Supplementary estimates of appropriations

Vote Finance - Supplementary Estimates 2016/17

Publication type:
Supplementary estimates of appropriations
Status:
Superseded
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Fiscal year:
2016/17
Budget year:
2017
Budget vote:
Finance

Formats and related files

APPROPRIATION MINISTER(S): Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister for Treaty of Waitangi Negotiations (M74), 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#

  2016/17
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.		 9,249 - 9,249

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.		 310 (200) 110

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.		 4,659 (124) 4,535

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.		 216 203 419

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.		 31,181 1,748 32,929

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.		 30,950 565 31,515

Shared Support Services (M31)

This appropriation is limited to provision of support services to other agencies.		 14,313 (33) 14,280

Total Departmental Output Expenses

 90,878 2,159 93,037

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.		 4,240 - 4,240

Total Departmental Capital Expenditure

 4,240 - 4,240

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.		 23,000 181 23,181

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.		 151 188 339

Management of the New Zealand Superannuation Fund (M31)

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.		 528 200 728

Tamaki Regeneration (M31)

This appropriation is limited to the housing demonstration projects and associated regeneration activity in the Tamaki area of Auckland.		 3,190 - 3,190

Total Non-Departmental Output Expenses

 26,869 569 27,438

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.		 3,448,298 - 3,448,298

Total Non-Departmental Borrowing Expenses

 3,448,298 - 3,448,298

Non-Departmental Other Expenses

      

Ahu Whenua Trust Ex-gratia Payment (M31)

This appropriation is limited to an ex-gratia payment to an Ahu Whenua Trust in settlement of its claims from 21 September 1992 onwards.		 - 9,000 9,000

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.		 60 440 500

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 (500) -

Government Inquiry into Foreign Trust Disclosure Rules (M31)

This appropriation is limited to the operation of the inquiry into foreign trust disclosure rules.		 - 75 75

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.		 37,000 - 37,000

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.		 528,149 - 528,149

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.		 - 445,000 445,000

Loss on Sale of Commercial Properties (M74)

This appropriation is limited to the loss on transfer of commercial properties transferred as part of Treaty of Waitangi Settlements.		 - 2,935 2,935

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.		 25,000 (5,000) 20,000

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.		 1,605 648 2,253

Stockton Acid Mine Drainage Historical Mining Rehabilitation (M31)

This appropriation is limited to expenses incurred for Stockton Acid Mine Drainage historical mining rehabilitation.		 - 67,000 67,000

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.		 2,920 (972) 1,948

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.		 8,088 422 8,510

Total Non-Departmental Other Expenses

 603,872 519,048 1,122,920

Non-Departmental Capital Expenditure

      

Canterbury Earthquake National Memorial (M31)

This appropriation is limited to Crown Acquisition of the Canterbury Earthquake National Memorial from Otakaro Limited.		 - 8,500 8,500

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

Crown Asset Management Limited - Equity Investment (M31)

This appropriation is limited to the provision of an equity investment in Crown Asset Management Limited.		 - 2,500 2,500

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.		 12,000 - 12,000

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.		 275,778 - 275,778

Southern Response Earthquake Services Ltd: Equity Investment (M31)

This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.		 - 445,000 445,000

Total Non-Departmental Capital Expenditure

 287,778 457,000 744,778

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.		 203,887 49,139 253,026
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.		 31,329 (6,211) 25,118
Christchurch Convention Centre - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.		 1,500 6,204 7,704
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.		 - 3,989 3,989
Earthquake Memorial - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Canterbury Earthquake Memorial.		 122 (122) -
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.		 - 4,000 4,000
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.		 2,043 6,630 8,673
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.		 6,000 (2,635) 3,365
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.		 - 29,980 29,980
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.		 49,281 41,562 90,843
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.		 - 2,184 2,184
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.		 - 2,085 2,085
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.		 95,400 (95,400) -
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.		 3,996 4,504 8,500
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.		 - 25,336 25,336
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.		 - 500 500
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.		 14,216 23,202 37,418

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.		 4,250 2,110 6,360
Non-Departmental Other Expenses
      
