Supplementary estimates of appropriations

Vote Commerce - Supplementary Estimates of Appropriations 2007/08

Publication type:
Supplementary estimates of appropriations
Status:
Superseded
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Fiscal year:
2007/08
Budget year:
2008
Budget vote:
Commerce
Formats and related files

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

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Commerce
2007/08
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)

Administration of insolvencies and proceeds of crime orders.		 12,333 127 12,460

Administration of Part II Tariff Concessions (M13)

Assessing applications by importers to be exempted from import duties under the tariff concessions policy.		 352 - 352

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

 12,041 4,249 16,290
Administration of Trade Remedies
Investigative services to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges.		 1,100 (100) 1,000
Policy and Purchase Advice - Business Law and Competition Policy
Policy advice on the business legal framework; competition law policy; intellectual property rights; the impact of environmental issues on economic development; standards and conformance issues and technical barriers to trade, tariff and border protection policies; trade remedies; and operation monitoring of Crown entities and Statutory Boards.		 10,941 4,349 15,290

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.		 10,430 1,700 12,130

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).		 18,304 1,475 19,779

Total Departmental Output Expenses

 53,460 7,551 61,011

Non-Departmental Output Expenses

Administration of the Takeovers Code (M13)

The performance of statutory functions by the Takeovers Panel as specified in the Takeovers Act 1993.		 1,344 100 1,444

Approval and Review of Financial Reporting Standards (M13)

Reviewing and approving financial reporting standards, and work relating to the international harmonisation of financial reporting standards.		 830 375 1,205

Enforcement of Dairy Sector Regulation (M13)

Commerce Commission funding for dispute resolution relating to and enforcement of the Dairy Industry Restructuring Act 2001 and related regulations.		 905 - 905

Enforcement of General Market Regulation (M13)

The promotion of competition and fair trading through the administration, enforcement and adjudication activities undertaken by the Commerce Commission.		 13,579 1,500 15,079

Performance of Securities Market Functions (M13)

The performance of statutory functions by the Securities Commission in relation to the Securities Act 1978 and the Securities Markets Act 1988.		 6,501 - 6,501

Total Non-Departmental Output Expenses

 23,159 1,975 25,134

Other Expenses to be incurred by the Crown

Commerce Commission Litigation Fund (M13)

To meet the cost of major litigation activity undertaken by the Commerce Commission arising from its general market or sector specific enforcement activities outside the normal routine or scope of its general litigation activity. Criteria for the use of the fund are set out in the annual Output Agreement.		 9,440 314 9,754

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; and a share of New Zealand's annual subscription and obligations arising from the Basel Convention.		 520 (35) 485

Risk Capital Fund - Directors' Fees (M13)

Payment of directors' fees for attendance at meetings.		 5 - 5

Securities Commission Litigation Fund (M13)

To meet the cost of major litigation activity undertaken by the Securities Commission arising from it carrying out functions under the Securities Markets Act 1988. Criteria for the use of the fund will be set out in the annual Output Agreement.		 2,920 - 2,920

Takeovers Panel Litigation Fund (M13)

To meet 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. Criteria for the use of the fund will be set out in the annual Output Agreement.		 444 - 444

Total Other Expenses to be incurred by the Crown

 13,329 279 13,608

Total Annual and Permanent Appropriations

 89,948 9,805 99,753

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

Summary of Financial Activity - Commerce
2007/08
Estimates
$000		 Supplementary Estimates Total
$000
Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000

Appropriations
Output Expenses 76,619 7,551 1,975 9,526 86,145
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 13,329 - 279 279 13,608
Capital Expenditure - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

 89,948 7,551 2,254 9,805 99,753

Crown Revenue and Receipts
Tax Revenue - N/A N/A - -
Non-Tax Revenue 6,280 N/A N/A - 6,280
Capital Receipts - N/A N/A - -

