Formats and related files
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)
ADMINISTERING DEPARTMENT: Department of Building and Housing
MINISTER RESPONSIBLE FOR DEPARTMENT OF BUILDING AND HOUSING: Minister for Building and Construction
Details of Appropriations#
Details of Annual and Permanent Appropriations
| 2011/12 | |||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
Departmental Output Expenses |
|||
Canterbury Earthquakes: Arranging and Managing Emergency and Temporary Accommodation (M37)This appropriation is limited to the expenses incurred in arranging and managing emergency and temporary accommodation for people displaced by the Canterbury earthquakes. |
3,154 | 648 | 3,802 |
Housing, Building and Construction Policy Advice (M9)This appropriation is limited to the provision of policy advice to improve the performance of the building and housing sector; develop an effective social housing market; improve the efficiency and adequacy of support for people in housing need; monitor and provide information on sector trends and outcomes, and provide advice on the membership and effectiveness of statutory boards. |
7,815 | 1,630 | 9,445 |
Performance Monitoring and Advice - Social Housing (M37)This appropriation is limited to the provision of advice to Ministers arising from the monitoring of Housing New Zealand Corporation's current and expected performance, and the monitoring of housing grants provided to Wellington City Council. |
794 | - | 794 |
Social Housing Unit (M37)This appropriation is limited to the administration costs of the Social Housing Unit. |
- | 2,500 | 2,500 |
Weathertight Services (M9)This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions. |
52,662 | (34,000) | 18,662 |
Total Departmental Output Expenses |
64,425 | (29,222) | 35,203 |
Non-Departmental Output Expenses |
|||
Canterbury Earthquakes: Emergency and Temporary Accommodation (M37)This appropriation is limited to operating expenses incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes. |
9,517 | 7,328 | 16,845 |
Contracted Housing Support Services (M37)This appropriation is limited to the purchase of education, support and other services from third-party and iwi providers, by Housing New Zealand Corporation, to support target groups into improved housing outcomes. |
2,400 | (990) | 1,410 |
HNZC Housing Support Services (M37)This appropriation is limited to the purchase of housing related services from Housing New Zealand Corporation including home ownership initiatives, the Housing Innovation Fund and Healthy Housing. |
15,343 | 40 | 15,383 |
Management of Crown Properties held under the Housing Act 1955 (M37)This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955. |
1,395 | - | 1,395 |
Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37)This appropriation is limited to the purchase of housing and related services delivered by Housing New Zealand Corporation to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the Corporation and the income related rents charged. |
587,115 | 1,773 | 588,888 |
Total Non-Departmental Output Expenses |
615,770 | 8,151 | 623,921 |
Benefits and Other Unrequited Expenses |
|||
Housing Assistance (M37)Payments made to HNZC and other mortgage providers to compensate for the difference between the cost of funds and rate at which funds are lent and provide write-offs for loans. |
1,729 | (175) | 1,554 |
KiwiSaver Deposit Subsidy (M37)To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria. |
5,200 | 5,426 | 10,626 |
Total Benefits and Other Unrequited Expenses |
6,929 | 5,251 | 12,180 |
Non-Departmental Other Expenses |
|||
Community Housing Rent Relief Programme (M37)This appropriation is limited to provision of a rent relief fund for service provider tenants of Community Group Housing properties who face difficulties in meeting rental payments. |
4,150 | - | 4,150 |
Increase in Debt Provision (M37)Increase in provision for doubtful debts on Income Related Rents Crown Debt. |
5,000 | 3,000 | 8,000 |
Payments in respect of the Weathertight Services Loan Guarantees PLA (M9)This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989. |
30 | - | 30 |
