Vote Business, Science and Innovation - Supplementary Estimates 2017/18

Vote Business, Science and Innovation#

APPROPRIATION MINISTER(S): Minister of Broadcasting, Communications and Digital Media (M8), Minister of Commerce and Consumer Affairs (M13), Minister for Economic Development (M25), Minister of Energy and Resources (M28), Minister for Maori Development (M46), Minister of Tourism (M69), Minister for Infrastructure (M80), Minister of Research, Science and Innovation (M84), Minister for Regional Economic Development (M101)

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#

Multi-Year Appropriations#

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

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Commerce and Consumer Affairs: Consumer Information (M13)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $160,000 to $2.487 million for 2017/18 due to:

• $100,000 transfer from the Retirement Commissioner appropriation to reflect the return costs associated with the Investor Portal to the Ministry of Business, Innovation and Employment (MBIE), and

• $60,000 adjustment to reflect the increase in planned activity for the motor vehicle information campaign.

Commerce and Consumer Affairs: Official Assignee Functions (M13)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $600,000 to $16.237 million for 2017/18 due to additional costs to modernise the core technology platform OASIS which is at the end of its useful life, and an increase in the complexity of Official Assignee work with more litigious clients resulting in higher unrecoverable legal fees.

Commerce and Consumer Affairs: Registration and Granting of Intellectual Property Rights (M13)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the protection of robust intellectual property rights to promote innovation, technology creation, transfer and dissemination, and support economic development.

Reasons for Change in Appropriation#

This appropriation increased by $1.870 million to $20.588 million for 2017/18 due to the new patent granting criteria requiring additional resources and costs for people, IT (systems and infrastructure), training, and third-party database services.

Commerce and Consumer Affairs: Registration and Provision of Statutory Information (M13)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $1.250 million to $39.771 million for 2017/18 due to additional costs for work on the Companies website, enhancement work on the registries database, on-going costs of a new revenue receipting system and a significant increase in compliance and enforcement activity in the Motor Vehicle Trader Registration area.

Commerce and Consumer Affairs: Standards Development and Approval (M13)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.820 million to $6.729 million for 2017/18 due to:

• $1.320 million adjustment to fund the Standards New Zealand business transformation projects, and

• $500,000 additional royalty costs payable to overseas standards organisations due to the development of higher volumes of standards for re-sale.

Communications: Cyber Security Services (M8)#

Scope of Appropriation#

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

Reasons for Change in Appropriation#

This appropriation increased by $482,000 to $5.459 million as a result of a transfer from 2016/17 to 2017/18 due to the delay in the completion of the full suite of services intended to be implemented within the national Computer Emergency Response Team project work programme.

Communications: Management of Emergency Telecommunications Services (M8)#

Scope of Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve ongoing effective and efficient delivery of the upgrade work programme for the telecommunications emergency response services.

Economic Development: Implementation of Improvements in Public Sector Procurement and Services to Business (M25)#

Scope of Appropriation#

Expenses and Revenue#

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

Reasons for Change in Appropriation#

This appropriation increased by $2.330 million to $24.787 million for 2017/18 due to:

• $2.260 million adjustment from the R9 accelerator programme where MBIE as the host recovers funding from other contributing agencies

• $1.265 million adjustment for the implementation of E-Invoicing in New Zealand, and

• $1.005 million to reflect estimated salary costs for MBIE staff being seconded to other government agencies.

These increases are partially offset by the following decreases:

• $2 million transferred to the Immigration portfolio under Vote Labour Market, to support Immigration New Zealand's service design, performance, compliance, risk and intelligence services to support Immigration New Zealand's service design, performance, compliance, risk and intelligence services, and

• $200,000 contribution to the Result 10 Service Innovation initiatives at the Department of Internal Affairs.

