Supplementary estimates of appropriations

Vote Commerce - Supplementary Estimates 2013/14

Note 56

From the Estimates of Appropriations 2014/15 in Budget 2014, Vote Commerce was merged into a new Vote - Vote Commerce and Consumer Affairs.

APPROPRIATION MINISTER(S): Minister of Commerce (M13)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

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

Supplementary Estimates of Appropriations#

Details of Appropriations#

Annual and Permanent Appropriations

  2013/14
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Administration of Insolvencies (M13)

The administration of bankruptcies and liquidations under the Insolvency Act 2006 and the Companies Act 1993 and the management of criminal proceeds orders under the Proceeds of Crime Act 1991, and the Criminal Proceeds (Recovery) Act 2009.
14,673 - 14,673

Business Law and Competition operational policy, ministerial servicing and Crown entity monitoring (M13)

This appropriation is limited to the development of operational policies in relation to financial sector legal frameworks, competition law and corporate governance, intellectual property, technical barriers to trade, trade rules remedies and tariffs, and other border issues, services to support the Minister, monitoring the performance and compliance of Crown Entitles, and providing support and monitoring of statutory bodies.
2,292 (1,050) 1,242

Policy Advice - Business Law and Competition Policy (M13)

This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.
7,751 3,689 11,440

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

1,174 (200) 974
Administration of Trade Remedies
This appropriation is limited to investigative services including ministerial servicing to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges.
1,174 (200) 974

Registration and Granting of Intellectual Property Rights (M13)

Administering legislation providing for the protection of intellectual property rights by the granting of patents and plant variety rights, the registration of trademarks and designs.
13,904 500 14,404

Registration and Provision of Statutory Information (M13)

Registering and provision of documents and information services in respect of all corporate entities, securities over insurance and superannuation schemes and securities over personal property (excluding land).
23,396 1,376 24,772

Total Departmental Output Expenses

63,190 4,315 67,505

Non-Departmental Output Expenses

     

Accounting and Assurance Standards Setting (M13)

This appropriation is limited to the funding of financial reporting and auditing and assurance standards setting for the purposes of promoting the quality of financial reporting.
4,410 - 4,410

Administration of the Takeovers Code (M13)

The performance of statutory functions by the Takeovers Panel as specified in the Takeovers Act 1993.
1,494 - 1,494

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

This appropriation is limited to funding for reviewing Fonterra's milk price setting arrangements, and dispute resolution relating to and enforcement of the Dairy Industry Restructuring Act 2001 and related regulations.
1,245 - 1,245

Enforcement of General Market Regulation (M13)

This appropriation is limited to the promotion of fair trading and competitive markets through the administration, enforcement and adjudication activities of the Commerce Commission, and the internal costs of major litigation undertaken by the Commerce Commission in relation to all of its statutory functions.
16,435 - 16,435

Performance of Investigation and Enforcement Functions (M13)

This appropriation is limited to the performance of statutory functions relating to the investigation and enforcement of financial markets legislation, including the assessment of complaints, tips, and referrals.
7,973 - 7,973

Performance of Licensing and Compliance Monitoring Functions (M13)

This appropriation is limited to the performance of statutory functions relating to licensing of market participants and risk-based monitoring of compliance, including with disclosure requirements under financial markets legislation.
12,556 - 12,556

Performance of Market Analysis and Guidance, Investor Awareness, and Regulatory Engagement Functions (M13)

This appropriation is limited to the performance of statutory functions relating to market intelligence, guidance, exemptions, investor education, and regulatory and government co-operation and advice.
7,241 - 7,241

Regulation of Airport Services (M13)

This appropriation is limited to the regulation of specified airport services provided by Auckland, Wellington and Christchurch International Airports, under Part 4 of the Commerce Act 1986.
600 - 600

Regulation of Electricity Lines Businesses (M13)

This appropriation is limited to the regulation of electricity lines businesses and Transpower under Part 4 of the Commerce Act 1986.
5,939 453 6,392

Regulation of Natural Gas Services (M13)

