Vote Environment - Supplementary Estimates 2017/18

Vote Environment#

APPROPRIATION MINISTER(S): Minister for Climate Change (M12), Minister for the Environment (M29)

APPROPRIATION ADMINISTRATOR: Ministry for the Environment

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Multi-Year Appropriations#

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Ministerial Services (M29)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $26,000 to $2.209 million for 2017/18 due to changes in third party revenue.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry for the Environment - Capital Expenditure PLA (M29)#

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation decreased by $8.055 million to $1.778 million for 2017/18 mainly due to the Ministry handing over the lead agency role for Charles Fergusson Tower (part of the Wellington Office Accommodation Project (2)) to the Ministry for Primary Industries. The Ministry budgeted to spend $9.673 million in 2017/18 for this project. This decrease is partially offset by an increase in expenditure related to:

• upgrading software (such as document management system, Microsoft operating system, human resource system transition to cloud and geospatial mapping programme) - $1.161 million
• purchasing furniture and fixtures following the Kaikoura earthquake and backup infrastructure for business continuity - $457,000.

Capital Injections and Movements in Departmental Net Assets

Ministry for the Environment

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Community Environment Fund (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $94,000 to $2.456 million for 2017/18 due to an expense transfer of $94,000 from 2016/17 for projects that support the implementation of freshwater and resource management reforms, and other initiatives.

Contaminated Sites Remediation Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.052 million to $6.832 million for 2017/18 due to an expense transfer of $3.052 million from 2016/17 for the remediation of Kopeopeo Canal and Calwell Slipway. This increase is partially offset by a transfer of $2 million to 2018/19 to continue the remediation work of the Kopeopeo Canal project delayed due to weather conditions in the Bay of Plenty region.

Environmental Protection Authority: Decision Making functions (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $752,000 to $12.383 million for 2017/18 due to a fiscally neutral transfer of funding from Non-Departmental Output Expense: Environmental Protection Authority: Monitoring and Enforcement functions to align the output classes with the Environmental Protection Authority's Statement of Performance Expectations for the 2017/18 financial year.

Environmental Protection Authority: Monitoring and Enforcement functions (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $650,000 to $6.594 million for 2017/18 due to a fiscally neutral transfer of funding to Non-Departmental Output Expense: Environmental Protection Authority: Decision Making functions to align the output classes with the Environmental Protection Authority's Statement of Performance Expectations for the 2017/18 financial year. This decrease is partially offset by additional funding of $102,000 allocated through Budget 2018 to lead the next phase of the investigation into sites contaminated with Per- and Poly-Fluorinated Alkyl substances (PFAS).

Te Mana o Te Wai - restoring the life-giving capacity of fresh water (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $1.449 million to $1.751 million for 2017/18 due to a transfer of $1.500 million to 2018/19 for projects that support the implementation of freshwater initiatives. This decrease is partially offset by an expense transfer of $51,000 from 2016/17.

The appropriation levels are set at the annual funding round limit initially as timing of deliverables and project milestones are unknown until the funding round is complete. Projects typically run for three years. Funds will be rephased through baseline updates to match the expected delivery of projects and actual delivery of milestones.

The Fresh Water Improvement Fund (M29)#

Scope of Appropriation#

End of Year Performance Reporting#

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.

Reasons for Change in Appropriation#

This appropriation decreased by $3.300 million to $3.700 million for 2017/18 due to a transfer of $3.800 million to 2018/19 to ensure each project has sufficient funds to complete their programme of work. This decrease is partially offset by an expense transfer of $500,000 from 2016/17.

Funding of $100 million over ten years was allocated through Budget 2016. Due to delays in establishing a contestable funding round (including panel assessment) which is now complete, the Ministry is in the process of negotiating deeds of funding. Projects will typically be for five years and will be delivered collaboratively, with contributions from multiple stakeholders.

3.4 - Non-Departmental Other Expenses#

Allocation of New Zealand Units (M12)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $252.100 million to $933.025 million for 2017/18 due to:

• phased removal of one carbon unit allocation/surrender for two tonnes of emissions reductions policy settings under the New Zealand Emissions Trading Scheme following the review, and
• an increase in the allocation of units because 2017 is a mandatory reporting period for the post-1989 forestry sector. Post-1989 forestry sector participants have the ability to file an emissions return every year or at the end of the five year period and claim units for the carbon sequestered in the forest. The mandatory reporting period occurs every five years.