Total Crown Revenue and Receipts

 6,280 N/A N/A - 6,280

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Commerce
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective:To manage the regulatory framework for bankruptcies, liquidations and restrained or forfeited property.
Outcome:Providing efficient, legally robust and accessible set of insolvency and proceeds of crime processes.		 Administration of Insolvencies
Objective : To remove unnecessary tariff imposts on imported goods where suitable alternatives are not available from New Zealand producers or manufacturers.
Outcome:Assisting New Zealand manufacturers to become more internationally competitive by reducing their input and production costs.		 Administration of Part II Tariff Concessions
Objective:To provide strategic and technical policy advice on the regulatory and competition frameworks for business, with a view to achieving business efficiency, and enhancing innovation and sustainable economic growth. Policy and Purchase Advice [Invalid character here] Business Law and Competition Policy - MCOA
Objective:To manage the regulatory framework for intellectual property.
Outcome:Providing an efficient, legally robust and accessible set of intellectual property registry processes.		 Registration and Granting of Intellectual Property Rights
Objective:To manage the regulatory framework for corporate structures, particularly companies.
Outcome:Providing an efficient, legally robust and accessible set of registry processes.		 Registration and Provision of Statutory Information

Administration of Insolvencies (M13)

Scope of Appropriation

Administration of insolvencies and proceeds of crime orders.

Expenses and Revenue

Expenses and Revenue - Administration of Insolvencies (M13) - Commerce
2007/08
Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation 12,333 127 12,460
Revenue from the Crown 11,331 127 11,458
Revenue from Others 1,718 - 1,718

Reasons for Change in Appropriation

Cabinet Policy decision was given for additional funding to assist with the transfer of certain responsibilities from Vote: Courts.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Insolvencies (M13) - Commerce
2007/08
Performance Measures Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard
Insolvency administration will be undertaken within standards agreed with the Minister. As agreed with the Minister As agreed with the Minister As agreed with the Minister
The administration of Proceeds of Crimes activity will be undertaken within standards agreed with the Minister. As agreed with the Minister As agreed with the Minister As agreed with the Minister

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

Scope of Appropriation#

Policy and Purchase Advice - Business Law and Competition Policy Policy advice on the business legal framework; competition law policy; intellectual property rights; the impact of environmental issues on economic development; standards and conformance issues and technical barriers to trade, tariff and border protection policies; trade remedies; and operation monitoring of Crown entities and Statutory Boards. Administration of Trade Remedies Investigative services to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges.

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#

Expenses and Revenue - Policy Advice and Investigative Services Regulatory Environment MCOA (M13) - Commerce
2007/08
Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation 12,041 4,249 16,290
Policy and Purchase Advice 10,941 4,349 15,290
Administration of Trade Remedies 1,100 (100) 1,000
Revenue from the Crown 11,786 4,154 15,940
Policy and Purchase Advice 10,702 4,254 14,956
Administration of Trade Remedies 1,084 (100) 984
Revenue from Others 255 95 350
Policy and Purchase Advice 239 95 334
Administration of Trade Remedies 16 - 16

Reasons for Change in Appropriation#

Fiscally neutral adjustment's actioned in both October and March Baseline Updates on work for Eco-verification and Sustainable Procurement from the Ministry of Environment, as well as internal transfers from other votes within MED to assist Vote Commerce with mitigating immediate risks.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Policy Advice and Investigative Services Regulatory Environment MCOA (M13) - Commerce
2007/08
Performance Measures Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard
Policy and Purchase Advice ? Business Law and Competition Policy
Policy advice which complies with Quality Standards for Policy Advice and Ministerial Servicing (refer Conditions on Use of Appropriation) as assessed twice during the year. Ministers' six monthly rating of performance no less than a 4 (met and sometimes exceeded my expectations). 100% 100%
Policy advice that supports the Government in its role as purchaser and/or owner of a number of Crown entities and statutory boards, and complies with Quality Standards for Policy Advice and Ministerial Servicing (refer Conditions on Use of Appropriation) as assessed twice during the year.The advice covers appointments, roles and functions, and the financial and non-financial performance of the entities and bodies which are under the Minister of Commerce's responsibility:
  • Accounting Standards Review Board
  • Commerce Commission
  • Securities Commission
  • Standards Council
  • Takeovers Panel
  • Testing Laboratory Registration Council
  • Copyright Tribunal
  • Office of the Cease and Desist Commissioner
  • Governing Board of the Joint Accreditation System of Australia and New Zealand, and
  • Temporary Safeguard Authority.
 Advice as required will be provided about Crown entities and other boards for which the Minister of Commerce is the Responsible Minister 100% within agreed timelines 100% within agreed timelines
Replies to Ministerial correspondence and Parliamentary questions are completed within required timeframes:
  • 100% of reports and oral advice to the Minister are delivered within the timeframes required by and agreed with the Minister, and
  • 100% of draft Ministerial correspondence is submitted to the Minister within 10 working days of receipt in the Ministry.
Where only an interim reply is possible, a final reply shall be provided within the following timeframes:
  • 90% within 20 working days of the original receipt in the Ministry, and
  • 100% within 30 working days of receipt in the Ministry.
 100% within agreed timelines 100% within agreed timelines 100% within agreed timelines

