Vote Finance - Finance and Government Administration Sector - Estimates 2016/2017

APPROPRIATION MINISTER(S): Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Science and Innovation (M84), Minister supporting Greater Christchurch Regeneration (M85), Minister Responsible for HNZC (M90)

APPROPRIATION ADMINISTRATOR: The Treasury

RESPONSIBLE MINISTER FOR THE TREASURY: Minister of Finance

Overview of the Vote#

The Minister of Finance is responsible for appropriations in Vote Finance for the 2016/17 financial year which cover the following:

a total of nearly $31 million for the provision of financial operations services and operational advice which support the performance of the State sector

a total of nearly $10 million for the administration of Crown borrowing, securities, derivative transactions, investments and guarantees

a total of over $31 million for the provision of advice (including assessing and providing contributions to policy advice led by other agencies) to support decision making

a total of over $14 million for the provision of shared services to other entities and agencies

a total of over $4 million for departmental capital expenditure

a total of over $3,448 million for the payment of interest and other costs relating to the Crown's debt

a total of nearly $591 million for superannuation costs, primarily the Government Superannuation Fund

a total of nearly $15 million for capital payments to International Financial Institutions and for the un-wind of interest expense on liabilities

a total of over $5 million for inquiries and research into productivity-related matters paid to the Productivity Commission

a total of over $7 million for unclaimed money, meeting costs associated with the Landcorp Protected Land Agreement, managing the Crown's residual liabilities, provisions for meeting liabilities associated with Geothermal Wells, Unclaimed Money and for providing and administering grants and loans to Taitokerau Forests Limited

a total of nearly $17 million for costs of administering New Zealand House, London

a total of nearly $2 million for the review and reform of Local Government Infrastructure Arrangements

a total of over $8 million for the unwind of Crown Support Deed interest expense for Southern Response Earthquake Services Limited

a total of $200 million for a loan facility for Tamaki Redevelopment Company in a multi-year appropriation covering 31 March 2015 to 30 June 2018, and

a total of nearly $279 million for refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt and Tamaki Regeneration.

The Minister of Finance is also responsible for Crown revenue and receipts in the Vote for the 2016/17 financial year which account for nearly $3,769 million in non-tax revenue for return on investments, including capital charge, dividends, and interest on securities and deposits.

The Minister supporting Greater Christchurch Regeneration is responsible for annual appropriations in Vote Finance for 2016/17 financial year which cover nearly $227 million for the continuation of Anchor Projects Programme and divestment of Crown-owned land to Otakaro Limited and for the multi-year appropriation for the transfer of Anchor Project Assets to Otakaro Limited covering 1 April 2016 to 30 June 2020 of $500 million.

The Minister Responsible for Housing New Zealand Corporation is responsible for the appropriation in Vote Finance for the 2016/17 financial year which covers over $11 million for the Social Housing Reform Programme.

The Minister for State Owned Enterprise is responsible for the appropriation in Vote Finance for the 2016/17 financial year which covers nearly $5 million for Crown company monitoring, governance, and ownership advice.