Economic Development: Property Management Services (M25)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $4.452 million to $9.700 million for 2017/18 is due to:

• $3.600 million in contingency funding for the Wellington Accommodation Project to enable MBIE to meet contractual commitments with Precinct Properties due to delays caused by the Kaikoura earthquakes, and

• $942,000 for the Christchurch Integrated Government Accommodation project which houses MBIE, the Ministry of Social Development (MSD) and the Department of Conservation (DOC) in a new building in Cashel Street, Christchurch. MBIE as lead agency incurs all property related costs and then recovers funding from the other contributing agencies.

Economic Development: Property Management within the State Sector (M25)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved property management practice across government.

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

Reasons for Change in Appropriation#

This appropriation increased by $1.045 million to $3.752 million in 2017/18 due to an adjustment for costs to build, maintain and support the Government Property Portal.

Energy and Resources: Management of the Crown Mineral Estate (M28)#

Scope of Appropriation#

Expenses and Revenue#

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

Note 1 - Removed - Volume of digital geo-scientific information held by the Ministry of Business, Innovation and Employment grows year on year. Alongside royalties, taxes and jobs, geo-scientific information is a significant output of mineral and petroleum sector activity. The Ministry of Business, Innovation and Employment are the stewards of this national knowledge asset. Public access to this information is fundamental to the effective and efficient functioning of the resources sector.

Note 2 - Excludes the time waiting for information from applicants or third parties.

Reasons for Change in Appropriation#

This appropriation increased by $690,000 to $18.664 million in 2017/18 due to:

• $400,000 adjustment to provide for increased revenue and expenses in the minerals permitting area

• $215,00 transfer from 2016/17 to reflect the delays in the Regulatory Monitoring and Compliance project, and

• $75,000 adjustment to correct a historical non-compliance with the Holidays Act 2013.

Regional Economic Development: Regional Economic Development Programme (M101)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support the implementation of the Regional Economic Development Programme and the Provincial Growth Fund.

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

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 during the 2017/18 year to support the operation of the Government's regional economic development programme and the implementation of the Provincial Growth Fund.

Research, Science and Innovation: Innovative Partnerships (M84)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the attraction of overseas investment in Research and Development to New Zealand.

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

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 annual appropriation was established in the 2017/18 year to replace the Science and Innovation: Multi National R&D Attraction category part way through the year.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25)#

Scope of Appropriation

Capital Expenditure

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $293,000 for 2017/18 to reflect movements in net surplus/(deficit) arising from forecasting changes.

Capital Injections and Movements in Departmental Net Assets

Ministry of Business, Innovation and Employment

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Commerce and Consumer Affairs: Accounting and Assurance Standards Setting (M13)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Commerce and Consumer Affairs: Economic Regulation Inquiries (M13)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $1 million for 2017/18 due to a transfer to 2018/19 as a result of no economic regulation inquiries undertaken by the Commerce Commission in 2017/18.

Commerce and Consumer Affairs: Enforcement of Dairy Sector Regulation and Auditing of Milk Price Setting (M13)#

Scope of Appropriation#

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 output expense is less than $5 million.

Commerce and Consumer Affairs: Enforcement of General Market Regulation (M13)#

Scope of Appropriation#

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

Note 1 - This measure is a 'stop the clock' provision. The criteria for stopping the clock are:

• requests from the merger parties or third parties for further time to respond to information requests if this would cause delay to the Commerce Commission's investigation
• time spent assessing divestment undertakings, or
• if the review of the merger by another jurisdiction(s) is causing delays to the Commerce Commission's investigation.

Reasons for Change in Appropriation#

This appropriation increased by $750,000 to $18.573 million for 2017/18 due to operating contingency being drawn down for the impact of the Commerce (Cartels and Other Matters) Amendment Bill.

Commerce and Consumer Affairs: Retirement Commissioner (M13)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $100,000 to $7.422 million for 2017/18 to reflect the return of the Investor Portal and associated costs back to MBIE via the Consumer Information appropriation.

Communications: Emergency Telecommunications Services (M8)#

Scope of Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved telecommunications capabilities for the public to communicate with emergency services.

