Supplementary estimates of appropriations

Vote Finance - Supplementary Estimates 2015/16

APPROPRIATION MINISTER(S): Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Science and Innovation (M84), Minister supporting Greater Christchurch Regeneration (M85), Minister Responsible for HNZC (M90)

APPROPRIATION ADMINISTRATOR: The Treasury

RESPONSIBLE MINISTER FOR THE TREASURY: Minister of Finance

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2015/16
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31)

This appropriation is limited to expenses incurred in connection with administering borrowing, securities, derivative transactions and investment by the Crown, as authorised by section 65ZH of the Public Finance Act 1989.
8,917 380 9,297

Administration of Guarantees and Indemnities given by the Crown PLA (M31)

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.
309 2 311

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65)

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State-Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.
5,098 218 5,316

Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84)

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.
414 (149) 265

Policy Advice - Finance (M31)

This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to Finance.
33,037 46 33,083

Provision of Financial Operations Services and Operational Advice (M31)

This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.
28,840 1,869 30,709

Provision of Financial Services to the New Zealand Local Government Funding Agency RDA (M31)

This appropriation is limited to expenses incurred in connection with the provision of financial services on a commercial basis to the New Zealand Local Government Funding Agency (LGFA).
165 (165) -

Shared Support Services (M31)

This appropriation is limited to provision of support services to other agencies.
10,400 2,821 13,221

Total Departmental Output Expenses

87,180 5,022 92,202

Departmental Capital Expenditure

     

The Treasury - Capital Expenditure PLA (M31)

This appropriation is limited to the purchase or development of assets by and for the use of the Treasury, as authorised by section 24(1) of the Public Finance Act 1989.
4,309 1,965 6,274

Total Departmental Capital Expenditure

4,309 1,965 6,274

Non-Departmental Output Expenses

     

Management of Anchor Projects by Otakaro Limited (M85)

This appropriation is limited to the Crown's contribution to Otakaro Limited's operating and financing expenses.
- 7,467 7,467

Management of the Crown's Obligations for Geothermal Wells (M31)

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.
151 316 467

Management of the New Zealand Superannuation Fund (M31)

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.
528 100 628

Total Non-Departmental Output Expenses

679 7,883 8,562

Non-Departmental Borrowing Expenses

     

Debt Servicing PLA (M31)

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.
3,391,920 32,593 3,424,513

Total Non-Departmental Borrowing Expenses

3,391,920 32,593 3,424,513

Non-Departmental Other Expenses

     

Auckland Council Loans: Loss on Early Repayment (M31)

This appropriation is limited to the loss resulting from the early repayment of loans to Auckland Council.
- 20,000 20,000

Crown Residual Liabilities (M31)

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.
60 26 86

Geothermal Wells Fund (M31)

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.
500 1,000 1,500

Government Inquiry into Foreign Trust Disclosure Rules (M31)

This appropriation is limited to the operation of the inquiry into foreign trust disclosure rules.
- 150 150

Government Superannuation Appeals Board (M31)

This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.
50 - 50

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Fund Act 1956.
33,000 5,000 38,000

Government Superannuation Fund Unfunded Liability PLA (M31)

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Fund Act 1956.
679,582 (65,517) 614,065

Impairment of Investment in Southern Response Earthquake Services Ltd (M31)

This appropriation is limited to the impairment of equity investment in Southern Response Earthquake Services Ltd.
- 417,000 417,000

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.
36,000 (9,000) 27,000

Review and Reform of Local Government Infrastructure Arrangements (M31)

This appropriation is limited to the review and reform of disaster funding for local government infrastructure, including contributions to expenses of the Local Government Risk Agency.
1,000 625 1,625

Solid Energy New Zealand Limited - Payments for Environmental Rehabilitation PLA (M31)

This appropriation is limited to payments by the Crown under indemnity given to Solid Energy New Zealand Limited under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.
- 1,851 1,851

Unclaimed Money PLA (M31)

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.
250 - 250

Unclaimed Trust Money PLA (M31)

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.
250 - 250

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability in respect of share subscriptions in International Financial Institutions as it nears settlement, as authorised by section 5(2) of the International Finance Agreements Act 1961.
- 1,605 1,605

Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.
12,843 3,527 16,370

Write-Off of Historical Investment in Solid Energy (M31)

This appropriation is limited to a write-off of historical investment in Solid Energy New Zealand Limited.
- 60,900 60,900

Total Non-Departmental Other Expenses

763,535 437,167 1,200,702

Non-Departmental Capital Expenditure

     

Crown Asset Management Limited - Acquisition of Residual Assets (M31)

This appropriation is limited to the acquisition of residual assets from Crown Asset Management Limited.
- 1,000 1,000

International Financial Institutions PLA (M31)

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.
44,000 306,494 350,494

Otakaro Limited Equity Injection (M85)

This appropriation is limited to the provision of an equity injection in Otakaro Limited.
- 6,100 6,100

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M31)

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited Debt.
142,362 - 142,362

Southern Response Earthquake Services Ltd: Equity Investment (M31)

This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.
- 417,000 417,000

Transfer of Housing New Zealand Corporation's Tamaki Housing Stock to Tamaki Redevelopment Company (M31)

This appropriation is limited to the transfer of Housing New Zealand Corporation properties to Tamaki Redevelopment Company Limited.
1,300,000 331,161 1,631,161

Total Non-Departmental Capital Expenditure

1,486,362 1,061,755 2,548,117

Multi-Category Expenses and Capital Expenditure

     

Greater Christchurch Anchor Projects MCA (M85)

The single overarching purpose of this appropriation is to support the recovery of Christchurch by contributing operating and capital funding for anchor projects covered by the Christchurch Central Recovery Plan.
- 440,417 440,417
Non-Departmental Other Expenses
     
