Supplementary estimates of appropriations

Vote Communications - Supplementary Estimates 2012/13

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Communications and Information Technology (M88)

ADMINISTERING DEPARTMENT: Ministry of Business, Innovation and Employment

MINISTER RESPONSIBLE FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Communications
  2012/13
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Communications and ICT operational policy, ministerial servicing and Crown entity monitoring (M88)

This appropriation is limited to the development of operational policies in relation to information technology, New Zealand's digital capability, telecommunications markets and regulation, broadband investment, postal services, and international for a related to New Zealand's ICT interests, services to support the Minister, and monitoring the performance and compliance of Crown Entities.
599 - 599

Management and Enforcement of the Radiocommunications Act 1989 (M88)

Management of the radio spectrum, including technical arrangements for the allocation of spectrum, representation of New Zealand's international radio spectrum interests, and management of spectrum sales including costs associated with financial assistance for transition of radio licences when a management right is created or spectrum is allocated to a different use.
9,797 559 10,356

Policy Advice - Communications (M88)

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.
3,763 (98) 3,665

Total Departmental Output Expenses

14,159 461 14,620

Non-Departmental Output Expenses

     

Administrative Support for Telecommunications Relay Equipment and Services (M88)

This appropriation is limited to funding expenditure for administering contracts procuring the supply of telecommunications relay services textphones and other equipment for user access to relay service platforms (including video) and the cost for administering rental of relay user equipment and depreciating this equipment, together with sponsoring New Zealand Sign Language interpreter scholarships and the purchase of ancillary services to support the availability and uptake of relay services.
1,269 - 1,269

Enforcement of Telecommunications Sector Regulation (M88)

The regulation and monitoring of telecommunication services in accordance with the Telecommunications Act 2001.
6,000 - 6,000

Fibre Drop Costs (M88)

This appropriation is limited to the cost of fibre connections between schools and UFB and RBI providers' cable in the roadway or network operators' digital microwave radio towers.
7,970 5,380 13,350

Total Non-Departmental Output Expenses

15,239 5,380 20,619

Non-Departmental Other Expenses

     

Contributions to International Telecommunications Organisations (M88)

The Crown's annual membership of the Asia Pacific Telecommunity and subscription to the International Telecommunications Union.
970 - 970

Telecommunications Development Levy Funded Procurement - Deaf Relay Service TSO (M88)

This appropriation is limited to the purchase of deaf relay services which is offset by the Telecommunications Development Levy.
2,400 65 2,465

Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure (M88)

This appropriation is limited to the payment of grants and investment for non-urban infrastructure offset by the Telecommunications Development Levy.
94,000 47,000 141,000

Total Non-Departmental Other Expenses

97,370 47,065 144,435

Non-Departmental Capital Expenditure

     

Acquisition of Textphone Equipment (M88)

To purchase textphones after the establishment of a textphone pool for deaf, hearing impaired and speech impaired people.
200 - 200

Total Non-Departmental Capital Expenditure

200 - 200

Total Annual and Permanent Appropriations

126,968 52,906 179,874

Details of Multi-Year Appropriations#

Multi-Year Appropriations - Communications
Type, Title, Scope and Period of Appropriations Appropriation, Adjustments and Use $000

Non-Departmental Capital Expenditure

   

Broadband Investment (Crown Fibre Holdings Capital Costs) (M88) (M88)

This appropriation is limited to the provision of ongoing investment funding for Crown Fibre Holdings to implement the Government's broadband investment commitment

Commences: 22 August 2011

Expires: 30 June 2016

Original Appropriation 408,000
Adjustments for 2011/12 -
Adjustments to 2012/13 774,500
Adjusted Appropriation 1,182,500
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 165,000
Estimated Actual for 2013/14 200,000
Estimated Appropriation Remaining 817,500

Information Supporting the Supplementary Estimates Vote Communications#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Communications and Information Technology (M88)

ADMINISTERING DEPARTMENT: Ministry of Business, Innovation and Employment

MINISTER RESPONSIBLE FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Communications
  2012/13
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 29,398 461 5,380 5,841 35,239
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 97,370 - 47,065 47,065 144,435
Capital Expenditure 100,200 - 65,000 65,000 165,200
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

226,968 461 117,445 117,906 344,874

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 59,277 N/A - - 59,277
Capital Receipts 27,156 N/A (444) (444) 26,712

Total Crown Revenue and Capital Receipts

86,433 N/A (444) (444) 85,989

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Management and Enforcement of the Radiocommunications Act 1989 (M88)

Scope of Appropriation

Management of the radio spectrum, including technical arrangements for the allocation of spectrum, representation of New Zealand's international radio spectrum interests, and management of spectrum sales including costs associated with financial assistance for transition of radio licences when a management right is created or spectrum is allocated to a different use.

