Vote Business, Science and Innovation - Supplementary Estimates 2018/19

Vote Business, Science and Innovation#

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Multi-Year Appropriations#

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

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 $2,000 to $2.429 million to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

Commerce and Consumer Affairs: Official Assignee Functions (M13)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $830,000 to $18.471 million for 2018/19 due to:

• $810,000 to reflect that increased expenditure is being incurred driven by the timing of case closures and the availability of funds from the estates to recover costs of the Official Assignee, and
• $20,000 to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

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

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $2.429 million to $23.601 million to reflect results of a review of the fees charged for trade mark, patent and design services. The increase aligns with the new fees.

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 $1.053 million to $44.475 million in 2018/19 due to:

• $800,000 transfer from 2017/18 to 2018/19 to reflect delays in a selection of vendor for the New Zealand Business Vendor (NZBN) website and it's development, and timing of NZBN adoption
• $250,000 adjustment to reflect recovery of funding from other agencies associated with the E-Invoicing initiative, and
• $3,000 increase to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

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

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $1.600 million to $7.009 million in 2018/19 due to:

• $1 million adjustment to fund the Standards NZ Transformation Programme and ICT Roadmap implementation and related cost, and
• $600,000 to reflect increased royalties cost of sales and commissioning fees payable on joint standards development projects.

Commerce and Consumer Affairs: Trading Standards (M13)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $2,000 to $4.930 million to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

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 $424,000 to $6.328 million for 2018/19 due to a transfer from 2017/18 to reflect delays in a range of security projects due to availability of partners and external providers of specialist technical support.

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 management of ongoing effective and efficient operations of the telecommunications capabilities of emergency services.

How Performance will be Assessed and End of Year Reporting Requirements

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 $7.395 million to $28.424 million in 2018/19 due to:

• $2.723 million transfer from Vote Internal Affairs (DIA) for the Digital Government Partnership initiative
• $2.500 million additional funding for the Alternative Risk Financing project and to reform government sourcing rules to give New Zealand companies greater access to, and to leverage broader economic outcomes from, procurement activities
• $1.000 million additional funding for the Better for Business (B4B) initiative to ensure that the deliverables were prioritised against the core programme objectives
• $819,000 to reflect estimated salary costs recovered from other agencies for the Ministry of Business, Innovation and Employment employees that are seconded
• $350,000 transfer from 2017/18 to 2018/19 to reflect delays in the Government Rules of Sourcing, Procurement Competency Framework, and the Online Panel Directory access model projects, and
• $3,000 to assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

Economic Development: Property Management Services (M25)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $1.639 million to $9.514 million in 2018/19 due to:

• $3 million transfer from Vote Primary Industries (MPI) to reflect the estimated property costs recovered from other agencies tenanting office space relating to the TSB lease
• $1 million adjustment that reflects the estimated property costs recovered from other agencies who have tenanted offices as part of the TSB lease

• $567,000 drawdown of funds to enable the Government Property Group (GPG) to meet additional contractual commitments with Precinct Properties due to capital programme delays since November 2017, and
• $485,000 drawdown to meet the Ministry of Business, Innovation and Employment's Wellington Accommodation Programme - Tranche Two (WAP2) related costs for the redevelopment of Pastoral House.

These increases are partially offset by a decrease of $3.413 million to reflect that the delegated authority for the Bowen State building has been transferred to the New Zealand Defence Force.

Economic Development: Property Management within the State Sector (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 $1,000 to $3.753 million for 2018/19 to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

Economic Development: Shared Support Services (M25)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the efficient provision of support services to enable the Ministry of Housing and Urban Development to deliver on its outputs.

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 2018/19 to provide support services to other agencies.

Energy and Resources: Information Services (M28)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1,000 to $2.506 million for 2018/19 to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

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

Reasons for Change in Appropriation

This appropriation increased by $212,000 to $18.636 million in 2018/19 due to:

• a $200,000 transfer from 2017/18 to 2018/19 to reflect that the field work to assess abandoned oil wells has been delayed, and
• $12,000 increase to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

Regional Economic Development: Regional Economic Development Programme (M101)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $495,000 to $2.305 million in 2018/19 due to a transfer of $500,000 to Vote Labour Market - Employment portfolio to allow the Sector Workforce Engagement Programme (SWEP) commence work to establish two additional jobs and skills hubs in Auckland. This decrease is partially offset by a $5,000 transfer from 2017/18 to 2018/19 to reflect minor delays with funding agreements.