Christchurch Bus Interchange and associated transport infrastructure - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure funded by contributions from parties other than the Crown.
- 100 100
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure.
- 41,788 41,788
Christchurch Convention Centre - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.
- 8,016 8,016
Christchurch Stadium - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Stadium funded by contributions from parties other than the Crown.
- 100 100
Christchurch Stadium - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.
- 4,000 4,000
Earthquake Memorial - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Canterbury Earthquake Memorial.
- 8 8
Financial Impact of Valuations
This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.
- 2,831 2,831
Leasing Anchor Project Land
This category is limited to the financial impact of granting concessionary leases over anchor project land.
- 6,000 6,000
Metro Sports Facility - contributions from third parties
This category is limited to the development, operations and divestment of the Metro Sports Facility funded by contributions from parties other than the Crown.
- 100 100
Metro Sports Facility - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.
- 9,389 9,389
Pre-Development Holding Costs - Operating
This category is limited to the Crown's contribution to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.
- 5,463 5,463
Procurement of Land and Assets - Operating
This category is limited to the Crown's contribution to the purchase, acquisition and clearance of land and assets for anchor project development.
- 75,514 75,514
Public Space - contributions from third parties
This category is limited to the development, operations and divestment of the Crown owned public space funded by contributions from parties other than the Crown.
- 100 100
Public Space - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.
- 105,217 105,217
Sale of Land
This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.
- 2,684 2,684
The Square - contributions from third parties
This category is limited to the development, operations and divestment of the Square funded by contributions from parties other than the Crown.
- 100 100
Non-Departmental Capital Expenditure
     
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Bus Interchange and associated transport infrastructure and to providing equity or loan capital to Otakaro Limited for that purpose.
- 7,860 7,860
Christchurch Convention Centre - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Convention Centre and to providing equity or loan capital to Otakaro Limited for that purpose.
- 24,500 24,500
Earthquake Memorial - Capital
This category is limited to the Crown's contribution to the capital development of the Canterbury Earthquake Memorial and to providing equity or loan capital to Otakaro Limited for that purpose.
- 3,625 3,625
Land and Asset Acquisition - Capital
This category is limited to the Crown's contribution to the cost of land and assets to be acquired for anchor project development and to providing equity or loan capital to Otakaro Limited for that purpose.
- 104,384 104,384
Metro Sports Facility - Capital
This category is limited to the Crown's contribution to the capital development of Metro Sports Facility and to providing equity or loan capital to Otakaro Limited for that purpose.
- 1,000 1,000
Public Space - Capital
This category is limited to the capital development of the Crown owned public space and to providing equity or loan capital to Otakaro Limited for that purpose.
- 37,638 37,638

Inquiries and Research into Productivity-Related Matters MCA (M31)

The overarching purpose of this appropriation is to provide for inquiries into, and research and promotion of, productivity-related matters.
5,030 - 5,030
Non-Departmental Output Expenses
     
Inquiries into Productivity-Related Matters
This category is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
4,401 - 4,401
Research into and Promotion of Productivity-Related Matters
This category is limited to the New Zealand Productivity Commission undertaking research into and promoting public understanding of productivity-related matters in accordance with the New Zealand Productivity Commission Act 2010.
629 - 629

Management of Landcorp Protected Land Agreement MCA (M31)

The overarching purpose of this appropriation is meeting the Crown's responsibilities under the Landcorp Protected Land Agreement.
4,000 1,500 5,500
Non-Departmental Other Expenses
     
Operating Costs
This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.
2,000 1,500 3,500
Non-Departmental Capital Expenditure
     
Capital Investments
This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.
2,000 - 2,000

Management of New Zealand House, London MCA (M31)

The overarching purpose of this appropriation is to ensure that New Zealand House, London is well managed.
14,750 2,610 17,360
Non-Departmental Output Expenses
     
Property Management
This category is limited to the property management services in respect of New Zealand House, London.
1,000 (200) 800
Non-Departmental Other Expenses
     
Operational Costs
This category is limited to the operational costs of New Zealand House, London.
13,000 900 13,900
Renegotiation of Lease Arrangements
This category is limited to activities to re-gear the lease on New Zealand House, London (including The Royal Opera Arcade and Her Majesty's Theatre).
- 410 410
Non-Departmental Capital Expenditure
     
Capital Expenditure
This category is limited to capital expenditure in relation to New Zealand House, London.
750 1,500 2,250

Management of the Crown's agreement with Taitokerau Forests Limited MCA (M31)

The overarching purpose of this appropriation is meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.
1,000 6,364 7,364
Non-Departmental Other Expenses
     
Grants
This category is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
200 273 473
Impairment of Loans
This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.
- 5,791 5,791
Non-Departmental Capital Expenditure
     
Loans
This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.
800 300 1,100

Social Housing Reform MCA (M90)

The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making Housing New Zealand Corporation stock available to social housing providers.
12,500 5,325 17,825
Departmental Output Expenses
     
Implementation of the Social Housing Reform Programme
This category is limited to the policy, operational, and transactional work to implement the Government's reform of social housing.
4,600 6,325 10,925
Non-Departmental Output Expenses
     
Direct Sale Costs for Implementing the Social Housing Reform Programme
This category is limited to direct sales costs of implementing the Government's reform of social housing.
7,900 (1,000) 6,900

Total Multi-Category Expenses and Capital Expenditure

37,280 456,216 493,496

Total Annual and Permanent Appropriations

5,771,265 2,002,601 7,773,866

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Other Expenses

   

Loyalty Bonus Scheme Related to Initial Public Offers (M31)

This appropriation is limited to expenses incurred by allocating shares under a loyalty bonus scheme to eligible investors in initial public offers.