Social Housing Fund (M37)This appropriation is limited to the purchasing of services from, or providing support to, third party providers of social and/or affordable housing services. |
- | 37,350 | 37,350 |
Unwind of Discount Rate used in the Present Value Calculation of Direct Payments (M9)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. |
1,100 | - | 1,100 |
Wellington City Council Social Housing Assistance (M37)This appropriation is limited to assisting the Wellington City Council upgrade its social housing portfolio under the terms of a Deed of Grant entered into between the Crown, Housing New Zealand Corporation and the Council. |
43,500 | - | 43,500 |
Total Non-Departmental Other Expenses |
53,780 | 40,350 | 94,130 |
Departmental Capital Expenditure |
|||
Department of Building and Housing - Capital Expenditure PLA (M9)This appropriation is limited to the purchase or development of assets by and for the use of the Department of Building and Housing, as authorised by section 24(1) of the Public Finance Act 1989. |
4,084 | - | 4,084 |
Total Departmental Capital Expenditure |
4,084 | - | 4,084 |
Non-Departmental Capital Expenditure |
|||
Acquisition and Development of properties under the Housing Act 1955 (M37)This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955. |
19,142 | (6,569) | 12,573 |
Acquisition and Improvement of Housing New Zealand Corporation state houses (M37)This appropriation is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure Housing New Zealand Corporation state houses. |
9,300 | - | 9,300 |
Canterbury Earthquake: Acquisition of Emergency and Temporary Accommodation (M37)This appropriation is limited to capital expenditure incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes. |
- | 18,946 | 18,946 |
Capital Injections to Housing New Zealand Corporation for Housing Activities (M37)Capital injections (debt or equity) to HNZC to give effect to Government policy decisions around stock acquisition, modernisation and other housing interventions. |
27 | - | 27 |
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37)This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt. |
175,496 | - | 175,496 |
Total Non-Departmental Capital Expenditure |
203,965 | 12,377 | 216,342 |
Total Annual and Permanent Appropriations |
948,953 | 36,907 | 985,860 |
Details of Multi-Year Appropriations#
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Departmental Output Expenses |
||
Building Regulation and Control (M9)This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 46,898 |
| Adjustments for 2010/11 | 2,965 | |
| Adjustments to 2011/12 | 9,900 | |
| Adjusted Appropriation | 59,763 | |
| Actual to 2010/11 Year End | 16,111 | |
| Estimated Actual for 2011/12 | 21,332 | |
| Estimated Actual for 2012/13 | 22,320 | |
| Estimated Appropriation Remaining | - | |
Occupational Licensing (M9)This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 27,341 |
| Adjustments for 2010/11 | - | |
| Adjustments to 2011/12 | (43) | |
| Adjusted Appropriation | 27,298 | |
| Actual to 2010/11 Year End | 8,701 | |
| Estimated Actual for 2011/12 | 9,966 | |
| Estimated Actual for 2012/13 | 8,631 | |
| Estimated Appropriation Remaining | - | |
Residential Tenancy and Unit Title Services (M37)This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 66,550 |
| Adjustments for 2010/11 | 830 | |
| Adjustments to 2011/12 | (246) | |
| Adjusted Appropriation | 67,134 | |
| Actual to 2010/11 Year End | 20,946 | |
| Estimated Actual for 2011/12 | 22,328 | |
| Estimated Actual for 2012/13 | 23,860 | |
| Estimated Appropriation Remaining | - | |
Non-Departmental Other Expenses |
||
Weathertight Services: Guarantee Fee Subsidy (M9)This appropriation is limited to the expense reflecting the guarantee fee subsidy under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme. Commences: 1 July 2010 Expires: 30 June 2015 |
Original Appropriation | 13,520 |
| Adjustments for 2010/11 | - | |
| Adjustments to 2011/12 | (100) | |
| Adjusted Appropriation | 13,420 | |
| Actual to 2010/11 Year End | - | |
| Estimated Actual for 2011/12 | 200 | |
| Estimated Actual for 2012/13 | 2,700 | |