Research, Science and Innovation: Innovative Partnerships (M84)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $114,000 to $1.886 million in 2018/19 due to a transfer of funding of $250,000 to the Policy Advice and Related Outputs MCA - Policy Advice - Science and Innovation to address a structural deficit in the policy advice appropriation and to re-align funding to more accurately reflect the work programmes.

This decrease is partially offset by the following increases:

• $135,000 transfer from 2017/18 to 2018/19 to reflect both delays in business case development due to third party timelines, and increased international demand for Innovative Partnership assistance in facilitating research and development opportunities, and
• $1,000 to assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

Research, Science and Innovation: National Research Information System (M84)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1,000 to $2.901 million for 2018/19 to assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

2.3 - Departmental Capital Expenditure and Capital Injections#

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

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $10.800 million to $79.528 million for 2018/19 due to movement in taxpayers funds and capital expenditure arising from forecasting changes and other adjustments.

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: Economic Regulation Inquiries (M13)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in this appropriation is due to a $1 million transfer to 2019/20 as a result of no economic regulation inquiries undertaken by the Commerce Commission in 2018/19.

Communications: Emergency Telecommunications 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 $10.255 million to $12.345 million in 2018/19 due to adjustments relating to phase 2 of the Emergency Caller Location Information (ECLI) project.

Communications: Enforcement of Telecommunications Sector Regulation (M8)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $621,000 to $6.621 million for 2018/19 due to:

• $4.121 million relating to the Telecommunications (New Regulatory Framework) Amendment Bill.

This increase is partially offset by the following decreases:

• $3.200 million transfer to assist with the establishment of the new Enforcement of Telecommunications Sector Fibre and Broadcasting Transmission Service Regulation MYA as a result of ring-fencing funds that specifically relate to changes to the Telecommunications Act 2001, and
• $300,000 transferred from 2018/19 to 2019/20 to fund new consumer related regulatory work resulting from recent changes to the Telecommunications Act 2001.

Economic Development: Assistance with Hosting of the 36th America's Cup (M25)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $36.500 million to $136.500 million in 2018/19 due to additional funding of $29.500 million to account for the expected shortfall in the construction budget for infrastructure to provide syndicate base sites, and a $7 million transfer from the Economic Development: Major Events Development Fund 2017-2022 MYA to support the hosting of the 36th America's Cup.

Economic Regulation of Electricity Line Services 2014-2019 (M13)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $10,000 to $29.083 million to reflect the agreed allocation of costs for this appropriation.

Economic Regulation of Gas Pipeline Services 2014-2019 (M13)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $282,000 to $10.148 million to reflect the agreed allocation of costs for this appropriation.

Economic Regulation of Specified Airport Services 2014-2019 (M13)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $179,000 to $3.069 million to reflect the agreed allocation of costs for this appropriation.

Energy and Resources: Energy Efficiency and Conservation (M28)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Energy and Resources: Implementation of the Grant Scheme for Warm, Dry Homes (M28)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

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

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $7 million to $20 million for 2018/19 to cover the increased costs of managing and funding of oil stocks and is attributable to an increase in the price and volume of oil tickets that are required to be purchased.

Enforcement of Telecommunications Sector Fibre and Broadcasting Transmission Service Regulation (M8)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the regulation of wholesale fibre fixed-line broadband services and the work in relation to broadcasting transmission service providers.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - A determination is a formal and binding decision made by the Commerce Commission under the legislation it administers.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Commerce Commission in its annual report.

Reasons for Change in Appropriation

This appropriation was established during 2018/19 for regulation of wholesale fibre fixed-line broadband services and the initial functions for regulation of broadcasting transmission service providers.

Research and Development Growth Grants (M84)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $4.850 million to $823.799 million to reflect the agreed allocation of costs for this appropriation.

Research, Science and Innovation: Endeavour Fund (M84)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $291,000 to $216.654 million for 2018/19 due to a transfer of $591,000 from 2017/18 to 2018/19 to reflect the delayed start of a contract. This increase is offset by a $300,000 transfer to the Research, Science and Innovation: Strategic Science Investment Fund MCA - Strategic Science Investment Fund - Programmes category to fund research into long-term solutions that address myrtle rust and kauri dieback and to provide transitional funding for AgResearch (Future Farming).