Commences: 01 March 2013

Expires: 30 June 2016
Original Appropriation 40,000
Adjustments to 2014/15 6,812
Adjustments for 2015/16 -
Adjusted Appropriation 46,812
Actual to 2014/15 Year End 46,812
Estimated Actual for 2015/16 -
Estimated Actual for 2016/17 -
Estimated Appropriation Remaining -

Non-Departmental Capital Expenditure

   

Loan Facility for Tamaki Redevelopment Company (M31)

This appropriation is limited to provision of a loan to Tamaki Redevelopment Company Limited.

Commences: 31 March 2015

Expires: 30 June 2018
Original Appropriation 200,000
Adjustments to 2014/15 -
Adjustments for 2015/16 -
Adjusted Appropriation 200,000
Actual to 2014/15 Year End -
Estimated Actual for 2015/16 23,000
Estimated Actual for 2016/17 78,000
Estimated Appropriation Remaining 99,000

Transfer of Anchor Project Assets to Otakaro Limited (M85)

This appropriation is limited to the transfer of Christchurch anchor project assets to Otakaro Limited.

Commences: 01 April 2016

Expires: 30 June 2020
Original Appropriation 500,000
Adjustments to 2014/15 -
Adjustments for 2015/16 -
Adjusted Appropriation 500,000
Actual to 2014/15 Year End -
Estimated Actual for 2015/16 300,000
Estimated Actual for 2016/17 200,000
Estimated Appropriation Remaining -

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

  2015/16
  Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual and Permanent Appropriations 5,771,265 2,002,601 7,773,866
Total MYA Non-Departmental Capital Expenditure Forecasts 100,000 223,000 323,000

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

5,871,265 2,225,601 8,096,866

Capital Injection Authorisations#

  2015/16
  Estimates Budget
$000
Supplementary
Estimates Budget
$000
Total Budget
$000
The Treasury - Capital Injection (M31) - 820 820

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2015/16
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 87,859 5,022 7,883 12,905 100,764
Benefits or Related Expenses - N/A - - -
Borrowing Expenses 3,391,920 - 32,593 32,593 3,424,513
Other Expenses 763,535 - 437,167 437,167 1,200,702
Capital Expenditure 1,590,671 1,965 1,284,755 1,286,720 2,877,391
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 18,530 6,325 (1,200) 5,125 23,655
Other Expenses 15,200 - 270,284 270,284 285,484
Capital Expenditure 3,550 N/A 180,807 180,807 184,357

Total Appropriations

5,871,265 13,312 2,212,289 2,225,601 8,096,866

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 3,630,543 N/A (8,200) (8,200) 3,622,343
Capital Receipts 14,441 N/A 608,451 608,451 622,892

Total Crown Revenue and Capital Receipts

3,644,984 N/A 600,251 600,251 4,245,235

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering borrowing, securities, derivative transactions and investment by the Crown, as authorised by section 65ZH of the Public Finance Act 1989.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 8,917 380 9,297
Revenue from the Crown 8,914 330 9,244
Revenue from Others 3 50 53

Reasons for Change in Appropriation

This appropriation increased by $380,000 to $9.297 million for 2015/16 due to:

  • an increase of $330,000 for operating expenditure related to the Business Information Hub project, and
  • an increase of $50,000 for costs associated with miscellaneous revenue.

Administration of Guarantees and Indemnities given by the Crown PLA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 309 2 311
Revenue from the Crown 309 - 309
Revenue from Others - 2 2

Reasons for Change in Appropriation

This appropriation increased by $2,000 to $311,000 for 2015/16 due to costs associated with miscellaneous revenue.

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65)

Scope of Appropriation

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State-Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,098 218 5,316
Revenue from the Crown 5,098 193 5,291
Revenue from Others - 25 25

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Technical quality of operational advice papers regarding ownership, performance monitoring and governance as assessed through the general Treasury policy advice quality assessment process (see note on the '2015 Budget Revisions').

70% N/A N/A

Provide advice in relation to ownership, performance monitoring and governance matters to the Minister for State Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.

N/A Achieved Achieved

Provide services supporting the reporting and accountability obligations of entities that fall within the scope of the Owners Expectation Manual.

N/A Achieved Achieved

Reasons for Change in Appropriation

This appropriation increased by $218,000 to $5.316 million for 2015/16 due to:

  • a transfer of $500,000 from 2014/15 to 2015/16 due to delays in the strategic reviews within the commercial operations work programme
  • a transfer of $300,000 from Vote Prime Minister and Cabinet to provide ownership, performance monitoring and governance advice of Otakaro Limited
  • an increase of $25,000 in recoverable costs for seconded staff.

This increase was partly offset by:

  • a decrease in the reallocation of $607,000 of overhead costs.

Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84)

Scope of Appropriation

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 414 (149) 265
Revenue from the Crown 414 (151) 263
Revenue from Others - 2 2

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Technical quality of operational advice papers regarding ownership, performance monitoring and governance as assessed through the general Treasury policy advice quality assessment process (see note on the '2015 Budget Revisions').

70% N/A N/A

Provide services in relation to ownership, performance monitoring and governance matters to the Minister of Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities of the Crown Research Institutes.

N/A Achieved Achieved

Reasons for Change in Appropriation

This appropriation decreased by $149,000 to $265,000 for 2015/16 due to the reallocation of overhead costs of $151,000.

The decrease was partly offset by an increase of $2,000 for costs associated with miscellaneous revenue.