Expenses and Revenue

Expenses and Revenue - Management and Enforcement of the Radiocommunications Act 1989 (M88) - Communications
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 9,797 559 10,356
Revenue from Crown 320 559 879
Revenue from Other 7,041 - 7,041

Reasons for Change in Appropriation

This appropriation increased as a result of a $500,000 approval by Cabinet for "Allocation of the Digital Dividend - Paper 2 - Economic and Technical Considerations" to fund the 700MHz digital dividend auction, and retention of underspend of $59,000 from 2011/12.

Policy Advice - Communications (M88)#

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.

Reasons for Change in Appropriation#

The appropriation decreased from $3.763 million to $3.665 million as a result of retention of underspend of $370,000 to 2013/14, partially offset by an expense transfer of $272,000 from 2011/12.

Part 2.2 - Non-Departmental Output Expenses#

Fibre Drop Costs (M88)#

Scope of Appropriation

This appropriation is limited to the cost of fibre connections between schools and UFB and RBI providers' cable in the roadway or network operators' digital microwave radio towers.

Reasons for Change in Appropriation

This appropriation increased from $7.970 million to $13.350 million as a result of a $10.380 million expense transfer from 2011/12 to reflect the roll-out timing of the Rural Broadband Initiative (RBI) and Ultra-fast Broadband (UFB) deployment. This was partially offset by an expense transfer of $5 million to 2013/14 to accommodate the stage implementation of RBI and UFB to schools.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Telecommunications Development Levy Funded Procurement - Deaf Relay Service TSO (M88)

Scope of Appropriation

This appropriation is limited to the purchase of deaf relay services which is offset by the Telecommunications Development Levy.

Reasons for Change in Appropriation

This appropriation increased from $2.400 million to $2.465 million as a result of an expense transfer in 2011/12 to accommodate the delay in the availability of CapTel telephones.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development (M25)

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 policy areas of development, evaluation and overview of economic, industry and regional development policies and initiatives to achieve short and long term economic growth and stability, and improving and leading the public sector procurement policy.

Reasons for Change in Appropriation

The appropriation increased from $9.096 million to $13.255 million is a result of:

  • $1.900 million for the policy work on the Government Procurement programme approved by Cabinet (Government Procurement Functional Leadership)
  • $1 million fiscally neutral adjustment (FNA) from the departmental output expense Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring appropriation as a result of an internal review of costs between the two appropriations
  • $605,000 FNA from Vote Finance for the Business Facing Services unit via the Better Services for Less Development Pipeline Project
  • $290,000 expense transfer from 2011/12 as a result of the timing in the development of an extensive suite of best practice procurement policy work
  • $185,000 FNA from Vote Foreign Affairs to assist with international travel costs relating to trade negotiations
  • $95,000 expense transfer from 2011/12 as a result of the timing of the Maori Economic Development Strategy Projects, and
  • $84,000 FNA for an efficiency dividend adjustment from Vote Energy.

Policy Advice - Small Business (M62)#

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 areas of development, coordination and implementation of policies and programmes that affect Small to Medium Enterprises.

Reasons for Change in Appropriation#

The appropriation increased from $1.285 million to $1.330 million as a result of $33,000 retention of underspend from 2011/12 and an FNA of $12,000 for an efficiency dividend from Vote Energy.

Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M25)#

Scope of Appropriation#

This appropriation is limited to development of operational policies to achieve short and long term economic growth and stability, services to support the Minister, monitoring the performance and compliance of Crown Entities, administering grants programmes, providing support for statutory bodies and improving and leading the public sector procurement practises.