This appropriation is limited to the regulation of natural gas services under Part 4 of the Commerce Act 1986.
1,586 - 1,586

Retirement Commissioner (M13)

This appropriation is limited to services from the Retirement Commissioner to develop and promote methods of improving the effectiveness of retirement income policies, through the publishing of information and the delivery of a comprehensive public financial education programme.
5,782 - 5,782

Total Non-Departmental Output Expenses

65,261 453 65,714

Non-Departmental Other Expenses

     

Commerce Commission Litigation Fund (M13)

This appropriation is limited to meeting the external direct costs of major litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities.
8,000 - 8,000

Contributions to International Organisations (M13)

Annual fee for New Zealand's membership of the International Copyright and Patent Union; International Patent Documentation Centre; International Standards Association; International Union for the Protection of New Plant Varieties.
485 - 485

Financial Markets Authority Litigation Fund (M13)

This appropriation is limited to meeting the cost of major litigation activity arising from the enforcement of financial markets and securities markets law.
2,000 - 2,000

Takeovers Panel Litigation Fund (M13)

This appropriation is limited to meeting the cost of major litigation activity undertaken by the Takeovers Panel arising from it carrying out functions under the Takeovers Act 1993 and the Takeovers Code.
200 - 200

Total Non-Departmental Other Expenses

10,685 - 10,685

Total Annual and Permanent Appropriations

139,136 4,768 143,904

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2013/14
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 128,451 4,315 453 4,768 133,219
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 10,685 - - - 10,685
Capital Expenditure - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses
- - - - -
Other Expenses
- - - - -
Capital Expenditure
- N/A - - -

Total Appropriations

139,136 4,315 453 4,768 143,904

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 24,880 N/A 6,028 6,028 30,908
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

24,880 N/A 6,028 6,028 30,908

Mapping the Layout of the 2013/14 Supplementary Estimates to the Layout of the 2013/14 Estimates

Supplementary Estimates Structure 2013/14 Estimates Structure 2013/14
Part # Part Name Part # Part Name
2.1 Departmental Output Expenses 2.1 Departmental Output Expenses
2.2 Departmental Other Expenses 5.1 Departmental Other Expenses
2.3 Departmental Capital Expenditure and Capital Injections 6.1 Departmental Capital Expenditure
3.1 Non-Departmental Output Expenses 2.2 Non-Departmental Output Expenses
3.2 Non-Departmental Benefits and Other Unrequited Expenses 3.2 Non-Departmental Benefits and Other Unrequited Expenses
3.3 Non-Departmental Borrowing Expenses 4.2 Non-Departmental Borrowing Expenses
3.4 Non-Departmental Other Expenses 5.2 Non-Departmental Other Expenses
3.5 Non-Departmental Capital Expenditure 6.2 Non-Departmental Capital Expenditure
4 Multi-Category Expenses and Capital Expenditure N/A Did not exist in the Estimates

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Business Law and Competition operational policy, ministerial servicing and Crown entity monitoring (M13)

Scope of Appropriation

This appropriation is limited to the development of operational policies in relation to financial sector legal frameworks, competition law and corporate governance, intellectual property, technical barriers to trade, trade rules remedies and tariffs, and other border issues, services to support the Minister, monitoring the performance and compliance of Crown Entitles, and providing support and monitoring of statutory bodies.

Expenses and Revenue

  2013/14
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 2,292 (1,050) 1,242
Revenue from the Crown 2,267 (1,050) 1,217
Revenue from Others 25 - 25

Reasons for Change in Appropriation

This appropriation decreased by $1.050 million to $1.242 million for 2013/14. The decrease in 2013/14 is a result of a fiscally neutral adjustment for $1.050 million to reflect the introduction of a one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure.

Policy Advice - Business Law and Competition Policy (M13)

Scope of Appropriation

This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.

