Supplementary estimates of appropriations

Vote Building and Housing - Supplementary Estimates 2017/18

Publication type:
Supplementary estimates of appropriations
Status:
Current
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
ISBN:
978-1-98-855607-9 (print) 978-1-98-855608-6 (online)
Fiscal year:
2017/18
Budget year:
2018
Budget vote:
Building and Housing
Last updated:

Formats and related files

Vote Building and Housing#

APPROPRIATION MINISTER(S): Minister for Building and Construction (M9), Minister of Housing and Urban Development (M96)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2017/18
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$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.		 28,954 - 28,954

Community Housing Regulatory Authority (M96)

This appropriation is limited to the administration of the Community Housing Regulatory Authority.		 700 150 850

Greater Christchurch Recovery (M9)

This appropriation is limited to the provision of services to residents of the greater Christchurch area affected by the Canterbury earthquakes to support the residential rebuild.		 920 200 1,120

KiwiBuild Unit (M96)

This appropriation is limited to activities associated with the facilitation and implementation of the KiwiBuild Programme.		 - 3,350 3,350

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.		 9,546 - 9,546

Professional Engineering input toward the Resolution of Canterbury Residential Rebuild Design Uncertainty (M9)

This appropriation is limited to the provision of professional engineering advice and support for either third parties or the general public to support the Canterbury residential rebuild.		 560 - 560

Redevelopment of Surplus Crown Land (M96)

This appropriation is limited to activities associated with the facilitation of Crown land redevelopment.		 2,503 - 2,503

Residential Advisory Services (M9)

This appropriation is limited to the provision of insurance-related broker and advisory services to homeowners affected by a civil emergency to support their residential rebuild.		 - 1,900 1,900

Residential Tenancy and Unit Title Services (M96)

This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority.		 28,051 1,500 29,551

Special Housing Areas (M96)

This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside of a Housing Accord.		 - 3,000 3,000

Weathertight Services (M9)

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.		 12,278 (850) 11,428

Total Departmental Output Expenses

83,512 9,250 92,762

Non-Departmental Output Expenses

     

HNZC Housing Support Services (M96)

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.		 11,698 - 11,698

KiwiBuild Operations (M96)

This appropriation is limited to the operating expenses incurred in relation to the acquisition and development of KiwiBuild dwellings.		 - 5,000 5,000

Management of Crown Properties held under the Housing Act 1955 (M96)

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.		 1,395 - 1,395

Total Non-Departmental Output Expenses

13,093 5,000 18,093

Benefits or Related Expenses

     

KiwiSaver HomeStart grant (M96)

This appropriation is limited to enabling the provision of the KiwiSaver HomeStart grant for people who meet the required eligibility criteria.		 102,451 (12,000) 90,451

Total Benefits or Related Expenses

102,451 (12,000) 90,451

Non-Departmental Other Expenses

     

Christchurch City Council Home Ownership Initiative (M96)

This appropriation is limited to supporting the Christchurch City Council to provide home ownership services to people in Christchurch.		 - 3,071 3,071

Housing Assistance (M96)

This appropriation is limited to payments made to Housing New Zealand Corporation and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans.		 1,507 (348) 1,159

Impairment of Crown Assets (M96)

This appropriation is limited to expenses arising from the recognition of impaired value of Crown assets, including write down and write offs.		 20 - 20

Payments in respect of the Weathertight Services Loan Guarantees PLA (M9)

This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.		 1,800 - 1,800

Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas (M9)

This appropriation is limited to the partial remediation of street-facing facades and parapets of unreinforced masonry buildings in at risk areas.		 - 3,000 3,000

Unwind of Discount Rate Used in the Present Value Calculation of Direct Payments Under the Weathertight Homes Financial Assistance Package (M9)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.		 1,659 - 1,659

Total Non-Departmental Other Expenses

4,986 5,723 10,709

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M96)

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.		 15,230 1,893 17,123

Departmental Output Expenses

     

Policy Advice - Building and Housing

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and housing including social housing.		 14,970 1,893 16,863

Related Services to Ministers - Building and Housing

This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including social housing.		 260 - 260

Temporary Accommodation Services MCA (M96)

