Vote Primary Industries - Supplementary Estimates 2013/14

Supplementary Estimates of Appropriations#

Details of Appropriations#

Annual and Permanent Appropriations

Multi-Year Appropriations

Details of Projected Movements in Departmental Net Assets#

Ministry for Primary Industries

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Mapping the Layout of the 2013/14 Supplementary Estimates to the Layout of the 2013/14 Estimates

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Administration and Management of Crown Forestry Assets (M87)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation decreased by $568,000 to $1.628 million for 2013/14. This is due to: a reallocation of revenue Crown-funded resources between output expenses ($633,000); and decrease in third party-funded activity ($9,000). These changes are offset by: expense transfer from 2012/13 for the Ministry for Primary Industries organisational transformation programme ($40,000); increased services to other public sector agencies ($31,000); and transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($3,000).

Administration of Grants and Programmes (M87)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation decreased by $1.564 million to $8.417 million for 2013/14. This is due to: a reallocation of revenue Crown funded resources between output expenses ($2.900 million); decrease in third party funded activity ($6,000); and reduced services to other public sector agencies ($4,000). These changes are offset by: expense transfer from 2012/13 for Aquaculture Planning Fund ($700,000); expense transfer from 2012/13 for Ministry for Primary Industries organisational transformation programme ($392,000); expense transfer from 2012/13 for climate change technology transfer programme ($250,000); and transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($4,000).

Animal Welfare Education and Enforcement (M87)

Scope of Appropriation

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $261,000 to $4.021 million for 2013/14. This is due to: a reallocation of revenue Crown funded resources between output expenses ($223,000); expense transfer from 2012/13 for Ministry for Primary Industries organisational transformation programme ($34,000); expense transfer from 2012/13 for animal welfare strategy and legislation review ($30,000); and transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($1,000). These changes are offset by a decrease in third party funded activity ($23,000) and reduced services to other public sector agencies ($4,000).

Border Biosecurity Risk Management MCOA (M87)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output appropriation contains output classes that contribute to preventing harmful organisms from crossing New Zealand's borders, with the assurance that trade and tourism are maintained.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

The following set of measures replaces those published in the Performance Information for Appropriations for Budget 2013.

Reasons for Change in Appropriation

This appropriation increased by $6.611 million to $97.783 million for 2013/14. This is due to: increase in third party-funded activity ($5.027 million); increased services to other public sector agencies ($1.188 million); expense transfer from 2012/13 for Joint Border Management System ($960,000); expense transfer from 2012/13 for the Ministry for Primary Industries organisational transformation programme ($243,000); transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($47,000); and expense transfer from 2012/13 for Pest List Database project ($20,000). These changes are offset by a reallocation of revenue Crown funded resources between output expenses ($874,000).

Memorandum Account

Development of Policy Advice MCOA (M87)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output appropriation contains output classes that contribute to the development of policy advice across the primary industries portfolio.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $12.888 million to $67.952 million for 2013/14. This is due to: a reallocation of revenue Crown-funded resources between output expenses ($11.643 million); expense transfer from 2012/13 for fisheries research ($2.549 million); funding from Vote Foreign Affairs for negotiation of free trade or closer economic partnership agreements ($270,000); expense transfer from 2012/13 for Global Research Alliance secretariat functions ($103,000); expense transfer from 2012/13 for the Heads of Agreement Mitigation Partnership programme ($100,000); transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($37,000); and expense transfer from 2012/13 for the Ministry for Primary Industries organisational transformation programme ($14,000).

These changes are offset by: reduced services to other public sector agencies ($660,000); transfer of departmental funding for Global Research Alliance secretariat functions to the non-departmental appropriation to invest in collaborative research efforts to reduce emissions from pastoral livestock production ($590,000); expense transfer to 2014/15 for international climate change research ($230,000); expense transfer to 2014/15 for economic joint venture studies ($160,000); expense transfer to 2014/15 for harvested wood products material flow analysis in relation to the Emissions Trading Scheme ($100,000); and decrease in third party-funded activity ($88,000).