Operating Costs
This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.		 2,250 1,560 3,810
Non-Departmental Capital Expenditure
      
Capital Investments
This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.		 2,000 550 2,550

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.		 16,650 6,185 22,835
Non-Departmental Output Expenses
      
Property Management
This category is limited to the property management services in respect of New Zealand House, London.		 1,000 563 1,563
Non-Departmental Other Expenses
      
Operational Costs
This category is limited to the operational costs of New Zealand House, London.		 13,000 3,123 16,123
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).		 1,900 249 2,149
Non-Departmental Capital Expenditure
      
Capital Expenditure
This category is limited to capital expenditure in relation to New Zealand House, London.		 750 2,250 3,000

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.		 1,830 3,630 5,460
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.		 230 700 930
Impairment of Loans
This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.		 1,100 2,930 4,030
Non-Departmental Capital Expenditure
      
Loans
This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.		 500 - 500

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.		 11,460 5,386 16,846
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.		 7,860 2,662 10,522
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.		 3,600 2,724 6,324

Total Multi-Category Expenses and Capital Expenditure

 243,107 66,450 309,557

Total Annual and Permanent Appropriations

 4,705,042 1,045,226 5,750,268

Multi-Year Appropriations#

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

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 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 200,000
Actual to 2015/16 Year End 8,500
Estimated Actual for 2016/17 29,000
Estimated Actual for 2017/18 47,000
Estimated Appropriation Remaining 115,500

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 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 500,000
Actual to 2015/16 Year End 204,452
Estimated Actual for 2016/17 35,108
Estimated Actual for 2017/18 260,440
Estimated Appropriation Remaining -

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

  2016/17
  Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$000
Total Annual and Permanent Appropriations 4,705,042 1,045,226 5,750,268
Total MYA Non-Departmental Capital Expenditure Forecasts 278,000 (213,892) 64,108

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

 4,983,042 831,334 5,814,376

Capital Injection Authorisations#

  2016/17
  Estimates Budget
$000		 Supplementary
Estimates Budget
$000		 Total Budget
$000
The Treasury - Capital Injection (M31) 4,548 - 4,548

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2016/17
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

          
Output Expenses 117,747 2,159 569 2,728 120,475
Benefits or Related Expenses - N/A - - -
Borrowing Expenses 3,448,298 - - - 3,448,298
Other Expenses 603,872 - 519,048 519,048 1,122,920
Capital Expenditure 570,018 - 243,108 243,108 813,126
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 17,490 2,662 3,287 5,949 23,439
Other Expenses 108,755 - 97,474 97,474 206,229
Capital Expenditure 116,862 N/A (36,973) (36,973) 79,889

Total Appropriations

 4,983,042 4,821 826,513 831,334 5,814,376

Crown Revenue and Capital Receipts

          
Tax Revenue - N/A - - -
Non-Tax Revenue 3,491,459 N/A (91,736) (91,736) 3,399,723
Capital Receipts 277,376 N/A 1,131 1,131 278,507

Total Crown Revenue and Capital Receipts

 3,768,835 N/A (90,605) (90,605) 3,678,230

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

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

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 310 (200) 110
Revenue from the Crown 309 (200) 109
Revenue from Others 1 - 1

Reasons for Change in Appropriation

This appropriation decreased by $200,000 to $110,000 for 2016/17 due to a forecasting change to reflect reduced levels of activity in the administration of the Crown's Wholesale and Retail Deposit Guarantee Schemes.

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#

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 4,659 (124) 4,535
Revenue from the Crown 4,657 (124) 4,533
Revenue from Others 2 - 2

Reasons for Change in Appropriation#

This appropriation decreased by $124,000 to $4.535 million for 2016/17 due to a fiscally neutral adjustment to transfer funding of $200,000 to the Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development appropriation in accordance with the reallocation of overhead costs.

This decrease was partly offset by:

  • an increase of $49,000 in relation to the transfer of unused funds from 2015/16 due to the allocation of resources to the Social Housing Reform Programme, and
  • an increase of $27,000 in relation to the transfer of unused funds from 2015/16 for delays in cross agency integration initiatives under the Central Agencies Shared Services development programme.

