Summary of Initiatives in the COVID-19 Response and Recovery Fund (CRRF) July Package

Summary of Initiatives in the COVID‑19 Response and Recovery Fund (CRRF) July Package#

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We are releasing this Summary of Initiatives document to complement the recent media releases detailing expenditure funded from the COVID-19 Response and Recovery Fund (CRRF). The following pages provide greater detail on new spending initiatives agreed in the CRRF July Package by Cabinet on 6 July 2020.

Background to the CRRF#

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As part of Budget 2020 the Government established the CRRF and set aside $50 billion to support a response to and recovery from COVID‑19. The CRRF is a funding envelope for budget management purposes. The fiscal implications of many new measures have been managed against the CRRF during April, May, June, and July.

Table 1 - Summary of CRRF July Package

Year ending 30 June $millions	2020 Forecast	2021 Forecast	2022 Forecast	2023 Forecast	2024 Forecast	Total
Operating Expenditure	-	2009.5	330.8	171.5	61.1	2572.9
Capital Expenditure	-	562.2	11.6	4.1	11.9	589.7
	-	2571.7	342.3	175.6	73.0	3162.6

This Summary of Initiatives document includes a list of the spending initiatives announced as part of the CRRF July Package. There are still some initiatives that are yet to be announced which have not been captured in this document.

Changes in appropriations from the CRRF July Package will be included in the Pre-election Economic and Fiscal Update.

Detailed Breakdown of Initiatives by Vote#

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This section provides the titles, descriptions and funding amounts of each initiative, organised by Vote.

How to Read the Initiative Tables#

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The example below outlines the key components included for each initiative.

New Initiatives#

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Business, Science and Innovation#

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Accelerating Energy Efficiency and Fuel Switching in Industry to Reduce Emissions

This initiative will provide grants and a contestable fund for fuel switching and innovative projects in the industrial process heat sector, to accelerate the transition to clean, low-emissions energy. It will increase energy efficiency and fuel switching, while stimulating economic activity. It will help overcome the significant financial barriers that prevent firms from investing in carbon abatement or energy efficiency opportunities. In addition, it will fund electricity network connections where fuel switching to electricity (electrification) is identified as the best emissions abatement option.

Addressing the Impact of Border Restrictions on the Ministry of Business, Innovation and Employment's Liquidity

This initiative provides funding to support the Ministry of Business, Innovation and Employment's cash liquidity as a result of revenue pressure caused by the COVID‑19-related restrictions on the New Zealand border and subsequent loss of third-party revenue from visa and electronic travel authority application fees.

Further Regional Business Partner Advice for Small Businesses

This initiative will enable additional business consultancy advice through the Regional Business Partner Network.

Increasing Official Assignee Resources to Manage the Growth in Personal Insolvency Cases Due to COVID‑19

This initiative provides funding for additional staff resources and case specific costs for the Official Assignee to meet a forecast increase in personal insolvencies due to COVID-19. The additional resources will ensure that cases are administered in a timely manner to maximise benefits to creditors and support debtors burdened with unmanageable debt to receive a 'fresh start'.

Reducing Energy Hardship and Strengthening the Consumer Voice for Electricity Consumers

This initiative has four components. The first is to develop a network of community-level services. The second component is to fund energy-efficient household appliances. The third component is the establishment and operation of a cross-sector energy hardship group to ensure initiatives are well-considered and coordinated. The fourth component is the establishment and operation of a new electricity consumer advocacy council and secretariat. This initiative will reduce energy hardship and improve advocacy for small electricity consumers.

Resource Management Act National Direction to Facilitate Development of Renewable Energy Projects

This initiative funds specialist expertise and policy capability for development of national direction instruments under the Resource Management Act 1991 to facilitate the development of renewable energy projects. These national direction instruments and guidance materials will improve planning and consenting outcomes for renewable energy projects.

