 2010 Tax Package 2010/11 - (2,572) (8,941) (8,167) (8,220)
Maintain 2010 EFTS in the University and Polytechnic Sectors 2010/11 - 14 25 21 21
Meet Some Additional Demand for Tertiary Education 2010/11 - 6 11 11 10
Student Support Savings Package 2010/11 - 22 40 36 37
Increasing Medical Training Places 2009/10 1 3 5 7 7
Wananga Response to Job Summit and Enrolment Pressures 2009/10 1 1 - - -
ReStart: Transitional Relief Package 2008/09 1,796 751 - - -

Previous Government

           
Increasing the Student Allowance Parental Income Threshold by 10% 2008/09 237 249 262 262 262
Lowering the Age Limit for Student Allowance Parental Income Testing by One Year 2008/09 325 338 352 352 352
Student Achievement Component: Access in priority areas 2008/09 56 29 (25) (25) (25)
Accommodation Supplement Effects HNZC Housing Applications 2007/08 (11,065) (11,065) (11,065) (11,065) (11,065)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 2 2 2 2 2
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 101 103 103 103 103
Accommodation Supplement Effects of HNZC Housing Acquisitions 2006/07 449 449 449 449 449
Aligning Student Support with Funded Qualifications 2006/07 (113) (113) (113) (113) (113)
Increasing the Student Allowance Parental Income Thresholds 2006/07 83 83 83 83 83
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 91 91 91 91 91
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 75 75 75 75 75
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 8 8 8 8 8

Benefits Paid in Australia (M63)

Scope of Appropriation

Reimbursement to the Australian Government for income support assistance provided to New Zealanders eligible under the 1994 Reciprocal Agreement, which was terminated for new entrants on 1 July 2002. From 1 July 2002 the Social Welfare (Reciprocity with Australia) Order 2002 came into force, with payments now reflecting pre-agreed amounts in Australian currency before adjusting for annual inflation.

Expenses

Expenses - Benefits Paid in Australia (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 45,041 45,041 39,272 36,976 21,134 17,963

Reasons for Change in Appropriation

Expenditure on this item will reduce in line with the agreed annual amounts payable. It is subject to Australian cost of living adjustments and exchange rate fluctuations. The large reduction in 2012/13 represents grandparented payments for Disability Support Pension and Parenting Payment ceasing under the Agreement after ten years of payment.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Benefits Paid in Australia (M63) - Social Development
Reference Conditions
Benefits Paid in Australia are paid under the Social Welfare (Reciprocity with Australia) Order 2002 issued pursuant to section 19 of the Social Welfare (Transitional Provisions) Act 1990 This appropriation is a result of the 1994 Social Security Agreement between the Australian and New Zealand Governments to provide income support to former New Zealand residents now living in Australia. The Agreement required the New Zealand Government to reimburse the Australian Government for assistance provided. This agreement was revised in 2002 to allow New Zealand to make direct payments to recipients of New Zealand Superannuation and Invalid's Benefit for applications made after 1 July 2002. Reimbursement provisions for people who were receiving payment as at June 2002 under the 1994 Agreement were 'grandparented'.

Childcare Assistance (M63)

Scope of Appropriation

Provision of assistance for the costs of childcare that meets specific quality guidelines, where parents meet activity and income criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Childcare Assistance (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 184,877 178,271 190,062 189,226 187,160 183,884

