Vote Business, Science and Innovation - Supplementary Estimates 2019/20

Vote Business, Science and Innovation#

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Details of Appropriations and Capital Injections#

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Annual Appropriations and Forecast Permanent Appropriations#

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Multi-Year Appropriations#

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

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Capital Injection Authorisations#

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Supporting Information#

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Part 1 - Vote as a Whole#

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1.2 - Trends in the Vote#

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Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

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2.1 - Departmental Output Expenses#

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Commerce and Consumer Affairs: Consumer Information (M13)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation decreased by $0.164 million to $2.268 million for 2019/20 due to:

• a $0.161 million decrease as a result of merging of the Motor Vehicle Traders Information memorandum account into the Motor Vehicles Traders Register memorandum account; and
• a $0.003 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Commerce and Consumer Affairs: Official Assignee Functions (M13)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $5.446 million to $23.251 million for 2019/20 due:

• a $3.210 million increase as a result of a change in accounting policy from 2019/20 onwards;
• a $1.246 million increase to fund the recovery of Official Assignee costs;
• a $0.900 million increase (offset by third party revenue) due to higher operational cost; and
• a $0.126 million increase to fund a new remuneration framework (Collective Employment Agreement).

This increase is partially offset by a $0.036 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

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 $0.109 million to $26.427 million for 2019/20 due to:

• a $0.079 million increase to fund a new remuneration framework (Collective Employment Agreement); and
• a $0.030 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Memorandum Account

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 $0.997 million to $46.297 million for 2019/20 due to:

• a $2.734 million increase as a result of a number of delays in programmes meaning funding has been moved from 2018/19 into 2019/20;
• a $0.950 million increase (offset by third party revenue) due to higher operational costs the organisation is facing;
• a $0.575 million increase (offset by third party revenue) resulting from a significant increase in costs which was driven by an increase in identified serious non-compliance in the Motor Vehicle Trader Regulatory area;
• a $0.161 million increase due to merging of the Motor Vehicle Traders Information memorandum account into the Motor Vehicles Traders Register memorandum account;
• a $0.157 million increase to fund a new remuneration framework (Collective Employment Agreement; and
• a $0.020 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

This increase is partially offset by a $3.600 million decrease to correct a Budget Initiative from Budget 2019 which was incorrectly allocated.

Memorandum Account

 

The Motor Vehicle Traders Information Programme memorandum account was merged into the Motor Vehicle Traders Register during 2019/20.

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

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $1.360 million to $7.369 million for 2019/20 due to:

• a $1.110 million increase to fund the ICT Roadmap and XML conversion transformation projects; and
• a $0.250 million increase (offset by third party revenue) reflecting increased royalties' cost of sales and commissioning fees payable on joint standards development projects.

Memorandum Account

Commerce and Consumer Affairs: Trading Standards (M13)

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 $0.080 million to $5.016 million for 2019/20 due to the reallocation of funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Communications: Cyber Security Services (M8)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $0.015 million to $8.090 million for 2019/20 due to:

• a $0.008 million increase to fund a new remuneration framework (Collective Employment Agreement); and
• a $0.007 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Communications: Management and Enforcement of the Radiocommunications Act 1989 (M8)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $0.052 million to $9.663 million for 2019/20 due to:

• a $0.043 million increase to fund a new remuneration framework (Collective Employment Agreement); and
• a $0.009 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Memorandum Account

Communications: Management of Emergency Telecommunications Services (M8)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation decreased from $0.134 million to $0.000 million for 2019/20 as the funding was transferred into the Communications: Management of Emergency Telecommunications MCA during the year.

Communications: Pacific Cyber Security Initiatives (M8)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of direct support to Pacific partners and through the Pacific Cybersecurity Operation Network (PaCSON), assist in the development of incident response capacity and cybersecurity awareness in the Pacific region, and to support cybersecurity capacity building in the Pacific, and the 'Pacific Reset.'

