Vote Environment - Supplementary Estimates 2011/12

Details of Multi-Year Appropriations#

Details of Projected Movements in Departmental
Net Assets#

Ministry for the Environment

Information Supporting the Supplementary Estimates Vote Environment#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for the Environment (M29)

ADMINISTERING DEPARTMENT: Ministry for the Environment

MINISTER RESPONSIBLE FOR MINISTRY FOR THE ENVIRONMENT: Minister for the Environment

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

The above appropriations have been reclassified from Non-Departmental Other Expenses to Non-Departmental Output Expenses.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-6.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Environmental Management Obligations and Programmes MCOA (M29)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits. These output classes share a particular focus on achieving better solutions to environmental problems by supporting community involvement and action, and international cooperation.

Expenses and Revenue

Reasons for Change in Appropriation

During 2011/12 the Ministry has continued to deliver contracting, management and monitoring services for several funds and programmes such as the Community Environment Fund, the Sustainable Management Fund, and the Contaminated Site Remediation Fund. The Ministry has also concluded the Mapua contaminated site remediation and provided advice on New Zealand's compliance obligations under several Conventions.

As a result of balancing the above priorities with others in Vote Environment, and undertaking various initiatives to improve the effectiveness of the Ministry, this Multi-Class Output Appropriation will increase by $834,000 to $5.214 million in 2011/12.

Output Performance Measures and Standards

Improving Resource Management MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits, with a shared focus on improving resource management.

Expenses and Revenue#

Reasons for Change in Appropriation#

Significant priorities that have been progressed in 2011/12 include:

• commissioning the Land and Water Forum to provide further advice on the setting of limits including limit setting processes and governance arrangements
• introducing the Exclusive Economic Zone and Continental Shelf (Environment Effects) Bill into Parliament on 24 August 2011, and
• progressing phase two of the Resource Management Reforms.

This Multi-class Output appropriation will decrease by $3.527 million to $25.334 million in 2011/12. This is largely due:

• to the transfer of $3.100 million to Non-Departmental Capital Expenditure: Capital Contribution to the Environmental Protection Authority for future capital work, and
• balancing the above priorities with others in Vote Environment, and undertaking various initiatives to improve the effectiveness of the Ministry.

Output Performance Measures and Standards

Mitigating Environmental Hazards and Waste MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits. These output classes share a particular focus on reducing harm from natural, chemical and biological hazards and from waste through more effective management frameworks.

Expenses and Revenue#

Reasons for Change in Appropriation#

Significant priorities that have been progressed during 2011/12 include:

• providing advice on New Zealand's chemical and biological risk management framework, and
• reviewing territorial authorities waste management and minimisation plans.

As a result of balancing the above priorities with those in Votes Environment and Climate Change, and undertaking various initiatives to improve the effectiveness of the Ministry, this Multi-Class Output Appropriation will decrease by $1.428 million to $4.198 million in 2011/12.

Output Performance Measures and Standards

Processing of Resource Management Call-ins and applications made to the Environmental Protection Authority (M29)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation has decreased by $21.490 million to $nil in 2011/12. This is due to the transfer of the Resource Management Call-ins functions to the Environmental Protection Authority from 1 July 2011.

Waste Minimisation Administration (M29)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will increase by $42,000 to $1.756 million in 2011/12. This increase is necessary to reflect the change in the accounting treatment of Departmental Revenue and Other Revenue. The Ministry previously offset this revenue against expenses.

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Community Environment Fund (M29)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will decrease by $2.095 million to $2 million in 2011/12. This is due to the fact that appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete. The appropriation has now been rephased to match the expected delivery of projects and updated for actual delivery of milestones.

Contaminated Sites Remediation Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $883,000 to $2.156 million in 2011/12. This increase is to allow a review of the fund to be undertaken to improve the criteria, improve management of the fund, and to prioritise high risk sites that pose a risk to human health and the environment.

Contestable Waste Minimisation Fund (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation has been transferred from Non-Departmental Other Expenses (Refer to Part 5.2). The Estimates amount for this appropriation for 2011/12 was $15 million and will decrease by $2.500 million to $12.500 million in 2011/12. This is due to the fact that appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete. This decrease is due to the rephasing of funds to match the expected delivery of projects and updated for actual delivery of milestones.

Output Performance Measures and Standards#

Environmental Protection Authority: Regulatory Functions MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the same outcome of strengthening and supporting New Zealand's environmental systems so that they can achieve the greatest overall environmental, economic and social benefits.

Expenses#

Reasons for Change in Appropriation#

This appropriation was approved during the year with the establishment of the Environmental Protection Authority.