| Estimated Appropriation Remaining | 10,520 |
Details of Projected Movements in Departmental
Net Assets#
Department of Building and Housing
| Details of Net Asset Schedule | 2011/12 Main Estimates Projections $000 |
2011/12 Supplementary Estimates Projections $000 |
Explanation of Projected Movements in 2011/12 |
|---|---|---|---|
| Opening Balance | 19,470 | 16,309 | Supplementary Estimates opening balance reflects the audited results as at 30 June 2011. |
| Capital Injections | - | - | |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | - | (4,717) | The large reductions in Net Assets reflect the planned use of the Memorandum Account surpluses to fund earthquake related technical investigations and the impact of operating the Multi Year Appropriations that are funded from third party revenue sources. These reductions should recover in future financial years. |
| Other Movements | - | - | |
Closing Balance |
19,470 | 11,592 |
Information Supporting the Supplementary Estimates Vote Housing#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)
ADMINISTERING DEPARTMENT: Department of Building and Housing
MINISTER RESPONSIBLE FOR DEPARTMENT OF BUILDING AND HOUSING: Minister for Building and Construction
Part 1 - Summary of the Vote#
Part 1.3 - Trends in the Vote
Summary of Financial Activity
| 2011/12 | |||||
|---|---|---|---|---|---|
| Supplementary Estimates | |||||
| Estimates $000 |
Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
Total $000 |
|
Appropriations |
|||||
| Output Expenses | 728,703 | (24,104) | 8,151 | (15,953) | 712,750 |
| Benefits and Other Unrequited Expenses | 6,929 | N/A | 5,251 | 5,251 | 12,180 |
| Borrowing Expenses | - | - | - | - | - |
| Other Expenses | 53,980 | - | 40,350 | 40,350 | 94,330 |
| Capital Expenditure | 208,049 | - | 12,377 | 12,377 | 220,426 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
Total Appropriations |
997,661 | (24,104) | 66,129 | 42,025 | 1,039,686 |
Crown Revenue and Capital Receipts |
|||||
| Tax Revenue | - | N/A | - | - | - |
| Non-Tax Revenue | 178,800 | N/A | (454) | (454) | 178,346 |
| Capital Receipts | 16,873 | N/A | (16,873) | (16,873) | - |
Total Crown Revenue and Capital Receipts |
195,673 | N/A | (17,327) | (17,327) | 178,346 |
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
| Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
|---|---|
| Outcome - A market that delivers a range of houses and buildings, at prices and standards that are accessible to all New Zealanders Impact: People can access and afford suitable homes and buildings People have good choices within the market |
Social Housing Unit |
For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations please see the Statement of Intent for the Department of Building and Housing.
Building Regulation and Control (M9)
Scope of Appropriation and Expenses
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Departmental Output Expenses |
||
Building Regulation and Control (M9) (M9)This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 46,898 |
| Adjustments for 2010/11 | 2,965 | |
| Adjustments to 2011/12 | 9,900 | |
| Adjusted Appropriation | 59,763 | |
| Actual to 2010/11 Year End | 16,111 | |
| Estimated Actual for 2011/12 | 21,332 | |
| Estimated Actual for 2012/13 | 22,320 | |
| Estimated Appropriation Remaining | - |
Revenue
| Budget $000 |
|
|---|---|
| Revenue from the Crown to end of 2012/13 | 2,590 |
| Revenue from Others to end of 2012/13 | 45,783 |
| Total Revenue | 48,373 |
Reasons for Change in Appropriation
The increase in appropriation is due to increased activity relating to the Canterbury Earthquakes technical investigations. This is being funded from the Building Controls Memorandum Account.
Canterbury Earthquakes: Arranging and Managing Emergency and Temporary Accommodation (M37)#
Scope of Appropriation#
Expenses and Revenue#
| 2011/12 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 3,154 | 648 | 3,802 |
| Revenue from Crown | 3,154 | 648 | 3,802 |
| Revenue from Other | - | - | - |
Reasons for Change in Appropriation#
The increase in appropriation of $648,000 to $3.802 million is due to a carry forward of funding from 2010/11.
