Vote Finance - Supplementary Estimates 2018/19

Vote Finance#

APPROPRIATION MINISTER(S): Minister for Climate Change (M12), Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Research, Science and Innovation (M84), Minister for Greater Christchurch Regeneration (M85), Minister of Housing and Urban Development (M96)

APPROPRIATION ADMINISTRATOR: The Treasury

RESPONSIBLE MINISTER FOR THE TREASURY: Minister of Finance

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
	2018/19
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.	10,105	-	10,105
*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.	110	-	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.	4,533	230	4,763
*Crown Company Monitoring Advice to the Minister of Research, 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 Research, Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.	236	-	236
*Design and Establishment of Christchurch Regeneration Acceleration Facility (M85)* This appropriation is limited to the design and establishment of the Christchurch Regeneration Acceleration Facility.	1,000	100	1,100
*Design and Establishment of the Green Investment Fund (M12)* This appropriation is limited to the design and establishment of the Green Investment Fund.	4,000	(1,456)	2,544
*Infrastructure Funding and Financing (M96)* This appropriation is limited to provision of advice on, and implementing changes to, Infrastructure Funding and Financing systems and settings.	-	2,350	2,350
*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.	34,308	12,086	46,394
*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.	30,839	1,200	32,039
*Shared Support Services (M31)* This appropriation is limited to provision of support services to other agencies.	13,871	(2,500)	11,371
Total Departmental Output Expenses	99,002	12,010	111,012
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.	12,485	3,136	15,621
Total Departmental Capital Expenditure	12,485	3,136	15,621
Non-Departmental Output Expenses
*Inquiries and Research into Productivity-Related Matters (M31)* This appropriation is limited to the undertaking of inquiries into and research on, and promoting public understanding of, productivity-related matters by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.	5,030	-	5,030
*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.	23,300	4,729	28,029
*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.	180	441	621
*Management of the New Zealand Superannuation Fund (M31)* This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.	728	225	953
Total Non-Departmental Output Expenses	29,238	5,395	34,633
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.	3,285,111	65,975	3,351,086
Total Non-Departmental Borrowing Expenses	3,285,111	65,975	3,351,086
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.	210	114	324
*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	1,000
*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.	38,000	3,800	41,800
*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.	553,060	(84,060)	469,000
*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.	-	137,000	137,000
*Meeting Deficiency in Earthquake Commission's Natural Disaster Fund PLA (M31)* This appropriation is limited to expenses incurred in meeting the deficiency in the Earthquake Commission's Natural Disaster Fund, as authorised by section 16 of the Earthquake Commission Act 1993.	-	94,000	94,000
*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.	16,000	3,250	19,250
*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.	300	573	873
*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 - Rehabilitation of Stockton Mine Acid Mine Drainage (M31)* This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Crown's liability under its Deed of Commitment relating to the rehabilitation of Stockton Acid Mine Drainage, as costs are incurred against the liability.	3,000	-	3,000
*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.	866	-	866
*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.	3,640	666	4,306
Total Non-Departmental Other Expenses	616,126	164,843	780,969
Non-Departmental Capital Expenditure
*NZ Superannuation Fund - Contributions (M31)* This appropriation is limited to capital contributions to the New Zealand Superannuation Fund, for the present and future cost of New Zealand Superannuation.	1,000,000	-	1,000,000
*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.	195,909	-	195,909
*Southern Response Earthquake Services Ltd: Equity Investment (M31)* This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.	-	137,000	137,000
*Tamaki Regeneration Company Limited - Equity Injection (M31)* This appropriation is limited to the provision of an equity injection to Tamaki Regeneration Company Limited.	50,000	87,000	137,000
Total Non-Departmental Capital Expenditure	1,245,909	224,000	1,469,909
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.	250,000	123,741	373,741
Non-Departmental Other Expenses
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.	2,700	19,837	22,537
Christchurch Convention Centre - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.	4,200	39	4,239
Christchurch Stadium - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.	2,000	639	2,639
Financial Impact of Valuations This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.	1,500	(769)	731
Leasing Anchor Project Land This category is limited to the financial impact of granting concessionary leases over anchor project land.	2,000	(1,100)	900
Metro Sports Facility - Operating This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.	10,000	(9,717)	283
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.	2,000	143	2,143
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.	21,700	16,351	38,051
Public Space - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.	11,100	23,130	34,230
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.	1,000	(416)	584
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.	-	1,985	1,985
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.	181,800	(10,731)	171,069
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.	10,000	(2,564)	7,436
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.	-	84,006	84,006
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.	-	2,908	2,908
*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	(134)	3,866
Non-Departmental Other Expenses
Operating Costs This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.	2,500	(2,085)	415
Non-Departmental Capital Expenditure
Capital Investments This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.	1,500	1,951	3,451
*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	17,517	32,267
Non-Departmental Output Expenses
Property Management This category is limited to the property management services in respect of New Zealand House, London.	1,000	2,427	3,427
Non-Departmental Other Expenses
Operational Costs This category is limited to the operational costs of New Zealand House, London.	13,000	10,781	23,781
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).	-	559	559
Non-Departmental Capital Expenditure
Capital Expenditure This category is limited to capital expenditure in relation to New Zealand House, London.	750	3,750	4,500
*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.	200	7,300	7,500
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	170	370
Impairment of Loans This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.	-	6,630	6,630
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 (M96)* 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.	4,201	3,075	7,276
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.	2,101	1,601	3,702
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.	2,100	1,474	3,574
*Tax Working Group MCA (M31)* The single overarching purpose of this appropriation is to enable the Tax Working Group to consider and recommend improvements in the structure, fairness and balance of the tax system.	1,600	364	1,964
Departmental Output Expenses
Tax Working Group - Provision of Support and Advice This category is limited to providing support and advice to the Tax Working Group.	1,280	349	1,629
Non-Departmental Output Expenses
Tax Working Group - Direct Costs This category is limited to the direct costs of the Tax Working Group.	320	15	335
Total Multi-Category Expenses and Capital Expenditure	274,751	151,863	426,614
Total Annual Appropriations and Forecast Permanent Appropriations	5,562,622	627,222	6,189,844