Reasons for Change in Appropriation#

This appropriation increased by $1.008 million to $3.108 million for 2017/18 due to:

• $578,000 in support of providing high-precision emergency caller location information to Apple iOS users, to increase the technical resilience and availability of the service provided

• $280,000 transfer from 2016/17 to 2017/18 to fund the completion of Spark's implementation work on the Emergency Caller Location project that was originally forecast to be in 2016/17, and

• $180,000 transfer from 2020/21 to reflect that Spark had delivered their Emergency Caller Location Information: Network Cell solution in 2017/18 earlier than expected, which requires bringing forward licence payments to 2017/18.

These increases are partially offset by a $30,000 transfer to Vote Health for the on-going funding of licencing costs to support St John's use of the Emergency Caller Location Information solution.

Communications: Enforcement of Telecommunications Sector Regulation (M8)#

Scope of Appropriation#

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

Note 1 - An assessment by the Commerce Commission based on analysis of a range of metrics relating to the performance of regulated suppliers.

Reasons for Change in Appropriation#

This appropriation increased by $250,000 to $6.750 million for 2017/18 due to a transfer from 2016/17 to 2017/18 required for delayed preparatory work by the Commerce Commission ahead of future changes to the Telecommunications Act 2001.

Economic Development: Hurunui/Kaikoura Earthquakes Response - Tourism Support Package (M25)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve recovery support for businesses affected by the Hurunui/Kaikoura earthquakes.

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

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 output expense is less than $5 million.

Reasons for Change in Appropriation#

This appropriation was re-instated in 2017/18 by a transfer of $59,000 from 2016/17 to 2017/18 due to delays in completing infrastructure repairs in the Kaikoura area.

Energy and Resources: Management of IEA Oil Stocks (M28)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1 million to $9 million for 2017/18 due to increased costs of managing and funding oil stocks for the purpose of meeting International Energy Agency obligations.

National Science Challenges (M84)#

Scope of Appropriation and Expenses#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Research, Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation#

A $67 million transfer was made out of the MYA to the annualised appropriation in 2019/20 and 2020/21 to cover Cabinet-agreed funding envelopes for the second five-year phase of National Science Challenges.

Repayable Grants for Start-Ups (M84)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $5.538 million to $33.530 million as a result of a transfer from the expired annual Repayable Grants for Start-Ups appropriation from 2016/17 to 2017/18.

Research and Development Growth Grants (M84)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $25.789 million to $828.649 million due to:

• $20 million transfer from the Targeted Business Research and Development Funding MYA to meet demand for research and development growth grants, and

• $5.789 million transfer from 2016/17 to 2017/18 from the old MYA to this new MYA.

Science and Innovation: Contestable Research Fund (M84)#

Scope of Appropriation#

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

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Research, Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Science and Innovation: Marsden Fund (M84)#

Scope of Appropriation#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Research, Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation#

This appropriation decreased by $350,000 to $63.405 million for 2017/148 due to a transfer to the Research Contract Management appropriation to cover additional contract management costs.

Science and Innovation: National Measurement Standards (M84)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $300,000 to $5.464 million for 2017/18 due to a re-prioritisation of Callaghan Innovation's MCA's and appropriations to ensure they are all in surplus for 2017/18.

Targeted Business Research and Development Funding (M84)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $3.835 million to $191.335 million in 2017/18 due to a transfer from 2016/17 to 2017/18 of $23.835 million from the old appropriation to this new multi-year appropriation. This was partially offset by a $20 million transfer to the Research and Development Growth Grants MYA to meet the demand for research and development growth grants.

3.4 - Non-Departmental Other Expenses#

Commerce and Consumer Affairs: Takeovers Panel Litigation Fund (M13)#

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Communications: Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure (M8)#

Scope of Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve ongoing telecommunications access in rural New Zealand.

Communications: Telecommunications Development Levy Funded Procurement - Telecommunications Infrastructure Investment (M80)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $30 million to $180 million for the MYA as a result of additional funding allocated from the Telecommunications Development Levy (TDL) funding to extend the Rural Broadband Initiative - Phase Two (RBI2) and Mobile Black Spot (MBS) programmes.