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 increased by $0.456 million to support the cybersecurity skills and capabilities of countries in the Pacific region in the Pacific.

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 $12.873 million to $36.278 million for 2019/20 due to:

• a $5.600 million increase to fund the All-of-Government Procurement function;
• a $3.600 million increase to correct a Budget Initiative from Budget 2019 that was incorrectly allocated;
• a $3.550 million increase as a result of a number of delays in programmes meaning funding has been moved from 2018/19 into 2019/20;
• a $0.300 million increase due to the Construction Sector Transformation Plan which is a package of programmes that will be delivered by government and industry over three years to achieve the goals of the Construction Sector Accord;
• a $0.152 million increase to fund a new remuneration framework (Collective Employment Agreement); and
• a $0.021 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

This was partially offset by a decrease of $0.350 million due to funding transferred to the telecommunications relay service.

Memorandum Account

Economic Development: Shared Support Services (M25)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $1 million to $2 million for 2019/20 to continue to provide the corporate shared services to other Crown agencies.

Energy and Resources: Information Services (M28)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $0.023 million to $2.533 million for 2019/20 due a $0.028 million increase to fund a new remuneration framework (Collective Employment Agreement).This is partially offset by a $0.005 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

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 $0.886 million to $19.590 million for 2019/20 due to:

• a $0.800 million increase to fund cost for the decommissioning of oil fields; and
• a $0.111 million increase to fund a new remuneration framework (Collective Employment Agreement).

This is partially offset by a $0.025 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Memorandum Account

Research, Science and Innovation: Innovative Partnerships (M84)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $0.011 million to $3.015 million for 2019/20 due a $0.013 million increase to fund a new remuneration framework (Collective Employment Agreement). This is partially offset by a $0.002 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

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

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 $0.645 million to $2.549 million for 2019/20 due to:

• a $0.631 million increase due to a delay in commencing work on the National Research Information System, moving funding from 2018/19 into 2019/20; and
• a $0.016 million increase to fund a new remuneration framework (Collective Employment Agreement).

This increase is partially offset by a $0.002 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

State Services: Property Management Services (M66)

Scope of Appropriation

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

An exemption was granted under s15D(1) of the Public Finance Act 1989 as the appropriation relates exclusively to outputs supplied by a department to 1 or more other departments.

Reasons for Change in Appropriation

This appropriation increased by $0.667 million to $12.643 million for 2019/20 due to the Pastoral House co-location agreement service for the Ministry of Primary Industries.

State Services: Property Management within the State Sector (M66)

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 $0.256 million to $4.012 million for 2019/20 due to:

• a $0.250 million increase as a result of delays in the planned upgrade to keep the Government Property Portal (GPP) system supported and up to date, meaning funding has been moved from 2018/19 into 2019/20; and
• a $0.007 million increase to fund a new remuneration framework (Collective Employment Agreement).

This increase is partially offset by a $0.001 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

Tourism: International Visitor Conservation and Tourism Levy Collection (M69)

Scope of Appropriation

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Tourism: Tourism Fund Management (M69)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $0.001 million to $0.791 million for 2019/20 due to the reallocation of funding for the implementation and on-going costs of a new payroll system (approved at Budget 2019) that better reflects where operational expenses will be incurred.

2.2 - Departmental Other Expenses#

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GST obligation for the Official Assignee (M13)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve that prior year GST obligations on revenue received by the Official Assignee are met.

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 increased by $3 million for 2019/20 as it was established to meet a prior year GST obligation on revenue received by the Official Assignee.

2.3 - Departmental Capital Expenditure and Capital Injections#

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

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $30.453 million to $111.705 million for 2019/20 due to 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#

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3.1 - Non-Departmental Output Expenses#

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Commerce and Consumer Affairs: Competition Studies (M13)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $0.132 million to $1.632 million for 2019/20 due to the transfer of funding from 2018/19 to 2019/20 as a result of delays in the Commerce Amendment Act 2018.