The Minister of Science and Innovation is responsible for the appropriation in Vote Finance for the 2016/17 financial year which covers over $200,000 for Crown Research Institutes governance and ownership advice.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Final Budgeted $000	Estimated Actual $000	Budget $000
	2015/16		2016/17
Departmental Output Expenses
Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31) This appropriation is limited to expenses incurred in connection with administering borrowing, securities, derivative transactions and investment by the Crown, as authorised by section 65ZH of the Public Finance Act 1989.	9,297	8,997	9,249
Administration of Guarantees and Indemnities Given by the Crown PLA (M31) This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.	311	61	310
Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65) This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State-Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.	5,316	4,716	4,659
Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84) This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.	265	201	216
Policy Advice - Finance (M31) 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 Finance.	33,083	32,233	31,181
Provision of Financial Operations Services and Operational Advice (M31) This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.	30,709	29,809	30,950
Shared Support Services (M31) This appropriation is limited to provision of support services to other agencies.	13,221	12,021	14,313
Total Departmental Output Expenses	92,202	88,038	90,878
Departmental Capital Expenditure
The Treasury - Capital Expenditure PLA (M31) This appropriation is limited to the purchase or development of assets by and for the use of the Treasury, as authorised by section 24(1) of the Public Finance Act 1989.	6,274	6,274	4,240
Total Departmental Capital Expenditure	6,274	6,274	4,240
Non-Departmental Output Expenses
Management of Anchor Projects by Otakaro Limited (M85) This appropriation is limited to the Crown's contribution to Otakaro Limited's operating and financing expenses.	7,467	7,467	23,000
Management of the Crown's Obligations for Geothermal Wells (M31) This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.	467	150	151
Management of the New Zealand Superannuation Fund (M31) This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.	628	628	528
Tamaki Regeneration (M31) This appropriation is limited to the housing demonstration projects and associated regeneration activity in the Tamaki area of Auckland.	-	-	3,190
Total Non-Departmental Output Expenses	8,562	8,245	26,869
Non-Departmental Borrowing Expenses
Debt Servicing PLA (M31) This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.	3,424,513	3,424,513	3,448,298
Total Non-Departmental Borrowing Expenses	3,424,513	3,424,513	3,448,298
Non-Departmental Other Expenses
Crown Residual Liabilities (M31) Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.	86	15	60
Geothermal Wells Fund (M31) This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.	1,500	-	500
Government Superannuation Appeals Board (M31) This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.	50	50	50
Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31) This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Fund Act 1956.	38,000	38,000	37,000
Government Superannuation Fund Unfunded Liability PLA (M31) This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Fund Act 1956.	614,065	614,065	528,149
National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31) This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.	27,000	27,000	25,000
Review and Reform of Local Government Infrastructure Arrangements (M31) This appropriation is limited to the review and reform of disaster funding for local government infrastructure, including contributions to expenses of the Local Government Risk Agency.	1,625	1,625	1,605
Unclaimed Money PLA (M31) This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.	250	40	250
Unclaimed Trust Money PLA (M31) This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.	250	-	250
Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31) This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability in respect of share subscriptions in International Financial Institutions as it nears settlement, as authorised by section 5(2) of the International Finance Agreements Act 1961.	1,605	1,605	2,920
Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31) This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.	16,370	16,370	8,088
Auckland Council Loans: Loss on Early Repayment (M31) This appropriation is limited to the loss resulting from the early repayment of loans to Auckland Council.	20,000	20,000	-
Government Inquiry into Foreign Trust Disclosure Rules (M31) This appropriation is limited to the operation of the inquiry into foreign trust disclosure rules.	150	50	-
Impairment of Investment in Southern Response Earthquake Services Ltd (M31) This appropriation is limited to the impairment of equity investment in Southern Response Earthquake Services Ltd.	417,000	167,000	-
Solid Energy New Zealand Limited - Payments for Environmental Rehabilitation PLA (M31) This appropriation is limited to payments by the Crown under indemnity given to Solid Energy New Zealand Limited under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.	1,851	1,851	-
Write-Off of Historical Investment in Solid Energy (M31) This appropriation is limited to a write-off of historical investment in Solid Energy New Zealand Limited.	60,900	60,900	-
Total Non-Departmental Other Expenses	1,200,702	948,571	603,872
Non-Departmental Capital Expenditure
International Financial Institutions PLA (M31) This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.	350,494	350,494	12,000
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M31) This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited Debt.	142,362	142,362	275,778
Crown Asset Management Limited - Acquisition of Residual Assets (M31) This appropriation is limited to the acquisition of residual assets from Crown Asset Management Limited.	1,000	-	-
Otakaro Limited Equity Injection (M85) This appropriation is limited to the provision of an equity injection in Otakaro Limited.	6,100	6,100	-
Southern Response Earthquake Services Ltd: Equity Investment (M31) This appropriation is limited to the investment in Southern Response Earthquake Services Ltd.	417,000	167,000	-
Transfer of Housing New Zealand Corporation's Tamaki Housing Stock to Tamaki Redevelopment Company (M31) This appropriation is limited to the transfer of Housing New Zealand Corporation properties to Tamaki Redevelopment Company Limited.	1,631,161	1,631,161	-
Total Non-Departmental Capital Expenditure	2,548,117	2,297,117	287,778
Multi-Category Expenses and Capital Expenditure
Greater Christchurch Anchor Projects MCA (M85) The single overarching purpose of this appropriation is to support the recovery of Christchurch by contributing operating and capital funding for anchor projects covered by the Christchurch Central Recovery Plan.	440,417	65,521	203,887
Non-Departmental Other Expenses
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure.	41,788	12,078	31,329
Christchurch Convention Centre - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.	8,016	8,016	1,500
Earthquake Memorial - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Canterbury Earthquake Memorial.	8	-	122
Metro Sports Facility - Operating This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.	9,389	2,912	2,043
Pre-Development Holding Costs - Operating This category is limited to the Crown's contribution to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.	5,463	-	6,000
Public Space - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.	105,217	11,262	49,281
Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties This category is limited to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure funded by contributions from parties other than the Crown.	100	-	-
Christchurch Stadium - contributions from third parties This category is limited to the development, operations and divestment of the Christchurch Stadium funded by contributions from parties other than the Crown.	100	-	-
Christchurch Stadium - Operating This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.	4,000	-	-
Financial Impact of Valuations This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.	2,831	2,831	-
Leasing Anchor Project Land This category is limited to the financial impact of granting concessionary leases over anchor project land.	6,000	-	-
Metro Sports Facility - contributions from third parties This category is limited to the development, operations and divestment of the Metro Sports Facility funded by contributions from parties other than the Crown.	100	-	-
Procurement of Land and Assets - Operating This category is limited to the Crown's contribution to the purchase, acquisition and clearance of land and assets for anchor project development.	75,514	-	-
Public Space - contributions from third parties This category is limited to the development, operations and divestment of the Crown owned public space funded by contributions from parties other than the Crown.	100	-	-
Sale of Land This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.	2,684	2,684	-
The Square - contributions from third parties This category is limited to the development, operations and divestment of the Square funded by contributions from parties other than the Crown.	100	-	-
Non-Departmental Capital Expenditure
Christchurch Convention Centre - Capital This category is limited to the Crown's contribution to the capital development of the Christchurch Convention Centre and to providing equity or loan capital to Otakaro Limited for that purpose.	24,500	16,000	95,400
Earthquake Memorial - Capital This category is limited to the Crown's contribution to the capital development of the Canterbury Earthquake Memorial and to providing equity or loan capital to Otakaro Limited for that purpose.	3,625	-	3,996
Public Space - Capital This category is limited to the capital development of the Crown owned public space and to providing equity or loan capital to Otakaro Limited for that purpose.	37,638	9,148	14,216
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital This category is limited to the Crown's contribution to the capital development of the Christchurch Bus Interchange and associated transport infrastructure and to providing equity or loan capital to Otakaro Limited for that purpose.	7,860	590	-
Land and Asset Acquisition - Capital This category is limited to the Crown's contribution to the cost of land and assets to be acquired for anchor project development and to providing equity or loan capital to Otakaro Limited for that purpose.	104,384	-	-
Metro Sports Facility - Capital This category is limited to the Crown's contribution to the capital development of Metro Sports Facility and to providing equity or loan capital to Otakaro Limited for that purpose.	1,000	-	-
Inquiries and Research into Productivity-Related Matters MCA (M31) The overarching purpose of this appropriation is to provide for inquiries into, and research and promotion of, productivity-related matters.	5,030	5,030	5,030
Non-Departmental Output Expenses
Inquiries into Productivity-Related Matters This category is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.	4,401	4,401	4,401
Research into and Promotion of Productivity-Related Matters This category is limited to the New Zealand Productivity Commission undertaking research into and promoting public understanding of productivity-related matters in accordance with the New Zealand Productivity Commission Act 2010.	629	629	629
Management of Landcorp Protected Land Agreement MCA (M31) The overarching purpose of this appropriation is meeting the Crown's responsibilities under the Landcorp Protected Land Agreement.	5,500	3,700	4,250
Non-Departmental Other Expenses
Operating Costs This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.	3,500	2,200	2,250
Non-Departmental Capital Expenditure
Capital Investments This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.	2,000	1,500	2,000
Management of New Zealand House, London MCA (M31) The overarching purpose of this appropriation is to ensure that New Zealand House, London is well managed.	17,360	15,110	16,650
Non-Departmental Output Expenses
Property Management This category is limited to the property management services in respect of New Zealand House, London.	800	800	1,000
Non-Departmental Other Expenses
Operational Costs This category is limited to the operational costs of New Zealand House, London.	13,900	13,900	13,000
Renegotiation of Lease Arrangements This category is limited to activities to re-gear the lease on New Zealand House, London (including The Royal Opera Arcade and Her Majesty's Theatre).	410	410	1,900
Non-Departmental Capital Expenditure
Capital Expenditure This category is limited to capital expenditure in relation to New Zealand House, London.	2,250	-	750
Management of the Crown's Agreement with Taitokerau Forests Limited MCA (M31) The overarching purpose of this appropriation is meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.	7,364	6,664	1,830
Non-Departmental Other Expenses
Grants This category is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.	473	473	230
Impairment of Loans This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.	5,791	5,791	1,100
Non-Departmental Capital Expenditure
Loans This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.	1,100	400	500
Social Housing Reform MCA (M90) The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making Housing New Zealand Corporation stock available to social housing providers.	17,825	16,644	11,460
Departmental Output Expenses
Implementation of the Social Housing Reform Programme This category is limited to the policy, operational, and transactional work to implement the Government's reform of social housing.	10,925	9,744	7,860
Non-Departmental Output Expenses
Direct Sale Costs for Implementing the Social Housing Reform Programme This category is limited to direct sales costs of implementing the Government's reform of social housing.	6,900	6,900	3,600
Total Multi-Category Expenses and Capital Expenditure	493,496	112,669	243,107
Total Annual and Permanent Appropriations	7,773,866	6,885,427	4,705,042