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Non-Departmental Capital Expenditure
*Crown Infrastructure Partners Limited - Equity Injection (M31)* This appropriation is limited to investment in Crown Infrastructure Partners Limited. Commences: 09 April 2018 Expires: 30 June 2022	Original Appropriation	600,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	(308,000)
	Adjusted Appropriation	292,000
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	12,200
	Estimate for 2019/20	57,000
	Estimated Appropriation Remaining	222,800
*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 2019	Original Appropriation	200,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	200,000
	Actual to 2017/18 Year End	29,500
	Estimated Actual for 2018/19	14,000
	Estimate for 2019/20	-
	Estimated Appropriation Remaining	156,500
*New Zealand Green Investment Finance Ltd - Equity Injections for Capital Investments (M12)* This appropriation is limited to the provision of equity injections into New Zealand Green Investment Finance Ltd for its capital investments. Commences: 12 April 2019 Expires: 30 June 2023	Original Appropriation	100,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	100,000
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	-
	Estimate for 2019/20	40,000
	Estimated Appropriation Remaining	60,000
*New Zealand Green Investment Finance Ltd - Equity Injections for Operating Expenditure (M12)* This appropriation is limited to the provision of equity injections into New Zealand Green Investment Finance Ltd for its operating expenditure. Commences: 12 April 2019 Expires: 30 June 2023	Original Appropriation	30,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	30,000
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	6,000
	Estimate for 2019/20	6,000
	Estimated Appropriation Remaining	18,000
*Participation in Dividend Reinvestment Plans by the Mixed Ownership Model Companies (M31)* This appropriation is limited to the Crown acquiring new shares in Air New Zealand Limited, Genesis Energy Limited, Mercury NZ Limited and Meridian Energy Limited as a result of the Crown's participation in any dividend reinvestment plans carried out by the companies. Commences: 14 February 2018 Expires: 30 June 2022	Original Appropriation	80,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	80,000
	Actual to 2017/18 Year End	9,752
	Estimated Actual for 2018/19	20,941
	Estimate for 2019/20	20,000
	Estimated Appropriation Remaining	29,307
*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 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	500,000
	Actual to 2017/18 Year End	273,079
	Estimated Actual for 2018/19	1,034
	Estimate for 2019/20	225,887
	Estimated Appropriation Remaining	-