Commerce and Consumer Affairs: Economic Regulation Inquiries (M13)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation has decreased from $1.000 million to $0.000 million for 2019/20 due to a transfer from 2019/20 to 2020/21 to reflect that no economic regulation inquiries were undertaken in 2019/20.

Commerce and Consumer Affairs: Regulation of Airport Services 2019-2024 (M13)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Communications: Emergency Telecommunications Services (M8)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $3.530 million to $11.020 million for 2019/20 due to:

• a $2.940 million increase due to technical issues resulting in mobile network operators deferring the activation dates of 4G voice networks, meaning funding has been moved from 2018/19 to 2019/20; and
• a $0.590 million increase as funding has been brought forward from 2020/21 to 2019/20 to support the emergency caller location work programme, the identification of new technical dependencies, and additional security testing requirements.

Communications: Enforcement of Telecommunications Sector Regulation (M8)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $0.250 million to $6.750 million for 2019/20 due to delays in a new regulatory framework, with work now set to occur in 2020/21.

COVID-19 tourism response (M69)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of a domestic tourism campaign in the most affected regions.

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 category for a non-departmental output expense is less than $5 million.

Reasons for Change in Appropriation

This appropriation increased by $1.000 million for 2019/20 as the appropriation was established in response to the impacts of COVID-19 on the tourism sector.

Economic Development: Administration of Early Stage Capital Market Development (M25)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve efficient administration of the government's investment into early stage capital market development.

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.

Reasons for Change in Appropriation

This appropriation increased by $0.500 million for 2019/20 as it was established to cover administration costs for the Early Stage Capital Market Development.

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

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Energy and Resources: Electricity Industry Governance and Market Operations (M28)

Scope of Appropriation

Expenses

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

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

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $15.500 million to $23.500 million for 2019/20 to address the increasing cost of New Zealand's international energy treaty obligation.

Energy and Resources: Managing the Security of New Zealand's Electricity Supply 2017-2022 (M28)

Scope of Appropriation and Expenses

Energy and Resources: Oil Field Decommissioning (M28)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the demobilisation and decommissioning of New Zealand oil fields.

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 increased by $151.841 million for 2019/20 to meet the costs of decommissioning oil fields.

Research and Development Growth Grants (M84)

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 $45.690 million to $778.109 million in 2019/20 due to:

• a decrease of $34.490 million relating to the reprioritisation of funding to maintain momentum in the Research, Science and Innovation portfolio;

• a decrease of $10.370 million to transfer Research and Development Tax Incentive funding to Inland Revenue; and
• a decrease of $0.830 million to transfer funding to Callaghan Innovation to deliver the Information, Education and Engagement programme.

Research, Science and Innovation: Antarctica Science Platform (M84)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $36.549 million to $0.000 million due to the transfer of programme funding into the Research, Science and Innovation: Strategic Science Investment Fund (MCA), Strategic Science Investment Fund - Programmes category.

Research, Science and Innovation: Endeavour Fund (M84)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation decreased by $5.623 million to $217.613 million for 2019/20 due to the increasing length of projects requested by applicants, resulting in delays for the fund.

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

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $13.670 million to $131.159 million for 2019/20 due to additional funding to support projects and accelerate innovation in response to COVID-19.

Research, Science and Innovation: National Measurement Standards (M84)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

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

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $29.700 million to $440.475 million for 2019/20 due to:

• $19.000 million being transferred to increase the Strategic Science Investment Fund Platforms programmes funding for Crown Research Institutes; and
• $10.700 million being transferred to increase the impact of Vision Matauranga through investment that attracts and grows Maori talent in the Research, Science and Innovation System.

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

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation decreased by $2.557 million to $36.916 million for 2019/20 due to:

• a decrease of $2.700 million as a result of delays in 2019/20 with funding being transferred to 2020/21; and
• a decrease of $1.910 million due to the reprioritisation of funding to maintain momentum in the Research, Science and Innovation portfolio.