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Non-Departmental Other Expenses
Loyalty Bonus Scheme Related to Initial Public Offers (M31) This appropriation is limited to expenses incurred by allocating shares under a loyalty bonus scheme to eligible investors in initial public offers. Commences: 01 March 2013 Expires: 30 June 2016	Original Appropriation	40,000
	Adjustments to 2014/15	6,812
	Adjustments for 2015/16	-
	Adjusted Appropriation	46,812
	Actual to 2014/15 Year End	46,812
	Estimated Actual for 2015/16	-
	Estimated Actual for 2016/17	-
	Estimated Appropriation Remaining	-
Non-Departmental Capital Expenditure
Loan Facility for Tamaki Redevelopment Company (M31) This appropriation is limited to provision of a loan to Tamaki Redevelopment Company Limited. Commences: 31 March 2015 Expires: 30 June 2018	Original Appropriation	200,000
	Adjustments to 2014/15	-
	Adjustments for 2015/16	-
	Adjusted Appropriation	200,000
	Actual to 2014/15 Year End	-
	Estimated Actual for 2015/16	23,000
	Estimated Actual for 2016/17	78,000
	Estimated Appropriation Remaining	99,000
Transfer of Anchor Project Assets to Otakaro Limited (M85) This appropriation is limited to the transfer of Christchurch anchor project assets to Otakaro Limited. Commences: 01 April 2016 Expires: 30 June 2020	Original Appropriation	500,000
	Adjustments to 2014/15	-
	Adjustments for 2015/16	-
	Adjusted Appropriation	500,000
	Actual to 2014/15 Year End	-
	Estimated Actual for 2015/16	300,000
	Estimated Actual for 2016/17	200,000
	Estimated Appropriation Remaining	-

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Annual and Permanent Appropriations	7,773,866	6,885,427	4,705,042
Total MYA Non-Departmental Capital Expenditure Forecasts	323,000	323,000	278,000
Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts	8,096,866	7,208,427	4,983,042

Capital Injection Authorisations#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
The Treasury - Capital Injection (M31)	820	-	4,548

