Vote Environment - 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 the Environment

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

Climate Change MCOA (M12)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes grouped together under this MCOA contribute to the outcome of ensuring New Zealand becomes a successful low-carbon society that is resilient to climate change impacts on its climate, economy and lifestyle. These output classes share a particular focus on decreasing New Zealand's net emissions of greenhouse gases below business as usual levels in a cost-effective way.

Expenses and Revenue

Reasons for Change in Appropriation

This Multi-Class Output appropriation decreased by $1.474 million to $6.559 million for 2013/14. The decrease is primarily due to a delay in the development of an auctioning function for New Zealand Units under the Emissions Trading Scheme and reprioritising funds towards progressing work in relation to:

• the National Policy Statement for Freshwater Management under the Water Management Policy Advice output class within the Improving Resource Management MCOA, and
• international climate change negotiations.

Environmental Management Obligations and Programmes MCOA (M29)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits. These output classes share a particular focus on achieving better solutions to environmental problems by supporting community involvement and action, and international cooperation.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This Multi-Class Output appropriation decreased by $694,000 to $3.686 million for 2013/14. The decrease is primarily due to a reprioritisation of funding towards progressing work in relation to the National Policy Statement for freshwater management under the Water Management Policy Advice output class within the Improving Resource Management MCOA.

Improving Resource Management MCOA (M29)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits, with a shared focus on improving resource management.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This Multi-class Output appropriation increased by $2.596 million to $25.154 million for 2013/14 as a result of balancing significant priorities that have been progressed in 2013/14 including:

• advising on the design, detail and implementation of the water reform package including cross departmental economic research to inform the policy work programme
• implementing the National Policy Statement on Freshwater Management and legislative changes including the National Objectives Framework (NOF)
• continued drafting of the 2013 Resource Management (Systems Reform) Bill and progressing the development of the National Monitoring System (NMS)
• monitoring the National Environmental Standards to establish the implementation of regulations
• advising on the Exclusive Economic Zone, including supporting a Bill through the drafting and parliamentary process and developing regulations.

Ministerial Services (M29)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $217,000 to $3.190 million for 2013/14. The increase is primarily due to an increase in the number of requests received by the Ministry under Official Information Act and Parliamentary Questions arising from the profile and nature of the Ministry's key workstreams such as resource management and water reforms.

Mitigating Environmental Hazards and Waste MCOA (M29)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits. These output classes share a particular focus on reducing harm from natural, chemical and biological hazards and from waste through more effective management frameworks.

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This Multi-class Output appropriation increased by $63,000 to $3.901 million for 2013/14. The increase is primarily due to the continuation of the TV TakeBack scheme. This is partially offset by a reprioritisation of funding towards resource management and freshwater management reforms.

Waste Minimisation Administration (M29)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $506,000 to $2.220 million for 2013/14. The increase primarily relates to a reprioritisation of funding towards the continuation of the TV TakeBack scheme and a review of the Levy.

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry for the Environment - Capital Expenditure PLA (M29)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $166,000 to $741,000 for 2013/14. This increase primarily relates to the additional investment in core systems including document management and our windows operating environment.

Capital Injections and Movements in Departmental Net Assets

Ministry for the Environment

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Community Environment Fund (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $3.464 million to $3.008 million for 2013/14. This decrease is due to an expense transfer to 2014/15 for projects that support community participation in collaborative planning and implementation of the National Policy statement for Freshwater Management representing the rephasing of funding to match the expected delivery of projects. Appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete.

Contaminated Sites Remediation Fund (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.783 million to $3.670 million for 2013/14. The decrease is due to an expense transfer of $2 million to 2014/15 in relation to a multi-year Kopeopeo Canal project. The project has been further delayed due to appeals in the Environment Court. This decrease is partially offset by an expense transfer of $217,000 from 2012/13 to 2013/14.

Contestable Waste Minimisation Fund (M29)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation decreased by $3.362 million to $16.642 million for 2013/14. This is due to the rephasing of funds to match the actual and expected delivery of milestones. Appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete.

Fresh Start for Fresh Water: New Initiatives (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.259 million to $7.341 million for 2013/14. The decrease is due to:

• an expense transfer of $1.700 million to 2014/15 to match the expected delivery of projects and actual delivery of milestones, and
• a transfer of $475,000 to Community Environment Fund appropriation to support the implementation of freshwater reform initiatives.