This was partially offset by an increase of $2.053 million, transferred from 2018/19 to 2019/20 due to delays in the New Zealand Food Safety Science and Research Centre initiative.

Resource Data Acquisition and Management 2015-2018 (M28)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Aeromagnetic survey measures natural variations in the earth's magnetic field. This information can then be used to identify areas where the geology has mineral potential and provides useful information that mineral companies can use as a starting point to carry out further exploration.

Science and Innovation: Repayable Grants for Start-Ups (M84)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $6.033 million to $10.213 million for 2019/20 due to an increase of $24.557 million as a result of funding transferred from 2018/19 due to delays in the remedial works on the Gracefield campus. This was partially offset by:

• a decrease of $23.100 million to reprioritise funding to maintain momentum in the Research, Science and Innovation portfolio; and
• a decrease of $7.490 million to transfer funding out to support projects and accelerate innovation in response to COVID-19.

Targeted Business Research and Development Funding (M84)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Tourism: Marketing of New Zealand as a Visitor Destination (M69)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $9.700 million to $121.150 million for 2019/20 due to additional funding of $10.000 million to respond to the impacts of COVID-19 on the tourism sector which was offset by a decrease of $0.300 million of funding transferred out to Vote Justice for the Maori response package.

Transitional provision of mail services by New Zealand Post (M8)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of mail services at the level required under the Deed of Understanding, over a three-year transitional period, to retain the social benefits associated with mail services such as connectivity and civic engagement, maintain a particular price path for mail services over the period, and cost efficiency.

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 New Zealand Post in its annual report.

Reasons for Change in Appropriation

The increase in this appropriation of $130.000 million is due to additional funding for New Zealand Post to maintain the social benefits associated with mail services such as connectivity and civic engagement, and to ensure New Zealand Post's postal delivery service obligations are maintained.

3.4 - Non-Departmental Other Expenses#

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Commerce and Consumer Affairs: Financial Markets Authority Litigation Fund (M13)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $4.000 million to $6.000 million for 2019/20 due to increases in costs associated with the Financial Markets Authority's regulatory responsibilities as well as increases in the cost and complexity of investigations.

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

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation decreased by $52.321 million to $0.000 million in 2019/20 due to the transfer of funding into the Infrastructure: Telecommunications Development Levy Funded Procurement - Telecommunications Infrastructure Investment MYA.

Economic Development: Business Support Packages (M25)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve business support in Whakatane District and Westland District.

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 at $5.000 million for 2019/20 to deliver support to businesses in the Whakatane and Westland districts.

Economic Development: Depreciation on Auckland's Queens Wharf (M25)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $1.000 million to $3.000 million for 2019/20 to account for depreciation expenses related to the revalued Cloud structure on Auckland's Queens Wharf.

Economic Development: Major Events Business Leverage Programme: Rugby World Cup 2019 (M25)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

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.

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

Economic Development: National New-Energy Development Centre (M28)

Scope of Appropriation

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 the Minister of Energy and Resources in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation decreased by $3.800 million to $1.200 million for 2019/20 due to a delay in preparing the business case and the finalised costs, transferring funding into 2020/21 onwards.

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

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased from by $146.500 million to $604.582 million due to an increase in funding to ensure the on-going operation of the grant.

Energy and Resources: Electricity Litigation Fund (M28)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $0.556 million to $1.000 million for 2019/20 due to the unexpectedly low level of litigation, meaning funding has moved from 2018/19 to 2019/20.

Infrastructure: Regional Digital Connectivity Improvements (M80)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

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

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $52.321 million to $153.821 million in 2019/20 due to the transfer of funding from the Communications: Telecommunications Development Levy Funded Procurement - Telecommunications Infrastructure Investment MYA.

Maori Development: Maori Innovation Fund (M46)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $1.500 million to $2.500 million for 2019/20 due to the delay in the timing of milestones for programmes within the Maori Innovation Fund which can vary between grants and often span over financial years, meaning funding has moved from 2018/19 to 2019/20.