The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.		 - 6,616 6,616

Departmental Output Expenses

     

Readiness, Response and Recovery

This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.		 - 1,804 1,804

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.		 - 3,575 3,575

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

This category is limited to depreciation expenses associated with temporary accommodation supply.		 - 137 137

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

This category is limited to procuring and purchasing temporary accommodation.		 - 1,100 1,100

Total Multi-Category Expenses and Capital Expenditure

15,230 8,509 23,739

Total Annual and Permanent Appropriations

219,272 16,482 235,754

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Departmental Output Expenses

   

Tenant Health and Safety Information (M96)

This appropriation is limited to providing information to increase tenant health and safety in residential rental properties.

Commences: 01 July 2015

Expires: 30 June 2020		 Original Appropriation 2,740
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 2,740
Actual to 2016/17 Year End 1,209
Estimated Actual for 2017/18 917
Estimated Actual for 2018/19 614
Estimated Appropriation Remaining -

Non-Departmental Output Expenses

   

KiwiBuild Housing (M96)

This appropriation is limited to the acquisition, construction and provision of KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 210,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 210,000
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 -
Estimated Actual for 2018/19 210,000
Estimated Appropriation Remaining -

Non-Departmental Capital Expenditure

   

KiwiBuild Capital (M96)

This appropriation is limited to capital for KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 1,865,755
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 1,865,755
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 50,000
Estimated Actual for 2018/19 270,000
Estimated Appropriation Remaining 1,545,755

Vacant or Underutilised Crown Land Programme (M96)

This appropriation is limited to the Crown's contribution to the development of housing in selected locations.

Commences: 01 July 2017

Expires: 30 June 2022		 Original Appropriation 167,104
Adjustments to 2016/17 -
Adjustments for 2017/18 51,050
Adjusted Appropriation 218,154
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 218,154
Estimated Actual for 2018/19 -
Estimated Appropriation Remaining -

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

  2017/18
  Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$000
Total Annual and Permanent Appropriations 219,272 16,482 235,754
Total MYA Departmental Output Expenses Forecasts 400 517 917
Total MYA Non-Departmental Capital Expenditure Forecasts 167,104 101,050 268,154

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

386,776 118,049 504,825

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity
  2017/18
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

         
Output Expenses 97,005 9,767 5,000 14,767 111,772
Benefits or Related Expenses 102,451 N/A (12,000) (12,000) 90,451
Borrowing Expenses - - - - -
Other Expenses 4,986 - 5,723 5,723 10,709
Capital Expenditure 167,104 - 101,050 101,050 268,154
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 15,230 3,697 3,575 7,272 22,502
Other Expenses - - 137 137 137
Capital Expenditure - N/A 1,100 1,100 1,100

Total Appropriations

386,776 13,464 104,585 118,049 504,825

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue - N/A 6,130 6,130 6,130
Capital Receipts 23,285 N/A (2,260) (2,260) 21,025

Total Crown Revenue and Capital Receipts

23,285 N/A 3,870 3,870 27,155

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Community Housing Regulatory Authority (M96)

Scope of Appropriation
This appropriation is limited to the administration of the Community Housing Regulatory Authority.
Reasons for Change in Appropriation

This appropriation increased by $150,000 to $850,000 for 2017/18 due to a fiscally neutral transfer from Departmental Output Expense Weathertight Services to support the Community Housing Regulatory Authority's increased workload from a high volume of applications and Community Housing Providers.

Greater Christchurch Recovery (M9)#

Scope of Appropriation#

This appropriation is limited to the provision of services to residents of the greater Christchurch area affected by the Canterbury earthquakes to support the residential rebuild.

Reasons for Change in Appropriation#

This appropriation increased by $200,000 to $1.120 million for 2017/18 due to:

  • funding of $1.350 million for the extension and arbitration process of the Residential Advisory Service, and
  • a transfer of $150,000 from 2016/17 for the Residential Advisory Service.

The increase was partly offset by:

  • a transfer of $700,000 to Departmental Output Expense: Residential Advisory Service to provide additional funding to assist residents impacted by the earthquake with outstanding residential insurance claims from the 2011 Christchurch earthquakes, and
  • a transfer of $600,000 to Departmental Output Expense: Residential Advisory Service to provide assistance to residents impacted by the Christchurch earthquakes.

