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
| 2007/08 | |||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
Departmental Output Expenses |
|||
Building Act 2004 Implementation (M9)To provide funding for the implementation of the Building Act 2004. |
1,985 | 1,311 | 3,296 |
Building Regulation and Control (M9)To provide regulatory and control services for the building industry under the Building Act 2004 and related consumer information. |
12,839 | 1,589 | 14,428 |
Occupational Licensing (M9)Developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers. |
8,871 | 1,355 | 10,226 |
Purchase and Monitoring Advice - Housing New Zealand Corporation (M37)Provision of purchase and performance monitoring advice to Government in relation to HNZC. |
405 | 128 | 533 |
Residential Tenancy Services (M9)Administration of residential tenancies bond monies (including collecting and repaying bond monies, managing and investing bond monies), provision of information, advice and dispute resolution services to tenants and landlords in relation to residential tenancies as required by Residential Tenancies Act 1986. |
17,945 | 2,228 | 20,173 |
Sector and Regulatory Policy (M9)To provide sector and regulatory policy advice on the building and housing sector. |
4,969 | 175 | 5,144 |
Weathertight Homes Resolution Service (M9)To provide owners of dwellinghouses affected by the leaky building syndrome with information and access to speedy, flexible and cost-effective procedures for assessment and resolution of claims relating to those buildings. |
20,568 | 309 | 20,877 |
Total Departmental Output Expenses |
67,582 | 7,095 | 74,677 |
Non-Departmental Output Expenses |
|||
Contracted Housing Support Services (M37)Purchase of education, support, capacity building and other services from third-party providers, by HNZC, to support target groups into improved housing outcomes including the Government's housing response in NECBOP areas. |
12,072 | (501) | 11,571 |
HNZC Housing Support Services (M37)Purchase of housing related services from HNZC including capacity building with third sector providers, home ownership initiatives, Community Renewal and Healthy Housing. |
13,913 | 23 | 13,936 |
Housing Policy Advice (M37)Purchase of housing policy advice, research and evaluation from HNZC. |
2,509 | (90) | 2,419 |
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. |
- | 1,247 | 1,247 |
Total Non-Departmental Output Expenses |
28,494 | 679 | 29,173 |
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. |
9,740 | - | 9,740 |
Income Related Rental Subsidy (M37)Subsidy provided to HNZC to compensate for the difference between assessed income-related and market rentals. |
465,380 | (2,017) | 463,363 |
Total Benefits and Other Unrequited Expenses |
475,120 | (2,017) | 473,103 |
Borrowing Expenses |
|||
Debt Servicing - Housing Agency Account PLA (M37)Borrowing expenses authorised by section 60(1)(b) of the Public Finance Act, incurred in respect of loans made to the Crown for the purposes of the Housing Act 1955. |
- | 3,989 | 3,989 |
Total Borrowing Expenses |
- | 3,989 | 3,989 |
Other Expenses to be incurred by the Crown |
|||
Community Housing Rent Relief Programme (M37)Contestable rent relief fund for service provider tenants of Community Group Housing properties who face difficulties in meeting rental payments. |
4,500 | (500) | 4,000 |
Increase in Debt Provision (M37)Increase in provision for doubtful debts on Income Related Rents Crown Debt. |
1,807 | - | 1,807 |
Total Other Expenses to be incurred by the Crown |
6,307 | (500) | 5,807 |
Capital Expenditure to be Incurred by the Department |
|||
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 |
- | 3,280 | 3,280 |
Total Capital Expenditure to be Incurred by the Department |
- | 3,280 | 3,280 |
Capital Expenditure to be Incurred by the Crown |
|||
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. |
- | 11,945 | 11,945 |
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. |
111,168 | (8,751) | 102,417 |
Housing New Zealand Corporation - Loans to Refinance Third Party Debt (M37)Funding to cover the refinancing of HNZC's third party debt with Crown Debt. |
131,187 | - | 131,187 |
Housing New Zealand Corporation (HNZC) - Loans to Refinance Crown Debt (M37)Capital injections to HNZC for housing activities, for the purpose of HNZC financing net new lending and the purchase and development of community houses. |
40,000 | - | 40,000 |
Housing New Zealand Limited (HNZL) - Loans to Refinance Crown Debt (M37)Capital injections to HNZL for housing activities, for the purpose of refinancing HNZL's debt portfolio. |
50,000 | - | 50,000 |
Total Capital Expenditure to be Incurred by the Crown |