Supporting Renewable Energy Projects in Public and Māori Housing

This initiative will fund the installation of fit-for-purpose energy solutions on public and Māori housing. It targets households in energy hardship, using the ability to plan and deploy solutions at scale across Crown-owned properties, or though networks where the Crown is already working with Māori housing providers. It will deploy a range of methods and technologies, from established energy efficiency retrofits, through to renewable energy generation solutions or storage and demand management techniques. It will deliver improved health outcomes through healthier homes and lower household energy costs.

Tourism Policy Capability

This initiative increases the policy capability of the Ministry of Business, Innovation and Employment (MBIE) to implement the Government's response to COVID‑19. Significant policy issues are emerging as the tourism sector recovers and rebuilds as a result of COVID‑19. In order to deliver on the Government's tourism recovery package, MBIE has established new funding mechanisms and policy programmes. This initiative will help MBIE to continue to deliver the productive, sustainable and inclusive growth outlined in the Tourism Strategy, and will ensure we can deliver new policy programmes relevant in a post COVID‑19 context.

Conservation#

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Wildlife Institutions Relief Package

This initiative provides funding for a relief package for captive wildlife institutions impacted by the COVID-19 response. Funding will cover critical operational costs to maintain animal welfare, retain specialist jobs, and prevent the closure of institutions that play a pivotal role in the recovery of New Zealand's threatened species.

Corrections#

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Mayfair House: Offsetting COVID‑19 Redevelopment Delay Impacts

This initiative provides funding for additional costs incurred as a result of COVID‑19-related delays on the Mayfair House redevelopment project. This includes additional resource costs due to COVID‑19 delays, additional construction costs, and additional rent and security costs for the decant building.

Te Maihi o te Whare Māori - Māori and Iwi Housing Innovation (MAIHI) - Northland Region Corrections Facility

This initiative funds Corrections to develop a prison-based industry focused on the assembly of affordable kitset homes provided by Kāinga Ora. The kitset homes will be assembled at a purpose-built facility located outside the wire at Northland Region Corrections Facility, with up to 130 people gaining trades training, employment skills and experience over four years. This collaboration will see the delivery of 48 high-quality new-built kitset homes into supply in Te Tai Tokerau.

Customs#

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Customs Third-Party Revenue Shortfall

This initiative will fund existing border security operations, which are usually funded through international passenger and goods levies, as COVID‑19 restrictions have largely eliminated international passenger revenue and reduced cargo and freight revenue. It also funds the temporary redeployment of frontline Customs staff into other work programmes, including contributing to New Zealand's economic recovery.

Defence Force#

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Enabling the Royal New Zealand Returned and Services' Association to Continue to Provide Services and Support

This initiative provides a grant to the Royal New Zealand Returned and Services' Association that will enable it to continue to provide services and support to New Zealand veterans, service people and their families in the face of COVID‑19 challenges.

Education#

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Addressing Supplier Contractual Obligations Arising from the Impact of COVID‑19

This initiative enables the Ministry of Education to meet its contractual obligations to support school property new building works and asset maintenance activities. In line with guidance from the Ministry of Business, Innovation and Employment (NZS 3910:2013) and the Construction Sector Accord, suppliers working on school property projects have the contractual right to claim for fair and reasonable costs incurred as a result of their suspension of works arising from COVID‑19. This includes the right to offset their COVID‑19-related cost increases of doing business when compared with their original tender.

Funding to Support Schools to Manage the Immediate Costs of COVID‑19

This initiative will support state and state-integrated schools to manage the immediate financial pressures of COVID‑19. This initiative provides funding for cleaning and sanitation costs, additional staff to support small schools, and relief teachers. This initiative also supports the school hostel workforce who have been adversely impacted by COVID‑19.

International Education Strategic Recovery: Enable Providers to Deliver Education Offshore and Develop Quality Assurance

This initiative provides funding to develop quality assurance processes and frameworks to monitor off-shore delivery of tertiary education. This will enable tertiary education providers to deliver education offshore.

Network-as-a-Service and Cybersecurity for Schools

This initiative will support the delivery and integrity of the rollout of NCEA Online. It ensures that schools' aging network hardware is upgraded and cybersecurity protection is installed to tackle the increasing risk of phishing scams, data leaks, and exposure to harmful websites.