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative	Appropriation	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Share of costs for Budget 2015 whole-of-government initiatives	Provision of Financial Operations Services and Operational Advice Departmental Output Expense	(395)	(391)	(304)	(314)	(314)
Business Information Hub	Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA Departmental Output Expense	330	330	330	330	330
	Departmental Capital Injection	1,145	-	-	-	-
Transfer of residual assets from Crown Asset Management Limited	Crown Asset Management Limited - Acquisition of Residual Assets Non-Departmental Capital Expenditure	1,000	-	-	-	-
Write-off of historical investment in Solid Energy New Zealand Limited	Write-off of Historical Investment in Solid Energy Non-Departmental Other Expense	60,900	-	-	-	-
Local Government Risk Agency	Review and Reform of Local Government Infrastructure Arrangements Non-Departmental Other Expense	500	1,500	-	-	-
	Management of Landcorp Protected Land Agreement, MCA Operating Costs Non-Departmental Other Expense	-	(250)	(250)	(500)	-
	Management of Landcorp Protected Land Agreement, MCA Capital Investments Non-Departmental Capital Expenditure	-	-	-	(500)	(500)
Management of Anchor Projects by Otakaro Limited	Management of Anchor Projects by Otakaro Limited Non-Departmental Output Expense	7,467	23,000	23,200	23,300	21,600
Otakaro Limited Equity Injection	Otakaro Limited Equity Injection Non-Departmental Capital Expenditure	6,100	-	-	-	-
Investment in Asian Infrastructure Investment Bank	International Financial Institutions PLA Non-Departmental Capital Expenditure	135,814	-	-	-	-
Southern Response Earthquake Services Limited	Southern Response Earthquake Services Limited: Equity Investment Non-Departmental Capital Expenditure	250,000	-	-	-	-
	Impairment of Investment in Southern Response Earthquake Services Ltd Non-Departmental Other Expense	250,000	-	-	-	-
Tamaki Redevelopment Company: Business Implementation Plan	Tamaki Regeneration Non-Departmental Output Expense	-	3,190	-	-	-
Delivery of Social Housing Reform Programme: Accelerating Redevelopment of Housing New Zealand Corporation's Auckland Portfolio	Social Housing Reform, MCA Implementation of the Social Housing Reform Programme Departmental Output Expense	-	2,100	1,700	-	-
Delivery of the Social Housing Reform Programme: Transfers, Projects and Policy	Social Housing Reform, MCA Implementation of the Social Housing Reform Programme Departmental Output Expense	-	1,200	200	500	1,600
	Social Housing Reform, MCA Direct Sale Costs for Implementing the Social Housing Reform Programme Non-Departmental Output Expense	-	-	-	2,000	2,000
Christchurch Convention Centre (see Note 1)	Vote Canterbury Earthquake Recovery Development of Central City Anchor Projects, MCA: Christchurch Convention Centre - Capital Non-Departmental Capital Expenditure	23,500	95,400	Withheld (note 2)	Withheld (note 2)	Withheld (note 2)
	Vote Canterbury Earthquake Recovery Development of Central City Anchor Projects, MCA: Christchurch Convention Centre - Operating Non-departmental Other Expense	9,900	1,000	Withheld (note 2)	Withheld (note 2)	Withheld (note 2)
Public Space (see Note 1)	Vote Canterbury Earthquake Recovery Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects, MCA: Land and Asset Acquisition - Capital Non-Departmental Capital Expenditure	(10,600)	-	-	-	-
	Vote Canterbury Earthquake Recovery Ownership and Divestment of Anchor Projects, MCA: Public Space Non-Departmental Other Expense	5,000	5,600	-	-	-
Christchurch Bus Interchange and associated Transport Infrastructure (see Note 1)	Vote Canterbury Earthquake Recovery Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects, MCA: Land and Asset Acquisition - Capital Non-Departmental Capital Expenditure	(2,800)	-	-	-	-
	Vote Canterbury Earthquake Recovery Ownership and Divestment of Anchor Projects, MCA: Christchurch Bus Interchange and associated Transport Infrastructure Non-Departmental Other Expense	700	700	700	700	-
Procurement of Land and Assets (see Note 1)	Vote Canterbury Earthquake Recovery Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects, MCA: Land and Asset Acquisition - Capital Non-Departmental Capital Expenditure	(13,500)	-	-	-	-
	Vote Canterbury Earthquake Recovery Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects, MCA: Procurement of Land and Assets - Operating Non-Departmental Other Expense	12,000	-	-	-	1,500
Metro Sports Facility (see Note 1)	Vote Canterbury Earthquake Recovery Development of Central City Anchor Projects, MCA: Metro Sports Facility - Operating Non-Departmental Other Expense	6,000	-	-	-	-
Transfer of Anchor Project Assets to Otakaro Limited	Transfer of Anchor Project Assets to Otakaro Limited, MYA Non-Departmental Capital Expenditure	300,000	200,000	-	-	-
Metro Sports Facility - contributions from third parties	Greater Christchurch Anchor Projects, MCA: Metro Sports Facility - contributions from third parties Non-Departmental Other Expenses	100	-	-	-	-
Christchurch Stadium - contributions from third parties	Greater Christchurch Anchor Projects, MCA: Christchurch Stadium - contributions from third parties Non-Departmental Other Expenses	100	-	-	-	-
Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties	Greater Christchurch Anchor Projects, MCA: Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties Non-Departmental Other Expenses	100	-	-	-	-
The Square - contributions from third parties	Greater Christchurch Anchor Projects, MCA: The Square - contributions from third parties Non-Departmental Other Expenses	100	-	-	-	-
Public Space - contributions from third parties	Greater Christchurch Anchor Projects, MCA: Public Space - contributions from third parties Non-Departmental Other Expenses	100	-	-	-	-
Auckland Council Loans: Loss on Early Repayment	Auckland Council Loans: Loss on Early Repayment Non-Departmental Other Expense	20,000	-	-	-	-
Government Inquiry into Foreign Trust Disclosure Rules	Government Inquiry into Foreign Trust Disclosure Rules Non-Departmental Other Expense	150	-	-	-	-
Total Initiatives		1,063,411	333,379	25,576	25,516	26,216

Note 1 - Vote Canterbury Earthquake Recovery will cease at 30 June 2016, therefore, new policy initiatives approved during 2015/16 impacting on Vote Canterbury Earthquake Recovery are reported in The Estimates of Appropriations 2016/17 of the Vote that is inheriting the appropriations. From 1 April 2016 the Vote Canterbury Earthquake Recovery Non-departmental appropriations for the development and delivery of Christchurch Anchor Projects transferred to Vote Finance.