Reasons for Change in Appropriation

The number of children for whom this subsidy is paid has been growing for most of the past five years and is now expected to peak at an average of nearly 49,000 during 2010/11 and then show some steady reduction toward 44,000 by 2013/14. This pattern is reflected in the expenditure in the table above. The growth in the number of households eligible for this subsidy will be affected by the slowdown in increases in the income threshold.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Childcare Assistance (M63) - Social Development
Reference Conditions
Childcare Assistance includes the Childcare Subsidy and the Out of School Care and Recreation Subsidy (OSCAR subsidy). These are paid under section 61GA of the Social Security Act 1964 and the Social Security (Childcare Assistance) Regulations 2004 pursuant to section 132AC of the Social Security Act 1964 The Childcare Subsidy assists with pre-school costs for caregivers. The Subsidy covers children aged 0 to 4 years old, or 0 to 5 if a Child Disability Allowance is also payable. Childcare Subsidy is payable for up to 50 hours per week of attendance at an approved early childhood programme where a caregiver is engaged in an approved activity such as employment or training; has serious illness or disability or whose dependent child or children have a serious illness or disability; or up to 9 hours per week in most other cases. There are three standard levels of subsidy depending on household income. The Childcare Subsidy may be used in combination with Free Early Childhood Education for 3 and 4 year olds where hours exceed 6 per day or 20 per week. The Subsidy is a non-taxable income tested payment.
The OSCAR subsidy assists with out-of-school care costs for caregivers to take up or remain in paid employment. OSCAR covers 5 to 13 year olds, and 5 to 17 if a Child Disability Allowance is also payable.
OSCAR subsidy is available for approved before and after school care for up to 20 hours per week and up to 50 hours per week in approved school holiday programmes. The caregiver must be participating in an approved activity such as employment or training. The OSCAR subsidy is a non-taxable income tested payment.
Early Learning Programme Assistance is paid under the Family Start and Early Start (Childcare Assistance) Programme pursuant to section 124(1)(d) of the Social Security Act 1964 Early Learning Programme Assistance is provided to families who are enrolled in selected Family Start or Early Start programmes. The rate provided is 20 hours per week for an eligible child under 30 months of age or 15 hours per week for an eligible child between 30 and 36 months of age. The Assistance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Childcare Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Achieving Government's Priorities in Early Childhood Education 2011/12 - - 600 600 600
Budget 2010 Tax Package 2010/11 - 3,033 4,055 4,215 4,342
Early Childhood Education:Budget Decisions 2010/11 - (51) (125) (129) (133)
Early Childhood Education: Funding Rates and Policy Changes 2010/11 - (2,186) (2,761) (2,839) (2,839)
Future Focus 2010/11 - (1,124) (10,239) (17,125) (24,182)
Removing Childcare Subsidy from Unlicensed Limited Attendance Centres 2010/11 - (563) (572) (579) (588)

Previous Government

           
Extension to Limited Attendance Centres 2008/09 435 508 519 519 519
Implementing Free Early Childhood Education 2007/08 (21,066) (21,066) (21,066) (21,066) (21,066)
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 1,841 1,841 1,841 1,841 1,841
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 5,338 5,338 5,338 5,338 5,338
Enhancing Parents' Work Choices 2005/06 9,426 9,426 9,426 9,426 9,426
Temporary Additional Support: Measures to Prevent Unintended Disadvantage 2005/06 249 249 249 249 249

Disability Assistance (M63)

Scope of Appropriation

This appropriation is limited to the Disability Allowance to persons with disability costs and the Child Disability Allowance to the caregivers of children with a serious disability, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Disability Assistance (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 412,639 411,711 421,052 436,490 450,156 465,244
Child Disability Allowance 101,849 101,849 97,798 98,795 99,981 101,559
Disability Allowance 309,862 309,862 323,254 337,695 350,175 363,685