Research, Science and Innovation: National Science Challenges (M84)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $7.220 million to $66.246 million for 2018/19 due to a transfer of $7.410 million to 2019/20 to enable additional funds to be allocated to the National Science Challenges programme in phase two. This decrease is offset by an increase of $190,000 that was transferred from 2017/18 (from the former National Science Challenges MYA) to cover agreed funding envelopes for the second five-year phase of the National Science Challenges programme.

Research, Science and Innovation: Partnered Research Fund (M84)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $3.925 million to $33.846 million for 2018/19 due to:

• $7 million transfer to the Research, Science and Innovation: Strategic Science Investment Fund MCA - Strategic Science Investment Fund - Programmes category to fund research into long-term solutions that address myrtle rust and kauri dieback and also provides transitional funding for AgResearch (Future Farming), and

• $325,000 transfer from 2018/19 to 2019/20 due to a delay in the start of several contracts.

These decreases are offset by a $3.400 million transfer from 2017/18 to 2018/19 to offset later start and uneven drawdown profile of Partnership contracts that commenced in 2017/18.

Resource Data Acquisition and Management 2015-2018 (M28)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $455,000 for 2018/19 due to a transfer to the Policy Advice - Energy and Resources category to address a structural deficit in the appropriation and to provide funding for the change in government priorities including additional work programmes to support the transition to a low emissions economy.

3.2 - Non-Departmental Benefits or Related Expenses#

Research, Science and Innovation: R&D Tax Incentive (M84)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in this appropriation is due to the Research and Development Tax Incentive being transferred out of Vote Business, Science and Innovation into Vote Revenue during 2018/19 as Inland Revenue is the administrator of the Incentive.

3.4 - Non-Departmental Other Expenses#

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

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in this appropriation is due to a transfer from the Communications: Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure appropriation to the Communications: Telecommunications Development Levy Funded Procurement - Telecommunications Infrastructure Investment MYA to enable all payments for non-urban infrastructure be made out of the MYA.

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

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This multi-year appropriation under the former Communications portfolio was approved in Budget 2018 to be transferred to the Infrastructure portfolio. A fiscally-neutral transfer of $101,448 was made in 2018/19 from this appropriation to the replacement appropriation, Infrastructure: Telecommunications Development Levy Funded Procurement - Telecommunications Infrastructure Investment, to provide on-going funding for improved rural broadband and mobile connectivity in New Zealand.

Economic Development: Attracting International Screen Productions (M25)

Scope of Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to attract international screen production projects to locate in New Zealand, leverage economic benefits for New Zealand, and provide a suite of services to support international clients during their time in New Zealand.

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 decreased by $7 million to $45.325 million for 2018/19 due to a transfer to the Economic Development: Assistance with Hosting of the 36th America's Cup 2018-2022 MYA to support the hosting of the 36th America's Cup.

Economic Development: Management Development Fund (M25)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $350,000 to $1.106 million for 2018/19 due to a transfer from 2017/18 to 2018/19 to reflect that the Prime Minister's Business Scholarships require a higher funding commitment i.e. five to six additional scholarships.

Economic Development: Maori Innovation Fund (M46)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $3.042 million to $4.042 million for 2018/19 due to a transfer from 2017/18 to 2018/19 to reflect the timing of funds being paid upon the successful delivery of milestones and outputs agreed when the grant is approved. The timing of these milestones can vary between grants and often span over financial years.

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

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $130 million to $458.082 million for 2018/19 due to the additional funding to support the existing grant scheme approved in Budget 2019.

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

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $33.238 million to $1.476 million due to a transfer of funding to the Regional Economic Development: Provincial Growth Fund appropriation.

Energy and Resources: Electricity Litigation Fund (M28)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $556,000 to $1 million for 2018/19 due to a transfer from 2017/18 to 2018/19 to allow the Electricity Authority to be an effective regulator and participate in litigations when required.

Energy and Resources: Grant Scheme for Warm, Dry Homes (M28)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $6.103 million to $138.343 million for 2018/19 due to a transfer from the Energy and Resources: Home Insulation and the Energy and Resources: Implementation of the Home Insulation Programme appropriations that expired on 30 June 2018.

Energy and Resources: International Energy Agency Contribution (M28)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $100,000 to $250,000 for 2018/19 due to an adjustment to account for inflation and exchange rate fluctuations and also to allow for voluntary contributions to be made to International Energy Agency research and policy work under Ministerial direction.