Policy Advice - Finance (M31)

Scope of Appropriation

This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to Finance.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 33,037 46 33,083
Revenue from the Crown 33,025 (313) 32,712
Revenue from Others 12 359 371

Reasons for Change in Appropriation

This appropriation increased by $46,000 to $33.083 million for 2015/16 due to:

  • a transfer of $200,000 from 2014/15 to 2015/16 related to delays in the Central Agencies Development Programme, and
  • an increase of $359,000 related to costs associated with miscellaneous revenue.

The increase was partly offset by a decrease of $363,000 in 2015/16 related to the reallocation of overhead costs to Social Housing multi-category appropriation and $150,000 transfer to a new Non-departmental Other Expense appropriation in 2015/16 for a Government Inquiry into foreign trust disclosure rules.

Provision of Financial Operations Services and Operational Advice (M31)

Scope of Appropriation

This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 28,840 1,869 30,709
Revenue from the Crown 26,639 49 26,688
Revenue from Others 2,201 1,820 4,021

Reasons for Change in Appropriation

This appropriation increased by $1.869 million to $30.709 million for 2015/16 due to:

  • an increase of $1.820 million related to Gateway Reviews, secondments and other cost recovery activities
  • a retention of efficiency savings of $419,000 from 2014/15 to 2015/16 for the social housing programme
  • a transfer of $400,000 from 2014/15 to 2015/16 related to delays in the information strategy project
  • a transfer of $200,000 from 2014/15 to 2015/16 related to the Central Agencies Development Programme, and
  • ongoing administration of historic records associated with the windup of Crown Asset Management Limited (CAML) of $100,000.

The increase was partly offset by:

  • a reduction of $570,000 for the reallocation of overheads to Social Housing multi-category appropriation
  • a reduction of $395,000 for the share of costs for Budget 2015 whole-of-government initiatives
  • a transfer of $80,000 from 2015/16 to 2016/17 related to the delay in quality sampling of regulatory impact statements, and
  • a transfer of $25,000 to Vote Statistics for the Data Futures Partnership club funding.

Provision of Financial Services to the New Zealand Local Government Funding Agency RDA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with the provision of financial services on a commercial basis to the New Zealand Local Government Funding Agency (LGFA).

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 165 (165) -
Revenue from the Crown - - -
Revenue from Others 165 (165) -

Reasons for Change in Appropriation

This appropriation decreased by $165,000 for 2015/16 due to this activity ceasing.

Shared Support Services (M31)

Scope of Appropriation

This appropriation is limited to provision of support services to other agencies.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 10,400 2,821 13,221
Revenue from the Crown - - -
Revenue from Others 10,400 2,821 13,221

Reasons for Change in Appropriation

This appropriation increased by $2.821 million to $13.221 million for 2015/16 due to:

  • the transition and transfer of Canterbury Earthquake Recovery Authority (CERA) activities to the Department of the Prime Minister and Cabinet (DPMC) from 1 March 2016 of $2 million. This increase relates to the central agency shared support services provided for that transition, and
  • the ongoing operational support of $821,000 for CabNet recovered from DPMC.

2.3 - Departmental Capital Expenditure and Capital Injections

The Treasury - Capital Expenditure PLA (M31)

Scope of Appropriation

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

Capital Expenditure

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,820 1,377 3,197
Intangibles 2,489 588 3,077
Other - - -

Total Appropriation

4,309 1,965 6,274

Reasons for Change in Appropriation

This appropriation increased by $1.965 million to $6.274 million for 2015/16 due to:

  • additional of funding of $1.145 million for the Business Information Hub project for the New Zealand Debt Management Office
  • a transfer of $685,000 from Vote Prime Minister and Cabinet for information technology assets purchases for the Greater Christchurch Group managed by shared services in the Treasury, and
  • a transfer of $135,000 from Vote State Services for information technology assets purchases for the Auckland Policy Office managed by shared services in the Treasury.

Capital Injections and Movements in Departmental Net Assets

The Treasury

Details of Net Asset Schedule 2015/16
Main Estimates Projections
$000
2015/16
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2015/16
Opening Balance 14,049 14,049 Supplementary Estimates opening balance reflects the audited results as at 30 June 2015.
Capital Injections - 820 Transfers from State Services Commission and Department of Prime Minister and Cabinet for $135,000 of new funding for information technology assets for the Auckland Policy Office in State Services Commission and $685,000 for information technology assets for Greater Christchurch Group in the Department of the Prime Minister and Cabinet.
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

14,049 14,869  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Management of Anchor Projects by Otakaro Limited (M85)

Scope of Appropriation

This appropriation is limited to the Crown's contribution to Otakaro Limited's operating and financing expenses.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 7,467 7,467

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve continuation of Christchurch earthquake recovery of Anchor Projects Programme and divestment of Crown owned land in Christchurch.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Otakaro Limited will manage and administer the Anchor Projects Programme and divestment of Crown-owned land in Christchurch in accordance with the company's purpose as set out in its Constitution and its Statement of Intent.

Achieved Achieved Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by Otakaro Limited in its 2015/16 Annual Report.

Reasons for Change in Appropriation

As part of the transfer of functions from Vote Canterbury Earthquake Recovery Authority to Otakaro Limited during 2015/16, $7.467 million appropriation was established during the year to enable the Christchurch earthquake recovery of Anchor Projects Programme and divestment of Crown owned land in Christchurch.

Management of the Crown's Obligations for Geothermal Wells (M31)

Scope of Appropriation

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

Reasons for Change in Appropriation

This appropriation increased by $316,000 to $467,000 for 2015/16 due to the transfer of funding from 2014/15 to cover the potential rise in management and maintenance costs associated with the properties.

Management of the New Zealand Superannuation Fund (M31)

Scope of Appropriation

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation increased by $100,000 to $628,000 for 2015/16 due to additional funding for the New Zealand Superannuation Fund Board fees.

