Supplementary estimates of appropriations

Vote Treaty Negotiations - Supplementary Estimates 2014/15

APPROPRIATION MINISTER(S): Minister for Treaty of Waitangi Negotiations (M74)

APPROPRIATION ADMINISTRATOR: Ministry of Justice

RESPONSIBLE MINISTER FOR MINISTRY OF JUSTICE: Minister of Justice

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2014/15
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Property Portfolio Management (M74)

Management, transfer and disposal of Crown-owned property for Treaty settlement purposes.
11,143 1,983 13,126

Total Departmental Output Expenses

11,143 1,983 13,126

Non-Departmental Other Expenses

     

Agreed Payments for Foreshore and Seabed Deeds of Agreement (M74)

This appropriation is limited to agreed payments associated with implementing foreshore and seabed Deeds of Agreement.
2,400 (2,400) -

Claimant Funding (M74)

This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.
8,102 898 9,000

Contribution toward Determining Customary Interests in the Marine and Coastal Area (M74)

This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.
3,450 (2,709) 741

Debt Write-offs (M74)

Write-off of Bad Debts from Landbank rental properties.
120 - 120

Depreciation (M74)

Depreciation on assets held in the Office of Treaty Settlements Landbank for Treaty settlements.
3,600 - 3,600

Loss on Disposal or Write-off of Landbank Assets (M74)

This appropriation is limited to losses incurred on the disposal or write off of landbank assets.
- 160 160

Total Non-Departmental Other Expenses

17,672 (4,051) 13,621

Non-Departmental Capital Expenditure

     

Purchase of Assets for Possible Use in Future Treaty of Waitangi Settlements (M74)

This appropriation is limited to the purchase of assets for possible use in future Treaty of Waitangi settlements.
10,000 12,494 22,494

Total Non-Departmental Capital Expenditure

10,000 12,494 22,494

Multi-Category Expenses and Capital Expenditure

     

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA (M74)

The overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.
31,894 2,233 34,127
Departmental Output Expenses
     
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.
1,397 (167) 1,230
Representation - Waitangi Tribunal and Courts
This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.
2,083 (8) 2,075
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.
28,414 2,408 30,822

Total Multi-Category Expenses and Capital Expenditure

31,894 2,233 34,127

Total Annual and Permanent Appropriations

70,709 12,659 83,368

Multi-Year Appropriations#

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

Non-Departmental Other Expenses

   

Historical Treaty of Waitangi Settlements 2014 - 2018 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2014

Expires: 30 June 2018
Original Appropriation 1,400,000
Estimated Actual for 2014/15 229,691

Historical Treaty of Waitangi Settlements 2015 - 2019 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2015

Expires: 30 June 2019
Original Appropriation 1,400,000
Estimated Actual for 2014/15 -

Total Annual, Permanent and Multi-Year Appropriations#

  2014/15
  Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual and Permanent Appropriations 70,709 12,659 83,368
Total MYA Non-Departmental Other Expenses Forecasts 350,000 - 350,000

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

420,709 12,659 433,368

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2014/15
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 11,143 1,983 - 1,983 13,126
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 367,672 - (4,051) (4,051) 363,621
Capital Expenditure 10,000 - 12,494 12,494 22,494
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 31,894 2,233 - 2,233 34,127
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

420,709 4,216 8,443 12,659 433,368

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 15,836 N/A - - 15,836
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

15,836 N/A - - 15,836

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Property Portfolio Management (M74)

Scope of Appropriation

Management, transfer and disposal of Crown-owned property for Treaty settlement purposes.

Expenses and Revenue

  2014/15
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 11,143 1,983 13,126
Revenue from the Crown 11,112 1,982 13,094
Revenue from Others 31 1 32

Reasons for Change in Appropriation

The appropriation increased by $1.983 million to $13.126 million, due to:

  • an increase of $3.500 million to fund the demolition of derelict buildings at the former New Plymouth Hospital site and the on-going management of buildings at the former Kenepuru Hospital
  • an increase of $978,000 owing to a transfer from other appropriations administered by the Ministry of Justice taking into account changes to the allocation of the efficiency dividends, and to allow for movements in the allocation of overheads in the 2014/15 financial year
  • an increase of $499,000 owing to a transfer from 2013/14 to fund the demolition of derelict Landbank buildings
  • an increase of $5,000 to fund additional capital charge on the revaluation of land and buildings as at 30 June 2014, and
  • an increase of $1,000 funded from revenue received for employees seconded to other government agencies.

Offset by:

  • a decrease of $3 million owing to a transfer to 2015/16 for the demolition of derelict Landbank properties, as resource consent processes and discussions with third parties have taken longer than anticipated.

