Supplementary estimates of appropriations

Vote Conservation - Supplementary Estimates 2011/12

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Conservation (M16), Minister for Treaty of Waitangi Negotiations (M74)

ADMINISTERING DEPARTMENT: Department of Conservation

MINISTER RESPONSIBLE FOR DEPARTMENT OF CONSERVATION: Minister of Conservation

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Conservation
  2011/12
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Conservation with the Community (M16)

This appropriation is limited to educational and public awareness services, and facilitation of community involvement and community-led conservation activities.
15,363 1,518 16,881

Crown Contribution to Regional Pest Management Strategies (M16)

This appropriation is limited to controlling weed and animal pests on lands administered by the Department of Conservation to meet negotiated outcomes of regional pest management strategies.
2,998 (60) 2,938

Management of Historic Heritage (M16)

This appropriation is limited to the protection and conservation management of historic heritage.
5,661 179 5,840

Management of Natural Heritage (M16)

This appropriation is limited to maintaining, restoring and protecting ecosystems, habitats and species.
165,906 (1,917) 163,989

Management of Recreational Opportunities (M16)

This appropriation is limited to recreational facilities and services, and the management of business concessions.
142,279 776 143,055

Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16)

This appropriation is limited to policy advice, services to the Minister of Conservation and statutory bodies, and provision of statutory planning.
5,823 958 6,781

Total Departmental Output Expenses

338,030 1,454 339,484

Non-Departmental Output Expenses

     

Identification and Implementation of Protection for Natural and Historic Places (M16)

This appropriation is limited to identification and implementation of protection for natural and historic places.
16,793 (5,969) 10,824

Management Services - Natural and Historic Places (M16)

This appropriation is limited to management services for properties with historical or natural significance, including maintenance work, access for the public and management advice on covenanted properties.
1,506 386 1,892

Moutoa Gardens/Pakaitore (M16)

This appropriation is limited to the ongoing management and maintenance of the Moutoa Gardens Reserve.
23 - 23

NZ Biodiversity Funds (M16)

This appropriation is limited to the payment of grants: to provide private land managers with information and advice, or assistance with costs of pest and weed control, fencing and other biodiversity management actions; and to support community biodiversity restoration initiatives.
10,347 (6,765) 3,582

Stewart Island Infrastructure (M16)

This appropriation is limited to assistance to the Southland District Council for additional community infrastructure arising from increased visitor numbers on Stewart Island.
769 (585) 184

Total Non-Departmental Output Expenses

29,438 (12,933) 16,505

Departmental Other Expenses

     

Recovery from February 2011 Christchurch Earthquake (M16)

This appropriation is limited to writing off, or making good damage to, departmental assets and re-establishing departmental operations in Christchurch following the 22 February 2011 earthquake.
- 368 368

Total Departmental Other Expenses

- 368 368

Non-Departmental Other Expenses

     

Compensation Payments (M16)

This appropriation is limited to making obligatory compensation payments: when esplanade reserves are created, and upon vesting of coastal marine areas in the Crown.
60 - 60

Depreciation - Crown Property, Plant and Equipment (M16)

This appropriation is limited to the depreciation on Crown property, plant and equipment on Crown land administered by the Department of Conservation.
934 - 934

Impairment of Public Conservation Land (M74)

This appropriation is limited to the impairment in value of Public Conservation land to be transferred to iwi as part of Treaty of Waitangi Settlements.
- 6,807 6,807

Loss on Disposal of Crown Property, Plant and Equipment (M16)

This appropriation is limited to losses incurred on the disposal of Crown property, plant and equipment.
2,575 - 2,575

Matauranga Maori Fund (M16)

This appropriation is limited to making grants to support initiatives to protect traditional Maori knowledge relating to NZ's indigenous biodiversity.
804 61 865

Payment of Rates on Properties for Concessionaires (M16)

This appropriation is limited to the payment of rates: on reserves; conservation areas that are used for private or commercial purposes; and for services provided by a local authority.
839 - 839

Provision for Bad and Doubtful Debts (M16)

This appropriation is limited to the write-off of debts relating to Crown Revenue.
100 - 100

Redress payments under Foreshore and Seabed Act 2004 (M16)

This appropriation is limited to redress payments to local authorities under Section 25 of the Foreshore and Seabed Act 2004.
- 310 310

Subscriptions to International Organisations (M16)

This appropriation is limited to meeting annual subscriptions to international conservation organisations.
405 - 405

Vesting of Reserves (M16)