Housing, Building and Construction Policy Advice (M9)#
Scope of Appropriation#
Expenses and Revenue#
| 2011/12 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 7,815 | 1,630 | 9,445 |
| Revenue from Crown | 7,731 | 1,630 | 9,361 |
| Revenue from Other | 84 | - | 84 |
Reasons for Change in Appropriation#
The increase in this appropriation is due to a carry forward of funding of $530,000 from 2010/11 related to the Tamaki Transformation Programme, and a transfer of funding of $1.100 million from HNZC Housing Support Services to address the need for increased capacity.
Occupational Licensing (M9)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Departmental Output Expenses |
||
Occupational Licensing (M9) (M9)This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 27,341 |
| Adjustments for 2010/11 | - | |
| Adjustments to 2011/12 | (43) | |
| Adjusted Appropriation | 27,298 | |
| Actual to 2010/11 Year End | 8,701 | |
| Estimated Actual for 2011/12 | 9,966 | |
| Estimated Actual for 2012/13 | 8,631 | |
| Estimated Appropriation Remaining | - |
Revenue#
| Budget $000 |
|
|---|---|
| Revenue from the Crown to end of 2012/13 | - |
| Revenue from Others to end of 2012/13 | 30,437 |
| Total Revenue | 30,437 |
Reasons for Change in Appropriation#
The decrease of $43,000 reflects the efficiency savings impacting in 2012/13.
Residential Tenancy and Unit Title Services (M37)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Departmental Output Expenses |
||
Residential Tenancy and Unit Title Services (M37) (M37)This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 66,550 |
| Adjustments for 2010/11 | 830 | |
| Adjustments to 2011/12 | (246) | |
| Adjusted Appropriation | 67,134 | |
| Actual to 2010/11 Year End | 20,946 | |
| Estimated Actual for 2011/12 | 22,328 | |
| Estimated Actual for 2012/13 | 23,860 | |
| Estimated Appropriation Remaining | - |
Revenue#
| Budget $000 |
|
|---|---|
| Revenue from the Crown to end of 2012/13 | - |
| Revenue from Others to end of 2012/13 | 59,111 |
| Total Revenue | 59,111 |
Reasons for Change in Appropriation#
The increase was due to a carry forward from 2009/10 of $830,000 offset by a reduction of $246,000 to reflect the efficiency savings in 2012/13.
Social Housing Unit (M37)#
Scope of Appropriation#
Expenses and Revenue#
| 2011/12 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 2,500 | 2,500 |
| Revenue from Crown | - | 2,500 | 2,500 |
| Revenue from Other | - | - | - |
Reasons for Change in Appropriation#
The increase in appropriation reflects the new funding allocated to set up the new Social Housing Unit to administer the Social Housing Fund.
Output Performance Measures and Standards#
| 2011/12 | |||
|---|---|---|---|
| Performance Measures | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
| Contribute to growth in the supply of social and affordable housing through the provision of effective operational policy advice, and the efficient and effective delivery of the Social Housing Fund, stock transfer and sector development initiatives. | |||
Quality |
|||
| Meet our quality standards for effective operational policy advice. | - | 100% | 100% |
| Process developed for allocating the Social Housing Fund and possible stock transfers. | - | Meets Government and probity requirements | Meets Government and probity requirements |
| Develop various engagement mechanisms with the non-government providers. | - | Guidelines and requirements met. | Guidelines and requirements met. |
Timeliness |
|||
| Advice provided as per agreed timelines. | - | Ongoing | Ongoing |
| Process developed in order to allocate funds on time. | - | Ongoing | Ongoing |
| Establish effective systems for the monitoring of non-government providers and their delivery of funded housing. | - | By 1 December 2012 | By 1 December 2012 |
Weathertight Services (M9)#
Scope of Appropriation#
Expenses and Revenue#
| 2011/12 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 52,662 | (34,000) | 18,662 |
| Revenue from Crown | 52,561 | (34,000) | 18,561 |
| Revenue from Other | 214 | - | 214 |
Reasons for Change in Appropriation#
The reduction in appropriation of $34 million reflects surplus funding that is now not required in the output. The surplus has arisen from operational efficiencies in the administration of the service and lower than forecast demand.