Note 2 - Estimated expenditure for 2017/18 to 2019/20 is withheld as publication is likely to unreasonably prejudice the commercial position of the Crown.

1.2 - Trends in the Vote#

Summary of Financial Activity#

	2011/12	2012/13	2013/14	2014/15	2015/16		2016/17			2017/18	2018/19	2019/20
	Actual $000	Actual $000	Actual $000	Actual $000	Final Budgeted $000	Estimated Actual $000	Departmental Transactions Budget $000	Non- Departmental Transactions Budget $000	Total Budget $000	Estimated $000	Estimated $000	Estimated $000
Appropriations
Output Expenses	78,471	84,707	93,104	87,672	100,764	96,283	90,878	26,869	117,747	115,034	115,476	113,894
Benefits or Related Expenses	-	-	-	-	-	-	N/A	-	-	-	-	-
Borrowing Expenses	3,441,282	3,662,184	3,549,500	3,619,582	3,424,513	3,424,513	-	3,448,298	3,448,298	3,611,251	3,516,129	3,489,147
Other Expenses	691,860	717,897	794,050	1,220,709	1,200,702	948,571	-	603,872	603,872	606,564	618,583	631,621
Capital Expenditure	437,876	240,835	273,886	373,715	2,877,391	2,626,391	4,240	565,778	570,018	461,550	151,670	157,670
Intelligence and Security Department Expenses and Capital Expenditure	-	-	-	-	-	-	-	N/A	-	-	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	5,138	5,063	5,231	6,945	23,655	22,474	7,860	9,630	17,490	14,525	10,231	9,630
Other Expenses	11,831	28,021	13,071	-	285,484	62,557	-	108,755	108,755	21,977	22,500	26,500
Capital Expenditure	2,468	6,950	2,822	-	184,357	27,638	N/A	116,862	116,862	135,983	56,050	2,250
Total Appropriations	4,668,926	4,745,657	4,731,664	5,308,623	8,096,866	7,208,427	102,978	4,880,064	4,983,042	4,966,884	4,490,639	4,430,712
Crown Revenue and Capital Receipts
Tax Revenue	-	-	-	-	-	-	N/A	-	-	-	-	-
Non-Tax Revenue	3,552,646	3,318,217	3,174,365	3,069,945	3,622,343	3,621,843	N/A	3,491,459	3,491,459	3,452,158	3,543,455	3,720,172
Capital Receipts	947	130,941	78,597	67,797	622,892	622,892	N/A	277,376	277,376	338,463	130,797	256,738
Total Crown Revenue and Capital Receipts	3,553,593	3,449,158	3,252,962	3,137,742	4,245,235	4,244,735	N/A	3,768,835	3,768,835	3,790,621	3,674,252	3,976,910

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring#

There have been no restructuring adjustments to prior year information in the Summary of Financial Activity table. This year's Summary of Financial Activity table shows the amounts transferred from the former Vote Canterbury Earthquake Recovery for the last three months of 2015/16 and subsequent financial years only.

1.3 - Analysis of Significant Trends#

Total Vote: All Appropriations

The movements in Departmental and Non-Departmental appropriations in Vote Finance, as detailed in the Summary of Financial Activity table above, are largely due to movements in capital expenditure and debt servicing costs.

Significant movements within each appropriation category are shown below.

Departmental Output Expenses

2013/14 includes $10 million associated with the final year of the Government Share Offer programme. This decrease was partially offset by a transfer of $5.500 million into the Social Housing Reform Programme from the Ministry of Business, Innovation and Employment.

Shared Support Services to the Department of the Prime Minister and Cabinet (DPMC) have increased following the transfer of Emergency Management activities from the Department of Internal Affairs from April 2014 ($4.300 million) and Canterbury Earthquake Recovery Authority activities from March 2016 ($3 million).

2013/14 was also the first full year of operations of the Analysis for Outcomes programme ($1.800 million), and the Gateway and Major Project Monitoring activities ($2 million) that transferred from the State Services Commission (SSC) from 1 December 2013.

The output expenses for the Government Share Offer programme covered three financial years: $6.600 million in 2011/12, $10.300 million in 2012/13 and $10 million in 2013/14.

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers appropriation increased by $300,000 in 2015/16 and $200,000 in 2016/17 for performance monitoring and governance advice of Otakaro Limited.

Non-departmental Output Expenses

The most significant increase was due to the establishment of a new appropriation during 2015/16, Management of Anchor Projects by Otakaro Limited, for the provision of operating costs to Otakaro Limited for managing the continuation of Anchor Projects and divestment of Crown-owned land in Christchurch. Funding of nearly $7.500 million was approved for 2015/16 and $23 million for 2016/17.

Tamaki Regeneration appropriation has been transferred into Vote Finance from Vote Building and Housing of slightly over $3 million during 2015/16, with funding commencing in 2016/17.

2013/14 included over $5 million of new funding for Inquiries and Research into Productivity-Related Matters. During 2014/15 this appropriation was restructured to a multi-category appropriation, and as a result the non-departmental output expenses significantly decreased in that year.