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 increased by $36.000 million for 2019/20 as funding was transferred from 2018/19 to 2019/20 due to delays resulting from negotiations & signing of loan agreements occurring later than originally phased.

Research, Science and Innovation: Catalyst Fund (M84)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $13.158 million to $30.609 million for 2019/20 due to:

• a $14.000 million increase to release contingency funding for the second tranche of the Science Cooperation with Singapore;
• a $7.000 million increase to reprioritise funds from the Research, Science and Innovation portfolio to make the most of investment in science and innovation in light of emerging opportunities; and
• a $3.158 million increase as a result of delays in two programmes that needed to engage further between the New Zealand and international partner research communities, meaning funding has been moved from 2018/19 to 2019/20.

This increase is partially offset by a $11.000 million decrease due to delays within various Catalyst Fund projects due to the ability of councils to engage contractors, transferring funding into 2020/21 onwards.

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

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $9.528 million to $12.880 million for 2019/20 due to:

• a $5.528 million decrease from delays in the planned establishment activities, including staff recruitment and the start of research projects, meaning funding has been moved from 2019/20 to 2020/21 and out years; and
• a $4.000 million decrease to reprioritise funds from the Research, Science and Innovation portfolio to make the most of investment in science and innovation in light of emerging opportunities.

Tourism Infrastructure Fund (M69)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $0.382 million to $17.382 million for 2019/20 due to a $16.292 million increase due to a delay in decisions on the allocation of funding, meaning funding has been moved from 2018/19 into 2019/20.

This increase is partially offset by:

• a $15.000 million decrease due to delays within various Tourism Infrastructure Fund projects due to the ability of councils to engage contractors, transferring funding into 2020/21 onwards;
• a $0.710 million decrease to reallocate funding to establish a small team to manage and operationalise changes to the responsible camping system and develop advice on ensuring a sustainable future for responsible camping; and
• a $0.200 million decrease to reallocate funding to run a customer insight project titled the 'Climate Consciousness' project.

Tourism: Tourism Strategic Infrastructure and System Capability (M69)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation decreased by $30.000 million to $11.808 million for 2019/20 due to the Investment Plan taking longer to approve than expected, transferring funding into 2020/21 onwards.

Worker Redeployment Package (M101)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support businesses and workers that are affected by the COVID-19 outbreak. It will help provide training and redeployment options.

End of Year Performance Reporting

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative as this appropriation is solely for payments related to the COVID-19 response.

Reasons for Change in Appropriation

This appropriation increased by $89.350 million for 2019/20 due to funding of $100.000 million for the worker redeployment package as a response to COVID-19, which was partially offset by a decrease of $10.650 million to support Tairawhiti and Forestry worker redeployment by other Government agencies.

3.5 - Non-Departmental Capital Expenditure#

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Economic Development: Early Stage Capital Market Development (M25)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation has been transferred to Vote Finance.

Infrastructure: Broadband Investment (M80)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $10.000 million to $592.500 million due to work on the Milford Digital Link.

Regional Economic Development Capital Investments (M101)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of funding to the Crown's investment in Provincial Growth Fund Limited.

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 Regional Economic Development in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation increased by $81.400 million due to:

• an increase of $79.400 million to fund regional investment opportunities; and
• an increase of $8.500 million to work on the West Coast ports.

This was partially offset by a decrease of $6.500 million for funding transferred to the Whakatane Kainga project.

Regional Economic Development Investments (M101)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of funding the Crown's investment in Regional Opportunities.

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 Regional Economic Development in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation increased by $7.500 million for 2019/20 due to the drawdown of a tagged contingency for the Whakatane Kainga project.

Regional Economic Development: Transfer of investments (M101)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the transfer of MBIE funded Provincial Growth Fund investments, and other regional economic development investments to Provincial Growth Fund Limited.

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 Regional Economic Development in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation increased by $170.000 million for 2019/20 as the appropriation was established to transfer investments from the Ministry of Business, Innovation and Employment to the newly created Provincial Growth Fund Limited.