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

	2018/19
	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
Total Annual Appropriations and Forecast Permanent Appropriations	5,562,622	627,222	6,189,844
Total Forecast MYA Non-Departmental Capital Expenditure	434,170	(223,495)	210,675
Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations	5,996,792	403,727	6,400,519

Capital Injection Authorisations#

	2018/19
	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
The Treasury - Capital Injection (M31)	6,388	(500)	5,888

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote#

Summary of Financial Activity

	2018/19
		Supplementary Estimates
	Estimates $000	Departmental Transactions $000	Non-Departmental Transactions $000	Total Transactions $000	Total $000
Appropriations
Output Expenses	128,240	12,010	5,395	17,405	145,645
Benefits or Related Expenses	-	N/A	-	-	-
Borrowing Expenses	3,285,111	-	65,975	65,975	3,351,086
Other Expenses	616,126	-	164,843	164,843	780,969
Capital Expenditure	1,692,564	3,136	505	3,641	1,696,205
Intelligence and Security Department Expenses and Capital Expenditure	-	-	N/A	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	6,801	1,950	3,916	5,866	12,667
Other Expenses	73,900	-	64,192	64,192	138,092
Capital Expenditure	194,050	N/A	81,805	81,805	275,855
Total Appropriations	5,996,792	17,096	386,631	403,727	6,400,519
Crown Revenue and Capital Receipts
Tax Revenue	-	N/A	-	-	-
Non-Tax Revenue	3,360,718	N/A	127,502	127,502	3,488,220
Capital Receipts	206,474	N/A	(37,656)	(37,656)	168,818
Total Crown Revenue and Capital Receipts	3,567,192	N/A	89,846	89,846	3,657,038

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.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
The administration of Crown guarantees and indemnities as required to discharge the Crown's obligations in a timely manner ensuring any costs from the materialisation are contained.	-	Achieved	Achieved
The agreed arrangements implemented to minimise the Crown's residual liability beyond the amount held in ESCROW are carried out.	Achieved	Measure withdrawn	Expired measure

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

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.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Appointments completed for Directors of SOEs.	30-40	Measure withdrawn	Expired measure
Appointments completed for Board members for CECs and Crown Entities that are monitored under this appropriation.	35-45	Measure withdrawn	Expired measure
70% of our assessed papers will score 7 or more, and that 30% will score 8 or more out of 10, with a score of 10 being the highest quality; as assessed by a panel looking at a representative, random sample of our commercial advice.	New Measure	Achieved	Achieved

Reasons for Change in Appropriation

This appropriation increased by $230,000 to $4.763 million for 2018/19 due to a transfer of unused funding of $500,000 from 2017/18. This increase was partly offset by a decrease of $270,000 due to a transfer from Vote Finance to the new Vote Housing and Urban Development as the function for monitoring Housing New Zealand Corporation and the Tamaki Regeneration Company moved from the Treasury to the new ministry.

Design and Establishment of Christchurch Regeneration Acceleration Facility (M85)

Scope of Appropriation

This appropriation is limited to the design and establishment of the Christchurch Regeneration Acceleration Facility.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Payments made in respect of the Christchurch Regeneration Acceleration Facility are made in accordance with the terms and conditions of the relevant agreements.	Achieved	Measure withdrawn	Expired measure

Reasons for Change in Appropriation

This appropriation increased by $100,000 to $1.100 million for 2018/19 due to a $500,000 transfer from 2017/18 due to uncertainties around the timing of expenditure. This was partly offset by a transfer of $400,000 to 2019/20 due to delays in the completion of the Christchurch City Council's business cases.

Design and Establishment of the Green Investment Fund (M12)

Scope of Appropriation

This appropriation is limited to the design and establishment of the Green Investment Fund.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Green Investment Fund board appointments are completed.	Achieved	Measure withdrawn	Expired measure

Reasons for Change in Appropriation

This appropriation decreased by $1.456 million to $2.544 million for 2018/19 due to a $2 million transfer to 2019/20 to account for delays in establishing the Green Investment Fund. This was partly offset by a transfer of $544,000 from 2017/18 for the underspend which arose during that year.

Infrastructure Funding and Financing (M96)

Scope of Appropriation

This appropriation is limited to provision of advice on, and implementing changes to, Infrastructure Funding and Financing systems and settings.