Ongoing Resourcing Scheme for Teacher Aide Hours

This initiative addresses the urgent need for an increase in teacher aide hours for more than 10,000 high and very high needs students in the Ongoing Resourcing Scheme (ORS). The level of student need and resulting demand for teacher aide hours has been higher over the past year than is currently funded, creating an ongoing baseline cost pressure. Funding this initiative for 2020/21 will ensure that the increased investment in teacher aide hours through earlier COVID‑19 funding decisions, intended to support the attendance, engagement and participation of ORS students at school, will not be eroded and the benefits fully realised. Funding for further years of this initiative will be subject to future Budget decisions.

Providing Digital Identity Required for Online Assessment and Learning

This initiative adds functionality and identity records to the Education Sector Logon system for secondary school students so that they can sit NCEA Online securely. This logon system could be rolled out across the remaining student cohorts in the future at marginal cost to support online enrolment and learning.

Transition Support for State and State-Integrated Schools that have Lost International Revenue as a Result of COVID‑19

This initiative supports schools to meet cost pressures arising from a sudden decrease in international student revenue due to COVID‑19. It supports state and state-integrated schools to transition to a lower income stream, minimising disruption for students and staff while continuing to meet existing expenses (mainly staff costs).

Environment#

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Resource Recovery Infrastructure

This initiative supports New Zealand to emerge from COVID-19 with a resilient system for reducing, recycling and managing its waste and the associated harm that it causes, as well as increased jobs and incomes spread across New Zealand. It will fund loans and grants to invest in resource recovery infrastructure to support a transition to a low emissions and low-waste future for New Zealand.

Foreign Affairs#

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Expo 2020 COVID‑19 and Related Postponement Costs

This initiative will support New Zealand's presence at Expo 2020, which owing to the COVID‑19 pandemic has been postponed and will now open on 1 October 2021. Increased costs have been incurred from COVID‑19 impacts during the construction phase and this initiative will fund additional costs incurred from the mothballing of the pavilion until the following year.

Health#

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Oxygen Supply and Related Environmental Systems

This initiative provides funding for the purchase of supplies and installation of equipment to ensure that if there is a surge in the number of COVID‑19 patients, they can receive oxygen at appropriate pressures and treatment areas are safe.

National Immunisation Solution

This initiative provides funding for the full cost of developing a National Immunisation Solution (NIS). This will ensure there is an operational NIS ready for when a COVID‑19 vaccine is available.

Combined Pharmaceutical Budget - Continuity of Supply of Medicines and Medical Devices

This initiative provides funding to PHARMAC to ensure the continuity of supply of medicines and medical devices in response to global supply issues caused by COVID‑19.

COVID‑19 Response: Technology and Services

This initiative provides funding to deliver and maintain the COVID‑19 operational response through the National Close Contact Service and technology to support the management of COVID‑19.

Funding for Public Health Units

This initiative will provide funding to enable Public Health Units to continue providing critical population and public health services in 2020/21, including continuing to support the COVID‑19 response.

Health and Disability Commissioner: Impacts of COVID‑19

This initiative provides funding to the Health and Disability Commissioner (HDC) for the anticipated increase in complaints as a result of COVID‑19, including in relation to the deferral of significant amounts of non-urgent care during the response to COVID‑19, and the planned increase in delivery of planned care services as part of the recovery from COVID‑19.

Increased Volumes for the National Telehealth Service (Healthline)

This initiative provides funding for the continued delivery of the National Telehealth Service (Healthline) to meet increased demand in 2020/21 in response to COVID‑19.

National Health Crisis Centre (NHCC) Ongoing Additional Responsibilities

This initiative provides funding to the Ministry of Health to meet forecast additional costs associated with non-core responsibilities to support COVID‑19.