Research, Science and Innovation: Callaghan Innovation (M84)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $3.017 million to $41.067 million for 2019/20 due to delays in 2018/19 for the approval of the Gracefield Innovation Quarter Programme business case.

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

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Multi-Category Expenses and Capital Expenditure#

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

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

End of Year Performance Reporting

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

Commerce Commission Litigation Funds (M13)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

End of Year Performance Reporting

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

Communications: Management of Emergency Telecommunications (M8)

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 continued operation of the Emergency Caller Location Information (ECLI) service, and support the development and implementation of possible international commercialisation opportunities for ECLI technology to potentially generate new revenue streams for New Zealand.

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 $0.133 million for 2019/20 as it was established during the financial year with funding of $0.134 million. This was offset by a $0.001 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

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

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $0.795 million to $5.479 million for 2019/20 due to:

• an increase of $0.700 million to fund the telecommunications relay service; and
• an increase of $0.095 million as a result of delays in the Telecommunications Relay Service in 2018/19 which meant funding was transferred into 2019/20.

Policy Advice and Related Outputs (M25)

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 $3.922 million to $61.014 million for 2019/20 due to:

• a $1.076 million increase for delays in various programmes and projects across the appropriation;
• a $0.710 million increase to enable MBIE to establish a team to manage and operationalise changes to the responsible camping system;
• a $0.700 million increase to realign funding for the Ministry of Foreign Affairs and Trade and the Maori Spectrum Working Group;
• a $0.500 million increase as part of the reprioritisation of funding within the Research, Science and Innovation portfolio;
• a $0.300 million increase for funding the closing ceremony of China-New Zealand Year of Tourism which fell in the 2019/20 financial year;
• a $0.253 million increase to fund a new remuneration framework (Collective Employment Agreement);
• a $0.200 million increase to fund the Climate Consciousness project;
• a $0.186 million increase for the reimbursement of fees for a baseline review;
• a $0.092 million increase to transfer the appointments function for the Crown Research Institutes, REANNZ and NZ Venture Investment Fund from the Treasury to MBIE;
• a $0.038 million increase to reflect the estimated salary costs recovered from the other agencies.

These increases were offset by a $0.133 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

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 $288.046 million to $1,274.832 million for 2019/20 due to:

• a $459.132 million increase to transfer underspends from the 2018/19 financial year to the 2019/20 financial year;
• a $32.095 million increase for the drawdown of an operating tagged contingency to support manifesto commitments for the regions;
• a $16.095 million increase for new funding for the Tairawhiti Local Road projects;
• a $0.210 million increase for the operating costs recovered from Provincial Growth Fund Limited;
• a $0.178 million increase to reflect salary costs recovered for secondments to a third-party agency;
• a $0.151 million increase for resource support for Waka Kotahi (New Zealand Transport Agency);
• a $0.080 million increase to fund a new remuneration framework (Collective Employment Agreement) subject to negotiations concluding; and
• a $0.011 million increase to pay interest earned from a loan advance held in Lawyer's stakeholder funds.

These were offset by decreases due to:

• a $94.800 million decrease to transfer funds from the Provincial Growth Fund for Regional Rail Investments;
• a $30.250 million decrease to amend contingency funding for emerging priorities in the Provincial Growth Fund;
• a $25.455 million decrease to transfer funds from the Provincial Growth Fund for the Northland Rail Investment;
• a $19.750 million decrease to transfer funding from the Provincial Growth Fund to implement Department of Conservation projects;
• a $19.000 million decrease to co-fund Land Information New Zealand's (LINZ) proposal to coordinate the capture of regional elevation data;
• a $7.670 million decrease to implement approved conservation projects ;
• a $6.500 million decrease funding the Clutha Gold Cycle Trail;
• a $5.580 million decrease to transfer funding for the Kaipara Package;
• a $3.750 million decrease to transfer funding for the Route 52 upgrade and the Dannevirke rail hub;
• a $2.900 million decrease to implement the approved base component of the transport package;
• a $2.261 million decrease to shift funding between appropriations to enable continued delivery of the Provincial Growth Fund;
• a $0.820 million decrease to implement the approved SH43: Sealing the Gorge project;
• a $0.585 million decrease to transfer funding for the Sentinel a Nuku project;
• a $0.550 million decrease to implement the Accelerated 2020 Roads Investments; and
• a $0.035 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