Expenses and Revenue#

Expenses and Revenue - Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M25) - Economic Development
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 11,470 755 12,225
Revenue from Crown 4,570 355 4,925
Revenue from Other 6,900 400 7,300

Reasons for Change in Appropriation#

The increased appropriation is a result of:

  • expense transfers from 2011/12 as a result of the timing of both the Government Electronic Tender System (GETS) tender preparation and evaluation processes ($750,000), and in the expected signed agreement to progress the detailed design of the new Convention Centre ($305,000)
  • $400,000 to assist with funding the Government Procurement Functional Leadership initiative, and
  • $300,000 to assist with the Speed Up Reforms with Better Public Services Seed Fund initiative (Cab Min (13) 8/3 refers).

These increases were partially offset by a $1 million FNA to the departmental output expense Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development as a result of an internal review of costs between the two appropriations.

Part 2.2 - Non-Departmental Output Expenses#

International Business Growth Services (M25)#

Scope of Appropriation

This appropriation is limited to helping firms export and internationalise by identifying and exploiting market and investment opportunities; overcoming internationalisation barriers; providing customised advice and support; and enabling access to international business networks.

Reasons for Change in Appropriation

The appropriation increased from $99.702 million to $101.264 million as a result of:

  • $1.520 million to assist with the New Zealand Trade and Enterprise (NZTE) implementation of New Zealand Inc Strategy initiatives
  • $200,000 for fluctuations in foreign exchange forecasts, and
  • $76,000 from Vote Foreign Affairs to assist with international travel costs relating to trade negotiations for World Trade Organisation (WTO) and Free Trade Agreements (FTA's).

These increases were partially offset by an FNA of $234,000 to non-departmental other expense Regional and Industry Development Fund to assist with the Kiwi Expatriates Association (KEA) - connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Services to Develop Business Capability (M25)#

Scope of Appropriation#

This appropriation is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information.

Reasons for Change in Appropriation#

The appropriation decreased from $14.905 million to $13.752 million as a result of an FNA for $900,000 to non-departmental output expense Services to Support Sector Development and Special Events, to assist with the Sector Development Support programme initiative, and an FNA of $253,000 to Vote Pacific Island Affairs to assist with their Pre-Business training programme.

Services to Support Sector Development and Special Events (M25)#

Scope of Appropriation#

This appropriation is limited to securing and capitalising on significant economic development opportunities for New Zealand, with a focus on sectors and special events.

Reasons for Change in Appropriation#

The appropriation increased from $29.666 million to $32.807 million as a result of:

  • $950,000 funding approved by Cabinet to assist with the NZTE - Implementation of New Zealand Inc Strategy initiatives
  • FNA of $900,000 from non-departmental output expense Services to Develop Business Capability, to assist with the Sector Development Support programme initiative
  • expense transfer of $750,000 from 2011/12 as a result of the timing in the work relating to the Health Information Technology Project
  • expense transfer of $500,000 from 2011/12 as a result of the timing in the work relating to the Aviation High Impact Project, and
  • $41,000 fluctuations in foreign exchange forecasts.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Establishment and operation of the Food Innovation Network New Zealand (M25)

Scope of Appropriation

This appropriation is limited to the establishment and operation of the Food Innovation Network New Zealand.

Reasons for Change in Appropriation

The appropriation increased from $950,000 to $4.596 million as a result of a $3.346 million automatic transfer of 2011/12 underspend to 2012/13 and an FNA of $1.600 million from the non-departmental other expense Square Kilometre Array to assist with the Food Bowl initiative.

These increases were partially offset by an expense transfer of $1.300 million to Vote Science and Innovation for the Crown entity Callaghan Innovation to reflect the transfer of the New Zealand Food Innovation (Network) Ltd functions to Callaghan Innovation.

Major Events Development Fund (M25)#

Scope of Appropriation#

Support for major events that provide economic, social, cultural and international profiling benefits to New Zealand.

Reasons for Change in Appropriation#

The appropriation increased from $10 million to $15.078 million as a result of an expense transfer of $5.078 million from 2011/12 to 2012/13 to reflect the timing of the approval process for major events under consideration.

Promotion of New Zealand Associated with the America's Cup (M25)#

Scope of Appropriation#

This appropriation is limited to meeting costs associated with the proposed sponsorship of Team New Zealand's participation in the next multi-challenger America's Cup.

Reasons for Change in Appropriation#

The increased appropriation is a result of an expense transfer of $1.676 million from 2011/12 to 2012/13 to reflect the postponement of the 34th America's Cup which took place in San Francisco in September 2012.