KiwiBuild Unit (M96)#

Scope of Appropriation#

This appropriation is limited to activities associated with the facilitation and implementation of the KiwiBuild Programme.

Expenses and Revenue#

  2017/18
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation - 3,350 3,350
Revenue from the Crown - 3,350 3,350
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to allow a new KiwiBuild Unit to develop a sustainable approach for delivering 100,000 affordable dwellings to first-home buyers over the next ten years. Initially the Unit will expand existing government-led opportunities, work to free up underutilised land and purchase or underwrite affordable homes in current developments.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Channels for delivering the Kiwibuild Programme approved for implementation

 - New measure Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Reasons for Change in Appropriation#

This appropriation was established in 2017/18 for the commencement of the KiwiBuild Programme.

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#

  2017/18
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 9,546 - 9,546
Revenue from the Crown 691 - 691
Revenue from Others 8,433 - 8,433

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve certainty and confidence for the industry and the public that licensed practitioners and workers in the building, construction and electrical sectors are competent and contribute to safe, healthy and affordable homes and buildings.

Residential Advisory Services (M9)#

Scope of Appropriation#

This appropriation is limited to the provision of insurance-related broker and advisory services to homeowners affected by a civil emergency to support their residential rebuild.

Expenses and Revenue#

  2017/18
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation - 1,900 1,900
Revenue from the Crown - 1,900 1,900
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve access to insurance-related broker and advisory services to help progress residential rebuild following a civil emergency.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Users satisfied or very satisfied with the residential advisory service.

 - New measure 75%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Reasons for Change in Appropriation#

This appropriation was established in 2017/18. The increase in this appropriation is due to:

  • a transfer of $700,000 from Departmental Output Expense Greater Christchurch Recovery to provide additional funding to assist residents impacted by the earthquake with outstanding residential insurance claims from the 2011 Christchurch earthquakes
  • a transfer of $600,000 from Departmental Output Expense: Greater Christchurch Recovery to provide assistance to residents impacted by the Christchurch earthquake, and
  • funding of $600,000 to provide assistance to residents in the Hurunui, Kaikoura and Marlborough districts affected by the 2016 Kaikoura earthquake.

Residential Tenancy and Unit Title Services (M96)#

Scope of Appropriation#

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

Expenses and Revenue#

  2017/18
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 28,051 1,500 29,551
Revenue from the Crown 3,742 - 3,742
Revenue from Others 20,602 - 20,602

Reasons for Change in Appropriation#

This appropriation increased by $1.500 million to $29.551 million for 2017/18 to cover necessary maintenance to the Bond 2000 IT system and Resolve workflow management system.

Special Housing Areas (M96)#

Scope of Appropriation#

This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside of a Housing Accord.

Expenses and Revenue#

  2017/18
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation - 3,000 3,000
Revenue from the Crown - - -
Revenue from Others - 3,000 3,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve certainty and assurance to the public that resource consenting will be carried out for Special Housing Areas.

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Resource consents issued according to statutory timeframes

 - New measure Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Reasons for Change in Appropriation#

This appropriation was re-established in 2017/18 to cover costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is outside of a Housing Accord now that the Housing Accords and Special Housing Areas Act 2013 has been extended to 2021.

Tenant Health and Safety Information (M96)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Tenant Health and Safety Information (M96)

This appropriation is limited to providing information to increase tenant health and safety in residential rental properties.

Commences: 01 July 2015

Expires: 30 June 2020		 Original Appropriation 2,740
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 2,740
Actual to 2016/17 Year End 1,209
Estimated Actual for 2017/18 917
Estimated Actual for 2018/19 614
Estimated Appropriation Remaining -

How Performance will be Assessed and End of Year Reporting Requirements#

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Deliver information campaigns to promote warm, dry and safe residential rental homes

 By 30 June 2018 Measure removed -

Deliver annual information campaigns to promote warm, dry and safe residential rental homes by 30 June

 - New measure Achieved

Weathertight Services (M9)#

Scope of Appropriation#

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.