This appropriation is limited to the costs incurred in vesting Crown reserves in third parties, and Crown contributions towards the purchase of reserves by third parties.
650 - 650

Waikaremoana Lakebed Lease (M16)

This appropriation is limited to payments made under the Lake Waikaremoana Act 1971 for the lease of the lakebed and foreshore for conservation purposes.
241 - 241

Total Non-Departmental Other Expenses

6,608 7,178 13,786

Departmental Capital Expenditure

     

Department of Conservation - Capital Expenditure PLA (M16)

This appropriation is limited to the purchase or development of assets by and for the use of the Department of Conservation, as authorised by section 24(1) of the Public Finance Act 1989.
53,066 - 53,066

Total Departmental Capital Expenditure

53,066 - 53,066

Non-Departmental Capital Expenditure

     

Crown Land Acquisitions (M16)

This appropriation is limited to the purchase of property for the Conservation Estate.
6,500 10,361 16,861

Milford Flood Protection (M16)

This appropriation is limited to flood protection works on the Cleddau River at Milford Sound.
6,186 - 6,186

Purchase and Development of Reserves (M16)

This appropriation is limited to the purchase of conservation land, including the purchase of reserves, and any associated administration costs as provided for under the Reserves Act 1977.
1,500 1,453 2,953

Total Non-Departmental Capital Expenditure

14,186 11,814 26,000

Total Annual and Permanent Appropriations

441,328 7,881 449,209

Details of Projected Movements in Departmental
Net Assets#

Department of Conservation

Department of Conservation - Details of Projected Movements in Departmental Net Assets - Conservation
Details of Net Asset Schedule 2011/12
Main Estimates Projections
$000
2011/12
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2011/12
Opening Balance 580,881 558,208 Supplementary Estimates opening balance reflects the audited results as at 30 June 2011.
Capital Injections 40,666 15,000 The reduction relates to capital injections of $23.566 million due 2011/12 that have been deferred to 2012/13, plus a $2.100 million capital to operating adjustment for the Pureroa Timber Trail (cycleway).
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) (5,371) (5,739) The increase in deficit of $368,000 relates to the Recovery from February 2011 Christchurch Earthquake appropriation, which was an expenditure transfer from 2010/11 to 2011/12.
Other Movements 5,721 5,739 Adjustment arising from forecast deficits.

Closing Balance

621,897 573,208  

Information Supporting the Supplementary Estimates Vote Conservation#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Conservation (M16), Minister for Treaty of Waitangi Negotiations (M74)

ADMINISTERING DEPARTMENT: Department of Conservation

MINISTER RESPONSIBLE FOR DEPARTMENT OF CONSERVATION: Minister of Conservation

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Conservation
  2011/12
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 367,468 1,454 (12,933) (11,479) 355,989
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 6,608 368 7,178 7,546 14,154
Capital Expenditure 67,252 - 11,814 11,814 79,066
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

441,328 1,822 6,059 7,881 449,209

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 15,724 N/A 487 487 16,211
Capital Receipts 7,800 N/A 1,000 1,000 8,800

Total Crown Revenue and Capital Receipts

23,524 N/A 1,487 1,487 25,011

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Conservation with the Community (M16)

Scope of Appropriation

This appropriation is limited to educational and public awareness services, and facilitation of community involvement and community-led conservation activities.

Expenses and Revenue

Expenses and Revenue - Conservation with the Community (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 15,363 1,518 16,881
Revenue from Crown 14,060 1,518 15,578
Revenue from Other 1,303 - 1,303

Reasons for Change in Appropriation

The increase in this appropriation of $1.518 million is due to the following:

  • Crown concessions revenue overachievement from 2010/11 of $1.500 million (increase)
  • $95,000 expense transfer from 2011/12 to 2012/13 (decrease) due to delays in various projects
  • fiscally neutral reallocation of output costs from other output classes of $113,000 (increase).

Crown Contribution to Regional Pest Management Strategies (M16)#

Scope of Appropriation#

This appropriation is limited to controlling weed and animal pests on lands administered by the Department of Conservation to meet negotiated outcomes of regional pest management strategies.

Reasons for Change in Appropriation#

The decrease in this appropriation of $60,000 to $2.938 million is due to expense transfers from 2010/11 to 2011/12.

Management of Historic Heritage (M16)#

Scope of Appropriation#

This appropriation is limited to the protection and conservation management of historic heritage.