3.3 - Non-Departmental Borrowing Expenses

Debt Servicing PLA (M31)

Scope of Appropriation

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.

Reasons for Change in Appropriation

This appropriation increased by $32.593 million to $3,424.513 million for 2015/16 due to movements in forecast interest rates and the amount of debt outstanding.

3.4 - Non-Departmental Other Expenses

Auckland Council Loans: Loss on Early Repayment (M31)

Scope of Appropriation

This appropriation is limited to the loss resulting from the early repayment of loans to Auckland Council.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 20,000 20,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the recognition of the loss arising from the early repayment of loans issued by the Crown to Auckland Council.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to recognise the loss resulting from the early repayment of loans to Auckland Council.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 for $20 million due to the loss arising from the early repayment of loans by Auckland Council.

Crown Residual Liabilities (M31)

Scope of Appropriation

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

Reasons for Change in Appropriation

This appropriation increased by $26,000 to $86,000 for 2015/16 due to an expense transfer from 2014/15 aimed at addressing the obligations associated with residual Crown liabilities.

Geothermal Wells Fund (M31)

Scope of Appropriation

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

Reasons for Change in Appropriation

This appropriation increased by $1 million to $1.500 million for 2015/16 due to the transfer of unused funding from 2014/15 to initiate remedial work on redundant geothermal assets at Wairakei.

Government Inquiry into Foreign Trust Disclosure Rules (M31)

Scope of Appropriation

This appropriation is limited to the operation of the inquiry into foreign trust disclosure rules.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 150 150

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve independent review of the disclosure rules covering foreign trusts registered in New Zealand.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii), as the amount of the annual non-departmental other appropriation is less than $5 million.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 for $150,000 for the costs associated with the independent review of foreign trust disclosure rules.

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)

Scope of Appropriation

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Fund Act 1956.

Reasons for Change in Appropriation

This appropriation increased by $5 million to $38 million for 2015/16 due to changes in the latest Government Superannuation Fund valuation as at 31 January 2016.

Government Superannuation Fund Unfunded Liability PLA (M31)

Scope of Appropriation

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Fund Act 1956.

Reasons for Change in Appropriation

This appropriation decreased by $65.517 million to $614.065 million for 2015/16 due to changes in the latest Government Superannuation Fund valuation as at 31 January 2016.

Impairment of Investment in Southern Response Earthquake Services Ltd (M31)

Scope of Appropriation

This appropriation is limited to the impairment of equity investment in Southern Response Earthquake Services Ltd.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 417,000 417,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the impairment of additional financial support for Southern Response Earthquake Services Limited.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the technical accounting treatment for impairment of investment.

Reasons for Change in Appropriation

The increase in this appropriation by $417 million for 2015/16 is due to:

  • the immediate impairment of additional funding of $250 million provided to Southern Response Earthquake Services Limited to cover Christchurch earthquake outstanding insurance claims, as the additional equity injection is not considered recoverable, and
  • an expense transfer of $167 million from 2014/15.

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)

Scope of Appropriation

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.

Reasons for Change in Appropriation

This appropriation decreased by $9 million to $27 million for 2015/16 due to a revised forecast for the expected interest cost movements in relation to the National Provident Fund liability.

Review and Reform of Local Government Infrastructure Arrangements (M31)

Scope of Appropriation

This appropriation is limited to the review and reform of disaster funding for local government infrastructure, including contributions to expenses of the Local Government Risk Agency.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation increased by $625,000 to $1.625 million for 2015/16 due to:

  • reprioritisation of $500,000 from the Management of Landcorp Protected Land Agreement multi-category appropriation, and
  • the transfer of unused funding of $230,000 from 2014/15 to 2015/16.

The increase was partly offset by:

  • an expense transfer of $105,000 from 2015/16 to 2016/17 for the continuation of the Review and Reform of Local Government Infrastructure arrangements.

Solid Energy New Zealand Limited - Payments for Environmental Rehabilitation PLA (M31)

Scope of Appropriation

This appropriation is limited to payments by the Crown under indemnity given to Solid Energy New Zealand Limited under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 1,851 1,851

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve support for Solid Energy New Zealand Limited by providing an indemnity from the Crown to reimburse the company for rehabilitation costs associated with all existing mining operations.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative because payments are made in accordance with contractual arrangements between the Crown and Solid Energy New Zealand Limited.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 at $1.851 million due to an accounting requirement to recognise interest unwind for the rehabilitation costs associated with the 2014 indemnity, incorporating all existing mining operations based on net present value.

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31)

Scope of Appropriation

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability in respect of share subscriptions in International Financial Institutions as it nears settlement, as authorised by section 5(2) of the International Finance Agreements Act 1961.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 1,605 1,605

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the recognition of interest unwind for Crown's liability to the International Financial Institutions.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment of the interest unwind in respect of Crown's liability with International Financial Institutions.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 for $1.605 million to reflect the interest expense associated with Crown's liability to International Financial Institutions.

Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31)

Scope of Appropriation

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.

Reasons for Change in Appropriation

This appropriation increased by $3.527 million to $16.370 million for 2015/16 due to forecast valuation changes in the Southern Response Earthquake Services insurance liability.

Write-Off of Historical Investment in Solid Energy (M31)

Scope of Appropriation

This appropriation is limited to a write-off of historical investment in Solid Energy New Zealand Limited.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 60,900 60,900

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a write-off of historical investment in Solid Energy New Zealand Limited.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative because this appropriation is solely for the recognition that the investment is written-off.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 for $60.900 million due to the accounting requirement to recognise the write-off of the investment in Solid Energy New Zealand Limited as the investment is no longer deemed recoverable.