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses

Agreed Payments for Foreshore and Seabed Deeds of Agreement (M74)

Scope of Appropriation

This appropriation is limited to agreed payments associated with implementing foreshore and seabed Deeds of Agreement.

Expenses

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 2,400 (2,400) -

Reasons for Change in Appropriation

The appropriation has decreased by $2.400 million to nil, due to:

  • a decrease of $1.400 million to reflect the revised commitments within the Ngati Porou foreshore deed, and
  • a decrease of $1 million owing to a transfer to 2015/16 to align funding with the anticipated signing of a Deed to Amend with Ngati Porou.

Claimant Funding (M74)

Scope of Appropriation

This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.

Expenses

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 8,102 898 9,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Justice in a report appended to the Ministry of Justice's Annual Report.

Reasons for Change in Appropriation

The appropriation has increased by $898,000 to $9 million, due to transfers to align funding with expected levels of claimant applications.

Contribution toward Determining Customary Interests in the Marine and Coastal Area (M74)

Scope of Appropriation

This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.

Expenses

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 3,450 (2,709) 741

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Justice in a report appended to the Ministry of Justice's Annual Report.

Reasons for Change in Appropriation

The appropriation has decreased by $2.709 million to $741,000, due to:

  • a decrease of $2.750 million owing to a transfer to 2016/17 to realign funding with anticipated applications for recognition under the Marine and Coastal Area (Takutai Moana) Act 2011, and
  • a decrease of $450,000 owing to a transfer to the departmental multi-category expenses and capital expenditure for Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act to progress research into legal rights and interests in the common marine and coastal area.

Offset by:

  • an increase of $491,000 owing to a transfer from 2013/14 to fund expected applications under the Marine and Coastal Area (Takutai Moana) Act 2011.

Historical Treaty of Waitangi Settlements 2014 - 2018 (M74)

Scope of Appropriation and Expenses

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

Historical Treaty of Waitangi Settlements 2014 - 2018 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2014

Expires: 30 June 2018
Original Appropriation 1,400,000
Estimated Actual for 2014/15 229,691

Note that the Estimated Actual for 2014/15 includes actual and projected settlements from 1 July 2014 to 30 June 2015, based on the Office of Treaty Settlements work programme.

Reasons for Change in Appropriation

A multi-year appropriation for historical Treaty of Waitangi settlements is established each year in the Appropriation (Supplementary Estimates) Act, and the previous multi-year appropriation is revoked. The reason for this change is to ensure there is sufficient legal authority to finalise agreements in principle negotiated in earlier years and to continue the momentum of settling Treaty of Waitangi claims.

Historical Treaty of Waitangi Settlements 2015 - 2019 (M74)

Scope of Appropriation and Expenses

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

Historical Treaty of Waitangi Settlements 2015 - 2019 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2015

Expires: 30 June 2019
Original Appropriation 1,400,000
Estimated Actual for 2014/15 -

Loss on Disposal or Write-off of Landbank Assets (M74)

Scope of Appropriation

This appropriation is limited to losses incurred on the disposal or write off of landbank assets.

Expenses

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 160 160

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve efficient management of Crown assets by providing for the expenses incurred on disposal or write-off of Landbank assets.

How Performance will be Assessed and End of Year Reporting Requirements

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 expenses incurred in the disposal or write-off of assets. Performance information relating to what is intended to be achieved with this expenditure is provided under the Property Portfolio Management appropriation.

Reasons for Change in Appropriation

The appropriation has increased by $160,000 from nil due to a transfer from 2013/14 to cover losses incurred on disposal or write-off of Landbank assets.

3.5 - Non-Departmental Capital Expenditure

Purchase of Assets for Possible Use in Future Treaty of Waitangi Settlements (M74)

Scope of Appropriation

This appropriation is limited to the purchase of assets for possible use in future Treaty of Waitangi settlements.

Capital Expenditure

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 10,000 12,494 22,494

Reasons for Change in Appropriation

The appropriation has increased by $12.494 million to $22.494 million due to a transfer from 2013/14 for the acquisition of Protection Mechanism assets.

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

Multi-Category Expenses and Capital Expenditure

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act (M74)

Overarching Purpose Statement

The overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.

Scope of Appropriation

Departmental Output Expenses

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.

Representation - Waitangi Tribunal and Courts
This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act
This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.

