Vote Commerce - Supplementary Estimates 2011/12

Information Supporting the Supplementary Estimates Vote Commerce#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Commerce (M13)

ADMINISTERING DEPARTMENT: Ministry of Economic Development

MINISTER RESPONSIBLE FOR MINISTRY OF ECONOMIC DEVELOPMENT: Minister for Economic Development

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Administration of Insolvencies (M13)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $300,000 as a result of an adjustment to reflect an increase in additional investigations fee collections.

Policy Advice and Investigative Services - Regulatory Environment MCOA (M13)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

Both output classes are directed at the intermediate outcome of NZ's international connections facilitating sustainable economic growth through increased international trade, foreign investment and knowledge transfer.

Expenses and Revenue#

Reasons for Change in Appropriation#

Administration of Trade Remedies

No change for this appropriation.

Policy and Purchase Advice - Business Law and Competition Policy

This appropriation increased by $674,000 as a result of an expense transfer of $500,000 from 2010/11 to reflect the delays in the Securities Law Review work, and a transfer of $333,000 from Vote Foreign Affairs and Trade to assist with overseas travel costs relating to the WTO and FTA/CEP negotiations. These increases were partially offset by a decrease of $159,000 reflecting the Ozone Policy responsibilities being transferred to the Ministry for the Environment.

Registration and Granting of Intellectual Property Rights (M13)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased by $140,000 as a result of a $400,000 expense transfer to 2012/13 reflecting a further delay in the preparatory work planned for the implementation of the Patent Bill. This is partially offset by an expense transfer from 2010/11 of $260,000 as a result of delays in the Trademark Bill and Patent Bill.

Part 2.2 - Non-Departmental Output Expenses#

Enforcement of Dairy Sector Regulation (M13)#

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation decreased by $700,000 which is a result of a transfer to assist with the establishment of the Non-Departmental Ouptut Expense: Enforcement of Dairy Sector Regulation and Auditing of Milk Price Setting appropriation.

Enforcement of Dairy Sector Regulation and Auditing of Milk Price Setting (M13)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation was established during 2011/12 to reflect the "Dairy Regulatory Framework - Fonterra's Milk Price, Capital Restructure and Share Valuation" paper. Funding of $700,000 was transferred from the "Enforcement of Dairy Sector Regulation" appropriation.

Enforcement of General Market Regulation (M13)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $1.638 million to reflect a Cabinet decision relating to the "Commerce Commission Litigation Fund - Report Back" paper.

Indemnity payments from the Corporations (Investigations and Management) Act 1989 PLA (M13)#

Scope of Appropriation#

Expenses#

This appropriation was established during the 2011/12 financial year to reflect payments made under "Section 63 of the Corporations (Investigation and Management) Act 1989".

Input Methodologies (M13)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $255,000 to reflect an expense transfer from 2010/11 to 2011/12 as a result of delays in the implementation of the "Development of a Capital Expenditure Input Methodology" programme for Transpower, under Part 4 of the Commerce Act 1986.

Regulation of Electricity Lines Businesses (M13)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $893,000 million as a result of the following:

• $1.865 million expense transfer from 2010/11 to reflect the delay in the approval of Transpower's grid upgrade plans and regulation of electricity lines businesses process, and
• $428,000 as a result of a Cabinet decision relating to the "Commerce Commission - Funding of Regulatory Control Functions" paper.

These increases were partially offset by the following decreases;

• $1 million expense transfer to 2012/13 to reflect the delay in the "Electricity Transmission" project, and
• $400,000 expense transfer to 2012/13 to reflect the delay in the "Starting Pricing Adjustments" project.

Regulation of Natural Gas Services (M13)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation increased by $1.600 million as a result of the following:

• $1.289 million as a result of a Cabinet decision relating to the "Commerce Commission - Funding of Regulatory Control Functions" paper, and
• $811,000 transfer from 2010/11 to reflect the delay in the approval of Transpower's grid upgrade plans and regulation of electricity lines businesses process.

These increases were partially offset by a $500,000 expense transfer to 2012/13 to reflect the delay in the "Starting Pricing Adjustments" project.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Commerce Commission Litigation Fund (M13)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation decreased by $1.047 million as a result of a $2.790 million expense transfer to 2012/13 to reflect the delay in major external litigation cases. This decrease was partially offset by an increase of $1.743 million to reflect a Cabinet decision relating to the "Commerce Commission Litigation Fund - Report Back" paper.