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#

Expenses and Revenue - Registration and Granting of Intellectual Property Rights (M13) - Commerce
2007/08
Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation 10,430 1,700 12,130
Revenue from the Crown 85 - 85
Revenue from Others 11,850 1,700 13,550

Reasons for Change in Appropriation#

A fiscally neutral adjustment was sought to accommodate the increase in Trademark and Patent Renewals and Applications activity.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Registration and Granting of Intellectual Property Rights (M13) - Commerce
2007/08
Performance Measures Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard
The administration of patents, trade-marks, designs and plant variety rights will be undertaken within standards agreed with the Minister. As agreed with the Minister As agreed with the Minister As agreed with the Minister

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#

Expenses and Revenue - Registration and Provision of Statutory Information (M13) - Commerce
2007/08
Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation 18,304 1,475 19,779
Revenue from the Crown 457 - 457
Revenue from Others 15,655 1,725 17,380

Reasons for Change in Appropriation#

A fiscally neutral adjustment was sought to accommodate the increase in Company Name Reservations and Incorporation Activity. Also third-party funding was sought to replace the Companies and remaining manual registries with a wholly electronic core registry system.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Registration and Provision of Statutory Information (M13) - Commerce
2007/08
Performance Measures Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard
The administration of services relating to the registration and provision of a range of documents and information required to be filed on a public record will be undertaken within standards agreed with the Minister. As agreed with the Minster As agreed with the Minister As agreed with the Minister
The Companies Office websites will, where the Legislation permits, be available for searching and registration over a 24/7 basis at a standard agreed with the Minister. As agreed with the Minister As agreed with the Minister As agreed with the Minister

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Commerce
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective:Being an effective and efficient regulator of the takeovers market respected by market participants and enforcing a Takeovers Code that provides for equal treatment of shareholders and a transparent takeover process, to foster confidence in the integrity of our markets. Administration of the Takeovers Code
Objectives:To contribute to effective corporate governance and the promotion of standards of accountability by approving high-quality standards that will provide users of financial statements with reliable information about the financial performance and position of reporting entities.To promote New Zealand's financial reporting-related interests by participating in international strategy and standards making processes. Approval and Review of Financial Reporting Standards
Objective:To contribute to the efficient and effective operation of dairy markets in New Zealand. Enforcement of Dairy Sector Regulation
Objective:To improve the performance of markets across the economy by protecting and promoting the process of competition. Enforcement of General Market Regulation
Objective:To strengthen investor confidence and foster capital investment in New Zealand by promoting the efficiency, integrity and cost-effective regulation of our securities markets. Performance of Securities Market Functions

Administration of the Takeovers Code (M13)#

Scope of Appropriation

The performance of statutory functions by the Takeovers Panel as specified in the Takeovers Act 1993.

Expenses

Expenses - Administration of the Takeovers Code (M13) - Commerce
2007/08
Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 1,344 100 1,444