Reasons for Change in Appropriation

A rising trend in the average amount paid to recipients of Disability Allowance contributes just over half of the growth in Disability Allowance expenditure. Ongoing growth in the number of New Zealand Superannuation recipients aged over 75 years is expected to drive growth in Disability Allowance expenditure. The number of recipients is expected to grow from around 253,000 in 2009/10 to around 272,000 by 2013/14. The number of Child Disability Allowance recipients is expected to decrease contributing to the decrease in Child Disability Allowance expenditure from 2009/10 to 2010/11. Expenditure increases from 2010/11 to 2013/14 as cost of living adjustments more than offsets the decrease in the number of Child Disability Allowance recipients.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Disability Assistance (M63) - Social Development
Reference Conditions
Child Disability Allowance is paid under sections 39A to 39E of the Social Security Act 1964 Child Disability Allowance is a non-taxable allowance that is available to the principal caregiver of a dependent child who has a serious disability. The child must have a physical or mental disability, need constant care and attention because of that disability and be likely to need that care for more than 12 months. This Allowance is non-taxable payment.
Disability Allowance is paid under section 69C of the Social Security Act 1964 and the Ministerial Direction - Disability Allowance pursuant to section 5 of the Social Security Act 1964 This Allowance reimburses additional costs arising from a disability that is likely to continue for a minimum of six months. Disability Allowance only covers additional costs that are not funded or provided by other agencies. Disability Allowance may be paid to persons receiving main benefits and, on an income-tested basis, to New Zealand Superannuation and Veteran's Pension recipients and to low-income earners. The Allowance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Disability Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - 6,117 8,686 8,878 9,119
Future Focus 2010/11 - 60 60 60 60

Previous Government

           
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 78 78 78 78 78
Disability Allowance for People in Residential Care 2005/06 15,249 15,249 15,249 15,249 15,249
Progressive Removal of Asset Testing for older People in Long-Term Residential Care 2005/06 800 800 800 800 800

Domestic Purposes Benefit (M63)

Scope of Appropriation

Provision of income support for sole parents, caregivers of sick or infirm people or women alone, whose domestic circumstances exclude them from fully participating in the labour force. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses

Expenses - Domestic Purposes Benefit (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,701,913 1,694,360 1,756,450 1,847,112 1,890,138 1,938,240

Reasons for Change in Appropriation

Around 85% of the increase in expenditure is caused by cost of living adjustments. Growth in the number of recipients contributes to the remainder though it occurs mostly from 2009/10 to 2011/12. A change in the abatement rules as part of Future Focus, which allows benefit recipients to earn more part-time income before their benefit is abated, is expected to increase expenditure from 2010/11 onwards. The Tax Reform Package lowers gross expenditure from 2010/11 onwards.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Domestic Purposes Benefit (M63) - Social Development
Reference Conditions
Domestic Purposes Benefit is paid under sections 27A to 27H of the Social Security Act 1964 Domestic Purposes Benefit provides assistance to people caring for others. Domestic purposes benefit - sole parent provides income support for sole parents with dependent children. Domestic purposes benefit - women alone provides income support for women with no dependent children who have lost the support of their partner or have finished caring for a sick relative or children after 50. Domestic purposes benefit - care of sick or infirm is available for people aged 16 or over who are caring full-time for someone other than their partner who would need hospital or other care if not in this care.
The net weekly rates paid depend on age, and domestic purposes benefit - care of sick or infirm is paid at a higher rate. The benefit is income tested. The appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Domestic Purposes Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - (7,928) (8,951) (9,719) (10,259)
Future Focus 2010/11 - 6,334 8,504 8,522 8,534

Previous Government

           
Working New Zealand: Work-Focused Support: Support and Services 2006/07 542 545 545 545 545
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 (22,223) (22,223) (22,223) (22,223) (22,223)

Employment Related Training Assistance (M63)

Scope of Appropriation

Provision of assistance with costs of undertaking approved employment related training, which are paid in accordance with the criteria set out in delegated legislation under the Social Security Act 1964.

Expenses

Expenses - Employment Related Training Assistance (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 23,467 23,467 19,797 16,470 14,767 15,262
Course Participation Assistance Programme 1,756 1,756 1,907 1,828 1,679 1,538
Training Incentive Allowance 21,711 21,711 17,890 14,642 13,088 13,724