Expenses and Revenue

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	2,350	2,350
Revenue from the Crown	-	2,350	2,350
Revenue from Others	-	-	-

What is Intended to be Achieved with this Appropriation

This appropriation is intended to address some of the constraints faced by local authorities when funding and financing infrastructure.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
The design of an alternative funding model for local authorities to accelerate infrastructure and support housing affordability.	New measure	Achieved	Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Reasons for Change in Appropriation

This is a new appropriation for 2018/19 funded by a transfer from the Crown Infrastruture Partners Limited non-departmental capital expenditure appropriation to provide for the review and redevelopment of funding models for the investment in infrastructure.

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.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Major fiscal models are quality assured (periodically), and, where appropriate, assumptions are tested with suitably qualified experts.	Achieved	Achieved	Achieved
Technical quality of advice regarding procurement of the Stockton acid mine drainage solution as assessed through the general Treasury policy advice quality assessment process.	75%	Measure withdrawn	Expired measure
Staff in agencies proposing new regulations surveyed rate their level of satisfaction as "satisfied" or better with Treasury's guidance about how to fulfil Regulatory Impact Analysis Requirements.	80%	Measure withdrawn	Expired measure
Budget decisions are in line with short-term fiscal intentions in the Budget Policy Statement.	Achieved	Measure withdrawn	Expired measure
Statutorily required documents as part of the annual financial cycle are produced in accordance with PFA requirements and free from material errors.	New measure 2018/19	Achieved	Achieved

Reasons for Change in Appropriation

This appropriation increased by $12.086 million to $46.394 million for 2018/19 due to:

$5 million transferred from the Management of Landcorp Protected Land Agreement MCA to offset cost pressures in delivering Policy Advice - Finance outputs
$3.392 million of new funding introduced for the establishment of the Interim Infrastructure Transactions Unit and the Infrastructure Commission
$2.703 million transferred from 2017/18 for the following programmes of work:
- $2.323 million for the Stockton Mine rehabilitation procurement project
- $100,000 for advice on the application of international natural capital assessment frameworks and methodologies as an input into the Living Standards Framework
- $100,000 for the Overseas Investment Act review
- $100,000 for furthering the Singapore presence, and
- $80,000 for the Maori economic development policy project.
$1 million transferred from the Provision of Financial Operations Services and Operational Advice appropriation to better align with the Treasury's core activities.

This was partly offset by a decrease of $9,000 to reflect a reduction in third party revenue.

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.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
All submitted Budget initiatives were accompanied by a cost benefit analysis.	Achieved	Measure withdrawn	Expired measure
Audit opinion issued by the Controller and Auditor-General on the Financial Statements of Government.	Unqualified	Measure withdrawn	Expired measure
Required Economic and Fiscal Updates efficiently produced with key judgements and uncertainties clearly articulated and key assumptions have been appropriately tested.	Achieved	Measure withdrawn	Expired measure
Monthly Financial Statements of Government produced in accordance with the PFA requirements and free from material errors.	Achieved	Measure withdrawn	Expired measure
Statutorily required documents as part of the annual financial cycle are produced in accordance with PFA requirements and free from material errors.	New measure in 2018/19	Achieved	Achieved
Value of export transactions supported.	$250-$320 million	Measure withdrawn	Expired measure
Value of new exposure of export credit policies.	$100-$120 million	Measure withdrawn	Expired measure
Number of exporters supported.	30-40	Measure withdrawn	Expired measure
Number of education seminars delivered.	30	Measure withdrawn	Expired measure
Compliance with International Guidelines (OECD and WTO) and Delegated Mandate.	100%	Measure withdrawn	Expired measure
Five-year Expense Ratio (Operating Expenses/Premium Earned).	Lower than 60%	Measure withdrawn	Expired measure
Five-year Loss Ratio (Claims Paid and Reserved/Premium Earned).	Lower than 40%	Measure withdrawn	Expired measure
New Zealand exports and the internationalisation of New Zealand exporters are promoted and supported.	New measure in 2018/19	Achieved	Achieved
All investment-intensive agencies lift their investment performance over the two year Investor Confidence Rating (ICR) cycle (5-10% increase in ICR score).	5-10% increase in ICR score	Measure withdrawn	Expired measure
Investment Ministers rate their level of satisfaction with investment advice as 'satisfied' or better.	75%	Measure withdrawn	Expired measure
Senior Responsible Owners of major projects rate their level of satisfaction with investment advice as 'satisfied' or better.	85%	Measure withdrawn	Expired measure
Management of residual liabilities and investigation of mechanisms to discharge the Crown's obligations in a timely manner ensuring any costs from the materialisation of liabilities are contained.	Achieved	Measure withdrawn	Expired measure
The capability and performance of investment-intensive agencies is enhanced by the Treasury's stewardship of the investment management system.	New measure in 2018/19	Achieved	Achieved
Compliance with Capital Market's Portfolio Management Policy and Treasury delegations for/in relation to Crown lending and Crown bank accounts.	Achieved	No breaches	No breaches