Expenses and Revenue#

  2017/18
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 12,278 (850) 11,428
Revenue from the Crown 12,278 (850) 11,428
Revenue from Others 113 - 113

Reasons for Change in Appropriation#

This appropriation decreased by $850,000 to $11.428 million for 2017/18 due to:

  • a transfer of $350,000 to Temporary Accommodation Services MCA - Readiness, Response and Recovery category for additional costs incurred to run operations for the Canterbury, Kaikoura and Edgecumbe readiness response team
  • a transfer of $250,000 to Temporary Accommodation Services MCA - Readiness, Response and Recovery category for additional costs incurred in the response effort to support temporary accommodation requirements due to the flooding in the West Coast region following cyclone activity
  • a transfer of $150,000 to Departmental Output Expense Community Housing Regulatory Authority to support the Community Housing Regulatory Authority's increased workload from a high volume of applications and Community Housing Providers, and
  • a transfer of $100,000 to Temporary Accommodation Services MCA - Temporary Accommodation Housing Initiatives - Operations category for additional costs incurred to run operations for the Canterbury Kaikoura and Edgecumbe readiness response team.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

KiwiBuild Operations (M96)

Scope of Appropriation
This appropriation is limited to the operating expenses incurred in relation to the acquisition and development of KiwiBuild dwellings.
Expenses
  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 5,000 5,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the removal of financial barriers to enable the achievement of the KiwiBuild Programme outcomes.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Delivery channels established for the Kiwibuild programme

 - New measure Achieved
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing and Urban Development in the Vote Building and Housing Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation was established in 2017/18 for the commencement of the KiwiBuild Programme.

KiwiSaver HomeStart grant (M96)#

Scope of Appropriation

This appropriation is limited to enabling the provision of the KiwiSaver HomeStart grant for people who meet the required eligibility criteria.

Reasons for Change in Appropriation

This appropriation decreased by $12 million to $90.451 million for 2017/18 due to a forecast adjustment as volumes over the last 18 months have not been as high as those initially forecast when the KiwiSaver Grant was first introduced.

3.4 - Non-Departmental Other Expenses#

Christchurch City Council Home Ownership Initiative (M96)#

Scope of Appropriation

This appropriation is limited to supporting the Christchurch City Council to provide home ownership services to people in Christchurch.

Expenses

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 3,071 3,071

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by providing a range of home ownership and other assistance products for low income families.

How Performance will be Assessed and End of Year Reporting Requirements

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

All payments to Christchurch City Council will be made in accordance with agreed procedures and timeframes

 - New measure Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing and Urban Development in the Vote Building and Housing Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation was re-established in 2017/18 with a funding transfer from 2016/17 to support the housing initiative to give Christchurch families on low and medium incomes a chance to own their own home.

Housing Assistance (M96)#

Scope of Appropriation#

This appropriation is limited to payments made to Housing New Zealand Corporation and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans.

Reasons for Change in Appropriation#

This appropriation decreased by $348,000 to $1.159 million for 2017/18 due to a revised forecast to reflect repaid loans.

Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas (M9)#

Scope of Appropriation#

This appropriation is limited to the partial remediation of street-facing facades and parapets of unreinforced masonry buildings in at risk areas.

Expenses#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 3,000 3,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the timely remediation and repair of buildings impacted by natural disasters.

End of Year Performance Reporting#

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation#

This appropriation was re-established in 2017/18 with a funding transfer of $3 million from 2016/17 due to practical constraints in completing the work and the need to extend the deadline beyond March 2018 to complete the mandatory securing work before an offence is committed.

3.5 - Non-Departmental Capital Expenditure#

KiwiBuild Capital (M96)#

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

KiwiBuild Capital (M96)

This appropriation is limited to capital for KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022		 Original Appropriation 1,865,755
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 1,865,755
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 50,000
Estimated Actual for 2018/19 270,000
Estimated Appropriation Remaining 1,545,755

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide capital for the development of KiwiBuild affordable homes for first home buyers.

How Performance will be Assessed and End of Year Reporting Requirements

  2017/18
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Purchase development sites with sufficient capacity for 1,000 KiwiBuild affordable homes

 - New measure Sites for 1,000 KiwiBuild homes purchased

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing and Urban Development in the Vote Building and Housing Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This multi-year appropriation was established in 2017/18 with a fiscally neutral transfer totalling $220 million from Non-Departmental Capital Expenditure: KiwiBuild Acquisition and Development and new capital funding for the KiwiBuild Programme.