332,355 | 3,194 | 335,549 |
Total Annual and Permanent Appropriations |
909,858 | 15,720 | 925,578 |
Details of Projected Movements in Departmental
Net Assets#
Department of Building and Housing
| Details of Net Asset Schedule | 2007/08 Estimates Projections $000 |
2007/08 Supplementary Estimates Projections $000 |
Explanation of Projected Movements in 2007/08 |
|---|---|---|---|
| Opening Balance | 9,244 | 11,220 | Supplementary Estimates opening balance reflects the audited results as at 30 June 2007. |
| Capital Injections | 6,001 | 5,086 | Funding of $4.826 million for Occupational Licensing: Building Practitioners memorandum account and capital funding for essential infrastructure assets $260,000. |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | (2,016) | (4,826) | |
| Other Movements | 9,407 | - | |
| Closing Balance | 22,636 | 11,480 |
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
| 2007/08 | |||||
|---|---|---|---|---|---|
| Estimates $000 |
Supplementary Estimates | Total $000 |
|||
| Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
|||
Appropriations |
|||||
| Output Expenses | 96,076 | 7,095 | 679 | 7,774 | 103,850 |
| Benefits and Other Unrequited Expenses | 475,120 | N/A | (2,017) | (2,017) | 473,103 |
| Borrowing Expenses | - | - | 3,989 | 3,989 | 3,989 |
| Other Expenses | 6,307 | - | (500) | (500) | 5,807 |
| Capital Expenditure | 332,355 | 3,280 | 3,194 | 6,474 | 338,829 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
Total Appropriations |
909,858 | 10,375 | 5,345 | 15,720 | 925,578 |
Crown Revenue and Receipts |
|||||
| Tax Revenue | - | N/A | N/A | - | - |
| Non-Tax Revenue | 138,336 | N/A | N/A | 26,829 | 165,165 |
| Capital Receipts | - | N/A | N/A | - | - |
Total Crown Revenue and Receipts |
138,336 | N/A | N/A | 26,829 | 165,165 |
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Building Act 2004 Implementation (M9)
Scope of Appropriation
To provide funding for the implementation of the Building Act 2004.
Expenses and Revenue
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 1,985 | 1,311 | 3,296 |
| Revenue from the Crown | - | - | - |
| Revenue from Others | 1,985 | 1,311 | 3,296 |
Reasons for Change in Appropriation
The increase in appropriation is due to expense transfers from 2006/07 for Building Code Review projects and the Building Consent Authority Assistance package.
Building Regulation and Control (M9)#
Scope of Appropriation#
To provide regulatory and control services for the building industry under the Building Act 2004 and related consumer information.
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 12,839 | 1,589 | 14,428 |
| Revenue from the Crown | - | 840 | 840 |
| Revenue from Others | 16,229 | (161) | 16,028 |
Reasons for Change in Appropriation#
The increase in appropriate is due to an expense transfer from 2006/07 for the Energy Efficiency Awareness campaign ($750,000), new funding received as part of the Energy Efficiency Strategy for research into energy efficient commercial buildings ($690,000) and a transfer from the Ministry for the Environment of the Energywise Smarter Homes ($150,000).
Occupational Licensing (M9)#
Scope of Appropriation#
Developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers.
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 8,871 | 1,355 | 10,226 |
| Revenue from the Crown | - | - | - |
| Revenue from Others | 6,923 | (446) | 6,477 |
Reasons for Change in Appropriation#
The increase in appropriation is attributed to a forecast increase in the costs of the Licensed Building Practitioners Scheme ($1.206 million) and an increase in the costs associated with the operation of the Electrical Workers Registration Board ($149,000). These are funded from Revenue Other.
Purchase and Monitoring Advice - Housing New Zealand Corporation (M37)#
Scope of Appropriation#
Provision of purchase and performance monitoring advice to Government in relation to HNZC.
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 405 | 128 | 533 |
| Revenue from the Crown | 397 | 130 | 527 |
| Revenue from Others | 8 | (2) | 6 |
Reasons for Change in Appropriation#
The increase in appropriation is to fund an increase in capability attributed to the increase in the scope of the monitoring and advice function performed by the Department. This is funded from a reprioritisation of existing activities.
Residential Tenancy Services (M9)#
Scope of Appropriation#
Administration of residential tenancies bond monies (including collecting and repaying bond monies, managing and investing bond monies), provision of information, advice and dispute resolution services to tenants and landlords in relation to residential tenancies as required by Residential Tenancies Act 1986.