New Zealand Blood Service: Impacts of COVID‑19

This initiative provides funding to the New Zealand Blood Service to meet operating costs following a reduction in revenue due to a significant drop in demand as a result of COVID‑19 Alert Levels 3 and 4. It also recognises the cashflow impact from an increased need to maintain a higher level of inventories of certain critical products due to COVID‑19, and other pandemic‑related expenses.

Personal Protective Equipment (PPE)

This initiative provides funding to ensure the provision of personal protective equipment (PPE) in 2020/21 that will protect New Zealanders, including health and disability workers, from communicable diseases, such as COVID‑19.

Supporting Family Planning New Zealand with COVID‑19 Costs and a Sustainable Recovery

This initiative will provide funding to Family Planning New Zealand to relieve financial pressures exacerbated by COVID‑19.

Housing and Urban Development#

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Residential Development Response Fund

This initiative establishes a Residential Development Response Fund to ensure the building industry is supported to grow housing supply. A productive residential construction sector is critical to New Zealand and to the Government's overall wellbeing objectives, and is a significant generator of employment and economic activity. The Ministry of Housing and Urban Development is on a path to transform our housing market to unlock productivity growth and make houses more affordable.

Internal Affairs#

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Taumata Arowai, New Crown Agent Regulator for Water Services

This initiative will provide funding for a new, dedicated water services regulator, as part of a suite of system-wide reforms to the regulation of drinking water. It also provides for the associated monitoring costs.

Three Waters Infrastructure Investment and Service Delivery Reform Programme

This initiative supports a three-year programme for reforming three waters service delivery arrangements, which will be delivered in parallel with the economic stimulus package of Crown investment in water infrastructure.

Justice#

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Community Law Centres - Increasing the Capacity to Provide Free Legal Services Due to COVID‑19

This initiative will provide low-income and vulnerable New Zealanders with access to justice by funding Community Law Centres to meet the increase in legal needs due to COVID‑19. This includes providing legal advice on areas such as employment, welfare, financial, family, and tenancy matters.

Justice Sector Resourcing to Address COVID‑19 Related Backlogs

This initiative will provide funding for the Ministry of Justice, NZ Police, Department of Corrections, Oranga Tamariki, and Crown Law to address the COVID‑19-related backlog of cases across multiple District Court and High Court jurisdictions. This funding will support the work of five new District Court Judges, four acting High Court Judges, and one acting Associate High Court Judge including associated registry staff, accommodation, and other support services across the justice sector.

Labour Market#

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Meeting Increased Demand for Employment Policy Advice

This initiative will increase the capacity of the Skills and Employment Policy team within the Ministry of Business, Innovation and Employment by providing additional staff resources for the next two years. The policy advice function within the Employment Portfolio has been under significant pressure over the last year, due to the COVID‑19 pandemic and this is expected to continue. Initiatives such as Social Insurance and the Employment Strategy are likely to create ongoing demand for policy advice. In addition, the long-term economic and labour market impacts resulting from COVID‑19 are likely to drive future demand for policy advice in this space beyond the medium-term recovery period.

Addressing Temporary Migrant Worker Exploitation

This initiative will implement an end-to-end package of regulatory, policy and operational changes to reduce temporary migrant worker exploitation. This includes increased investigation and enforcement capacity for the Labour Inspectorate and Immigration New Zealand to address the increased vulnerability of migrant workers caused by the COVID‑19 pandemic.

Resetting Immigration New Zealand's Offshore Footprint to Reflect Post-COVID‑19 Visa Volumes

This initiative will address the unavoidable medium-term revenue impact of the COVID‑19 pandemic on immigration operations by rationalising and scaling back Immigration New Zealand's (INZ's) offshore footprint and bringing visa processing onshore. This will rebalance INZ operations making them primarily New Zealand-based and ensuring any new visa processing positions are created onshore.

Lands#

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Bad and Doubtful Debt Appropriation Increase Due to COVID‑19

The initiative will increase the provision for bad and doubtful debts as a result of COVID‑19. This funding is a non-discretionary expense necessary to meet the forecast reduction or loss of income of Land Information New Zealand's tenants, permit, license and leaseholders as a result of COVID‑19.