Reasons for Change in Appropriation

This appropriation increased by $1.200 million to $32.039 million for 2018/19 due to:

$1.699 million of additional funding for enhanced monitoring of the Earthquake Commission, Southern Response Earthquake Services Ltd and Otakaro, and increased support for Greater Christchurch regeneration and insurance policy advice
$400,000 of new third party revenue in connection with Southern Response, and
$101,000 transferred from 2017/18 for Investor Confidence Ratings reviews.

This was partly offset by a transfer of $1 million to the Policy Advice appropriation during 2018/19 to better align with the Treasury's core activities.

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 $2.500 million to $11.371 million for 2018/19 due a decrease in departmental revenue as a result of the State Services Commission withdrawing from shared IT services provided by the Central Agencies Shared Services.

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Forests/Agricultural	-	-	-
Land	-	-	-
Property, Plant and Equipment	8,930	2,573	11,503
Intangibles	3,555	563	4,118
Other	-	-	-
Total Appropriation	12,485	3,136	15,621

Reasons for Change in Appropriation

This appropriation increased by $3.136 million to $15.621 million due to additional costs in relation to the fit-out of levels 1 to 4 of 1 The Terrace which sinced early calendar 2019 has been Tresury's new pemises.

Capital Injections and Movements in Departmental Net Assets

The Treasury

Details of Net Asset Schedule	2018/19 Main Estimates Projections $000	2018/19 Supplementary Estimates Projections $000	Explanation of Projected Movements in 2018/19
Opening Balance	22,417	22,417	Supplementary Estimates opening balance reflects the audited results as at 30 June 2018.
Capital Injections	6,388	5,888	Capital injections for the refurbishment of the Treasury's new premises at 1-3 The Terrace from 2019.
Capital Withdrawals	-	(1,822)	Following the State Services Commission (SSC) withdrawing from shared IT services the Treasury's ongoing capital replacement requirements and future capital transfers from SSC have reduced.
Surplus to be Retained (Deficit Incurred)	-	-
Other Movements	-	-
Closing Balance	28,805	26,483

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

This appropriation increased by $4.729 million to $28.029 million for 2018/19 due to the transfer of unused funding of $4.729 million from 2017/18 in order for Otakaro to fulfil its mandate 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 $441,000 to $621,000 for 2018/19 due to the transfer of unused funding of $441,000 from 2017/18.

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.

Reasons for Change in Appropriation

This appropriation increased by $225,000 to $953,000 for 2018/19 due to the transfer of unused funding of $225,000 from 2017/18 in order to meet future management expenses.

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 $66 million to $3,351 million for 2018/19 due to movements in forecast interest rates on the Crown's borrowings.

3.4 - Non-Departmental Other Expenses#

Ahu Whenua Trust Ex-gratia Payment (M31)

Scope of Appropriation

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

Expenses

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	9,000	9,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve settlement of claims in negotiations which are being led by the Treasury.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Settlement is in accordance with the terms and conditions of the agreement.	N/A	Achieved	Achieved

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 Annual Report for 2019/20.

Reasons for Change in Appropriation

This appropriation increased by $9 million to $9 million for 2018/19 due to a transfer of unused funding of $9 million from 2017/18.

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 $114,000 to $324,000 for 2018/19 due to a transfer of unused funding of $114,000 from 2017/18.

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 $500,000 to $1 million for 2018/19 due to a transfer of unused funding of $500,000 from 2017/18.

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 $3.800 million to $41.800 million for 2018/19 due to an updated actuarial assessment of the Crown's share of expenses.

