Vote Economic Development - Supplementary Estimates 2012/13

Details of Multi-Year Appropriations#

Details of Projected Movements in Departmental
Net Assets#

Ministry of Business, Innovation and Employment

Information Supporting the Supplementary Estimates Vote Economic Development#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Economic Development (M25), Minister for Small Business (M62)

ADMINISTERING DEPARTMENT: Ministry of Business, Innovation and Employment

MINISTER RESPONSIBLE FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: 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

Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development (M25)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $9.096 million to $13.255 million is a result of:

• $1.900 million for the policy work on the Government Procurement programme approved by Cabinet (Government Procurement Functional Leadership)
• $1 million fiscally neutral adjustment (FNA) from the departmental output expense Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring appropriation as a result of an internal review of costs between the two appropriations
• $605,000 FNA from Vote Finance for the Business Facing Services unit via the Better Services for Less Development Pipeline Project
• $290,000 expense transfer from 2011/12 as a result of the timing in the development of an extensive suite of best practice procurement policy work
• $185,000 FNA from Vote Foreign Affairs to assist with international travel costs relating to trade negotiations
• $95,000 expense transfer from 2011/12 as a result of the timing of the Maori Economic Development Strategy Projects, and
• $84,000 FNA for an efficiency dividend adjustment from Vote Energy.

Policy Advice - Small Business (M62)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $1.285 million to $1.330 million as a result of $33,000 retention of underspend from 2011/12 and an FNA of $12,000 for an efficiency dividend from Vote Energy.

Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M25)#

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increased appropriation is a result of:

• expense transfers from 2011/12 as a result of the timing of both the Government Electronic Tender System (GETS) tender preparation and evaluation processes ($750,000), and in the expected signed agreement to progress the detailed design of the new Convention Centre ($305,000)
• $400,000 to assist with funding the Government Procurement Functional Leadership initiative, and
• $300,000 to assist with the Speed Up Reforms with Better Public Services Seed Fund initiative (Cab Min (13) 8/3 refers).

These increases were partially offset by a $1 million FNA to the departmental output expense Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development as a result of an internal review of costs between the two appropriations.

Part 2.2 - Non-Departmental Output Expenses#

International Business Growth Services (M25)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $99.702 million to $101.264 million as a result of:

• $1.520 million to assist with the New Zealand Trade and Enterprise (NZTE) implementation of New Zealand Inc Strategy initiatives
• $200,000 for fluctuations in foreign exchange forecasts, and
• $76,000 from Vote Foreign Affairs to assist with international travel costs relating to trade negotiations for World Trade Organisation (WTO) and Free Trade Agreements (FTA's).

These increases were partially offset by an FNA of $234,000 to non-departmental other expense Regional and Industry Development Fund to assist with the Kiwi Expatriates Association (KEA) - connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Services to Develop Business Capability (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation decreased from $14.905 million to $13.752 million as a result of an FNA for $900,000 to non-departmental output expense Services to Support Sector Development and Special Events, to assist with the Sector Development Support programme initiative, and an FNA of $253,000 to Vote Pacific Island Affairs to assist with their Pre-Business training programme.

Services to Support Sector Development and Special Events (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $29.666 million to $32.807 million as a result of:

• $950,000 funding approved by Cabinet to assist with the NZTE - Implementation of New Zealand Inc Strategy initiatives
• FNA of $900,000 from non-departmental output expense Services to Develop Business Capability, to assist with the Sector Development Support programme initiative
• expense transfer of $750,000 from 2011/12 as a result of the timing in the work relating to the Health Information Technology Project
• expense transfer of $500,000 from 2011/12 as a result of the timing in the work relating to the Aviation High Impact Project, and
• $41,000 fluctuations in foreign exchange forecasts.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Establishment and operation of the Food Innovation Network New Zealand (M25)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $950,000 to $4.596 million as a result of a $3.346 million automatic transfer of 2011/12 underspend to 2012/13 and an FNA of $1.600 million from the non-departmental other expense Square Kilometre Array to assist with the Food Bowl initiative.

These increases were partially offset by an expense transfer of $1.300 million to Vote Science and Innovation for the Crown entity Callaghan Innovation to reflect the transfer of the New Zealand Food Innovation (Network) Ltd functions to Callaghan Innovation.

Major Events Development Fund (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $10 million to $15.078 million as a result of an expense transfer of $5.078 million from 2011/12 to 2012/13 to reflect the timing of the approval process for major events under consideration.

Promotion of New Zealand Associated with the America's Cup (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The increased appropriation is a result of an expense transfer of $1.676 million from 2011/12 to 2012/13 to reflect the postponement of the 34th America's Cup which took place in San Francisco in September 2012.

Regional and Industry Development Fund (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $200,000 to $1.150 million as a result of FNAs from within Vote Economic Development ($434,000), Vote Science and Innovation ($233,000), Vote Foreign Affairs and Trade ($233,000), Vote Immigration ($30,000) and Vote Maori Affairs ($20,000) in 2012/13 to assist with the Kiwi Expatriates Association (KEA) - Connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Regional Partnerships and Facilitation (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation decreased from $4.556 million to $4.487 million as a result of an FNA to non-departmental other expense Regional and Industry Development Fund to assist with the Kiwi Expatriates Association (KEA) - Connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Square Kilometre Array (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation decreased from $3.150 million to $1.419 million as a result of:

• FNA for $1.600 million to non-departmental other expense Establishment and Operations of the Food Innovation Network New Zealand to assist with the Food Bowl initiative, and
• FNA of $131,000 to the non-departmental other expense Regional and Industry Development Fund appropriation to assist with the Kiwi Expatriates Association (KEA) - Connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The increased appropriation is a result of:

• a transfer of capital expense of $51.874 million from the four previous agencies (Department of Labour, Department of Housing and Building, Ministry of Science and Innovation and the Ministry of Economic Development) to the formation of the Ministry of Business, Innovation and Employment
• reforecast spend of $6 million for the Immigration Global Management System (IGMS), and
• reforecast spend of $5.175 million for Economic Development capital.

Ministry of Economic Development - Capital Expenditure PLA (M25)#

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation transferred to Ministry of Business, Innovation and Employment - Capital Expenditure PLA from 1 July 2012 due to the formation of the Ministry of Business, Innovation and Employment. The Minister for Economic Development is the Responsible Minister for the Ministry of Business, Innovation and Employment.

Part 6.2 - Non-Departmental Capital Expenditure#

Seed Co-investment Fund (M25)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased from $7.600 million to $16.232 million as a result of $17.649 million automatic transfer of 2011/12 underspend to 2012/13, partially offset by a transfer of $9.017 million to non-departmental capital expense New Zealand Venture Investment Fund (NZVIF) to correct expense transfers in 2011/12 that were inadvertently made to this appropriation, but should have been made to NZVIF.

Venture Investment Fund (M25)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased from $12.400 million to $29.255 million as a result of a $7.838 million automatic transfer of 2011/12 underspend to 2012/13 and an expense transfer of $9.017 million from non-departmental capital expense Seed Co-Investment Fund (SCIF) to correct expense transfers in 2011/12 that were inadvertently made to SCIF.