Prime Minister and Cabinet#

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Maintaining an All-of-Government Response to COVID‑19

This initiative provides for the establishment of a business unit within the Department of the Prime Minister and Cabinet to continue a coordinated all-of-government response to COVID‑19. The business unit will be responsible for: strategy and policy advice to Cabinet; operational coordination; data analytics, monitoring, reporting and insights; and public communications.

Social Development#

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Additional Funding for Employment Services Response

This initiative increases funding for Ministry of Social Development's employment services to meet increased demand due to the economic impact of COVID‑19. This builds upon the previously funded initiative 'Employment Service Response to COVID‑19' and components of 'Employment and Financial Support Response to COVID‑19'.

Extending Temporary Deferral Measures to Manage Demand

This initiative enables the continuation of several temporary measures put in place in March 2020 to ensure continued support for New Zealanders in the welfare system and assist the Ministry of Social Development to manage unprecedented demand in response to the economic impact of COVID‑19. Measures to be extended through this initiative are: suspension of the 52-week reapplication requirement; suspension of the requirement to provide subsequent work capacity medical certificates; and the temporary removal of initial income stand-downs.

Strengthening Existing Debt Solution Services and Developing a National Approach to Address Problem Debt

This initiative will fund specialist debt solution services and debt consolidation services to help combat debt in the wake of the economic impact of COVID‑19. An estimated 2,000 people will get access to specialist debt support and 1,400 people could get access to and benefit from debt consolidation microfinance loans or help with variations to high-cost loans. This will help shelter indebted individuals and whānau from the financial, health and social impacts of overwhelming debt. This initiative will also fund the development of a comprehensive National Debt Solution to problem debt.

Statistics#

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COVID‑19 Statistical Challenges

This initiative provides funding to address new challenges in data collection, to support critical demands for additional insights and statistics, and to provide timely and reliable measurement of the health of the New Zealand people and economy, in the wake of COVID‑19.

Tertiary Education#

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International Education Strategic Recovery: Communications, Marketing and Brand Awareness

This initiative provides funding to support international education communications, marketing and brand awareness so that the education sector can drive and convert demand when circumstances allow and ensure that New Zealand's brand reputation does not diminish while borders are closed.

International Education Strategic Recovery: Diversification of International Education Products and Services

This initiative provides funding to support the diversification of international education products and services, including the development and delivery of a unified digital platform, exploration, market testing and analysis and the delivery of offshore licensed education institutions.

International Education Strategic Recovery: Funding for New Zealand-Based Learners to Access English Language Courses

This initiative provides funding for learners to access English language courses.

International Education Strategic Recovery: Immediate Targeted Support for Private Training Establishments

This initiative provides targeted funding and support to Private Training Establishments in New Zealand's tertiary education sector, to facilitate the recovery of international education.

Maintaining Support for International Education (Export Education Levy Funded Activities).

This initiative provides funding to offset the shortfall in revenue following the decision to cancel payment obligations for the Export Education Levy for 2021. The Export Education Levy funds key international onshore pastoral care and promotion services.

Transport#

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Supporting the National Land Transport Programme Revenue Shortfall and Meeting COVID‑19 Costs

This initiative enables Waka Kotahi NZ Transport Agency to manage the cash-flow impacts on the National Land Transport Programme as a result of COVID‑19, and to meet COVID‑19 related costs.

Women#

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Expanding Support to Women's Non-Governmental Organisations to Deliver Services for Women Affected by COVID‑19

This initiative provides additional funding to support more women's non-governmental organisations that have seen increased demand as a result of the COVID‑19 pandemic. The COVID‑19 Response and Recovery Fund Foundational Package approved $1 million for a COVID‑19 Community Fund. This additional funding will enable further eligible organisations to access immediate financial assistance to help them deliver community initiatives such as translation services for migrant women; ensuring women are free from violence; education initiatives; addressing connectivity issues; as well as meeting urgent needs such as providing food parcels and clothing needs.