Reasons for Change in Appropriation

This is a capped item. The cap has been reduced each year between 2009/10 to 2012/13 reflecting policy changes to align the programme with the Tertiary Education Framework. This reduction is mainly because Training Incentive Allowance will be restricted to only include courses below level 4 on the National Qualifications Framework.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Employment Related Training Assistance (M63) - Social Development
Reference Conditions
Training Incentive Allowance and Young Parent Childcare payments are paid under the Training Incentive Allowance Programme pursuant to section 124(1)(d) of the Social Security Act 1964 To qualify for the Training Incentive Allowance a client must be receiving a qualifying benefit and be enrolled in a course that: is approved employment related training, and attracts Student Component Funding or other Government funding; or is considered to meet government quality and relevance standards but is not student component funded, eg, secondary school courses and university pre-enrolment courses.
Young Parent Childcare payments can be made to some teenage parents aged under 18 to cover childcare costs to enable those parents to attend secondary education.
Course Participation Assistance is paid under the Course Participation Assistance Programme pursuant to section 124(1)(d) of the Social Security Act 1964 Course Participation Assistance helps with costs incurred through participating in short-term employment related training courses or programmes. The payment is available to assist with childcare and transport costs and some short course fees, for example, to obtain a heavy traffic licence. This Assistance is not available where a Training Incentive Allowance is already paid for the same course. It is subject to income and asset tests. The Assistance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Employment Related Training Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - 301 333 298 308
Saving Training Incentive Allowance 2009/10 (2,037) (5,890) (9,061) (11,469) (11,469)
Young Parent Childcare Payment 2008/09 300 300 300 300 300

Previous Government

           
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 (17,646) (17,454) (17,070) (17,070) (17,070)

Family Start/NGO Awards (M63)

Scope of Appropriation

Payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications.

Expenses

Expenses - Family Start/NGO Awards (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 705 705 705 705 705 705
Family Start family/whanau Awards 238 238 238 238 238 238
Non-Government Organisation (NGO) Awards 467 467 467 467 467 467

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Family Start/NGO Awards (M63) - Social Development
Reference Conditions
Family Start family/whanau Awards are paid under Cabinet decisions The Family Start Awards pay for course fees that enable Family Start employees to study for diploma or degree level qualifications in social work, early childhood education or health.
Non-Government Organisation (NGO) Awards are paid under Cabinet decisions The NGO Awards pay for course fees that enable NGO staff to study for social work qualifications that meet the prerequisite educational qualifications for social worker registration.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family Start/NGO Awards (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 255 255 255 255 255
NGO Study Awards 2005/06 525 525 525 525 525

Hardship Assistance (M63)

Scope of Appropriation

This appropriation is limited to the Funeral Grants, Live Organ Donors Assistance, Special Benefit, Special Needs Grants and Temporary Additional Support to provide means-tested temporary financial assistance to persons with emergency or essential costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Hardship Assistance (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 277,963 272,963 288,475 285,395 283,824 286,392
Funeral Grants 10,169 10,169 9,637 10,063 10,297 10,526
Special Benefit 44,144 44,144 36,527 32,125 29,586 28,281
Special Needs Grants (incorporating Live Organ Donors Assistance) 76,014 76,014 79,862 75,989 74,002 75,582
Temporary Additional Support 142,636 142,636 162,449 167,218 169,939 172,003