Regional and Industry Development Fund (M25)#

Scope of Appropriation#

This appropriation is limited to the provision of funding to support industry and regional specific projects that are intended to contribute to economic growth.

Reasons for Change in Appropriation#

The appropriation increased from $200,000 to $1.150 million as a result of FNAs from within Vote Economic Development ($434,000), Vote Science and Innovation ($233,000), Vote Foreign Affairs and Trade ($233,000), Vote Immigration ($30,000) and Vote Maori Affairs ($20,000) in 2012/13 to assist with the Kiwi Expatriates Association (KEA) - Connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Regional Partnerships and Facilitation (M25)#

Scope of Appropriation#

Provision of advice and grants to support the development of business incubators and regional clusters, and to support regional partnerships to develop and implement sustainable economic growth strategies.

Reasons for Change in Appropriation#

The appropriation decreased from $4.556 million to $4.487 million as a result of an FNA to non-departmental other expense Regional and Industry Development Fund to assist with the Kiwi Expatriates Association (KEA) - Connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Square Kilometre Array (M25)#

Scope of Appropriation#

This appropriation is limited to supporting New Zealand's contribution to the joint bid with Australia to host the Square Kilometre Array.

Reasons for Change in Appropriation#

The appropriation decreased from $3.150 million to $1.419 million as a result of:

  • FNA for $1.600 million to non-departmental other expense Establishment and Operations of the Food Innovation Network New Zealand to assist with the Food Bowl initiative, and
  • FNA of $131,000 to the non-departmental other expense Regional and Industry Development Fund appropriation to assist with the Kiwi Expatriates Association (KEA) - Connecting New Zealand with its global talent community of expatriates via a memorandum of understanding of contributions initiative.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25)

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Business, Innovation and Employment, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

Capital Expenditure - Ministry of Business, Innovation and Employment Capital Expenditure PLA (M25) - Economic Development
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 3,500 16,550 20,050
Intangibles 8,500 46,499 54,999
Other - - -

Total Appropriation

12,000 63,049 75,049

Reasons for Change in Appropriation

The increased appropriation is a result of:

  • a transfer of capital expense of $51.874 million from the four previous agencies (Department of Labour, Department of Housing and Building, Ministry of Science and Innovation and the Ministry of Economic Development) to the formation of the Ministry of Business, Innovation and Employment
  • reforecast spend of $6 million for the Immigration Global Management System (IGMS), and
  • reforecast spend of $5.175 million for Economic Development capital.

Ministry of Economic Development - Capital Expenditure PLA (M25)#

Scope of Appropriation#

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Economic Development, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure#

Capital Expenditure - Ministry of Economic Development Capital Expenditure PLA (M25) - Economic Development
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 3,500 16,550 20,050
Intangibles 8,500 46,499 54,999
Other - - -

Total Appropriation

12,000 63,049 75,049

Reasons for Change in Appropriation#

This appropriation transferred to Ministry of Business, Innovation and Employment - Capital Expenditure PLA from 1 July 2012 due to the formation of the Ministry of Business, Innovation and Employment. The Minister for Economic Development is the Responsible Minister for the Ministry of Business, Innovation and Employment.

Part 6.2 - Non-Departmental Capital Expenditure#

Seed Co-investment Fund (M25)#

Scope of Appropriation

Support the development of the market for early stage equity finance.

Reasons for Change in Appropriation

This appropriation increased from $7.600 million to $16.232 million as a result of $17.649 million automatic transfer of 2011/12 underspend to 2012/13, partially offset by a transfer of $9.017 million to non-departmental capital expense New Zealand Venture Investment Fund (NZVIF) to correct expense transfers in 2011/12 that were inadvertently made to this appropriation, but should have been made to NZVIF.

Venture Investment Fund (M25)#

Scope of Appropriation#

Capital Investment to accelerate the development of the New Zealand Venture Capital Market. Public funds will be co-invested with the private sector to increase the rate of formation of new businesses based on high added value goods and services.

Reasons for Change in Appropriation#

This appropriation increased from $12.400 million to $29.255 million as a result of a $7.838 million automatic transfer of 2011/12 underspend to 2012/13 and an expense transfer of $9.017 million from non-departmental capital expense Seed Co-Investment Fund (SCIF) to correct expense transfers in 2011/12 that were inadvertently made to SCIF.