Expenses and Revenue

  2013/14
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 7,751 3,689 11,440
Revenue from the Crown 7,680 3,640 11,320
Revenue from Others 71 49 120

Reasons for Change in Appropriation

This appropriation increased by $3.689 million to $11.440 million for 2013/14. The increase relates to a fiscally neutral adjustment of $3.780 million in 2013/14 to reflect the introduction of a one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure. This increase is offset by a $91,000 transfer to Vote Foreign Affairs and Trade (MFAT) to lead Free Trade Agreements (FTA) where MBIE has policy leadership.

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

Scope of Appropriation

Administration of Trade Remedies

This appropriation is limited to investigative services including ministerial servicing to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges.

Policy and Purchase Advice - Business Law and Competition Policy

This appropriation is limited to policy advice and ministerial servicing in relation to international negotiating expertise on the financial sector legal frameworks; competition law policy and corporate governance policy; intellectual property rights; standards and conformance issues and technical barriers to trade; trade remedies, tariffs, rules of origin, and other border issues; quality of regulatory policy, including the regulatory impact analysis regime; and monitoring of Crown entities and statutory boards.

Explanation for Use of Multi-Class Output Expense Appropriation

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

Expenses and Revenue

  2013/14
  Estimates
$000
Supplementary
Estimates
$000
Total
$000

Total Appropriation

1,174 (200) 974
Administration of Trade Remedies 1,174 (200) 974
Policy and Purchase Advice - Business Law and Competition Policy - - -

Revenue from the Crown

1,174 (200) 974
Administration of Trade Remedies 1,174 (200) 974
Policy and Purchase Advice - Business Law and Competition Policy - - -

Revenue from Others

- - -
Administration of Trade Remedies - - -
Policy and Purchase Advice - Business Law and Competition Policy - - -

Reasons for Change in Appropriation

This appropriation decreased by $200,000 to $974,000 for 2013/14. The decrease is a result of a fiscally neutral adjustment to reflect the introduction of a one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure.

Registration and Granting of Intellectual Property Rights (M13)

Scope of Appropriation

Administering legislation providing for the protection of intellectual property rights by the granting of patents and plant variety rights, the registration of trademarks and designs.

Expenses and Revenue

  2013/14
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 13,904 500 14,404
Revenue from the Crown 85 - 85
Revenue from Others 15,324 500 15,824

Reasons for Change in Appropriation

This appropriation increased by $500,000 to $14.404 million for 2013/14. The increase results from a fiscally neutral adjustment to reflect increased costs arising from increased volumes within the Trade Marks regime.

Registration and Provision of Statutory Information (M13)

Scope of Appropriation

Registering and provision of documents and information services in respect of all corporate entities, securities over insurance and superannuation schemes and securities over personal property (excluding land).

Expenses and Revenue

  2013/14
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 23,396 1,376 24,772
Revenue from the Crown 2,286 233 2,519
Revenue from Others 18,918 1,143 20,061

Reasons for Change in Appropriation

This appropriation increased by $1.376 million to $24.772 million for 2013/14. The increase relates to:

  • $498,000 to reflect a policy decision relating to the Financial Markets Conduct Act 2013: Funding for Registers initiative
  • $483,000 for the reform of business registries in Africa
  • $208,000 fiscally neutral adjustment to reflect the transfer of the "0800 BIZ Service" from New Zealand Trade and Enterprise (NZTE) as a result of NZTE and MBIE agreeing to consolidate service provision of the "0800 BIZ Service" within MBIE
  • $87,000 to reflect a policy decision relating to the Auctioneers Regulations 2014 initiative
  • $75,000 for proposed changes to the companies register resulting from the Companies and Limited Partnerships amendments Bill, and
  • $25,000 expense transfer from 2012/13 to reflect the timing in the completion of the solution design phase of the Employee Cost Calculator project.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Regulation of Electricity Lines Businesses (M13)

Scope of Appropriation

This appropriation is limited to the regulation of electricity lines businesses and Transpower under Part 4 of the Commerce Act 1986.

Reasons for Change in Appropriation

This appropriation increased by $453,000 to $6.392 million for 2013/14. The increase relates to an expense transfer from 2012/13 to reflect the delay in Transpower submitting the five-yearly revenue proposal as a result of reprioritisation.