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#

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 216 203 419
Revenue from the Crown 215 203 418
Revenue from Others 1 - 1

Reasons for Change in Appropriation#

This appropriation increased by $203,000 to $419,000 for 2016/17 due to:

  • a transfer of $200,000 from the Crown Company Monitoring Advice to the Minister for State Owned Enterprises and Other Responsible Ministers appropriation into this appropriation in connection with additional overhead costs allocated to this appropriation, and
  • a transfer of $3,000 of unused funding from 2015/16 in connection with delays in the Central Agencies Shared Services Development Programme.

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#

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 31,181 1,748 32,929
Revenue from the Crown 31,133 1,748 32,881
Revenue from Others 48 - 48

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Tax revenue forecast error on one-year-ahead forecasts

 Less than plus or minus 3% Expired Expired

Reasons for Change in Appropriation#

This appropriation increased by $1.748 million to $32.929 million for 2016/17 due to:

  • a transfer of $1.066 million of unused funding from 2015/16 to fund overhead costs connected with delayed programmes of work, namely the Central Agencies Shared Services Development Programme, the Wellington Accommodation Project, and building Maori capability at the Treasury, and
  • a transfer of $800,000 from the Provision of Financial Operations Services and Operational Advice appropriation to fund the reallocation of overhead costs to this appropriation.

This increase was partly offset by:

  • a decrease of $85,000 to reflect a reduction in the capital charge rate from 8% to 7%, and
  • a decrease of $33,000 to reflect a further reduction in the capital charge rate from 7% to 6%.

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#

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 30,950 565 31,515
Revenue from the Crown 27,325 (257) 27,068
Revenue from Others 3,625 822 4,447

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Investment Management and Asset Performance

      

Key agency stakeholders with a major monitored project agree with the statement: "Project monitoring advice provides me with valuable information on the status of my major projects".

 85% 85% 85%

New Zealand Export Credit Office

      

Value of export transactions supported.

 $320 million $250-$320 million $250-$320 million

Value of new exposure of export credit policies.

 $120 million $100-$120 million $100-$120 million

Number of exporters supported.

 New 30-40 30-40

Number of education seminars delivered.

 New 30 30

Reasons for Change in Appropriation#

This appropriation increased by $565,000 to $31.515 million for 2016/17 due to:

  • a transfer of $835,000 of unused funding from 2015/16 to fund overhead costs connected with delayed programmes of work, namely the Central Agencies Shared Services Development Programme, the Wellington Accommodation Project, and building Maori capability at the Treasury
  • an increase of $600,000 to account for additional revenue generated by the increased number of Gateway reviews conducted, and
  • an increase of $222,000 to account for increased levels of revenue from secondment cost recoveries.

This increase was partly offset by:

  • a transfer of $800,000 to account for the reallocation of overhead costs from this appropriation to Policy Advice - Finance
  • a decrease of $124,000 for a retention of underspend to be carried forward to 2017/18 for the efficient execution of Gateway reviews
  • a decrease of $86,000 to reflect a reduction in the capital charge rate from 8% to 7%
  • a transfer of $50,000 to Vote Internal Affairs to fund the resilience program of work following the Kaikoura earthquake in November 2016, and
  • a decrease of $32,000 to reflect a further reduction in the capital charge rate from 7% to 6%.

Shared Support Services (M31)#

Scope of Appropriation#

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

Reasons for Change in Appropriation#

This appropriation decreased by $33,000 to $14.280 million for 2016/17 due to a reduction in the capital charge rate from 7% to 6%.

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.

Reasons for Change in Appropriation

The appropriation increased by $181,000 to $23.181 million for 2016/17 due to the transfer of funding from 2015/16 for the continuation of the Anchor Projects programme and the divestment of Crown-Owned land.

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 $188,000 to $339,000 for 2016/17 due to the transfer of unused funding of $275,000 from 2015/16.

This was partly offset by a decrease of $87,000 due to the transfer of funding to 2017/18 and beyond to better align with the expected future forecast spend.