Part 2.2 - Non-Departmental Output Expenses#
Canterbury Earthquakes: Emergency and Temporary Accommodation (M37)#
Scope of Appropriation
Reasons for Change in Appropriation
The increase in appropriation of $7.328 million to $16.845 million is due to the need to develop 212 temporary accommodation units for people displaced by the earthquakes. The increased operating expenditure reflects the need to provision for the reinstatement of the land being used for the villages.
Contracted Housing Support Services (M37)#
Scope of Appropriation#
Reasons for Change in Appropriation#
The decreases in appropriation of $990,000 to $1.410 million is due to a funding transfer to HNZC Support Services of $1.140 million to fund Community Group Housing, offset by a transfer of $150,000 from 2010/11 for the NZ Housing Foundation.
HNZC Housing Support Services (M37)#
Scope of Appropriation#
Reasons for Change in Appropriation#
The increase in appropriation of $40,000 is due to a transfer of $1.140 million to address the cost of Community Group Housing offset by a transfer of $1.100 million from Welcome Home loans to fund increased capacity issues in the Policy advice output.
Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37)#
Scope of Appropriation#
Reasons for Change in Appropriation#
The increase in appropriation of $1.773 to $588.888 million is due to the growth in market rent, changes in the size of the state housing portfolio and changes in tenant's incomes.
Part 3 - Details for Benefits and Other Unrequited Expenses#
Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#
Housing Assistance (M37)
Scope of Appropriation
Reasons for Change in Appropriation
The decrease in the appropriation of $175,000 to $1.554 million is due to forecast lower expenditure required to support the interest subsidy on legacy loans.
KiwiSaver Deposit Subsidy (M37)#
Scope of Appropriation#
Reasons for Change in Appropriation#
The increase in appropriation of $5.426 million to $10.626 million is due to higher uptake of the subsidy being forecast.
Part 5 - Details and Expected Results for Other Expenses#
Part 5.2 - Non-Departmental Other Expenses#
Increase in Debt Provision (M37)
Scope of Appropriation
Reasons for Change in Appropriation
The increase in appropriation of $3 million to $8 million reflects increasing levels of debt associated with the Income Related Rent.
Social Housing Fund (M37)#
Scope of Appropriation#
Expenses#
| 2011/12 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 37,350 | 37,350 |
Reasons for Change in Appropriation#
The increase in appropriation is due to the creation of the Social Housing Fund after Budget 2011.
Expected Results#
| 2011/12 | |||
|---|---|---|---|
| Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
|
| Contribute to growth in the supply of social and affordable housing by non-government providers through allocation of the Social Housing Fund and through targeted stock transfers. | - | Process developed for allocating the Social Housing Fund and possible stock transfers that meet Government and probity requirements. | Process developed for allocating the Social Housing Fund and possible stock transfers that meet Government and probity requirements. |
Weathertight Services: Guarantee Fee Subsidy (M9)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Non-Departmental Other Expenses |
||
Weathertight Services: Guarantee Fee Subsidy (M9) (M9)This appropriation is limited to the expense reflecting the guarantee fee subsidy under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme. Commences: 1 July 2010 Expires: 30 June 2015 |
Original Appropriation | 13,520 |
| Adjustments for 2010/11 | - | |
| Adjustments to 2011/12 | (100) | |
| Adjusted Appropriation | 13,420 | |
| Actual to 2010/11 Year End | - | |
| Estimated Actual for 2011/12 | 200 | |
| Estimated Actual for 2012/13 | 2,700 | |
| Estimated Appropriation Remaining | 10,520 |
Reasons for Change in Appropriation#
The decrease reflects the lower than expected uptake for the Financial Assistance Package.