Research, 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

End of Year Performance Reporting

Performance information for this appropriation will be reported by Callaghan Innovation in its annual report.

Reasons for Change in Appropriation

This appropriation increased by $4.743 million to $79.894 million for 2019/20 due to:

• a $2.500 million increase as part of the reprioritisation of funding within the Research, Science and Innovation portfolio;
• a $1.413 million increase due to delays in the work to modernise the Gracefield campus as a result of market factors; and
• a $0.830 million increase for funding the delivery of the Information, Education & Engagement programme.

Research, 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 $1.019 million to $30.111 million for 2019/20 due to:

• a $0.493 million increase as a result of delays in the Investment Process System and Design (IPSD) project;
• a $0.450 million increase for cost pressures relating to the Curious Mind Investment and Tangaroa Review;
• a $0.061 million increase to fund a new remuneration framework (Collective Employment Agreement); and
• a $0.015 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

Research, 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 $11.357 million to $288.657 million for 2019/20 due to:

• a $10.540 million decrease as a result of delays in the Antarctic Contract Variation, Kauri Dieback, Advanced Energy Tech Platforms and the Strategic Science Investment Fund;
• a $6.180 million decrease to support projects that accelerate innovation in response to COVID-19; and
• a $0.450 million decrease due to cost pressures for the Curious Mind Investment and Tangaroa Review.

The decrease was offset by increases due to:

• a $3.549 million increase for the unwind of the Antarctica Science Platform - multi-year appropriation;
• a $2.000 million increase as part of the reprioritisation of funding within the Research, Science and Innovation portfolio; and
• a $0.264 million increase relating to the transfer of funding from the 2018/19 financial year into the 2019/20 financial year for delays in Strategic Science Investment Fund reviews.

Research, 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 increased by $1.850 million to $30.220 million for 2019/20 due to:

• a $2.000 million increase as part of the reprioritisation of funding within the Research, Science and Innovation portfolio;
• a $0.250 million increase due to delays in the STEM education initiative as a result of a change in commercial owner; and
• a $0.100 million increase for contracting & payment of internships driven by NASA processes.

These were offset by a $0.500 million decrease due to delays in the Diversity and Engagement with Science programme.

Sector Analysis and Facilitation (M25)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $0.001 million to $6.679 million for 2019/20 due to a $0.029 million increase to fund a new remuneration framework (Collective Employment Agreement) which was offset by a $0.028 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

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

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Financial Markets Authority in its annual report.

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

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 in the Ministry of Business, Innovation and Employment and New Zealand Trade and Enterprise's (NZTE) respective Annual Reports.

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

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 $5.422 million to $185.709 million for 2019/20 due to:

• a $4.000 million increase in response to the economic impact of COVID-19;
• a $0.783 million increase for the Ministry of Foreign Affairs and Trade and Education NZ's contribution to the NZ Story; and
• a $0.639 million increase to account for foreign exchange movements against appropriations.

End of Year Performance Reporting

Performance information for this appropriation will be reported in the Ministry of Business, Innovation and Employment and New Zealand Trade and Enterprise's (NZTE) respective Annual Reports.

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 $11.497 million to $27.862 million for 2019/20 due to:

• a $8.497 million increase due to delays as a result of weather conditions shifting original deadlines; and
• a $6.500 million increase to fund the Clutha Gold Cycle Trail.

These were offset by a $3.500 million decrease as the existing Clutha Gold Great Ride funding is expected to fall partly within the 2020/21 financial year.