Output Performance Measures and Standards#

Fresh Start for Fresh Water: New Initiatives (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation has been transferred from Non-Departmental Other Expenses. (Refer to Part 5.2) The Estimates amount for this appropriation for 2011/12 was $7.500 million and will decrease by $5.500 million to $2 million in 2011/12. This is due to the fact that appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete. This decrease is due to the rephasing of funds to match the expected delivery of projects and updated for actual delivery of milestones.

Output Performance Measures and Standards#

Fresh Start for Fresh Water: Rotorua Lakes Restoration Programme (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation has been transferred from Non-Departmental Other Expenses. (Refer to Part 5.2). The Estimates amount for this appropriation for 2011/12 was $8.200 million and will decrease by $4.100 million to $4.100 million in 2011/12. This decrease is due to delay in meeting a milestone and will not be reached until 2012/13. The milestones are agreed between the Crown, Environment Bay of Plenty and the Rotorua District Council who are jointly involved in a ten year project for the protection and restoration of the water quality of Rotorua lakes.

Output Performance Measures and Standards

Hazardous Substances and New Organisms Assessment and Management (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation has decreased by $10.170 million to $nil in 2011/12. This is due to merging the appropriation with the Environmental Protection Authority: Regulatory Functions (MCOA). The functions were transferred to the Environmental Protection Authority from 1 July 2011.

Rena Long-term Environment Recovery (M29)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This appropriation was approved during the year.

Output Performance Measures and Standards#

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Contestable Waste Minimisation Fund (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation has been transferred to Non-Departmental Output Expenses. (Refer to Part 2.2)

The Ministry has reviewed the classification of the various funds it manages under Non-Departmental Output Expenses and Other Expenses appropriations. To provide consistency of classifications for these funds, the Ministry has transferred this appropriation.

Environmental Protection Authority Establishment Costs (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation was approved during the year.

Expected Results#

Fresh Start for Fresh Water: New Initiatives (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation has been transferred to Non-Departmental Output Expenses. (Refer to Part 2.2)

The Ministry has reviewed the classification of the various funds it manages under Non-Departmental Output Expenses and Other Expenses appropriations. To provide consistency of classifications for these funds, the Ministry has transferred this appropriation.

Fresh Start for Fresh Water: Rotorua Lakes Restoration Programme (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation has been transferred to Non-Departmental Output Expenses. (Refer to Part 2.2)

The Ministry has reviewed the classification of the various funds it manages under Non-Departmental Output Expenses and Other Expenses appropriations. To provide consistency of classifications for these funds, the Ministry has transferred this appropriation.

Fresh Start for Fresh Water: Waikato River Clean-up Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $9.613 million to $10.137 million in 2011/12. This increase is primarily due to the funding of $10 million (in net present value terms $5.933 million) over 30 years to the Waikato River Clean-up Trust for the clean-up of the Waipa River. The balance $4.204 million relates to the difference between the cash to be paid to the Trust in 2011/12 ($7 million) and the net present value recognised in 2009/10 from an earlier policy decision.

Hawke's Bay Rivers Clean-up Fund (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation will increase by $2 million in 2011/12. This is due to an expense transfer from 2010/11 to 2011/12 because of delays in signing the deed of funding with Hawke's Bay Regional Council - Ngati Pahauwera Research Study.

Expected Results#

Transitional Support for Local Government and Iwi (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation was approved during the year.

Expected Results#

Waikato River Co-Management (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $2.430 million to $2.632 million in 2011/12. The policy decision to pay $150 million over 30 years to the Waikato River Iwi was recognised as an expense in 2009/10 in net present value terms. This appropriation now represents the difference between the cash to be paid to the Iwi in 2011/12 ($5 million) and the net present value recognised in 2009/10.

Warm Homes Grants and Assistance (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $1.100 million to $nil in 2011/12. This decrease is due to a fiscally neutral transfer to the Ministry of Economic Development to align with the Clean Heat and Warm Up New Zealand: Heat Smart Programme.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Ministry for the Environment - Capital Expenditure PLA (M29)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation will increase by $375,000 to $950,000 in 2011/12. This increase is largely due to the development and upgrading of systems including the Intranet Map Viewer System; the Customer Relationship Management System for the use in Waste Management and the Emissions Trading Scheme (ETS) and Online Waste Levy System.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Capital Contribution to the Environmental Protection Authority (M29)#

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation was approved during the year with the establishment of the Environmental Protection Authority. This appropriation received funding as below:

• the transfer of $6.494 million net assets of the New Zealand Emissions Trading Scheme (NZ ETS) and future development of the Emissions Trading and Climate Change Registers from the Ministry of Economic Development
• the transfer of $3.100 million for future capital work from the Departmental Multi-class Output Expense: Resource Management Implementation

Refer to the Environmental Protection Authority Statement of Intent (SOI) for more details.