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 $84.060 million to $469 million for 2018/19 due to an updated actuarial assessment of the Crown's liability to the Government Superannuation Fund.

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	137,000	137,000

What is Intended to be Achieved with this Appropriation

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

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

This appropriation increased by $137 million to $137 million for 2018/19 due to the transfer of unused funding of $137 million from 2017/18 to allow for the write off of further equity injections into Southern Response Earthquake Services Ltd that are deemed irrecoverable.

Meeting Deficiency in Earthquake Commission's Natural Disaster Fund PLA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in meeting the deficiency in the Earthquake Commission's Natural Disaster Fund, as authorised by section 16 of the Earthquake Commission Act 1993.

Expenses

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	94,000	94,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the Crown's responsibilities under section 16 of the Earthquake Commission Act 1993.

End of Year Performance Reporting

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989 as additional information is unlikely to be informative because the expenses relate solely to a payment obligation to the Earthquake Commission.

Reasons for Change in Appropriation

This is a new appropriation for 2018/19 to provide funding to meet the deficiency in the Earthquake Commission's Natural Disaster Fund, as authorised by section 16 of the Earthquake Commission Act 1993.

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 increased by $3.250 million to $19.250 million for 2018/19 due to an updated actuarial assessment of the Crown's liability for benefits payable to members of National Provident Fund schemes.

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.

Reasons for Change in Appropriation

This appropriation increased by $573,000 to $873,000 for 2018/19 due to the transfer of unused funding of $673,000 from 2017/18. This was partly offset by an expense transfer of $100,000 to 2019/20 for the continuation of the Review and Reform of Local Government Infrastructure arrangements.

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 $666,000 to $4.306 million for 2018/19 due to changes in the discount rates and expected timing of cash flows.

3.5 - Non-Departmental Capital Expenditure#

Crown Infrastructure Partners Limited - Equity Injection (M31)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*Crown Infrastructure Partners Limited - Equity Injection (M31)* This appropriation is limited to investment in Crown Infrastructure Partners Limited. Commences: 09 April 2018 Expires: 30 June 2022	Original Appropriation	600,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	(308,000)
	Adjusted Appropriation	292,000
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	12,200
	Estimate for 2019/20	57,000
	Estimated Appropriation Remaining	222,800

Reasons for Change in Appropriation

This appropriation decreased by $308 million to $292 million due to:

$300 million being repurposed for related government priorities, and
$8 million being transferred to the multi-vote Infrastructure Funding and Financing work programme.

New Zealand Green Investment Finance Ltd - Equity Injections for Capital Investments (M12)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*New Zealand Green Investment Finance Ltd - Equity Injections for Capital Investments (M12)* This appropriation is limited to the provision of equity injections into New Zealand Green Investment Finance Ltd for its capital investments. Commences: 12 April 2019 Expires: 30 June 2023	Original Appropriation	100,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	100,000
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	-
	Estimate for 2019/20	40,000
	Estimated Appropriation Remaining	60,000

What is Intended to be Achieved with this Appropriation

This appropriation is limited to the Crown's contribution to New Zealand Green Investment Finance Ltd for its capital investments.

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 an investment in New Zealand Green Investment Finance Ltd.

Reasons for Change in Appropriation

This is a new appropriation for 2018/19 to provide equity funding to New Zealand Green Investment Finance Ltd.

New Zealand Green Investment Finance Ltd - Equity Injections for Operating Expenditure (M12)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
*New Zealand Green Investment Finance Ltd - Equity Injections for Operating Expenditure (M12)* This appropriation is limited to the provision of equity injections into New Zealand Green Investment Finance Ltd for its operating expenditure. Commences: 12 April 2019 Expires: 30 June 2023	Original Appropriation	30,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	30,000
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	6,000
	Estimate for 2019/20	6,000
	Estimated Appropriation Remaining	18,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide capital to New Zealand Green Investment Finance Ltd to fund its operating costs and enable it to facilitate and accelerate low emissions investment.

End of Year Performance Reporting

Due to the late establishment of New Zealand Green Investment Finance Ltd towards the end of 2018/19, there will be no Annual Report for that year. End of year performance reporting will take place in 2019/20.

Reasons for Change in Appropriation

This is a new appropriation for 2018/19 to provide equity injections into New Zealand Green Investment Finance Ltd for its operating expenditure.