Reasons for Change in Appropriation

The number of Special Benefit recipients will continue to reduce at a diminishing rate. This payment was closed to new applicants from April 2006 but is still subject to reviews of costs. Temporary Additional Support replaced Special Benefit for new applicants and is expected to increase in line with growing applications from people in financial hardship, with most of the increase happening from 2009/10 to 2010/11. Special Needs Grants expenditure is expected to remain similar to current levels.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Hardship Assistance (M63) - Social Development
Reference Conditions
Funeral Grants are paid under sections 61D to 61DE of the Social Security Act 1964 Funeral Grants are discretionary payments designed to help people with actual and reasonable funeral costs only up to a set maximum. The Grant depends on the assessable estate of the deceased person, and on the assets and income of the surviving spouse or partner (if any) or, if the deceased is a child, on the assets and income of the parents and other persons liable in law to maintain the child. The Grant is a non-taxable payment.
Special Benefit is paid under section 23 of the Social Security (Working for Families) Amendment Act 2004 and the Direction In Relation to Special Benefit pursuant to section 5 of the Social Security Act 1964 Special Benefit provides assistance to clients whose particular financial circumstances and commitments are causing them financial hardship. Special Benefit is available to beneficiaries and low income earners who were receiving it immediately before 1 April 2006 whose Special Benefit has not been cancelled.
Special Benefit is not intended as a long-term solution to a client's financial shortfall. It is instead paid to help clients meet essential costs while they make efforts to reduce their commitments and live within their usual income. This Benefit is a non-taxable payment.
Special Needs Grants are paid under the Special Needs Grants Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Special Needs Grant assists people who have an immediate and essential or emergency need and have no other means of paying for it. The Grant includes the Rural Sector Assistance Programme, which assists farmers who are unable to meet living expenses because of adverse events (such as flooding). Special Need Grants are income and cash asset tested. The Grants are generally one-off recoverable or non-recoverable, non-taxable financial assistance, although grants can be made on a continuing basis for living expenses to some persons (for example, under the rural assistance provisions).
Live Organ Donor Assistance is paid under the Assistance to Live Organ Donors Programme and Ministerial Direction pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964 Live Organ Donor Assistance is financial assistance for people who donate a kidney or liver tissue for transplant purposes. It is not subject to income or asset tests. The Grant is a non-taxable payment.
Temporary Additional Support is paid under section 61G of the Social Security Act 1964 and the Social Security (Temporary Additional Support) Regulations 2005 made pursuant to section 132AB of the Social Security Act 1964 Temporary Additional Support provides financial assistance as a last resort to alleviate financial hardship for people whose essential costs cannot be met from their chargeable income and other resources. This support became available from 1 April 2006. This non-taxable payment is made to help meet essential living costs while clients reduce their commitments and live within their usual income. The standard period for this financial assistance is 13 weeks.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Hardship Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - (1,062) (5,127) (5,473) (5,651)
Future Focus 2010/11 - (536) (827) (905) (1.028)
Plan of Action to Prevent People Trafficking 2009/10 30 30 30 30 30

Previous Government

           
Special Needs Grant, Core Benefit Changes and Further Work 2008/09 14,000 14,000 14,000 14,000 14,000
Hardship Assistance: Implementation of Temporary Additional Support 2005/06 (2,597) (2,597) (2,597) (2,597) (2,597)
Temporary Additional Support: Measures to Prevent Unintended Disadvantage 2005/06 243 243 243 243 243
Temporary Additional Support: Ministerial Welfare Programme for Short-Term Residential Treatment Programmes 2005/06 (409) (409) (409) (409) (409)

Independent Youth Benefit (M63)

Scope of Appropriation

Provision of income support for people aged 16 or 17 years who are currently unemployed but actively seeking work, training for work, at school, or sick, injured or disabled, where it is inappropriate for them to obtain financial support from their parents. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses

Expenses - Independent Youth Benefit (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 19,621 19,385 19,395 19,991 20,039 19,811

Reasons for Change in Appropriation

The level of expenditure is expected to remain similar to current levels with cost of living adjustments being mostly offset by a decreasing trend in the number of recipients.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Independent Youth Benefit (M63) - Social Development
Reference Conditions
Independent Youth Benefit is paid under sections 60F to 60GAC of the Social Security Act 1964 Independent Youth Benefit is for 16 to 17 year olds who are looking for work, training for work, in school or cannot work due to sickness, injury, disability or pregnancy, and it is inappropriate for them to obtain financial support from their parents. Those attending secondary school can receive this Benefit until the end of the year in which they turn 18 years old. This appropriation is inclusive of tax and is after deductions for debt establishments.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Independent Youth Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - (47) (48) (47) (47)
Opportunities for Young People During the Economic Downturn 2009/10 (572) (191) - - -

Previous Government

           
Working New Zealand: Work-Focused Support: Support and Services 2007/08 (137) (137) (137) (137) (137)

Invalid's Benefit (M63)

Scope of Appropriation

Provision of means-tested income support for people who are totally blind, or permanently and severely restricted in their capacity for work due to sickness, injury or disability. Paid in accordance with the criteria set out in the Social Security Act 1964.