Infrastructure: Regional Digital Connectivity Improvements (M80)

Scope of Appropriation and Expenses

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 Limited in its annual report.

Reasons for Change in Appropriation

This new appropriation was established during 2018/19 to provide investment for digital connectivity in the regions. The $80 million was funded from the Provincial Growth Fund.

Provision of ACC-equivalent cover for New Zealand employees working overseas PLA (M25)

Scope of Appropriation

Expenses

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 other expense is less than $5 million.

Reasons for Change in Appropriation

This appropriation was established during 2018/19 to allow accident cover for spouses/partners and dependants of New Zealand employees posted overseas.

Regional Economic Development: Fair Value Write Down (M101)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to account for fair value write downs on concessional loans made from the Provincial Growth Fund.

End of Year Performance Reporting

An exemption was granted under section 15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because any expenses associated with fair value write-down are non-cash and for accounting purposes only.

Reasons for Change in Appropriation

This appropriation was established during 2018/19 to account for fair value write downs on concessional loans made from the Provincial Growth Fund.

Research, Science and Innovation: Catalyst Fund (M84)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $2.500 million to $10.751 million for 2018/19 due to an adjustment of $6.200 million. This increase in 2018/19 was offset by a $1.200 million transfer to 2019/20 and $2.500 million transfer to 2020/21 as a result of delays in negotiating a joint investment programmes with Australia.

Research, Science and Innovation: Regional Research Institutes (M84)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $10.977 million to $9.023 million for 2018/19 due to a transfer of $13.002 million to 2020/21 to reflect that delays in key appointments and the on boarding of new research scientists are pushing substantial payroll and overhead costs into out years.

This decrease is offset by the following increases:

• $1.025 million transfer from 2017/18 to 2018/19 to align with the contract end date and payment schedule for the NZ Wine Research Centre Regional Research Institute (RRI), and
• $1 million transfer from 2017/18 to 2018/19 to reflect delays establishing and negotiating collaborations for the Centre for Space Science Technology (CSST) contract.

Tourism Infrastructure Fund (M69)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $8.500 million to $36.500 million due to a transfer to the Tourism Facilities MCA - Tourism Facilities Development Grant category, to enable short-term solutions to issues with freedom camping before the peak summer 2018/19 season.

3.5 - Non-Departmental Capital Expenditure#

Research, Science and Innovation: Callaghan Innovation (M84)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $3.017 million to $24.169 million for 2018/19 due to a transfer of $4.430 million from 2017/18 to 2018/19 to reflect a delay in finalisation of Callaghan Innovation's programme business case for the Callaghan Innovation Quarter (Gracefield). This increase is offset by a transfer of $1.413 million to Science and Innovation: Callaghan Innovation Operations - MCA Research and Development Services and Facilities for Business and Industry category for demolition work at the Gracefield site that cannot be capitalised.

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

Multi-Category Expenses and Capital Expenditure#

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

Overarching Purpose Statement

Scope of Appropriation

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

Communications: Services for Deaf, Hearing Impaired and Speech Impaired People (M8)

Overarching Purpose Statement

Scope of Appropriation

How Performance will be Assessed for this Appropriation

Policy Advice and Related Outputs (M25)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $3.789 million to $60.690 million for 2018/19 due to:

• $925,000 transferred from the Sectoral Data Analysis MCA to the Policy Advice and Related Outputs MCA - Policy Advice - Communications category to cover Techweek sponsorship
• $750,000 transferred from 2017/18 to 2018/19 in the Related Services to Ministers - Economic Development category to reflect delays of the regulatory implementation activities of the Outer Space and High Altitude Activities Act 2017
• $650,000 transferred from Innovative Partnerships and Science and Innovation Contract Management MCA to address a structural deficit in the policy advice appropriation and to re-align funding to more accurately reflect the work programmes in Policy Advice and Related Outputs MCA - Policy Advice - Science and Innovation category

• $648,000 transferred from Vote Internal Affairs (DIA) for the Chief Technology Officer costs
• $455,000 transferred to the Policy Advice and Related Outputs MCA - Policy Advice - Energy and Resources category from the Resource Data Acquisition and Management - MYA to address a structural deficit and provide funding for the change in government priorities including additional work programmes to support low emissions economy and the No New Mines programme
• $400,000 transferred from 2017/18 to 2018/19 to the Policy Advice and Related Outputs MCA - Policy Advice - Tourism category to support consultancy activity required for the China Year of Tourism 2019 initiative
• $200,000 transferred from the Sector Analysis and Facilitation MCA to Policy Advice and Related Outputs MCA - Policy Advice - Tourism category to fund the increase in Policy capability and capacity specifically required for the development, launch and implementation of the Tourism Strategy
• $58,000 increase to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy, in most of the categories within this MCA

• $50,000 adjustment to gross up the costs and revenue associated with the Government Regulatory Practice initiative, and
• $17,000 final adjustment relating to the establishment of the new Ministry of Housing and Urban Development.