Reasons for Change in Appropriation

To restore the Panel's equity to an appropriate level.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of the Takeovers Code (M13) - Commerce
2007/08
Performance Measures Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard
Takeovers Law
Ensuring that the provisions of the Takeovers Code are effective and relevant by keeping the Code under review and enquiring into market practice and recommending amendments to the Code and the Takeovers Act as necessary. 3 recommendations 2 recommendations 1 - 3 recommendations
Code Approvals
Applications for approval of independent advisors and independent experts are processed in accordance with the Panel's published policies. 40 applications 35 applications 35 applications
Applications for consent to withdrawal of offers, and in relation to defensive tactics, are processed in accordance with the Panel's published policies. 2 applications 2 applications 2 applications
Code Exemptions
Applications for exemptions are processed in accordance with the law, Panel's published policies, the rules of natural justice and having regard to feedback from market participants. Process 30 applications for individual exemptions and 4 applications for class exemptions Process 35 applications for individual exemptions and 2 applications for class exemptions Process 30 - 35 applications for individual exemptions and 2 - 4 applications for class exemptions
Enforcement
Maintaining oversight of takeover activity in the market by reviewing relevant documentation , intervening where necessary in accordance with the Panel's statutory powers, investigating any possible Code breaches in accordance with the law and the rules of natural justice. 81 takeovers, code meetings, enforcement meetings, schemes of arrangement, and transaction investigations 65 takeovers, code meetings, enforcement meetings, schemes of arrangement, and transaction investigations 82 takeovers, code meetings, enforcement meetings, schemes of arrangement, and transaction investigations
Public Understanding
Regularly publish information about the Takeovers Code and relevant law, media statements, policy statements, guidance notes and commentaries on current issues, public meetings and speeches. Respond to enquiries from the public. Maintain website. 22 publications, meetings and speeches200 enquiries 16 publications, meetings and speeches200 enquiries 16 publications, meetings and speeches200 enquiries
International Liaison
Maintain reciprocal membership between Australian and New Zealand Takeovers Panels. One on each Panel No Australian yet appointed but will be by year end One on each Panel
Regular meetings with international takeovers regulators to improve cooperation, administration and enforcement of takeovers law and promote international understanding between the Panel and these bodies. 1 time per year 1 time at upcoming Conference 1 time per year
Timeliness
Complete applications for Code Approvals within 3-5 working days of receipt of completed application/Code Exemptions within timeframe agreed with applicants. 80-100% 80-100% 80-100%
Complete enforcement work within statutory timeframes for takeovers and enforcement meetings specified in the Takeovers Act 1993. 100% 100% 100%
Comply with Court-ordered timetables for legal proceedings under the Companies Act involving code companies. 100% 100% 100%
Respond in a timely manner to miscellaneous enquiries from members of the public and professional firms. Respond within 3 working days Respond within 3 working days Respond within 3 working days
Maintain website with relevant information about the Takeovers Code and Takeovers Act 1993 and activities of the Panel. All information posted within 5 working days of decision or event All information posted within 5 working days of decision or event All information posted within 5 working days of decision or event
Respond in a timely manner to enquiries from international takeovers regulators. Respond to enquiries within 5 working days No enquiries received Respond to enquiries within 5 working days

Rotary Wing Transport Forces (M22)#

Scope of Appropriation#

Provision of the capabilities of No 3 Squadron RNZAF (Iroquois helicopters) prepared to conduct tactical air transport, including aeromedical evacuation, and counter-terrorist operations, and to contribute support services to the community, in accordance with NZDF Output Plan specifications.

Reasons for Change in Appropriation#

This appropriation will increase by $4.387 million mainly to reflect resource reprioritisation during 2007/08.

Special Operations Forces (M22)#

Scope of Appropriation#

Provision of the capabilities of the Special Operations Forces prepared to conduct special forces operations in support of land operations, counter-terrorist operations, and the provision of Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests, in accordance with NZDF Output Plan specifications.

Reasons for Change in Appropriation#

This appropriation will decrease by $923,000 for 2007/08.

The decrease mainly recognises asset revaluation where the capital charge and depreciation expense is no longer required.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.1 - Departmental Other Expenses#

Asset Write-Offs (M22)

Scope of Appropriation

To provide for the expensing of capitalised items that have no ongoing utility.

Reasons for Change in Appropriation

This appropriation will increase by $2.7 million for 2007/08. The increase represents a technical adjustment to provide should it be necessary, for the expensing of items that have been included in the New Zealand Defence Force (NZDF) Statement of Financial Position.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

New Zealand Defence Force - Capital Expenditure PLA (M22)

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the New Zealand Defence Force, as authorised by section 24(1) of the Public Finance Act 1989

Capital Expenditure

Capital Expenditure - New Zealand Defence Force Capital Expenditure PLA (M22) - Defence Force
2007/08
Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment - 404,682 404,682
Intangibles - 7,470 7,470
Other - - -
Total Appropriation - 412,152 412,152
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment - 404,682 404,682
Intangibles - 7,470 7,470
Other - - -
Total Appropriation - 412,152 412,152

Reasons for Change in Appropriation

This appropriation was formerly in the NZDF Statement of Intent as forecast departmental capital expenditure and the change of $176.528 million reflects:

  • decreased Specialised Military Equipment (SME) related payments to the Ministry of Defence totalling $131 million
  • decreased payments of some $45 million associated with NZDF managed capital project delays.