Domestic Biosecurity Risk Management MCOA (M87)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output appropriation contains output classes that contribute to reducing the unwanted harm caused by organisms already established in New Zealand.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $5.471 million to $57.989 million for 2013/14. This is due to: a reallocation of revenue Crown-funded resources between output expenses ($4.605 million); expense transfer from 2012/13 for the Ministry for Primary Industries organisational transformation programme ($553,000); expense transfer from 2012/13 for Kauri dieback programme ($300,000); and transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($43,000). These changes are offset by: reduced services to other public sector agencies ($27,000); and decrease in third party-funded activity ($3,000).

Implementation of Policy Advice MCOA (M87)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

This multi-class output appropriation contains output classes that contribute to the implementation of policy advice across the primary industries portfolio.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry for Primary Industries in its annual report.

Reasons for Change in Appropriation

This appropriation decreased by $8.798 million to $67.514 million for 2013/14. This is due to: a reallocation of revenue Crown-funded resources between output expenses ($11.884 million); expense transfer to 2014/15 for Aquaculture Planning Fund ($1.510 million); expense transfer to 2014/15 for Ngati Porou Deed of Agreement ($321,000); expense transfer to 2014/15 for Waikato Tainui River settlement negotiations with iwi ($139,000); decrease in third party-funded activity ($29,000); and funding to Vote Communications for Chatham Islands broadband project ($6,000).

These changes are offset by: expense transfer from 2012/13 for the Ministry for Primary Industries organisational transformation programme ($2.316 million); expense transfer from 2012/13 for Resource Management Act coastal planning for aquaculture project ($1.143 million); increased services to other public sector agencies ($975,000); expense transfer from 2012/13 and baseline roll out adjustment for Maori aquaculture settlement negotiations and administration ($475,000); expense transfer from 2012/13 for Waikato Tainui River settlement negotiations with iwi ($107,000); and transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($75,000).

Implementation of the Emissions Trading Scheme and Indigenous Forestry (M87)

Scope of Appropriation

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $1.771 million to $13.212 million for 2013/14. This is due to: a reallocation of revenue Crown funded resources between output expenses ($1.478 million); expense transfer from 2012/13 for ongoing work on the implementation of the Emissions Trading Scheme including adaptation of software for amendments to scheme ($774,000); increase in third party funded activity ($12,000); and transfer of capital funding for the Ministry for Primary Industries Electronic Content Management System that will now be purchased as a service ($10,000).

These changes are offset by: expense transfer to 2014/15 for ongoing work on the implementation of the Emissions Trading Scheme including plantation forestry spatial analysis ($300,000); expense transfer to 2014/15 for indigenous forestry research ($200,000); and reduced services to other public sector agencies ($3,000).

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry for Primary Industries - Capital Expenditure PLA (M87)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The capital expenditure programme covers: the routine replacement of motor vehicles; replacement of vessels for fisheries compliance activities; upgrading and maintenance of Ministry for Primary Industries buildings, leasehold improvements and laboratories; development and maintenance of IT equipment and information systems including working with New Zealand Customs Service to implement the Joint Border Management System.

Capital Injections and Movements in Departmental Net Assets

Ministry for Primary Industries

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Climate Change Research (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $191,000 to $7.819 million for 2013/14 due to an expense transfer from 2012/13 to meet contractual commitments for specific and discrete research programmes that span financial years as they fall due.

Management of Crown Forestry Assets (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $11.407 million to $107.985 million for 2013/14. This increase is due to the decision to bring forward harvesting to take advantage of demand out of China for New Zealand radiata pine at improved log prices ($14.560 million). This increase was partially offset by the impact of the sale of West Coast plantation forests to the landowner Ngai Tahu Forest Estates Limited on 30 April 2014 ($3.153 million).

Support for Walking Access (M87)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

The following reduced set of measures replaces those published in the Performance Information for Appropriations for Budget 2013.

3.2 - Non-Departmental Benefits and Other Unrequited Expenses

Rural Veterinarians Bonding Scheme (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $197,000 to $1.453 million for 2013/14 to reflect the current level of participation in the voluntary bonding scheme.

A veterinarian can be bonded for a minimum of three years to a maximum of five years. At the completion of three years, veterinarians receive a taxable payment of $33,000. Further payments of $11,000 are made for the fourth and fifth year. No payment is made if a veterinarian withdraws from the scheme before the end of three, four or five years.