Non-Departmental Borrowing Expenses

Debt servicing costs fluctuated between 2011/12 and 2014/15. These costs are expected to decrease for 2015/16 and then continue to fluctuate from 2016/17 onwards due to movements in forecast interest rates and the amount of debt outstanding.

Non-Departmental Other Expenses

For the year 2016/17, the valuation of the Crown's unfunded liability under the Government Superannuation Scheme is expected to decrease by nearly $86 million. The unwind of discount rate used in the present value calculation of payments under the Crown Support Deed with Southern Response Earthquake Services Limited is also expected to decrease by over $8 million.

In 2015/16 the most significant changes were the write-off of historical investment in Solid Energy New Zealand Limited of $60.900 million and the impairment of additional investment of $250 million in Southern Response Earthquake Services Limited.

2014/15 included nearly $108 million in respect of the indemnity provided to Solid Energy New Zealand Limited for the reimbursement of the rehabilitation costs associated with all existing mining operations. There was also $684 million incurred for Crown's unfunded liability under the Government Superannuation Scheme and $333 million for the impairment of the investment in Southern Response Earthquake Services Limited.

Significant items during 2013/14 included nearly $614 million for the Crown's unfunded liability under the Government Superannuation Scheme, direct costs associated with the Mixed Ownership Model of nearly $33 million, Loyalty Bonus Scheme related to Public Share Offer of slightly over $22 million, the impairment of Redeemable Preference Shares in Solid Energy of $25 million, and New Zealand Aluminium Smelters - Electricity Agreement Incentive payment of $30 million.

Departmental Capital Expenditure

As part of the Wellington Accommodation Strategy, the Treasury is currently planning a full leasehold refit in December 2019.

The Departmental capital expenditure appropriation increased by over $2 million in 2013/14 for central agencies shared services within the Treasury to support the transition of emergency management functions to DPMC from 1 April 2014. A capital injection was received as assets were transferred from the Department of Internal Affairs and information technology assets supporting the National Crisis Management Centre were replaced. In 2015/16 a capital injection reflects the transfer of funding from the SSC for information technology assets for the Auckland Policy Office and from DPMC for Greater Christchurch Group, which transferred funding from the Canterbury Earthquake Recovery Authority from 1 March 2016.

There is an increase of slightly over $1 million in 2015/16 and $700,000 in each of 2013/14 and 2014/15 for the Financial Operation's Business Information Hub, which is the replacement system for the operation of the debt funding and investment portfolio activities.

In 2011/12 departmental information technology assets were transferred from the SSC and the DPMC with the introduction of shared services across the three agencies.

Non-Departmental Capital Expenditure

This appropriation category comprises purchases of debt and equity by the Crown in various Crown entities, and capital additions to the Crown's physical assets.

Changes in non-departmental capital expenditure are principally owing to a combination of:

transfer of Housing New Zealand Corporation stock to the Tamaki Redevelopment Company as part of the Social Housing Reform Programme at $1,600 million

additional investment in Southern Response Earthquake Services Limited of $250 million for Christchurch earthquake claims settlement

equity injection of $6.100 million into Otakaro Limited, a Crown entity set up to manage and continue the Anchor Projects Programme and divestment of Crown-owned land in Christchurch, and

$142 million of refinancing associated with Housing New Zealand Corporation and Housing New Zealand Limited debt.

Multi-year appropriations also impact with forecasted expenditure for the Loan Facility for Tamaki Redevelopment Company of $23 million in 2015/16, $78 million in 2016/17 and $99 million in 2017/18, and for the Transfer of Anchor Project Assets to Otakaro Limited of $300 million in 2015/16 and $200 million in 2016/17.

During 2014/15 there was funding of $333 million provided to support Southern Response Earthquake Services Limited. Payments made in respect of International Financial Institutions' capital funding were slightly over $34 million in 2014/15 compared to slightly over $25 million in 2013/14. During 2013/14, $25 million worth of Redeemable Preference Shares were issued to Solid Energy New Zealand Limited.

Multi-Category Expenses and Capital Expenditure

Changes in the Multi-Category expenses and capital expenditure are due to:

transfer of funding from Vote Canterbury Earthquake Recovery for the operating and capital expenditure in respect of Anchor projects programme and divestment of Crown-owned land of over $65 million in 2015/16 and nearly $204 million in 2016/17

continuation of the Social Housing Reform Programme during 2016/17 of over $11 million for 2016/17 and nearly $18 million for 2015/16

continued funding of over $5 million to Inquiries and Research into Productivity-Related Matters during 2016/17, and

provision of continued funding to the Management of Landcorp Protected Land Agreement of over $4 million, Management of New Zealand House of over $16 million and Management of the Crown's Agreement with Taitokerau Forests Limited of nearly $2 million.

Crown Revenue

Non-tax Crown Revenue largely comprises capital charge, interest from securities and deposits, and dividends from State-Owned Enterprises and Crown Entities, and each of these components is broadly stable.

Crown Capital Receipts

Variances in Crown Capital Receipts are largely due to International Monetary Fund capital returns, repayment of loans, and capital withdrawals from Crown companies.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering borrowing, securities, derivative transactions and investment by the Crown, as authorised by section 65ZH of the Public Finance Act 1989.

Expenses and Revenue

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	9,297	8,997	9,249
Revenue from the Crown	9,244	9,244	9,244
Revenue from Others	53	53	5

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the administration of the Crown's financing requirements so as to raise sufficient funds to finance the Crown's cash deficit while minimising the cost to the Crown of such borrowing.