Expenses, Revenue and Capital Expenditure

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

31,894 2,233 34,127

Departmental Output Expenses

     
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 1,397 (167) 1,230
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 28,414 2,408 30,822

Funding for Departmental Output Expenses

     

Revenue from the Crown

31,682 2,112 33,794
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 1,386 (167) 1,219
Representation - Waitangi Tribunal and Courts 2,081 (8) 2,073
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 28,215 2,287 30,502

Revenue from Others

212 121 333
Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 11 - 11
Representation - Waitangi Tribunal and Courts 2 - 2
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act 199 121 320

What is Intended to be Achieved with each Category and How Performance will be Assessed

  2014/15
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Departmental Output Expenses

     

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

     

Representation - Waitangi Tribunal and Courts

     

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

     

Mandates recognised (see Note 1)

11 1 1

Terms of Negotiation agreed (see Note 2)

11 Expired measure Expired measure

Agreements in Principle signed (see Note 1)

13 5 5

Deeds of Settlement initialled (see Note 1)

8 6 6

Deeds of Settlement signed (see Note 3)

11 Expired measure Expired measure

Legislation introduced (see Note 1)

16 8 8

Legislation enacted (see Note 3)

15 Expired measure Expired measure

Proportion of claims settled (see Note 4)

67% 56% 56%

Note 1 - Three issues have required the Office of Treaty Settlements' work programme to be revised. As the work programme sets the performance targets for the Office in this area, these performance measures have been revised in line with the new work programme targets. The three issues are:

  • four claimant groups have effectively rejected the Crown's best offer which has paused negotiations with these groups
  • seven claimant groups have litigated against the Crown, consequently the Crown has paused these negotiations, and
  • a number of large ongoing negotiations have prevented new negotiations from being brought on to the work programme as expected.

Note 2 - This measure has been withdrawn as it is not a significant milestone in the negotiation process.

Note 3 - These measures have been withdrawn as the Office of Treaty Settlements has little control over their achievement and therefore they are inappropriate measures of the Office's performance. For the period of time between a Deed of Settlement being initialled and signed, the onus is on the claimant group to conduct the work required to ratify the Deed in order for it to be signed. The period of time between legislation being introduced and enacted is similarly outside the Office's control.

Note 4 - The reduction in this measure is the result of a technical change. The splitting of Hauraki and Te Aitanga a Mahaki claimant groups has increased the number of Deeds of Settlement to be achieved and therefore decreased the percentage that have been settled. This technical "decrease" in percentage will correct itself as these settlements are achieved.

Reasons for Change in Appropriation

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

The category has decreased by $167,000 to $1.230 million, due to:

  • a decrease of $169,000 owing to a transfer to other appropriations administered by the Ministry of Justice taking into account changes to the allocation of the efficiency dividends, and to allow for movements in the allocation of overheads in the 2014/15 financial year.

Offset by:

  • an increase of $2,000 to fund additional capital charge on the revaluation of land and buildings as at 30 June 2014.
Representation - Waitangi Tribunal and Courts

The category has decreased by $8,000 to $2.075 million, due to:

  • a decrease of $259,000 owing to a transfer to other appropriations administered by the Ministry of Justice taking into account changes to the allocation of the efficiency dividends, and to allow for movements in the allocation of overheads in the 2014/15 financial year.

Offset by:

  • an increase of $250,000 owing to a transfer within the multi-category appropriation to Representation - Waitangi Tribunal and Courts to reflect the current work programme, and
  • an increase of $1,000 to fund additional capital charge on the revaluation of land and buildings as at 30 June 2014.
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

The category has increased by $2.408 million to $30.822 million, due to:

  • an increase of $1.348 million owing to a transfer from other appropriations administered by the Ministry of Justice taking into account changes to the allocation of the efficiency dividends, and to allow for movements in the allocation of overheads in the 2014/15 financial year
  • an increase of $853,000 owing to a transfer from 2013/14 to fund legal costs relating to Marine and Coastal Area High Court hearings and deed drafting for settlements
  • an increase of $852,000 owing to a transfer from 2013/14 to fund survey costs for Treaty settlements
  • an increase of $450,000 owing to a transfer from the non-departmental other expenses for Contribution toward Determining Customary Interests in the Marine and Coastal Area to progress research into legal rights and interests in the common marine coastal area
  • an increase of $81,000 funded from revenue received for employees seconded to other government agencies
  • an increase of $40,000 funded from recoveries of costs for advertising surplus properties to be disposed, and
  • an increase of $34,000 to fund additional capital charge on the revaluation of land and buildings as at 30 June 2014.

Offset by:

  • a decrease of $1 million owing to a transfer to 2015/16 to fund survey, legal and negotiation expenditure resulting from delays in the work programme, and
  • a decrease of $250,000 owing to a transfer within the multi-category appropriation to Representation - Waitangi Tribunal and Courts to reflect the current work programme.