Exclusive Economic Zone Major Prosecutions Fund (M29)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve compliance with the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 by enabling the Environmental Protection Authority to carry out major prosecutions where appropriate.

End of Year Performance Reporting#

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation#

This appropriation increased by $500,000 for 2017/18 due to an expense transfer from 2016/17 because there were no major prosecutions in 2016/17.

Impairment of Debt Relating to Climate Change Activities (M12)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $10.550 million to $22.750 million for 2017/18 to provide for the potential non-collectability of debts for climate change activities. This is because the price of New Zealand units have increased to $21.05 as at the end of March 2018 from $17.20 at 30 June 2017.

Transitional Support for Local Government and Iwi (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $620,000 to $nil for 2017/18 due to an expense transfer of $1.470 million to 2018/19. This transfer relates to Crown contributions for the following settlements likely to happen in 2018/19:

• Ngati Kahungunu ki Wairarapa-Tamaki Nui-a-Rua: Crown Settlement - $500,000;
• Hauraki Collective: Final decisions for Mangatangi Stream, Mangatawhiri River and Whangamarino wetland catchments redress - $450,000;
• Ngati Rangi Deed of Settlement - $400,000; and
• Hauraki Negotiations Final Decisions - $120,000.

This decrease is partially offset by additional funding allocated during the year relating to:

• Hauraki Collective: Final decisions for Mangatangi Stream, Mangatawhiri River and Whangamarino wetland catchments redress - $450,000
• Ngati Rangi Deed of Settlement - $400,000.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Climate Change (M12)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with each Category and How Performance will be Assessed

Reasons for Change in Appropriation

This multi-category appropriation increased by $4.087 million to $16.545 million for 2017/18 due to:

• a fiscally neutral transfer of $1.300 million from other departmental output expenses for progressing work on climate change related work programmes, including work on New Zealand Unit auctioning under the New Zealand Emissions Trading Scheme and geospatial system upgrade
• additional funding of $1.234 million allocated to establish an Interim Climate Change Committee and work on the Zero Carbon Bill
• an expense transfer of $832,000 from 2016/17 for progressing work on the Land Use and Carbon Analysis System (LUCAS) mapping programme and work on New Zealand Unit auctioning under the New Zealand Emissions Trading Scheme
• a fiscally neutral transfer of $500,000 from the Vote Business Science and Innovation to support the provision of advice and decision-making by Ministers on domestic climate change
• an increase of $221,000 in cost recovery revenue from other parties, mainly for staff secondments and travel reimbursements.

Environmental Management Obligations and Programmes (M29)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This multi-category appropriation increased by $232,000 to $3.699 million for 2017/18 due to:

• a fiscally neutral transfer of $180,000 from other departmental output expenses to progress work on International Environmental Cooperation Agreements
• an increase of $52,000 in cost recovery revenue from other parties, mainly for staff secondments and travel reimbursements.

Improving Environmental Management (M29)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This multi-category appropriation increased by $3.096 million to $47.880 million for 2017/18 due to:

• $2.367 million in additional funding allocated to support freshwater reforms
• $1.050 million transferred from 2016/17 for progressing work on the National Planning Standards and the environmental integrated data infrastructure project, policy work on Marine Protected Areas and freshwater reforms
• $642,000 transferred from 2016/17 to non-departmental output class Water science and economics to develop the attributes for future revision of the National Policy Statement for Freshwater Management
• $612,000 related to cost recovery revenue from other parties, mainly from staff secondments and travel reimbursements.

These increases are partially offset by a fiscally neutral transfer of $1.575 million to other departmental output expenses for economic research on genetic technology and waste strategy, geospatial mapping programme and climate change work.

Mitigating Environmental Hazards and Waste (M29)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This multi-category appropriation increased by $577,000 to $2.495 million for 2017/18 due to:

• a fiscally neutral transfer of $445,000 from other departmental output expenses for economic research on genetic technology and waste strategy
• additional funding of $98,000 allocated through Budget 2018 to lead the next phase of the investigation into sites contaminated with Per- and Poly-Fluorinated Alkyl substances (PFAS), and
• an increase by $34,000 in cost recovery revenue from other parties, mainly related to staff secondments and travel reimbursements.