Economic Development: 35th America's Cup Celebrations (M25)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a public celebration for Team New Zealand's successful challenge of the 35th America's Cup.

End of Year Performance Reporting#

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

Reasons for Change in Appropriation#

This appropriation was established during 2017/18 to support celebratory parades as a result of Team New Zealand's success at the 35th America's Cup.

Economic Development: Earthquake Business Recovery Grants (M25)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $152,000 to $162,000 for 2017/18 due to a transfer from Vote Social Development to assist with the unpredictability, demand driven nature of this appropriation.

Economic Development: Edgecumbe Business Support (M25)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support business recovery initiatives in a timely and efficient manner.

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 established during 2017/18 to provide additional funding for the Edgecumbe Business Support Grants Programme. A transfer of $170,000 was made from the Policy Advice and Related Outputs MCA - Policy Advice - Economic Development category.

Economic Development: Major Events Development Fund 2017-2022 (M25)#

Scope of Appropriation and Expenses#

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

Reasons for Change in Appropriation#

This appropriation increased by $325,000 to $52.325 million as a result of a transfer from 2016/17 to 2017/18 from the former annual Major Events Development Fund appropriation.

Economic Development: Management Development Fund (M25)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $195,000 to $951,000 for 2017/18 due to a transfer from 2016/17 to ensure that there is funding to award additional Prime Ministers Business Scholarships.

Economic Development: Maori Innovation Fund (M46)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.248 million to $4.248 million for 2017/18 due to a transfer from 2016/17 to reflect the timing in the assessment and contracting process for four new programmes.

Economic Development: New Zealand Screen Production Grant- International MYA 2017-2021 (M25)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

The appropriation is intended to achieve economic and industry development benefits to New Zealand, including employment and skill development opportunities by incentivising screen productions that would not otherwise have been made in New Zealand.

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

Reasons for Change in Appropriation#

This appropriation increased by $4.970 million to $328.082 million as a result of a transfer of $4.970 million from 2016/17 to 2017/18 from the old MYA to this new MYA.

Economic Development: Opotiki Harbour Development (M101)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $840,000 to $2.840 million for 2017/18 due to:

• $731,000 transfer from the Regional Growth Initiatives MYA to improve governance, implementation and the development of the detailed business case for the project, and

• $109,000 transfer from 2016/17 to reflect delays with the assessment of engineering requirements and commercial viability of the project.

Economic Development: Regional Growth Initiatives (2016 - 2021) (M25)#

Scope of Appropriation and Expenses#

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

Reasons for Change in Appropriation#

This appropriation decreased by $20.286 million for 2017/18 due to:

• $850,000 transferred to Vote Transport to support the Upper North Island Supply Chain Strategy

• $731,000 transferred to the Opotiki Harbour Development to improve the governance, implementation and the development of the Detailed Business Case for the project, and

• $18.705 million transferred to the Regional Economic Development: Provincial Growth Fund MCA for the 2018/19 financial year.

Economic Development: Support for Team New Zealand (M25)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve funding support to enable Team New Zealand to prepare for its defence of the 36th America's Cup.

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

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Economic Development in the Vote Business, Science and Innovation Non-departmental Appropriations Report.

Reasons for Change in Appropriation#

This appropriation was established during 2017/18 to support Team New Zealand in preparation for its defence of the 36th America's Cup.

Science and Innovation: Catalyst Fund (M84)#

Scope of Appropriation#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Research, Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation#

This appropriation decreased by $4.800 million to $8.551 million for 2017/18 due to a transfer to outyears to manage the overall appropriation profile to match investment plans with partner countries.

Science and Innovation: Regional Research Institutes (M84)#

Scope of Appropriation#

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

Reasons for Change in Appropriation#

This appropriation decreased by $12.060 million to $11.524 million for 2017/18 due to transfers to 2019/20 and 2020/21. These changes reflect delays to the establishment of a new regional research institute called NZ Institute for Minerals to Materials for the full term; caused by pre-contract conditions not being met.

Tourism Infrastructure Fund (M69)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $20 million to $5.500 million for 2017/18 due to a transfer to 2018/19 to reflect delays in round one funding and is not included in the Ministry of Business, Innovation and Employment's forecasts.