Expenses

Expenses - Invalid's Benefit (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,306,435 1,302,459 1,319,236 1,374,380 1,394,199 1,416,657

Reasons for Change in Appropriation

Ongoing growth in expenditure is caused by accumulated cost of living adjustments. Growth in the number of Invalid's Benefit recipients is expected to increase expenditure from 2009/10 to 2011/12. From 2011/12 the trend in the number of recipients is expected to be flat. The Tax Reform Package lowers gross expenditure from 2010/11.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Invalid's Benefit (M63) - Social Development
Reference Conditions
Invalid's Benefit is paid under sections 39F to 44A of the Social Security Act 1964 The Invalid's Benefit is paid to people who are medically assessed as having a permanent and severe disability or illness (ie, one that will last for not less than two years, or is expected to be terminal within that period) that prevents them from regularly working 15 hours or more a week in open employment. They also qualify if they are totally blind. To receive Invalid's benefit a client must be aged 16 or over.
The benefit is income tested and subject to income abatement but all personal earnings of a totally blind person are excluded. Invalid's Benefit is paid at a higher rate than other benefits with rates dependent on age and family status.
This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Invalid's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - (4,289) (5,041) (5,636) (6,046)
Future Focus 2010/11 - 4,066 5,503 5,563 5,625

Previous Government

           
Working New Zealand: Work-Focused Support: Support and Services 2006/07 13,496 13,762 13,762 13,762 13,762

New Zealand Superannuation (M63)

Scope of Appropriation

Provision of an income for people who have reached the qualifying age of 65 years and fulfil the residency requirements, as provided for in the New Zealand Superannuation and Retirement Income Act 2001.

Expenses

Expenses - New Zealand Superannuation (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 8,306,504 8,287,230 8,822,221 9,559,693 10,148,510 10,780,693

Reasons for Change in Appropriation

The rising trend in expenditure is caused by a rising number of eligible people aged 65 years and over, accounting for over half of total growth, and accumulated cost of living adjustments, accounting for around 46%. The Tax Reform Package also contributes to higher expenditure from 2010/11 onwards.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - New Zealand Superannuation (M63) - Social Development
Reference Conditions
New Zealand Superannuation is paid under the New Zealand Superannuation and Retirement Income Act 2001. Living Alone Payment is paid in accordance with the criteria set out in the New Zealand Superannuation and Retirement Income Act 2001 and in the Ministerial Direction - Living Alone Payments pursuant to section 5 of the Social Security Act 1964 New Zealand Superannuation provides income for people who have reached the qualifying age of 65 and fulfil the residency requirements. The Living Alone Payment is an additional rate of New Zealand Superannuation which recognises the extra costs for clients maintaining a household on their own. New Zealand Superannuation at a higher, income-tested rate is also paid on the election of a person with a spouse or partner who does not qualify for New Zealand Superannuation.
With the exception of the higher rate where a non-qualified spouse is included New Zealand Superannuation is not income tested.
This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - New Zealand Superannuation (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - 42,218 178,498 187,929 189,513
Future Focus 2010/11 - 1,620 2,238 2,328 2,412
Setting New Zealand Superannuation and Veteran's Pension rates at a minimum of 66% of the net average wage 2009/10 1,523 6,423 6,707 7,000 7,000

Previous Government

           
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 1,245 1,303 1,349 1,349 1,349
New Zealand Superannuation and Veteran's Pension: Extension of Payment Overseas to Recognised Aid Agency Volunteers 2006/07 354 354 354 354 354
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 56,667 4,157 4,157 4,157 4,157
Single Rates of New Zealand Superannuation for Some Married People 2006/07 8,341 8,341 8,341 8,341 8,341
Removal of Sharing Expenses Rule for Eligibility to the Living Alone Payment 2005/06 186 186 186 186 186