3.5 - Non-Departmental Capital Expenditure

Crown Asset Management Limited - Acquisition of Residual Assets (M31)

Scope of Appropriation

This appropriation is limited to the acquisition of residual assets from Crown Asset Management Limited.

Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 1,000 1,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the transfer of residual assets from Crown Asset Management Limited.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii), as the amount of the annual non-departmental capital expenditure appropriation is less than $15 million.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 for $1 million due to an anticipated transfer of residual assets from Crown Asset Management Limited.

International Financial Institutions PLA (M31)

Scope of Appropriation

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.

Reasons for Change in Appropriation

This appropriation increased by $306.494 million to $350.494 million for 2015/16 due to:

  • the latest information provided by International Financial Institutions on anticipated requests for additional capital totalling $170.680 million, and
  • investment in Asian Infrastructure Investment Bank of $135.814 million.

Otakaro Limited Equity Injection (M85)

Scope of Appropriation

This appropriation is limited to the provision of an equity injection in Otakaro Limited.

Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 6,100 6,100

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve equity injection into Otakaro Limited to enable the continuation of Anchor Projects and divestment of Crown-owned land in Christchurch.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for the provision of equity injection into Otakaro Limited.

Reasons for Change in Appropriation

This appropriation was established in 2015/16 for $6.100 million to provide for equity injections into Otakaro Limited to enable the continuation of Anchor Projects and divestment of Crown-owned land in Christchurch.

Southern Response Earthquake Services Ltd: Equity Investment (M31)

Scope of Appropriation

This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.

Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 417,000 417,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve additional financial support for Southern Response Earthquake Services Limited in accordance with the Crown Support Deed signed in 2012.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely to invest in Southern Response Earthquake Services Limited in accordance with the Crown Support Deed signed in 2012.

Reasons for Change in Appropriation

This appropriation of $417 million was established in 2015/16 due to:

  • additional funding of $250 million provided to Southern Response Earthquake Services Limited towards the settlement of outstanding Christchurch earthquake outstanding claims, and
  • the transfer of underspend of $167 million from 2014/15 to 2015/16 required to continue with Christchurch earthquake outstanding claims settlement.

Transfer of Anchor Project Assets to Otakaro Limited (M85)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Transfer of Anchor Project Assets to Otakaro Limited (M85)

This appropriation is limited to the transfer of Christchurch anchor project assets to Otakaro Limited.

Commences: 01 April 2016

Expires: 30 June 2020
Original Appropriation 500,000
Adjustments to 2014/15 -
Adjustments for 2015/16 -
Adjusted Appropriation 500,000
Actual to 2014/15 Year End -
Estimated Actual for 2015/16 300,000
Estimated Actual for 2016/17 200,000
Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the transfer of Christchurch anchor project assets to Otakaro Limited.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely to give effect to the technical transfer of Christchurch anchor project assets to Otakaro Limited.

Reasons for Change in Appropriation

This multi-year appropriation was established in 2015/16 to provide for the transfer of assets to Otakaro Limited to enable it manage the Christchurch Anchor Project Assets and programme of work.

Transfer of Housing New Zealand Corporation's Tamaki Housing Stock to Tamaki Redevelopment Company (M31)

Scope of Appropriation

This appropriation is limited to the transfer of Housing New Zealand Corporation properties to Tamaki Redevelopment Company Limited.

Reasons for Change in Appropriation

This appropriation increased by $331.161 million to $1,631.161 million for 2015/16 due to a re-measurement of Tamaki housing stock at the time of the sale transaction.

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

Multi-Category Expenses and Capital Expenditure

Greater Christchurch Anchor Projects (M85)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to support the recovery of Christchurch by contributing operating and capital funding for anchor projects covered by the Christchurch Central Recovery Plan.

Scope of Appropriation

Non-Departmental Other Expenses

Christchurch Bus Interchange and associated transport infrastructure - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure funded by contributions from parties other than the Crown.

Christchurch Bus Interchange and Associated Transport Infrastructure - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure.

Christchurch Convention Centre - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.

Christchurch Stadium - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Stadium funded by contributions from parties other than the Crown.

Christchurch Stadium - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.

Earthquake Memorial - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Canterbury Earthquake Memorial.

Financial Impact of Valuations
This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.

Leasing Anchor Project Land
This category is limited to the financial impact of granting concessionary leases over anchor project land.

Metro Sports Facility - contributions from third parties
This category is limited to the development, operations and divestment of the Metro Sports Facility funded by contributions from parties other than the Crown.

Metro Sports Facility - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.

Pre-Development Holding Costs - Operating
This category is limited to the Crown's contribution to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.

Procurement of Land and Assets - Operating
This category is limited to the Crown's contribution to the purchase, acquisition and clearance of land and assets for anchor project development.

Public Space - contributions from third parties
This category is limited to the development, operations and divestment of the Crown owned public space funded by contributions from parties other than the Crown.

Public Space - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.

Sale of Land
This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.

The Square - contributions from third parties
This category is limited to the development, operations and divestment of the Square funded by contributions from parties other than the Crown.

Non-Departmental Capital Expenditure

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Bus Interchange and associated transport infrastructure and to providing equity or loan capital to Otakaro Limited for that purpose.

Christchurch Convention Centre - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Convention Centre and to providing equity or loan capital to Otakaro Limited for that purpose.

Earthquake Memorial - Capital
This category is limited to the Crown's contribution to the capital development of the Canterbury Earthquake Memorial and to providing equity or loan capital to Otakaro Limited for that purpose.

Land and Asset Acquisition - Capital
This category is limited to the Crown's contribution to the cost of land and assets to be acquired for anchor project development and to providing equity or loan capital to Otakaro Limited for that purpose.