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 17,945 | 2,228 | 20,173 |
| Revenue from the Crown | 725 | (688) | 37 |
| Revenue from Others | 17,220 | 4,251 | 21,471 |
Reasons for Change in Appropriation#
The increase in appropriation in due to the increase in the demand driven services and additional funding in relation to the amendments to the Residential Tenancies Act 1986. The increase in appropriation is funded from Revenue Other.
Sector and Regulatory Policy (M9)#
Scope of Appropriation#
To provide sector and regulatory policy advice on the building and housing sector.
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 4,969 | 175 | 5,144 |
| Revenue from the Crown | 4,907 | 100 | 5,007 |
| Revenue from Others | 62 | 75 | 137 |
Reasons for Change in Appropriation#
The increase in appropriation is attributed to the sub delegation by the Retirement Commission, of the information provision functions within the Retirement Villages Act 2003 and the transfer from the Ministry of Health of the administration functions of the Plumbers, Gasfitters and Drainlayers Act 1976.
Weathertight Homes Resolution Service (M9)#
Scope of Appropriation#
To provide owners of dwellinghouses affected by the leaky building syndrome with information and access to speedy, flexible and cost-effective procedures for assessment and resolution of claims relating to those buildings.
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 20,568 | 309 | 20,877 |
| Revenue from the Crown | 20,514 | (715) | 19,799 |
| Revenue from Others | 54 | 173 | 227 |
Reasons for Change in Appropriation#
The increase in appropriation is due the expense transfer from 2006/07 of $1 million, arising from the delays in the enactment of the Weathertight Homes Resolution Services Act 2006, offset by the return of savings to the Crown and transfers to fund the capability increase in the appropriation: Purchase and Monitoring Advice - HNZC and Occupational Licensing.
Part 2.2 - Non-Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives#
| Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
|---|---|
| Improved housing affordabilityHousing sector encourages appropriate provision of and investment in housing | Management of Crown properties held under the Housing Act 1955 |
Contracted Housing Support Services (M37)#
Scope of Appropriation
Purchase of education, support, capacity building and other services from third-party providers, by HNZC, to support target groups into improved housing outcomes including the Government's housing response in NECBOP areas.
Expenses
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 12,072 | (501) | 11,571 |
Reasons for Change in Appropriation
This appropration has decreased due to savings arising in four programmes in 2007/08.
HNZC Housing Support Services (M37)#
Scope of Appropriation#
Purchase of housing related services from HNZC including capacity building with third sector providers, home ownership initiatives, Community Renewal and Healthy Housing.
Expenses#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation HNZC Housing Support Services | 13,913 | 23 | 13,936 |
| Housing Innovation Fund | 1,860 | - | 1,860 |
| Wellington City Council Housing project development and administration costs | 1,196 | - | 1,196 |
| Welcome Home Loan programme | 6,200 | (1,500) | 4,700 |
| Shared Equity | 1,410 | - | 1,410 |
| Healthy Housing, Non-weathertight Homes and Community Renewal | 3,247 | 1,523 | 4,770 |
Reasons for Change in Appropriation#
This appropriation has increased due to the non-weathertight homes programme interest received on lending being removed and recognised as a Crown receipt. This has been partially offset by a decrease in demand for mortgage insurance through the Welcome Home Loan programme due to the increase in interest rates and the average loan being lower than budgeted.
Output Performance Measures and Standards#
| 2007/08 | |||
|---|---|---|---|
| Performance Measures | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
| The number of new loans underwritten through the Welcome Home Loan programme. | 1,200 ? 1,400 loans | (300 loans) | 900 -1,100 loans |
Housing Policy Advice (M37)#
Scope of Appropriation#
Purchase of housing policy advice, research and evaluation from HNZC.
Expenses#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 2,509 | (90) | 2,419 |
Reasons for Change in Appropriation#
The decrease in appropriation reflects savings generated from the completion of the Rural Housing Programme evaluation.
Management of Crown Properties held under the Housing Act 1955 (M37)#
Scope of Appropriation#
This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.
Expenses#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 1,247 | 1,247 |
Reasons for Change in Appropriation#
This appropriation has been created as a result of a review of the administration and operation of the Housing Agency Account, which identified that appropriations are required for all expenditure from the Housing Agency Account.