Specific Crime Prevention Services and Maintenance of Public Order (M51)#

Scope of Appropriation#

Delivery of specific crime prevention activities undertaken by Police that target risk areas, including: strategies which focus on reducing repeat victimisation for violence, burglary and vehicle offences; maintaining order at demonstrations and public events; providing security to court staff, witnesses and accused persons; providing security services at domestic airports and for international flights; deploying staff overseas; providing secretarial support to the Pacific Islands Chiefs of Police; and proactive patrolling.

Expenses and Revenue#

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 164,072 (1,137) 162,935
Revenue from the Crown 151,625 (2,529) 149,096
Revenue from Others 12,447 1,392 13,839

Reasons for Change in Appropriation#

This appropriation decreased by $1.137 million (0.7%) to $162.935 million in 2016/17. The decrease relates to:

  • fiscally neutral transfers of $3.898 million from other appropriations to align resource requirements with demand and activities, and
  • reductions in the capital charge rate, with a corresponding decrease in this appropriation by $1.428 million.

These decreases were partly offset by:

  • an increase of $1.392 million in revenue forecast from the Ministry of Foreign Affairs and Trade for the Timor-Leste Community Policing Support Programme
  • funding from the Justice Sector Fund for; business case to explore options to improve identity management in the Justice Sector and at the border $710,000, Acceleration of Anti-Money Laundering and Countering Financing of Terrorism Phase II $109,000 and CJESP: project costs and agency moving costs $48,000
  • funding for four "Drug Proceeds of Crime Funding" initiatives; Expansion of Asset Recovery and Financial Investigations $503,000, Prevention at Source Project - Identifying and stopping precursors and Illicit Drugs at source in Southern China $400,000, Police Legal Costs Recovery $365,000 and Methamphetamine demand reduction in Northland $193,000, and
  • expense transfers from 2015/16 to 2016/17 for the HRMIS project $351,000 and the Child Protection Offender Register and Risk Management Framework projects $118,000.

2.3 - Departmental Capital Expenditure and Capital Injections#

New Zealand Police - Capital Expenditure PLA (M51)#

Scope of Appropriation

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

Capital Expenditure

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 54,458 1,900 56,358
Intangibles 15,343 - 15,343
Other 24,327 - 24,327

Total Appropriation

 94,128 1,900 96,028

Reasons for Change in Appropriation

This appropriation increased by $1.900 million (2.0%) to $96.028 million. The increase reflects new funding for the expansion of the Whole of Government Radio Network in Wellington in order to provide radio services for Wellington Free Ambulance Service.

Capital Injections and Movements in Departmental Net Assets

New Zealand Police

Details of Net Asset Schedule 2016/17
Main Estimates Projections
$000		 2016/17
Supplementary Estimates Projections
$000		 Explanation of Projected Movements in 2016/17
Opening Balance 830,966 815,600 Supplementary Estimates opening balance reflects the audited results as at 30 June 2016.
Capital Injections - 2,789 The capital injection in 2016/17 is for: Expansion of the Whole of Government Radio Network in Wellington $1.900 million and Specialist fingerprint equipment to detect drug crime offenders $889,000.
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

 830,966 818,389  

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Ministerial Services (M51)

Overarching Purpose Statement

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.

Scope of Appropriation

Departmental Output Expenses
Ministerial Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy-making responsibilities).
Policy Advice
This category is limited to the provision of policy advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.

Expenses, Revenue and Capital Expenditure

  2016/17
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

 4,233 655 4,888

Departmental Output Expenses

      
Ministerial Services 912 (6) 906
Policy Advice 3,321 661 3,982

Funding for Departmental Output Expenses

      

Revenue from the Crown

 4,220 655 4,875
Ministerial Services 911 (6) 905
Policy Advice 3,309 661 3,970

Revenue from Others

 13 - 13
Ministerial Services 1 - 1
Policy Advice 12 - 12

Reasons for Change in Appropriation

This appropriation increased by $655,000 (15.5%) to $4.888 million in 2016/17. The increase relates to:

  • fiscally neutral transfers of $688,000 from other appropriations to align resource requirements with demand and activities, and
  • expense transfer from 2015/16 to 2016/17 for the HRMIS project $3,000.

These increases were partly offset by reductions in the capital charge rate, with a corresponding decrease in this appropriation by $36,000.