Metro Sports Facility - Capital
This category is limited to the Crown's contribution to the capital development of Metro Sports Facility and to providing equity or loan capital to Otakaro Limited for that purpose.

Public Space - Capital
This category is limited to the capital development of the Crown owned public space and to providing equity or loan capital to Otakaro Limited for that purpose.

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

- 440,417 440,417

Non-Departmental Other Expenses

     
Christchurch Bus Interchange and associated transport infrastructure - contributions from third parties - 100 100
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating - 41,788 41,788
Christchurch Convention Centre - Operating - 8,016 8,016
Christchurch Stadium - contributions from third parties - 100 100
Christchurch Stadium - Operating - 4,000 4,000
Earthquake Memorial - Operating - 8 8
Financial Impact of Valuations - 2,831 2,831
Leasing Anchor Project Land - 6,000 6,000
Metro Sports Facility - contributions from third parties - 100 100
Metro Sports Facility - Operating - 9,389 9,389
Pre-Development Holding Costs - Operating - 5,463 5,463
Procurement of Land and Assets - Operating - 75,514 75,514
Public Space - contributions from third parties - 100 100
Public Space - Operating - 105,217 105,217
Sale of Land - 2,684 2,684
The Square - contributions from third parties - 100 100

Non-Departmental Capital Expenditure

     
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital - 7,860 7,860
Christchurch Convention Centre - Capital - 24,500 24,500
Earthquake Memorial - Capital - 3,625 3,625
Land and Asset Acquisition - Capital - 104,384 104,384
Metro Sports Facility - Capital - 1,000 1,000
Public Space - Capital - 37,638 37,638

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of Anchor Projects and divestment of Crown owned land in Christchurch.

How Performance will be Assessed for this Appropriation

  2015/16
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Payments made in respect of Greater Christchurch Anchor Projects are made in accordance with the terms and conditions of the relevant funding agreements and agreed timelines.

N/A Achieved Achieved

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

  2015/16
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Non-Departmental Other Expenses

     

Christchurch Bus Interchange and associated transport infrastructure - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Christchurch Bus Interchange.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

N/A Exempt Exempt

Christchurch Bus Interchange and Associated Transport Infrastructure - Operating

     

This category is intended to ensure the ongoing operation and eventual divestment of the Christchurch Bus Interchange.

     

Payments are made in line with the terms and conditions of the funding agreement.

N/A Achieved Achieved

Christchurch Convention Centre - Operating

     

This category is intended to advance the Convention Centre project in line with Government decisions.

     

The project will be progressed in line with Government decisions and agreed project timelines.

N/A Achieved Achieved

Christchurch Stadium - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Christchurch Stadium.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

N/A Exempt Exempt

Christchurch Stadium - Operating

     

This category is intended to take forward the Crown's position on the Stadium project.

     

The project will be progressed in line with Government decisions and agreed project timelines.

N/A Achieved Achieved

Earthquake Memorial - Operating

     

This category is intended to support the construction and divestment of the Canterbury Earthquake Memorial.

     

The project will be progressed in line with the agreed project timelines.

N/A Achieved Achieved

Financial Impact of Valuations

     

This category is intended to record expenses resulting from valuation movements.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to record expenses resulting from valuation movements.

N/A Exempt Exempt

Leasing Anchor Project Land

     

This category is intended to record expenses resulting from the granting of concessionary leases.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to record expenses resulting from the granting of concessionary leases.

N/A Exempt Exempt

Metro Sports Facility - contributions from third parties

     

This category is intended to support the construction of Metro Sports Facility.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

N/A Exempt Exempt

Metro Sports Facility - Operating

     

This category is intended to support the construction and divestment of Metro Sports Facility.

     

The project will be progressed in line with the agreed project timelines.

N/A Achieved Achieved

Pre-Development Holding Costs - Operating

     

This category is intended to achieve the efficient management of Anchor project land prior to construction.

     

Land is managed in accordance with Crown's commercial and regeneration interests.

N/A Achieved Achieved

Procurement of Land and Assets - Operating

     

This category is intended to support the acquisition and clearance of land for the Anchor projects.

     

Land and assets are acquired and made ready in accordance with project outcomes and timelines.

N/A Achieved Achieved

Public Space - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Crown owned public space.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

N/A Exempt Exempt

Public Space - Operating

     

This category is intended to support the construction and divestment of Crown-owned public space in Christchurch.

     

Projects are progressed in line with the agreed project agreed timelines.

N/A Achieved Achieved

Sale of Land

     

This category is intended to record the financial impact of land sales.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for recording the financial impact of land sales.

N/A Exempt Exempt

The Square - contributions from third parties

     

This category is intended to support the development, operations and divestment of the Square.

     

An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.

N/A Exempt Exempt

Non-Departmental Capital Expenditure

     

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital

     

This category is intended to ensure the ongoing operation and eventual divestment of the Christchurch Bus Interchange.

     

Expenditure is in line with the agreed project timelines.

N/A Achieved Achieved

Christchurch Convention Centre - Capital

     

This category is intended to advance the Convention Centre project in line with Government decisions

     

Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.

N/A Achieved Achieved

Earthquake Memorial - Capital

     

This category is intended to support the construction and divestment of the Canterbury Earthquake Memorial.

     

Expenditure is in line with the agreed project timelines.

N/A Achieved Achieved

Land and Asset Acquisition - Capital

     

This category is intended to support the acquisition of land for the Anchor projects.

     

Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.

N/A Achieved Achieved

Metro Sports Facility - Capital

     

This category is intended to support the construction of Metro Sports Facility.

     

Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.