Output Performance Measures and Standards#
| 2007/08 | |||
|---|---|---|---|
| Performance Measures | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
| The Housing Agency Account is managed within financial governance policies | - | 100% compliance | 100% compliance |
Summary of Service Providers#
| 2007/08 | |||||
|---|---|---|---|---|---|
| Provider | Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
Reporting Mechanism |
Expiry of Resourcing Commitment |
| Housing New Zealand Corporation | 28,494 | 679 | 29,173 | Provider's Annual Report | June 2008 |
The above table summarises funding to be allocated through Vote Housing to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.
Part 3 - Details for Benefits and Other Unrequited Expenses#
Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#
Income Related Rental Subsidy (M37)
Scope of Appropriation
Subsidy provided to HNZC to compensate for the difference between assessed income-related and market rentals.
Expenses
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 465,380 | (2,017) | 463,363 |
Reasons for Change in Appropriation
Changes are due to the number of eligible clients and changes in market rents.
Part 4 - Details for Borrowing Expenses#
Part 4.2 - Non-Departmental Borrowing Expenses#
Debt Servicing - Housing Agency Account PLA (M37)
Scope of Appropriation
Borrowing expenses authorised by section 60(1)(b) of the Public Finance Act, incurred in respect of loans made to the Crown for the purposes of the Housing Act 1955.
Expenses
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 3,989 | 3,989 |
Reasons for Change in Appropriation
This appropriation has been created as a result of a review of the administration and operation of the Housing Agency Account, which identified that appropriations are required for all expenditure from the Housing Agency Account.
Part 5 - Details and Expected Results for Other Expenses#
Part 5.2 - Non-Departmental Other Expenses#
Community Housing Rent Relief Programme (M37)
Scope of Appropriation
Contestable rent relief fund for service provider tenants of Community Group Housing properties who face difficulties in meeting rental payments.
Expenses
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 4,500 | (500) | 4,000 |
Reasons for Change in Appropriation
The decrease in appropriation in due to an an expense transfer from 2007/08 into 2008/09 for the Rental Support Scheme.
Part 6 - Details and Expected Results for Capital Expenditure#
Part 6.1 - Departmental Capital Expenditure#
Department of Building and Housing - Capital Expenditure PLA (M9)
Scope of Appropriation
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
Capital Expenditure
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Forests/Agricultural | - | - | - |
| Land | - | - | - |
| Property, Plant and Equipment | - | 820 | 820 |
| Intangibles | - | 1,344 | 1,344 |
| Other | - | 1,116 | 1,116 |
| Total Appropriation | - | 3,280 | 3,280 |
| Forests/Agricultural | - | - | - |
| Land | - | - | - |
| Property, Plant and Equipment | - | 820 | 820 |
| Intangibles | - | 1,344 | 1,344 |
| Other | - | 1,116 | 1,116 |
| Total Appropriation | - | 3,280 | 3,280 |
Part 6.2 - Non-Departmental Capital Expenditure#
Intended Impacts, Outcomes and Objectives#
| Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
|---|---|
| Reduced unmet housing need | Acquisition and Development of Properties under the Housing Act 1955 |
Acquisition and Development of properties under the Housing Act 1955 (M37)#
Scope of Appropriation
This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955.
Capital Expenditure
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 11,945 | 11,945 |
| Hobsonville | - | 11,945 | 11,945 |
Reasons for Change in Appropriation
This appropriation has been created as a result of a review of the administration and operation of the Housing Agency Account, which identified that appropriations are required for all expenditure from the Housing Agency Account.
Capital Injections to Housing New Zealand Corporation for Housing Activities (M37)#
Scope of Appropriation#
Capital injections (debt or equity) to HNZC to give effect to Government policy decisions around stock acquisition, modernisation and other housing interventions.
Capital Expenditure#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 111,168 | (8,751) | 102,417 |
Reasons for Change in Appropriation#
This appropriation has decreased due to the expense transfer to 2008/09 for Auckland City Pensioner Housing to provide for approval delays in the environment court and the expense transfer from 2006/07 for state housing acquisitions.
Reporting Mechanisms#
| Appropriation | Reporting Mechanism |
|---|---|
| Acquisition and Development of Properties under the Housing Act 1955 | Annual report of Housing New Zealand Corporation |
| Acquisition and Improvement of Housing New Zealand Corporation State Houses | Annual report of Housing New Zealand Corporation |
| Loans to support Home Ownership | Annual report of Housing New Zealand Corporation |
| Loans to support Social Housing | Annual report of Housing New Zealand Corporation |
| Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt | Annual report of Housing New Zealand Corporation |
The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental capital expenditure appropriation.