How Performance will be Assessed and End of Year Reporting Requirements

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Crown liquidity and funding risk and NZDMO market and credit risk are well managed within the Crown's risk appetite: As evidenced by compliance with the following NZDMO policies: Market Risk Policy, Credit Risk Policy, Liquidity Risk Policy and Funding Risk Policy.	No more than four breaches	No breaches	No more than four breaches
NZDMO operational risk is well managed within the Crown's risk appetite: As evidenced by the number of settlement errors and financial loss arising from settlement errors.	No more than six errors or $10,000 cost	One error	No more than six errors or $10,000 cost

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Business Information Hub operating costs	2015/16	330	330	330	330	330

Conditions on Use of Appropriation

Reference	Conditions
Section 65ZH of the PFA	Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section: (a) negotiating the borrowing of money by the Crown (b) undertaking, managing, servicing, converting, or repaying borrowing described in paragraph (a) (c) issuing a public security in respect of the Crown (d) executing, redeeming, or varying a public security described in paragraph (c) (e) negotiating a derivative transaction of the Crown (f) managing, servicing, or making payments under a derivative transaction described in paragraph (e) (g) negotiating an investment referred to in section 65I (h) placing, managing, servicing, or converting an investment referred to in section 65I.

Reference

Conditions

Section 65ZH of the PFA

Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section:
(a) negotiating the borrowing of money by the Crown
(b) undertaking, managing, servicing, converting, or repaying borrowing described in paragraph (a)
(c) issuing a public security in respect of the Crown
(d) executing, redeeming, or varying a public security described in paragraph (c)
(e) negotiating a derivative transaction of the Crown
(f) managing, servicing, or making payments under a derivative transaction described in paragraph (e)
(g) negotiating an investment referred to in section 65I
(h) placing, managing, servicing, or converting an investment referred to in section 65I.

Administration of Guarantees and Indemnities Given by the Crown PLA (M31)#

Scope of Appropriation#

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.

Expenses and Revenue#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	311	61	310
Revenue from the Crown	309	309	309
Revenue from Others	2	2	1

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve efficient and effective administration of the Crown's Guarantees and Indemnities, including the Wholesale and Retail Deposit Guarantee Schemes.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Meet all legal obligations in relation to the specific rehabilitation indemnities granted by the Crown to Solid Energy New Zealand Limited in 1988 and 2014.	Achieved	Achieved	Achieved
Meet all legal obligations under the Retail Deposit Guarantee Scheme.	Achieved	Achieved	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
SSRSS and Kiwisaver funding removal	2012/13	(22)	(22)	(22)	(22)	(22)
Efficiency Savings	2012/13	(9)	(9)	(9)	(9)	(9)

Conditions on Use of Appropriation#

Reference	Conditions
Section 65ZG of the Public Finance Act	Any money paid by the Crown under a guarantee or indemnity given under Section 65ZD and any expenses incurred by the Crown in relation to the guarantee or indemnity may be incurred without further appropriation, and must be paid without further authority than this section.

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65)#

Scope of Appropriation#

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State-Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.

Expenses and Revenue#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	5,316	4,716	4,659
Revenue from the Crown	5,291	4,991	4,657
Revenue from Others	25	25	2

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to ensure appropriate financial and social returns, and long-term value is achieved from the State-Owned Enterprises (SOEs), Crown entity companies (CECs) and Crown entities monitored under this appropriation.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Appointments completed for Directors of SOEs.	30	42	51
Appointments completed for Board members for CECs and Crown Entities that are monitored under this appropriation.	64	91	48
Provide advice in relation to ownership, performance monitoring and governance matters to the Minister for State Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.	Achieved	Achieved	Achieved
Provide services supporting the reporting and accountability obligations of entities that fall within the scope of the Owners Expectation Manual.	Achieved	Achieved	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Monitoring of ACC and Housing New Zealand Corporation Limited	2012/13	1,361	1,361	1,361	1,361	1,361
SSRSS and KiwiSaver funding removal	2012/13	(34)	(34)	(34)	(34)	(34)
Efficiency Savings	2012/13	(46)	(46)	(46)	(46)	(46)

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is mainly due to a transfer from 2014/15 of $500,000 into 2015/16 related to the timing of strategic reviews within the commercial operations work programme and a decrease of $100,000 in the funding transferred from Vote Prime Minister and Cabinet related to performance monitoring and governance advice of Otakaro Limited.

Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84)#

Scope of Appropriation#

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities.

Expenses and Revenue#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	265	201	216
Revenue from the Crown	263	263	215
Revenue from Others	2	2	1

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to ensure appropriate financial and social returns, and long-term value is achieved from Crown research institutes and Crown entities monitored under this appropriation.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Appointments completed for Directors of Crown Research Institutes and other entities.	13	50	22
Provide services in relation to ownership, performance monitoring and governance matters to the Minister for Science and Innovation and other responsible Ministers in respect of the Ministers' shareholding responsibilities of the Crown Research Institutes.	Achieved	Achieved	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
SSRSS and KiwiSaver removal	2012/13	(11)	(11)	(11)	(11)	(11)
Efficiency Savings	2012/13	(9)	(9)	(9)	(9)	(9)

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is mainly due to the reallocation of overhead costs.

Policy Advice - Finance (M31)#

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 Finance.