Orphan's/Unsupported Child's Benefit (M63)

Scope of Appropriation

Provision of income support for people charged with the responsibility for the care of a child whose parents are dead or cannot be located, or suffer a serious long-term disablement which renders them unable to care for the child, or where there has been a breakdown in the child's family. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses

Expenses - Orphan's/Unsupported Child's Benefit (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 101,549 100,988 107,403 115,311 120,503 125,527

Reasons for Change in Appropriation

Accumulated cost of living adjustments and an increasing number of children for whom this is payable contribute to the ongoing rise in expenditure from 2009/10 to 2013/14.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Orphan's/Unsupported Child's Benefit (M63) - Social Development
Reference Conditions
The Orphan's and Unsupported Child's Benefits are paid under sections 28, 29A and 31 of the Social Security Act 1964 Orphan's Benefit and Unsupported Child's Benefit are paid to a caregiver of a dependent child whose parent(s) cannot support them or care for them because the parents are dead, cannot be located, suffer a serious long-term disablement or there has been a breakdown in the child's family. The applicant must be likely to be the principal caregiver for at least one year from the date of application for the benefit. Both Benefits are not income tested on the caregiver's income or assets but are on the child's income excluding the personal earnings of the child. Both Benefits are non-taxable payments.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Orphan's/Unsupported Child's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Budget 2010 Tax Package 2010/11 - 2,164 2,278 2,384 2,419

Previous Government

           
Alignment of UCB/OB weekly rates with the FCA weekly board rates 2008/09 7,314 7,580 7,898 7,898 7,898
Increasing Financial Support for Caregivers Receiving Unsupported Child's Benefit/Orphan's Benefit 2006/07 7,157 7,157 7,157 7,157 7,157

Redundancy Assistance (M63)

Scope of Appropriation

This appropriation is limited to paying assistance for a limited period to people made redundant, pursuant to the conditions and criteria set out in ReStart Transitional Relief Ministerial Welfare Programme 2008 and the Social Security Act 1964.

Expenses

Expenses - Redundancy Assistance (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 3,637 3,627 428 - - -

Reasons for Change in Appropriation

The decrease in expenditure from 2009/10 to 2010/11 is because of an expected reduction in demand for this payment and the programme finishing on 1 January 2011.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Redundancy Assistance (M63) - Social Development
Reference Conditions
ReStart assistance is paid under the ReStart Transitional Relief Ministerial Welfare Programme and section 124(1)(d) of the Social Security Act 1964 ReStart provides short-term support to low to moderate income families with children and low to middle income people with high housing costs, who have been made redundant from full-time work or have ceased full time self employment. ReStart is available to people who have been in employment for the previous six months and are looking for full time work. ReStart can be paid for up to 16 weeks or until a person returns to work, whichever is earlier.
ReStart payments can be suspended in specified circumstances.
ReStart is made up of:
  • ReCover - a payment for people with dependent children and who are no longer entitled to an in-work tax credit
  • RePlace - an extra payment to help people with their accommodation costs if they are already getting the maximum Accommodation Supplement.
Applications are to be made within 20 working days after the date of redundancy and up until 31 December 2010. The Programme expires with the end of the last grant to be made in respect of any application granted prior to 1 January 2011.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Redundancy Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
ReStart: Transitional Relief Package 2008/09 30,890 14,515 - - -

Sickness Benefit (M63)

Scope of Appropriation

Provision of means-tested income support for people who are not in full-time employment and are limited in their capacity for work, or who are in employment but working at a reduced level, because of sickness, injury, disability or pregnancy. Paid in accordance with the criteria set out in the Social Security Act 1964.

Expenses

Expenses - Sickness Benefit (M63) - Social Development
  2009/10 2010/11 2011/12 2012/13 2013/14
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 716,788 713,516 760,431 795,534 814,370 832,210

Reasons for Change in Appropriation

Accumulated cost of living adjustments accounts for aroun