3.5 - Non-Departmental Capital Expenditure#

Broadband Investment (Crown Fibre Holdings Capital Costs (UFB2)) 2016-2021 MYA (M8)#

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve greater access to high-speed broadband for more people.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Crown Infrastructure Partners in its annual report.

Reasons for Change in Appropriation

The total funding of $210 million for this appropriation was transferred to the "Infrastructure: Broadband Investment MYA", established to reflect the change in name of Crown Fibre Holdings to Crown Infrastructure Partners, and to reflect the change in responsible Minister for broadband and mobile programme appropriations.

Communications: Broadband Investment (Crown Fibre Holdings Capital Costs) 2016-2021 (M8)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This appropriation decreased by $372.500 million to $45 million for 2017/18 due to a transfer to establish the Infrastructure Broadband Investment MYA to reflect the change in name of Crown Fibre Holdings to Crown Infrastructure Partners, and to reflect the change in responsible Minister for broadband and mobile programme appropriations.

Energy and Resources: Crown Energy Efficiency (M28)#

Scope of Appropriation#

What is Intended to be Achieved with this Appropriation#

The appropriation is intended to achieve energy efficiency savings in the public sector.

Infrastructure: Broadband Investment (M80)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve greater access to high-speed broadband for more people.

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

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Crown Infrastructure Partners in its annual report.

Reasons for Change in Appropriation#

This new appropriation was established during the 2017/18 financial year to reflect the change in name of Crown Fibre Holdings to Crown Infrastructure Partners, and to reflect the change in responsible Minister for broadband and mobile programme appropriations, as agreed with the Prime Minister in late 2017.

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M25)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation decreased by $315,000 to $60.372 million due to:

• $6.358 million transfer from Police Advice Economic Development to assist with the Tuawhenua Provincial Growth Fund initiative, and

• $170,000 transfer from Policy Advice Economic Development to assist with additional funding for the Edgecumbe Business Support package.

These decreases are partially offset by the following increases:

• $3.440 million transfer from Policy Advice - Regional Economic Development to correct the appropriation levels to account for spend incurred to date as part of the Regional Growth Programme, funded in Policy Advice - Economic Development

• $1.836 million transfer from 2016/17 in Policy Advice Economic Development to reflect that participating regions were at varying stages of developing and implementing their regional economic plans

• $265,000 in the Related Services to Ministers Small Business to fund the Business Support Package for businesses in the Kaikoura, Hurunui and Marlborough districts

• $228,000 in Policy Advice Economic Development and Policy Advice Energy and Resources to reflect estimated salary costs for MBIE staff being seconded to other government agencies

• $183,000 transfer from 2016/17 in Policy Advice Broadcasting, Communications and Digital Media to reflect timing to get agreement from stakeholders on the scope and approach for the business uptake of information and communication technology pilot programmes

• $115,000 for Policy Advice - Commerce and Consumer Affairs, and Economic Development to correct historical non-compliance with the Holidays Act 2003

• $100,000 transfer from 2016/17 in Policy Advice - Commerce and Consumer Affairs to reflect the delays in the establishment of the financial advisors' review code working group, and

• $46,000 transfer from 2016//17 in Policy Advice - Commerce and Consumer Affairs to reflect timing of the economic analysis of plant variety rights due to the time spent in ensuring government has a full understanding of the interest of Maori and industry groups.

Regional Economic Development: Provincial Growth Fund (M101)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a lift in the productivity potential of the regions.

How Performance will be Assessed for this Appropriation#

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

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 during the 2017/18 to lift regional productivity potential through the Provincial Growth Fund.

Science and Innovation: Callaghan Innovation - Operations (M84)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

How Performance will be Assessed for this Appropriation#

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

Reasons for Change in Appropriation#

This appropriation increased by $300,000 to $59.951 million for 2017/18 due to Callaghan Innovation reprioritising the National Measurement Standards appropriation to this appropriation, to ensure that they are in surplus for 2017/18.