However, this is partially offset by an expense transfer of $916,000 from 2012/13 to 2013/14.

Fresh Start for Fresh Water: Rotorua Lakes Restoration Programme (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation for 2013/14 is transferred to a new Multi-year appropriation beginning from 2015/16.

Rena Long-term Environment Recovery (M29)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This Multi-year appropriation increased by $542,000 for 2013/14. The increase reflects the following changes to complete the established work streams and successfully implement the remaining Plan:

• a reprioritisation of $350,000 from savings in the Tui Mine Remediation project, and
• a transfer of $192,000 from 2012/13 Departmental under-spends.

Tui Mine Remediation (M29)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

This Multi-year appropriation decreased by $350,000 for 2013/14 due to a reprioritisation of funding to the Multi-year appropriation Rena Long-term Environment Recovery from savings in the Tui Mine Remediation project.

3.4 - Non-Departmental Other Expenses

Allocation of New Zealand Units (M12)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $6.640 million to $164.040 million for 2013/14. The decrease reflects the latest forecast changes of the allocation of units to the Post 89 forestry sector. This decrease is partially offset by the inclusion of Permanent Forest Sink Initiative participants in the scheme to allocate New Zealand units which were previously allocated international units from a separate appropriation.

Environmental Legal Assistance (M29)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $325,000 to $1.125 million for 2013/14. This increase is due to an expense transfer of $325,000 from 2012/13 to 2013/14 in anticipation of an increase in applications resulting from the decision to provide assistance to fund appeals to the Environment Court and board of Inquiry proceedings.

Hawke's Bay Rivers Clean-up Fund (M29)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation of $2 million in 2013/14 is due to an expense transfer from 2012/13 to 2013/14 because of delays in signing the deed of funding with Hawke's Bay Regional Council - Ngāti Pahauwera Research Study.

Impairment of Debt Relating to the New Zealand Emissions Trading Scheme (M12)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $2.500 million to $3.500 million for 2013/14. The increase is to provide for the potential non-collectability of debts in relation to the New Zealand Emissions Trading Scheme.

Impairment of Debt Relating to the Synthetic Greenhouse Gas Levy (M12)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation was approved during the year to provide for the potential non-collectability of debts in relation to the Synthetic Greenhouse Gas Levy.

Provision of a new water source for Rotorua (M29)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation of $1.075 million in 2013/14 is due to an expense transfer from 2012/13 to 2013/14. The appropriation relates to the provision of a one off contribution to Rotorua District Council to assist with the location and establishment of a new water source for Rotorua provided that the Council agrees to fund the remainder of the cost of the project.

Te Awa Tupua Putea (M29)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation was approved during the year. The appropriation relates to the provision of a one off Crown contribution for the establishment of a contestable fund for good governance initiatives relating to the health and wellbeing of Te Awa Tupua (Whanganui River).

Te Awa Tupua Whole of River Strategy (M29)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation was approved during the year. The appropriation relates to the provision of a one off contribution for Te Pou Tupua towards the establishment and development costs of the Te Awa Tupua (Whanganui River) Whole of River Strategy.

Te Pou Tupua (M29)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation was established during the year to support the governance and operational costs related to the Whanganui River Te Awa Tupua Putea. In accordance with New Zealand Financial Reporting Standards, the payment of $4 million over 20 years to the Te Pou Tupua has been recognised as an expense in 2013/14 in net present value terms. This does not represent the cash payments made each financial year beginning from the year 2014/15. The cash payment profile as per the agreement is an annual payment of $200,000 until 2033/34.

Transitional Support for Local Government and Iwi (M29)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation of $825,000 in 2013/14 is due to an expense transfer from 2012/13 to 2013/14. This appropriation is to cover the Bay of Plenty Regional Council costs arising from:

• the Taranga Moan Framework Co-management Arrangements, and
• the Tapuika Negotiations - Kaituna River Co-governance Arrangements.

Waste Disposal Levy Disbursements to Territorial Local Authorities (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1 million to $14 million for 2013/14 to align to the amount of the Waste Disposal Levy revenue collected by the Crown.

3.5 - Non-Departmental Capital Expenditure

Purchase of PRE Units (M12)

Scope of Appropriation

Capital Expenditure

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation of $1.240 million in 2013/14 is due to an expense transfer of funding from 2012/13 for the purchase of PRE units under the committed contracts.