Vote Biosecurity - Supplementary Estimates and supporting information 2010/11

Information Supporting the Supplementary Estimates Vote Biosecurity#

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

ADMINISTERING DEPARTMENT: Ministry of Agriculture and Forestry

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

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Biosecurity Policy Advice (M7)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation will decrease by $314,000 to $11.097 million in 2010/11. This is due to: a reallocation of revenue Crown funded resources between output expenses ($377,000); a decrease in third party funded activity ($147,000); and reduced services to other public sector agencies ($69,000). These changes are offset by: an increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($29,000); and an expense transfer from 2009/10 to meet cost of amalgamation of New Zealand Food Safety Authority ($250,000).

Output Performance Measures and Standards

Border Biosecurity Risk Management MCOA (M7)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

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

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will decrease by $7.227 million to $82.615 million in 2010/11. This is due to: a reallocation of revenue Crown funded resources between output expenses ($5.629 million); a decrease in third party funded activity ($1 million); and reduced services to other public sector agencies ($692,000). These changes are offset by an increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($94,000).

Output Performance Measures and Standards#

Memorandum Account#

On 1 July a changed fee structure was implemented for border clearance activities to reflect changes in the way the border operates, including the increased focus on a risk based as opposed to an inspection based approach. The Phytosanitary Exports Account which does not relate to border clearance activities is unaffected. The other pre-existing memorandum accounts have been closed and balances transferred to a new memorandum account entitled Border Biosecurity Clearance Fees Account.

Domestic Biosecurity Risk Management MCOA (M7)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

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

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will increase by $4.997 million to $59.359 million in 2010/11. This is due to: a reallocation of revenue Crown funded resources between output expenses ($3.560 million); an expense transfer from 2009/10 for the write-down of foot and mouth vaccine ($2.200 million); an increase in Government Superannuation Fund employer contributions from 6% to 10.7% funded from revenue Crown ($45,000); transfer from non-departmental other expense 'Response to kiwifruit disease Pseudomonas syringae pv. actinidiae' for MAF's direct response costs ($2.500 million); and an expense transfer from 2009/10 for the National Animal Identification and Traceability (NAIT) project ($400,000). These changes are offset by: a saving due to Cabinets decision to discontinue the elimination programme for the Mediterranean fanworm ($838,000); a decrease in third party funded activity ($1.445 million); reduced services to other public sector agencies ($72,000); and an expense transfer to 2011/12 for the NAIT project ($1.353 million).

Output Performance Measures and Standards#

Part 2.2 - Non-Departmental Output Expenses#

Control of TB Vectors (M7)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will decrease by $1.240 million to $29.265 million in 2010/11. Expense transfers are used to align the appropriation to the incurrence of expenditure against annual work programmes that are delayed and extend into the next financial year. Expense transfers of $260,000 from 2009/10 and $1.500 million to 2011/12 were required.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Response to the Kiwifruit disease Pseudomonas syringae pv. actinidiae (M7)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

In November 2010, the Government approved $25 million in Crown funding, including MAF's direct response costs (excluding staff time), to support the kiwifruit industry-led programme for responding to the kiwifruit disease Pseudomonas syringae pv. actinidiae. A transfer of $2.500 million was made to departmental output expense Domestic Biosecurity Risk Management MCOA to cover MAF's direct response costs. The remaining $22.500 million is payable to the body established by industry "Kiwifruit Vine Health Inc" (KVH) as costs are incurred. An expense transfer of $5 million has been made to 2011/12.

Expected Results