These increases are partially offset by a decrease of $364,000 to reflect the funding transferred from the Policy Advice and Related Outputs MCA - Policy Advice - Economic Development category to Vote Housing and Urban Development to assist with the establishment of the new Ministry of Housing and Urban Development.

Regional Economic Development: Provincial Growth Fund (M101)

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 $167.404 million to $550.746 million for 2018/19 due to:

• $383.132 million to enable the development of integrated investment packages for the Provincial Growth Fund (PGF)
• $112.241 million transfers of unspent funds from 2017/18 to 2018/19 as approved at the establishment of the PGF

• $33.238 million transfer of the total funding from the Economic Development: Regional Growth Initiatives MYA and 2017/18 underspend to PGF
• $5.057 million increased funding to cover fair value right downs in loans
• $4 million transfer of the Hundertwasser Art Gallery contract in the Tourism portfolio to the PGF, and
• $19,000 to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

These increases are partially offset by the following decreases:

• $120.218 million transfer to Vote Transport to implement KiwiRail and State Highway projects

• $80 million transfer to establish the Infrastructure: Regional Digital Connectivity Improvements MYA in the Infrastructure portfolio
• $50 million transfer to Vote Transport to fund KiwiRail's capital requirements to maintain it's rail network across New Zealand
• $34 million transfer to Vote Transport to implement Tairawhiti Roading Package and other road projects

• $27.230 million transfer to Vote Conservation to fund the Dolomite Point and Cook Landing projects
• $21.899 million transfer to Vote Forestry to support approved one billion trees (1BT) projects
• $16.250 million transfer to Vote Transport for approved regional Transport projects and to enable the Ministry of Transport to enable oversight and evaluation of transport-related projects
• $8.836 million transfer to Vote Pacific Peoples to support the Te Ara Mahi (Pathways to Work) initiative
• $6.080 million transfer to Vote Transport to support the Kaipara Package
• $2.938 million transfer to capital injection, and
• $2.832 million transfer to Vote Transport, Vote Agriculture, Biosecurity, Fisheries and Food Safety, and Vote Maori Development for resource to implement the PGF.

Within the appropriation there have been the following transfers between categories:

• $60.028 million to consolidate the Regional Projects and Capability category from the Operational Supporting Regional and Sector Initiatives category
• $24.230 million from Supporting Regional and Sector Initiatives, to establish the Operational Support of Regional and Sector Initiatives category for departmental resource to implement the PGF
• $500,000 from Supporting Capital Projects to Provincial Growth Fund Limited Capital Investment, and
• $250,000 from Supporting Regional and Sector Initiatives to Provincial Growth Fund Investment Management.

Research, Science and Innovation: Callaghan Innovation - Operations (M84)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $1.413 million to $61.064 million for 2018/19 due to a transfer of $1.413 million from the Research, Science and Innovation: Callaghan Innovation appropriation for demolition work at the Gracefield site that cannot be capitalised.

Research, Science and Innovation: Contract Management (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 $1.547 million to $31.162 million for 2018/19 due to:

• $1.946 million transfer from 2017/18 to 2018/19 to reflect a refocusing of the Investment Process System Design project (ISPD) following the recommendation of the independent quality assurance to change the structure and scope of the project to include business process optimisation and transformation. This work was undertaken in 2017/18 which deferred the high level requirements for the project until late 2018. This delayed the next phases (solution analysis, detailed requirements, designs and procurement process) of the project to 2018/19, and
• $1,000 increase to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

These increases are offset by a $400,000 transfer to the Policy Advice and Related Outputs MCA - Policy Advice - Science and Innovation category to address a structural deficit in the policy advice appropriation and to re-align funding to more accurately reflect the work programmes in that category.