Science and Innovation: Contract Management (M84)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation increased by $207,000 to $30.360 million for 2017/18 due to:

• $822,000 transfer from 2016/17 to 2017/18 to reflect that, the vendor was unable to deliver an adequate Investment Management System replacement within contracted timeframe due to unanticipated complexities in the data underpinning the investment process

• $350,000 transfer from the Marsden Fund appropriation to cover additional contract management costs, and

• $125,000 adjustment to correct historical non-compliance with the Holidays Act 2003.

These increases are partially offset by a transfer of $150,000 to Vote Transport for additional funding for the Civil Authority's unmanned aircraft certification activity, and $940,000 transfer to establish the new Research, Science and Innovation: Innovative Partnerships appropriation.

Science and Innovation: Strategic Science Investment Fund (M84)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

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

Reasons for Change in Appropriation#

This appropriation decreased by $8.930 million to $252.055 million for 2017/18 due to:

• $7 million transfer to 2018/19 to recognise uncertainties and enable MBIE to make investment decisions on established initiatives, and

• $2.100 million transfer to outyears to reflect the delay in the start date of the Advanced Genomics Research Platform (Genomics Aotearoa) platform.

These decreases are partially offset by a transfer of $170,000 from 2018/19 to enable MBIE to pay Antarctica NZ to do the planning around the Antarctic platform.

Science and Innovation: Talent and Science Promotion (M84)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation decreased by $1 million to $25.886 million for 2017/18 due to a transfer to 2018/19 to cover an increase in Fellowship funding to ensure alignment with international award conditions and allow New Zealand to maintain the current number of awards across a number of the Fellowship programmes which has been steadily decreasing due to cost pressures.

Sector Analysis and Facilitation (M25)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the generation of more trust and confidence in markets, allow business to assess and develop markets with ease, and increase international trade and investment.

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

Services and Advice to Support Well-functioning Financial Markets (M13)#

Overarching Purpose Statement#

Scope of Appropriation#

How Performance will be Assessed for this Appropriation#

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

Support New Market Opportunities to Grow Firms and Sectors for the Benefit of New Zealand (M25)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation decreased by $5 million to $26.231 million for 2017/18 due to a transfer to the Support the Growth and Development of NZ Firms, Sectors and Regions MCA to fund the Project Palace, Enhanced Knowledge Management, and Greenfield Investment initiatives.

Support the Growth and Development of New Zealand Firms, Sectors and Regions (M25)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

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

Reasons for Change in Appropriation#

This appropriation increased by $7.726 million to $174.075 million for 2017/18 due to:

• $5 million transfer from the International Growth Fund appropriation to fund the Project Palace, Enhanced Knowledge Management, and Greenfield Investment initiatives

• $1.690 million transfer from 2016/17 for the Saudi Agri-hub project to meet its contractual commitments

• $653,000 to reflect the effects of foreign exchange movements on output prices, and

• $383,000 transfer from Education New Zealand to support the NZ Story initiative.

Tourism Facilities (M69)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

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

Reasons for Change in Appropriation#

This appropriation increased by $3.832 million to $29.118 million for 2017/18 due to:

• $3.432 million transfer from 2016/17 to meet outstanding contractual commitments for the Twin Coast, Westland Wilderness, and Alps to Ocean great rides

• $1.500 million from 2016/17 to support a second funding round for the Tourism Mid-Sized Facilities Grants

• $1.500 million transfer from 2016/17 to reflect that none of the conditions for the release of the grant to construct the Hundertwasser Art Centre with Wairau Maori Art Gallery in Whangarei have been met, and

• $400,000 transfer from 2016/17 to reflect the timing in the upgrade of the Ohau seal colony due to the Kaikoura earthquake work on this project was suspended until the nature of the repair work needed on State Highway 1 was determined.

These increases are partially offset by a $3 million transfer to 2018/19 due to the allocation not being spent in 2017/18 due to the timing of the development of suitable businesses cases by the New Zealand Cycle Trail (NZCT) Great Rides.