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	137,000	137,000

What is Intended to be Achieved with this Appropriation

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

End of Year Performance Reporting

An exemption was granted under s15(D)(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 Ltd in accordance with the Crown Support Deed signed in 2012.

Reasons for Change in Appropriation

This appropriation increased by $137 million to $137 million for 2018/19 due to the transfer of unused funding from 2017/18 to allow for further equity injections into Southern Response Earthquake Services Ltd.

Tamaki Regeneration Company Limited - Equity Injection (M31)

Scope of Appropriation

This appropriation is limited to the provision of an equity injection to Tamaki Regeneration Company Limited.

Reasons for Change in Appropriation

This appropriation increased by $87 million to $137 million for 2018/19 due to the transfer of unused funding of $87 million from 2017/18 to allow Tamaki Regeneration Company Limited to develop social and open market housing in the Tamaki region.

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

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.
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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	250,000	123,741	373,741
*Non-Departmental Other Expenses*
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating	2,700	19,837	22,537
Christchurch Convention Centre - Operating	4,200	39	4,239
Christchurch Stadium - Operating	2,000	639	2,639
Financial Impact of Valuations	1,500	(769)	731
Leasing Anchor Project Land	2,000	(1,100)	900
Metro Sports Facility - Operating	10,000	(9,717)	283
Pre-Development Holding Costs - Operating	2,000	143	2,143
Procurement of Land and Assets - Operating	21,700	16,351	38,051
Public Space - Operating	11,100	23,130	34,230
Sale of Land	1,000	(416)	584
*Non-Departmental Capital Expenditure*
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital	-	1,985	1,985
Christchurch Convention Centre - Capital	181,800	(10,731)	171,069
Land and Asset Acquisition - Capital	10,000	(2,564)	7,436
Metro Sports Facility - Capital	-	84,006	84,006
Public Space - Capital	-	2,908	2,908

How Performance will be Assessed for this Appropriation

Assessment of Performance	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Non-Departmental Other Expenses
*Christchurch Bus Interchange and Associated Transport Infrastructure - Operating*
During operating hours, the bus interchange is not closed from operations greater than 2 hours at any one point in time during the year.	Achieved	Achieved	Achieved
All 'An Accessible City' projects are on time and on budget.	Achieved	Achieved	Achieved
*Christchurch Convention Centre - Operating*
The Convention Centre is progressed on time and on budget.	Achieved	Achieved	Achieved
*Metro Sports Facility - Operating*
MSF is progressed on time and on budget.	Achieved	Achieved	Achieved
*Pre-Development Holding Costs - Operating*
All cleared/remediated land is held in a state ready for development or ultimate sale.	Achieved	Achieved	Achieved
*Procurement of Land and Assets - Operating*
Land is acquired and remediated to a level and in a timeframe needed to meet all Anchor Project performance targets and all land divestment targets as per Otakaro's land divestment strategy.	Achieved	Achieved	Achieved
*Public Space - Operating*
All public space projects are developed, operated and divested in keeping with Anchor Project performance targets and Otakaro's land divestment strategy.	Achieved	Achieved	Achieved
Non-Departmental Capital Expenditure
*Christchurch Convention Centre - Capital*
The Convention Centre is progressed on time and on budget.	Achieved	Achieved	Achieved
*Land and Asset Acquisition - Capital*
Land is acquired in a timeframe needed to meet all Anchor Project performance targets and all land divestment targets as per Otakaro's land divestment strategy.	Achieved	Achieved	Achieved
*Metro Sports Facility - Capital*
Metro Sports Facility is progressed on time and on budget.	Achieved	Achieved	Achieved
*Public Space - Capital*
All public space projects are developed, operated and divested in keeping with Anchor Project performance targets and Otakaro's land divestment strategy.	Achieved	Achieved	Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2018/19 Annual Report.

Reasons for Change in Appropriation

This appropriation increased by $123.741 million to $373.741 million for 2018/19 due to:

a draw down of $106.230 million of tagged contingency funding to develop the Metro Sports Facility
a transfer of unused funding of $103.322 million from 2017/18 across multiple categories of this MCA to better align with the forecast expenditure, and
a draw down of $14.989 million of tagged contingency funding to recognise vesting amounts associated with the write down of public realm assets.