Vacant or Underutilised Crown Land Programme (M96)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Vacant or Underutilised Crown Land Programme (M96)

This appropriation is limited to the Crown's contribution to the development of housing in selected locations.

Commences: 01 July 2017

Expires: 30 June 2022		 Original Appropriation 167,104
Adjustments to 2016/17 -
Adjustments for 2017/18 51,050
Adjusted Appropriation 218,154
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 218,154
Estimated Actual for 2018/19 -
Estimated Appropriation Remaining -

Reasons for Change in Appropriation#

This multi-year appropriation increased by $51.050 million to $218.154 million in 2017/18 due to the transfer of unspent funding from the Auckland Vacant or Underutilised Crown Land Programme MYA.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M96)

Overarching Purpose Statement
The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation

Departmental Output Expenses

Policy Advice - Building and Housing
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and housing including social housing.
Related Services to Ministers - Building and Housing
This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including social housing.
Expenses, Revenue and Capital Expenditure
  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

15,230 1,893 17,123

Departmental Output Expenses

     
Policy Advice - Building and Housing 14,970 1,893 16,863
Related Services to Ministers - Building and Housing 260 - 260

Funding for Departmental Output Expenses

     

Revenue from the Crown

15,230 1,601 16,831
Policy Advice - Building and Housing 14,970 1,601 16,571
Related Services to Ministers - Building and Housing 260 - 260

Revenue from Others

- 292 292
Policy Advice - Building and Housing - 292 292
Reasons for Change in Appropriation

This appropriation increased by $1.893 million to $17.123 million for 2017/18 due to:

Policy Advice - Building and Housing

  • new funding of $800,000 for the commencement of the KiwiBuild Programme
  • a transfer of $426,000 from 2016/17 for the National Policy Statement on Urban Development Capacity Work Programme
  • a transfer of $300,000 from 2016/17 for the delivery of the Residential Tenancy Act Amendment Bill no. 2 and Unit Title Act Legislative Change
  • a fiscally neutral transfer of $292,000 for the recovery of costs associated with secondment of Ministry staff to other public sector agencies, and
  • new funding of $75,000 to correct historical non-compliance with the Holidays Act 2003.

Temporary Accommodation Services (M96)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.

Scope of Appropriation#

Departmental Output Expenses

Readiness, Response and Recovery
This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
 

Non-Departmental Output Expenses

Temporary Accommodation Housing Initiatives - Operations
This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
 

Non-Departmental Other Expenses

Temporary Accommodation Housing Initiatives - Depreciation
This category is limited to depreciation expenses associated with temporary accommodation supply.
 

Non-Departmental Capital Expenditure

Temporary Accommodation Housing Initiatives - Capital
This category is limited to procuring and purchasing temporary accommodation.

Expenses, Revenue and Capital Expenditure#

  2017/18
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

- 6,616 6,616

Departmental Output Expenses

     
Readiness, Response and Recovery - 1,804 1,804

Non-Departmental Output Expenses

     
Temporary Accommodation Housing Initiatives - Operations - 3,575 3,575

Non-Departmental Other Expenses

     
Temporary Accommodation Housing Initiatives - Depreciation - 137 137

Non-Departmental Capital Expenditure

     
Temporary Accommodation Housing Initiatives - Capital - 1,100 1,100

Funding for Departmental Output Expenses

     

Revenue from the Crown

- 1,804 1,804
Readiness, Response and Recovery - 1,804 1,804

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve fast and effective support for people displaced by a civil emergency.

How Performance will be Assessed for this Appropriation#

  2017/18
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

Percentage of service activations approved within 14 days of a civil emergency

 - New measure 90%

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2017/18
Assessment of Performance Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

Departmental Output Expenses

     

Readiness, Response and Recovery

     

This category is intended to achieve fulfilment of MBIE's fundamental temporary accommodation responsibilities and roles.

      

Percentage of users of the service who are satisfied or very satisfied

 - New measure 75%

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

     

This category is intended to provide a broad range of flexible temporary accommodation options.