Research, Science and Innovation: Strategic Science Investment Fund (M84)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

How Performance will be Assessed for this Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $7.899 million to $263.364 million for 2018/19 due to:

• $7.500 million transfer to 2019/20 required to fund myrtle rust and kauri dieback strategic research and transitional funding for AgResearch (Future Farming) for 2019/20
• $4.500 million transfer to 2019/20 reflecting the delay in contracting a national genomics for precision medicine research infrastructure project
• $3.300 million transfer to 2019/20 reflecting a delay to contracting myrtle rust and kauri dieback surge research platform
• $1.880 million transfer to 2019/20 to reflect the timing in the Antarctica Science platform
• $1.850 million transfer to 2019/20 and 2020/21 to cover a forecasted deficit due to delays in the investment processes in Data Science and Genomics for Precision Medicine.
• $1.549 million transfer to 2019/20 as additional funding for the new Antarctica Science Platform MYA, and
• $250,000 transfer to the Research, Science and Innovation: Talent and Science Promotion MCA - Science in Society category to run a pilot project to develop a bespoke educational resource kit focused on space science.

These decreases are offset by the following increases:

• $7.300 million transfer within the Research, Science and Innovation portfolio to fund research into long-term solutions that address myrtle rust and kauri dieback and also provides transitional funding for AgResearch (Future Farming)
• $2.880 million transfer from 2017/18 to 2018/19 reflecting the delays in the wind up of New Zealand Genomics Limited
• $2.500 million transfer from 2017/18 to 2018/19 reflecting the deferral of the Increasing Hazards Monitoring Capability platform start date to 2018/19
• $250,000 release of contingency funding to support the science co-operation with Singapore initiative.

Research, Science and Innovation: Talent and Science Promotion (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 decreased by $1.367 million to $26.519 million for 2018/19 as a result of a transfer of $1.617 million to 2019/20 and outyears to address forecast deficits. This decrease is offset by a transfer of $250,000 from the Science Strategic Investment Fund MCA to pilot project to develop a bespoke educational resource kit focused on space science.

Sector Analysis and Facilitation (M25)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation decreased by $116,000 to $6.531 million for 2018/19 due to:

• a transfer of $925,000 to the Policy Advice and Related Outputs MCA - Policy Advice - Communications category to assist with the sponsorship of Techweek, and
• a transfer of $200,000 to the Policy Advice and Related Outputs MCA - Policy Advice - Tourism category to fund the increase in policy capability and capacity specifically required for the development, launch and implementation of the Tourism Strategy.

These decreases are partially offset by the following increases:

• a transfer of $1 million from 2017/18 to 2018/19 to reflect that staff number shortages are causing delays in a number of deliverables within the Sectoral Data and Analysis - Economic Development programme which has been deferred to 2018/19, and
• $9,000 increase to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

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

Overarching Purpose Statement

Scope of Appropriation

What is Intended to be Achieved with this Appropriation

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 $4.500 million to $26.731 million for 2018/19 due to a transfer from the International Growth Fund category to the Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA - International Business Growth Services category to fund NZTE's digital programme, in addition to NZTE's continuous improvement programme.

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

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $3.927 million to $172.192 million for 2018/19 due to:

• a $2 million transfer from the Support New Market Opportunities to Grow Firms and Sectors for the Benefit of New Zealand MCA to fund NZTE's digital programme in addition to NZTE's continuous improvement programme
• a $831,000 transfer from 2017/18 to 2018/19 for the Saudi Agri-hub project
• a $763,000 to reflect the effects of foreign exchange movements on output prices, and
• a $333,000 transfer from Education New Zealand to support the 'New Zealand Story' initiative.

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Tourism Facilities (M69)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

How Performance will be Assessed for this Appropriation

Reasons for Change in Appropriation

This appropriation increased by $11 million to $30.202 million for 2018/19 due to:

• $8.500 million transfer from the Tourism Infrastructure Fund to enable short-term solutions to issues with freedom camping before the peak summer 2018/19 season
• $5 million transfer from 2017/18 to 2018/19 to reflect that several of the Cycleways have experienced delays in developing their business cases for trails, and expenditure has been incurred 2018/19, and
• $1.500 million transfer from 2017/18 to 2018/19 to reflect that a number of extreme weather events in 2017/18 have delayed planned work on several cycleway enhancement projects as resources have been diverted to immediate urgent work.

These increases are partially offset by a transfer of $4 million to the Provincial Growth Fund MCA to reflect that the contract for the Hundertwasser Art Gallery initiative has been transferred to the Regional Economic Development portfolio.