This increase was offset by the transfer of funding totalling $100.800 million from 2018/19 to 2019/20 due to delays in projects.

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	4,000	(134)	3,866
*Non-Departmental Other Expenses*
Operating Costs	2,500	(2,085)	415
*Non-Departmental Capital Expenditure*
Capital Investments	1,500	1,951	3,451

Reasons for Change in Appropriation

The operating costs category of this appropriation decreased by $2.085 million to $415,000 for 2018/19 due to:

a return of $2 million savings to the Crown, and
a fiscally neutral transfer of $5 million to the Policy Advice appropriation.

This decrease was offset by the transfer of $4.915 million unused funding from 2017/18.

The capital investments category of this appropriation increased by $1.951 million to $3.451 million for 2018/19 due to the transfer of $1.951 million unused funding from 2017/18.

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	14,750	17,517	32,267
*Non-Departmental Output Expenses*
Property Management	1,000	2,427	3,427
*Non-Departmental Other Expenses*
Operational Costs	13,000	10,781	23,781
Renegotiation of Lease Arrangements	-	559	559
*Non-Departmental Capital Expenditure*
Capital Expenditure	750	3,750	4,500

Reasons for Change in Appropriation

This appropriation increased by $17.517 million to $32.267 million for 2018/19 due to the transfer of unused funding totalling $17.617 million from 2017/18. This increase was offset by the transfer of $100,000 funding from 2018/19 to 2019/20.

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	200	7,300	7,500
*Non-Departmental Other Expenses*
Grants	200	170	370
Impairment of Loans	-	6,630	6,630
*Non-Departmental Capital Expenditure*
Loans	-	500	500

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2019/20 Annual Report.

Reasons for Change in Appropriation

This appropriation increased by $7.300 million to $7.500 million for 2018/19 due to:

new funding of $3 million in the Impairment of Loans category to cover the expected write downs related to the harvesting its remaining forests, and
the transfer of unused funding totalling $4.300 million from 2017/18.

Social Housing Reform (M96)

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	4,201	3,075	7,276
*Departmental Output Expenses*
Implementation of the Social Housing Reform Programme	2,101	1,601	3,702
*Non-Departmental Output Expenses*
Direct Sale Costs for Implementing the Social Housing Reform Programme	2,100	1,474	3,574
Funding for Departmental Output Expenses
*Revenue from the Crown*	2,100	1,601	3,701
Implementation of the Social Housing Reform Programme	2,100	1,601	3,701
*Revenue from Others*	1	-	1
Implementation of the Social Housing Reform Programme	1	-	1

Reasons for Change in Appropriation

This appropriation increased by $3.075 million to $7.276 million for 2018/19 due to a transfer of $5.075 million from 2017/18 as a result of the uncertainty of timing for expenditure under this work programme. This was partly offset by an expense transfer of $2 million to 2019/20 to provide funding for the continuation of work on the regeneration of public housing in Porirua.

Tax Working Group (M31)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to enable the Tax Working Group to consider and recommend improvements in the structure, fairness and balance of the tax system.

Scope of Appropriation

Departmental Output Expenses

Tax Working Group - Provision of Support and Advice
This category is limited to providing support and advice to the Tax Working Group.

Non-Departmental Output Expenses

Tax Working Group - Direct Costs
This category is limited to the direct costs of the Tax Working Group.

Expenses, Revenue and Capital Expenditure

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	1,600	364	1,964
*Departmental Output Expenses*
Tax Working Group - Provision of Support and Advice	1,280	349	1,629
*Non-Departmental Output Expenses*
Tax Working Group - Direct Costs	320	15	335
Funding for Departmental Output Expenses
*Revenue from the Crown*	1,280	349	1,629
Tax Working Group - Provision of Support and Advice	1,280	349	1,629

Reasons for Change in Appropriation

This appropriation increased by $364,000 to $1.964 million for 2018/19 due to a $1.564 million transfer of unused funding from 2017/18. This was partly offset by:

$1 million transferred to the Financial Operations Services and Operational Advice appropriation during 2018/19 to support enhanced Earthquake Commission monitoring and insurance policy advice, and

$200,000 of expense transfers to 2019/20 to fund any residual expenditure which may arise under this programme of work during that year.