      

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this category for a non-departmental output expense is less than $5 million

 Exempt Exempt Exempt

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

     

This category is intended to provide a broad range of flexible temporary accommodation options.

      

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this category for a non-departmental other expense is less than $5 million

 Exempt Exempt Exempt

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

     

This category is intended to increase housing supply levels in emergency affected areas.

      

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this category for a non-departmental capital expenditure is less than $15 million

 Exempt Exempt Exempt

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Business Innovation and Employment in its annual report.

Reasons for Change in Appropriation#

This appropriation was established in 2017/18. The appropriation increased by $6.616 million for 2017/18 due to:

Readiness, Response and Recovery

This category increased by $1.804 million for 2017/18 due to:

  • a transfer of $649,000 from Departmental Output Expense: Canterbury Recovery, Departmental Output Expense: Hurunui/Kaikoura Recovery: Accommodation Services and Non-Departmental Output Expense: Canterbury Earthquakes: Emergency and Temporary Accommodation to establish the new category within the Temporary Services Accommodation multi-category appropriation
  • a transfer of $455,000 from the Temporary Accommodation Housing Initiatives - Capital category as the spend profile has changed from the original assumption with lower capital costs being offset by higher costs in the non-departmental and departmental expense
  • a transfer of $350,000 from Departmental Output Expense Weathertight Services for additional costs incurred to run operations for the Canterbury, Kaikoura and Edgecumbe readiness response team
  • a transfer of $250,000 from Departmental Output Expense Weathertight Services for additional costs incurred in the response effort to support temporary accommodation requirements due to the flooding in the West Coast region following cyclone activity, and
  • a transfer of $100,000 from 2016/17 for Edgecumbe Temporary Accommodation operational costs in 2017/18.

Temporary Accommodation Housing Initiatives - Operations category

This category increased by $3.575 million for 2017/18 due to:

  • a transfer of $1.930 million from 2016/17 for Edgecumbe Temporary Accommodation operational costs in 2017/18
  • a transfer of $750,000 from the Temporary Accommodation Housing Initiatives - Capital category to reflect a change in spend profile as part of the Edgecumbe response is now being funded by providing grants as opposed to purchasing assets resulting in lower capital expenditure offset by higher non-departmental operational expenditure
  • a transfer of $400,000 from Non-Departmental Output Expense: Canterbury Earthquakes: Emergency and Temporary Accommodation to establish the new category within the Temporary Services Accommodation multi-category appropriation
  • a transfer of $395,000 from the Temporary Accommodation Housing Initiatives - Capital category as the spend profile has changed from the original assumption with lower capital costs being offset by higher costs in non-departmental and departmental expense, and
  • a transfer of $100,000 from Departmental Output Expense: Weathertight Services for additional costs incurred to run operations for the Canterbury, Kaikoura and Edgecumbe readiness response team.

Temporary Accommodation Housing Initiatives - Capital category

This category increased by $1.100 million for 2017/18 due to:

  • a transfer of $2.500 million from 2016/17 for Edgecumbe Temporary Accommodation costs in 2017/18, and
  • a transfer of $200,000 from Non-Departmental Output Expense: Canterbury Earthquakes - Emergency and Temporary Accommodation to establish the new category within the Temporary Accommodation Multi-category appropriation.

This increase was partly offset by:

  • a transfer of $750,000 to the Temporary Accommodation Housing Initiatives - Operations category to reflect a change in spend profile as part of the Edgecumbe response is now being funded by providing grants as opposed to purchasing assets resulting in lower capital expenditure offset by higher non-departmental operational expenditure
  • a transfer of $455,000 to the Readiness, Response and Recovery category as the spend profile has changed from the original assumption with lower capital costs being offset by higher costs in the non-departmental and departmental expense, and
  • a transfer of $395,000 to the Temporary Accommodation Housing Initiatives - Operations category as the spend profile has changed from the original assumption with lower capital costs being offset by higher costs in non-departmental and departmental expense.

Temporary Accommodation Housing Initiatives - Depreciation category

This category increased by $137,000 for 2017/18 to record the depreciation expense over the life of the temporary accommodation assets.