Supplementary estimates of appropriations

Vote Defence - Supplementary Estimates of Appropriations 2007/08

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)

ADMINISTERING DEPARTMENT: Ministry of Defence

MINISTER RESPONSIBLE FOR MINISTRY OF DEFENCE: Minister of Defence

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Defence
2007/08
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

Audit and Assessment of Performance (M22)

Audits and assessments of the New Zealand Defence Force and of Ministry acquisition activity.
1,890 19 1,909

Management of Equipment Procurement (M22)

Managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force.
3,713 58 3,771

Policy Advice (M22)

Policy advice, management of international defence relations and services to the Minister.
3,939 70 4,009

Total Departmental Output Expenses

9,542 147 9,689

Capital Expenditure to be Incurred by the Department

Ministry of Defence - Capital Expenditure PLA (M22)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989
- 238 238

Total Capital Expenditure to be Incurred by the Department

- 238 238

Capital Expenditure to be Incurred by the Crown

Defence Equipment (M22)

Purchase of defence equipment for the New Zealand Defence Force.
252,195 38,080 290,275

Total Capital Expenditure to be Incurred by the Crown

252,195 38,080 290,275

Total Annual and Permanent Appropriations

261,737 38,465 300,202

Details of Projected Movements in Departmental
Net Assets#

Ministry of Defence

Ministry of Defence - Details of Projected Movements in Departmental Net Assets - Defence
Details of Net Asset Schedule 2007/08 Estimates Projections
$000
2007/08 Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2007/08
Opening Balance 3,416 3,416 Supplementary Estimates opening balance reflects the audited results as at 30 June 2007.
Capital Injections - -
Capital Withdrawals - -
Surplus to be Retained (Deficit Incurred) - -
Other Movements - -
Closing Balance 3,416 3,416

Information Supporting the Supplementary Estimates Vote Defence #

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)

ADMINISTERING DEPARTMENT: Ministry of Defence

MINISTER RESPONSIBLE FOR MINISTRY OF DEFENCE: Minister of Defence

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

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

Appropriations

Output Expenses 9,542 147 - 147 9,689
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure 252,195 238 38,080 38,318 290,513
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

261,737 385 38,080 38,465 300,202

Crown Revenue and Receipts

Tax Revenue - N/A N/A - -
Non-Tax Revenue 870 N/A N/A (323) 547
Capital Receipts 391,183 N/A N/A (137,953) 253,230

Total Crown Revenue and Receipts

392,053 N/A N/A (138,276) 253,777

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Ministry of Defence - 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 Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989

Capital Expenditure

Capital Expenditure - Ministry of Defence Capital Expenditure PLA (M22) - Defence
2007/08
Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment - 122 122
Intangibles - 116 116
Other - - -
Total Appropriation - 238 238
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment - 122 122
Intangibles - 116 116
Other - - -
Total Appropriation - 238 238

Reasons for Change in Appropriation

This appropriation was forecast at $50,000 in the Ministry of Defence's Statement of Intent for 2007/08. The increase of $188,000 is due to upgrades of information technology infrastructure.

Part 6.2 - Non-Departmental Capital Expenditure#

Defence Equipment (M22)#

Scope of Appropriation

Purchase of defence equipment for the New Zealand Defence Force.

Reasons for Change in Appropriation

This appropriation will increase by $38.080 million to $290.275 million for 2007/08 due to changes in the timings for various contractual milestone payments. The significant projects are Medium Utility Helicopters, Project Protector Vessels, C-130 Hercules Life Extension, P-3 Orion Mission Management, Communication and Navigation Systems Upgrade, Boeing 757 Acquisition and Modification, and ANZAC Close in Weapon System.