Expenses and Revenue#

Expenses and Revenue - Management of Historic Heritage (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,661 179 5,840
Revenue from Crown 5,184 179 5,363
Revenue from Other 477 - 477

Reasons for Change in Appropriation#

The increase in this appropriation of $179,000 is due to the following:

  • capital charge adjustment from assets recognised in 2010/11 of $20,000 (increase)
  • the 2010/11 audited net surplus was transferred to 2011/12 appropriations - $200,000 (increase)
  • expense transfers from 2011/12 to 2012/13 of $273,000 (decrease)
  • fiscally neutral reallocation of output costs from other output classes of $232,000 (increase).

Management of Natural Heritage (M16)#

Scope of Appropriation#

This appropriation is limited to maintaining, restoring and protecting ecosystems, habitats and species.

Expenses and Revenue#

Expenses and Revenue - Management of Natural Heritage (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 165,906 (1,917) 163,989
Revenue from Crown 150,360 (1,917) 148,443
Revenue from Other 12,175 - 12,175

Reasons for Change in Appropriation#

The decrease of $1.917 million in this appropriation is due to the following:

  • conservation services plan adjustment of $730,000 (increase)
  • capital charge adjustment from assets recognised in 2010/11 of $33,000 (increase)
  • $3.078 million expense transfer from 2011/12 to 2012/13 (decrease) due to delays in various projects
  • fiscally neutral reallocation of output costs from other output classes of $698,000 (increase)
  • fiscally neutral transfer of funding to non-departmental appropriations of $300,000 (decrease).

Management of Recreational Opportunities (M16)#

Scope of Appropriation#

This appropriation is limited to recreational facilities and services, and the management of business concessions.

Expenses and Revenue#

Expenses and Revenue - Management of Recreational Opportunities (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 142,279 776 143,055
Revenue from Crown 117,507 (2,224) 115,283
Revenue from Other 22,772 3,000 25,772

Reasons for Change in Appropriation#

The increase in this appropriation of $776,000 is due to the following:

  • Crown concessions revenue overachievement from 2010/11 of $1.435 million (increase)
  • capital charge adjustment from assets recognised in 2010/11 of $108,000 (increase)
  • one off increase of $3 million relating to remedial work required to stabilise the land at Pourerere Beach Hawke's Bay (this area suffered extensive storm damage in 2011/12),
  • $2.705 million expense transfer from 2011/12 to 2012/13 (decrease) due to delays in various projects
  • fiscally neutral reallocation of output costs to other output classes of $1.062 million (decrease).

The increase in third party revenue of $3 million is due to compensation payable from the Earthquake Commission (EQC) in respect of the storm damage at Pourerere Beach as noted above.

Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16)#

Scope of Appropriation#

This appropriation is limited to policy advice, services to the Minister of Conservation and statutory bodies, and provision of statutory planning.

Expenses and Revenue#

Expenses and Revenue - Policy Advice, Servicing the Minister and Statutory Bodies, and Statutory Planning (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,823 958 6,781
Revenue from Crown 5,293 958 6,251
Revenue from Other 530 - 530

Reasons for Change in Appropriation#

The increase in this appropriation is due to the following:

  • The 2010/11 audited net surplus was transferred to 2011/12 appropriations- $1.014 million (increase)
  • $75,000 expense transfer from 2011/12 to 2012/13 (decrease) due to delays in various work programmes
  • fiscally neutral reallocation of output costs from other output classes of $19,000 (increase).

Part 2.2 - Non-Departmental Output Expenses#

Identification and Implementation of Protection for Natural and Historic Places (M16)#

Scope of Appropriation

This appropriation is limited to identification and implementation of protection for natural and historic places.

Reasons for Change in Appropriation

The decrease in this appropriation from $5.969 million to $10.824 million is due to an expense transfer of $11.784 million from 2011/12 to 2012/13, partly offset by the expense transfer of $5.815 million from 2010/11 to 2011/12, regarding the commitment of funds to other financial periods.

Management Services - Natural and Historic Places (M16)#

Scope of Appropriation#

This appropriation is limited to management services for properties with historical or natural significance, including maintenance work, access for the public and management advice on covenanted properties.

Reasons for Change in Appropriation#

The increase in this appropriation from $386,000 to $1.892 million is due to an increase in insurance premiums and maintenance costs payable on the buildings being managed of $426,000, partly offset by an expense transfer from 2011/12 to 2012/13 of $40,000, reflecting the delay in progressing some of the maintenance work.