N/A Achieved Achieved

Public Space - Capital

     

This category is intended to support the construction and divestment of Crown-owned public space in Christchurch.

     

Expenditure is in line with the agreed project timelines.

N/A Achieved Achieved

Service Providers for the Multi-Category Appropriation

Delivery of Greater Christchurch Anchor Projects will be undertaken by Otakaro Limited.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's 2015/16 Annual Report.

Reasons for Change in Appropriation

This is a new appropriation for 2015/16, with funding transferred over from Vote Canterbury Earthquake Recovery from 1 April 2016, for the continuation of Anchor Projects and divestment of Crown-owned land in Christchurch.

Management of Landcorp Protected Land Agreement (M31)

Overarching Purpose Statement

The overarching purpose of this appropriation is meeting the Crown's responsibilities under the Landcorp Protected Land Agreement.

Scope of Appropriation

Non-Departmental Other Expenses

Operating Costs
This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.

Non-Departmental Capital Expenditure

Capital Investments
This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

4,000 1,500 5,500

Non-Departmental Other Expenses

     
Operating Costs 2,000 1,500 3,500

Non-Departmental Capital Expenditure

     
Capital Investments 2,000 - 2,000

Reasons for Change in Appropriation

This appropriation increased by $1.500 million to $5.500 million for 2015/16 due to an expense transfer of $1.500 million from 2014/15 to 2015/16 towards the continuation of the management of Crown's responsibilities in relation to Protected Land Agreement.

Management of New Zealand House, London (M31)

Overarching Purpose Statement

The overarching purpose of this appropriation is to ensure that New Zealand House, London is well managed.

Scope of Appropriation

Non-Departmental Output Expenses

Property Management
This category is limited to the property management services in respect of New Zealand House, London.

Non-Departmental Other Expenses

Operational Costs
This category is limited to the operational costs of New Zealand House, London.
Renegotiation of Lease Arrangements
This category is limited to activities to re-gear the lease on New Zealand House, London (including The Royal Opera Arcade and Her Majesty's Theatre).

Non-Departmental Capital Expenditure

Capital Expenditure
This category is limited to capital expenditure in relation to New Zealand House, London.

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

14,750 2,610 17,360

Non-Departmental Output Expenses

     
Property Management 1,000 (200) 800

Non-Departmental Other Expenses

     
Operational Costs 13,000 900 13,900
Renegotiation of Lease Arrangements - 410 410

Non-Departmental Capital Expenditure

     
Capital Expenditure 750 1,500 2,250

Components of the Appropriation

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Non-Departmental

     
Property Management 1,000 (200) 800
Operational Costs 13,000 900 13,900
Renegotiation of Lease Arrangements - 410 410
Capital Expenditure 750 1,500 2,250
Total 14,750 2,610 17,360

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

  2015/16
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Non-Departmental Other Expenses

     

Renegotiation of Lease Arrangements

     

This category is intended to achieve the renegotiation of the lease arrangements for New Zealand House, London.

     

An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this appropriation was less than $5 million.

N/A Exempt Exempt

Reasons for Change in Appropriation

This appropriation increased by $2.610 million to $17.360 million for 2015/16 due to:

  • the expense transfer of $4.610 million from 2014/15 to 2015/16, offset by an expense transfer of $1.900 million from 2015/16 to 2016/17, towards the continuation of Crown's responsibilities in relation to New Zealand House, London, and
  • reprioritisation of underspends of $100,000 in the Operational Costs category towards the Management of Superannuation Fund Board fees.

Management of the Crown's agreement with Taitokerau Forests Limited (M31)

Overarching Purpose Statement

The overarching purpose of this appropriation is meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.

Scope of Appropriation

Non-Departmental Other Expenses

Grants
This category is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
Impairment of Loans
This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.

Non-Departmental Capital Expenditure

Loans
This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

1,000 6,364 7,364

Non-Departmental Other Expenses

     
Grants 200 273 473
Impairment of Loans - 5,791 5,791

Non-Departmental Capital Expenditure

     
Loans 800 300 1,100

Reasons for Change in Appropriation

This appropriation increased by $6.364 million to $7.364 million for 2015/16 due to the expense transfer of $7.994 million from 2014/15 to 2015/16, offset by an expense transfer of $1.630 million from 2015/16 to 2016/17, to enable the continuation of concessions provision to landowners to exit arrangements with the Crown.

Social Housing Reform (M90)

Overarching Purpose Statement

The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making Housing New Zealand Corporation stock available to social housing providers.

Scope of Appropriation

Departmental Output Expenses

Implementation of the Social Housing Reform Programme
This category is limited to the policy, operational, and transactional work to implement the Government's reform of social housing.

Non-Departmental Output Expenses

Direct Sale Costs for Implementing the Social Housing Reform Programme
This category is limited to direct sales costs of implementing the Government's reform of social housing.

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

12,500 5,325 17,825

Departmental Output Expenses

     
Implementation of the Social Housing Reform Programme 4,600 6,325 10,925

Non-Departmental Output Expenses

     
Direct Sale Costs for Implementing the Social Housing Reform Programme 7,900 (1,000) 6,900

Funding for Departmental Output Expenses

     

Revenue from the Crown

4,600 6,275 10,875
Implementation of the Social Housing Reform Programme 4,600 6,275 10,875

Revenue from Others

- 50 50
Implementation of the Social Housing Reform Programme - 50 50

Reasons for Change in Appropriation

This appropriation increased by $5.325 million to $17.825 million due to:

  • the transfer of unused funding from 2014/15 to 2015/16 of $3.576 million for the continuation and expansion of the programme, and
  • the reallocation of $1.749 million of overhead costs across departmental output expenses.