3.4 - Non-Departmental Other Expenses

Afforestation Grants Scheme (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $480,000 to $866,000 for 2013/14 due to an expense transfer from 2012/13. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of approved work programmes. Funding for this appropriation ceases in 2013/14.

Aquaculture Settlements (M87)

Scope of Appropriation

Reasons for Change in Appropriation

The Crown has a legislative obligation under the Maori Commercial Aquaculture Claims Act 2004 to settle pre-commencement and new space obligations to iwi. The 2013/14 appropriation includes $10.848 million carried forward from 2012/13 for negotiated settlement of remaining pre-commencement space obligations to iwi and $52 million of $74.5 million approved in Budget 2012 for negotiated settlement of new space obligations to iwi. The remaining $22.5 million has been appropriated in 2014/15 and 2015/16.

Community Irrigation Fund and Schemes (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $200,000 to $547,000 for 2013/14 due to an expense transfer from 2012/13. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of approved work programmes. Funding for the Community Irrigation Fund ceases in 2013/14.

East Coast Afforestation Grants (M87)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This appropriation increased by $4.495 million to $22.955 million due to a transfer of unspent funding against the former annual appropriation for East Coast Afforestation Grants as at 30 June 2013.

Global Research Alliance on Agricultural Greenhouse Gases (M87)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $9.410 million to $29.285 million. This is due to the decision to extend the funding period for the Global Alliance through to 30 June 2019 by transferring over three years (2016/17, 2017/18 and 2018/19) $8.170 million to an annual non-departmental appropriation at the end of the MYA and $1.830 million to departmental output expense Development of Policy Advice MCOA for secretariat functions performed by Ministry for Primary Industries. This change is offset by the transfer of $590,000 savings in secretariat costs in 2013/14.

Primary Growth Partnership (M87)

Scope of Appropriation and Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

The decrease in appropriation by $27 million to $326.751 million is due to a transfer of funding within Vote Primary Industries to contribute towards construction of new National Biocontainment Facility ($25 million) and transfer of funding to Vote Environment to contribute towards the Te Awa Tupua Putea fund established as part of the Whanganui River Treaty Settlement ($2 million).

Provision for Write Downs (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $289,000 to $1.000 million for 2013/14 due to an assessment of unrecoverable debt in respect of deemed values of declared over-fishing and other non-departmental fisheries debts.

Response to the Kiwifruit disease Pseudomonas Syringae pv. Actinidiae (M87)

Scope of Appropriation

Reasons for Change in Appropriation

In November 2010, Cabinet approved $25 million in support of the Kiwifruit industry-led programme for responding to Pseudomonas syringae pv. actinidiae (Psa-V). This amount was subject to industry contributing $25 million - Kiwifruit Vine Health (KVH) - as costs are incurred. In April 2013 Cabinet agreed the remaining Crown funding be made available to KVH to bridge an industry funding gap and support the smooth transition to full industry funding of the implementation of the Psa-V Plan. Over the period 2010/11 to 2012/13, $18.421 million costs were incurred. The remaining $4.079 million appropriation is expected to be expended in 2013/14 and 2014/15. An expense transfer of $450,000 has been made to 2014/15, leaving $3.629 million in 2013/14.

Sustainable Farming Fund (M87)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $941,000 to $8.941 million for 2013/14. Expense transfers are required to align the appropriation across financial years to cover contractual commitments for grants payable upon completion of approved work programmes. Expense transfers of $1.541 million from 2012/13 and $600,000 to 2014/15 were required.

3.5 - Non-Departmental Capital Expenditure

Crown Irrigation Investments Limited (M87)

Scope of Appropriation

Capital Expenditure

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the establishment and delivery of Crown Irrigation Investments Limited activities in supporting the opportunities provided by irrigation to improve productivity in the primary sector, including job creation, increased export earnings and acceleration of New Zealand's economic development.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Crown Irrigation Investments Ltd (a Crown entity) in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The Government approved $80 million in Budget 2013 to facilitate the Crown's investment in regional water storage and off-farm irrigation infrastructure in 2013/14. This funding was appropriated upon the incorporation of Crown Irrigation Investments Limited (CIL) on 1 July 2013. It was agreed that CIL's operating expenditure will be financed out of its $80 million capital allowance.