NZ Biodiversity Funds (M16)#

Scope of Appropriation#

This appropriation is limited to the payment of grants: to provide private land managers with information and advice, or assistance with costs of pest and weed control, fencing and other biodiversity management actions; and to support community biodiversity restoration initiatives.

Reasons for Change in Appropriation#

The decrease in this appropriation from $6.765 million to $3.582 million is due to an expense transfer of $6.907 million from 2011/12 to 2012/13, partly offset by an expense transfer of $142,000 from 2010/11 to 2011/12, regarding the commitment of funds to other financial periods.

Stewart Island Infrastructure (M16)#

Scope of Appropriation#

This appropriation is limited to assistance to the Southland District Council for additional community infrastructure arising from increased visitor numbers on Stewart Island.

Reasons for Change in Appropriation#

The decrease in this appropriation from $585,000 to $184,000 is due to an expense transfer from 2011/12 to 2012/13, reflecting the delays in progressing this work.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.1 - Departmental Other Expenses#

Recovery from February 2011 Christchurch Earthquake (M16)

Scope of Appropriation

This appropriation is limited to writing off, or making good damage to, departmental assets and re-establishing departmental operations in Christchurch following the 22 February 2011 earthquake.

Expenses

Expenses - Recovery from February 2011 Christchurch Earthquake (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation   368 368

Reasons for Change in Appropriation

The increase in this appropriation from $0 to $368,000 is due to an expense transfer from 2010/11 to 2011/12 . It reflects the magnitude of repairs required and the time necessary to assess and to undertake all of the repairs. The Department's recovery operations in this area have continued to be hampered by the lack of access to its rented premises in Christchurch's Central Business District.

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Conservation
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To provide for the impairment in value of Public Conservation land as part of Treaty of Waitangi Settlements Impairment of Public Conservation Land

Impairment of Public Conservation Land (M74)#

Scope of Appropriation

This appropriation is limited to the impairment in value of Public Conservation land to be transferred to iwi as part of Treaty of Waitangi Settlements.

Expenses

Expenses - Impairment of Public Conservation Land (M74) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 6,807 6,807

Reasons for Change in Appropriation

The increase in this appropriation of $0 to $6.807 million is due to the requirement to provide for the impairment in the value of Public Conservation land that is transferrable to iwi as part of Treaty of Waitangi settlements.

Matauranga Maori Fund (M16)#

Scope of Appropriation#

This appropriation is limited to making grants to support initiatives to protect traditional Maori knowledge relating to NZ's indigenous biodiversity.

Reasons for Change in Appropriation#

The increase in this appropriation of $61,000 to $865,000 is due to an expense transfer of $446,000 from 2010/11 to 2011/12, partly offset by an expense transfer of $385,000 from 2011/12 to 2012/13, regarding funding commitments to other financial periods.

Redress payments under Foreshore and Seabed Act 2004 (M16)#

Scope of Appropriation#

This appropriation is limited to redress payments to local authorities under Section 25 of the Foreshore and Seabed Act 2004.

Reasons for Change in Appropriation#

The increase in this appropriation from $0 to $310,000 is due to an expense transfer from 2010/11 to 2011/12, reflecting the uncertainty over the timing of redress payments.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Department of Conservation - Capital Expenditure PLA (M16)

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the Department of Conservation, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

Capital Expenditure - Department of Conservation Capital Expenditure PLA (M16) - Conservation
  2011/12
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 45,766 5,100 50,866
Intangibles 7,300 (5,100) 2,200
Other - - -

Reasons for Change in Appropriation

The above change is due to a revised forecast of expenditure.

Part 6.2 - Non-Departmental Capital Expenditure#

Crown Land Acquisitions (M16)#

Scope of Appropriation

This appropriation is limited to the purchase of property for the Conservation Estate.

Reasons for Change in Appropriation

The increase in this appropriation from $10.361 million to $16.861 million is due to additional funding received for a land purchase.

Purchase and Development of Reserves (M16)#

Scope of Appropriation#

This appropriation is limited to the purchase of conservation land, including the purchase of reserves, and any associated administration costs as provided for under the Reserves Act 1977.

Reasons for Change in Appropriation#

The reason for the increase in this appropriation of $1.453 million to $2.953 million is due to the following:

  • The remaining Reserves Trust balance brought forward from 2010/11 to 2011/12 of $9.891 million (increase)
  • A $300,000 fiscally neutral transfer from departmental output expense appropriations (increase)-these have been partly offset by a capital transfer from 2011/12 to 2012/13 of $8.738 million (decrease).