Expenses and Revenue#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	33,083	32,233	31,181
Revenue from the Crown	32,712	32,862	31,133
Revenue from Others	371	271	48

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable and facilitate Ministerial decision-making that achieves for New Zealand improved economic performance, a high-performing State sector, and a stable and sustainable macroeconomic environment.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Assessment of the technical quality of policy advice papers through a review process that has a methodological robustness of at least 80% (see note on 'Methodological Robustness' below).	70%	75%	75%
The satisfaction of the Minister of Finance with the policy advice service, as per the common satisfaction survey.	70%	75%	75%
The total cost per hour of producing outputs.	$203	$203	$203
The welfare system operates further in line with the investment approach, based on the external valuation (see note on 'Welfare System' below).	Achieved	Achieved	Achieved
Budget decisions are in line with short-term fiscal intentions in the Budget Policy Statement (BPS).	Achieved	Achieved	Achieved
Significant Regulatory Impact Statements meet most or all of Regulatory Impact Analysis Requirements.	90%	75%	90%
Tax revenue forecast error on one-year-ahead forecasts.	less than plus or minus 3%	Achieved	less than plus or minus 3%
Production of advice that provides options which allow the Government to deliver a credible fiscal strategy consistent with the fiscal prudence provisions of the Public Finance Act 1989. Where this advice is underpinned by modelling, results from major models are externally quality assured (periodically) and, where appropriate, assumptions are tested with suitably qualified external experts.	N/A	N/A	Achieved

Methodological Robustness - The higher the robustness score, the stronger the methodological quality of the completed assessment. This is calculated using a standardised formula common to agencies and departments that participate in the policy measurement exercise.

Welfare System - Through its Vote role and role as the external monitor of Work and Income (a division of the Ministry of Social Development), the Treasury will help enable increased cross-agency collaboration to meet the expanded Better Public Services Result 1 target.

Quality Standards of Policy Advice#

This Quality Standard for Policy Advice sets out the characteristics or dimensions of policy advice that will best enable it to promote well-informed, high-quality decision-making by Ministers. However, the quality dimensions below are not a checklist and not all dimensions will be equally important in every case - judgements are required at the outset about how to apply and balance the quality dimensions to ensure a particular piece of advice is fit for purpose in achieving the result sought.

When undertaking a piece of work, explicit consideration needs to be given to the following:

Dimensions of Policy Advice#

Advice Analytically Rigorous (Analysis):	Set in a Wider Strategic Context (Applied Analysis):	Customer-focused and Persuasive (Advice):
Relevant Frameworks:	Strategic:	Clear and well-written
Appropriate analytical frameworks are used. Appropriate microeconomic, macroeconomic, mathematical and econometric tools are used. Knowledge is up-to-date and informed by recent thinking and literature in the field. Assumptions behind the frameworks used are explicit and consideration has been given to how they will be expected to play out in the real world (a world which includes information and transaction costs, bounded rationality, market failure, government failure, etc). Consideration has been given to less traditional frameworks and whether they would add innovative or useful perspectives.	Advice is set in the context of the Living Standards framework, the Treasury's outcomes and the Government's broader objectives. Advice is explicit about the relative importance and materiality of the issue, in fiscal, economic and strategic terms. Connections across policy issues are made, ensuring that Ministers receive a whole-of-government perspective. Advice includes consideration of the long-term implications of decisions. Advice frames issues and help set the agenda.	Advice is compellingly presented. It is: brief and concise - key messages should be readily apparent to the reader easy to read - has a clear and logical structure, avoids technical jargon and uses visual devices such as charts and tables where possible pitched to suit the audience - uses appropriate language, style and level of detail framed in terms of how it fits with previous advice and communications with the 'customer' (often this is the Minister), and free from errors (including data errors).
Robust reasoning and logic	Practical	Timely
Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. Conclusion is provided with action-oriented recommendations.	Advice is strongly focused on achieving results. The results associated with achieving success are clearly articulated. A good understanding is conveyed of what will be required for policy success. Advice considers opportunities, risks, and management of uncertainty and change. Issues of implementation, technical feasibility, practicality and timing are considered. Advice accurately identifies compliance, transitional, legislative, revenue and administrative implications and costs. Advice identifies measurable indicators of success and sets out a plan for monitoring and evaluation where appropriate.	Advice is timed for when it can have the greatest influence and for when it best helps in the decision-making process (even if it means, at times, that advice is not fully developed). It should indicate when a decision is required (unless there is no deadline).
Evidence-based	Public sector consultation	Politically aware advice
Analysis is supported by relevant evidence: empirical methods are sound, data gaps are identified and the level of confidence/certainty in our empirical base is explicit analysis draws on New Zealand's experience of current and past policy interventions and, where relevant, the experience of other countries, and analysis draws on New Zealand's experience of current and past policy interventions and, where relevant, the experience of other countries, and analysis provides best judgement despite data imperfections; we acknowledge information limitations and advise within them.	Ministers receive advice that enables them to engage with their colleagues on a fully informed basis because: thorough and timely consultation with other government departments has occurred and points of difference, and the reasons for these, are set out, and where possible, advice is developed in conjunction with relevant government agencies.	Advice: demonstrates awareness of the wider environment and political situation relates to the perspectives of Ministers, even if suggesting something that tests those perspectives, and recognises choices and constraints Ministers face, and includes a range of options to address these.
Free and frank	Perspectives of wider stakeholders	Solution-focused
Advice is honest, impartial and politically neutral - we have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating.	Where possible, policy advice should be informed by the practical experiences of key stakeholders and by understandings of sector performance. Advise Ministers on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate.	Proactive, anticipating, as well as responding to, Ministers' needs. Advice is action-oriented and suggests a clear way forward ("Here is what you can do" as well as "Here is a problem") and includes a range of practical options (first best advice, but also second and third).
		Effective communication
		Communication of advice is based on how to most effectively engage with the customer, including: the mode of communication (ie, verbal or written), and the form of advice (eg, written paper or A3).

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Transfer of Work and Income External Monitoring Costs from Vote Social Development	2015/16	750	750	750	750	750
SSRSS and KiwiSaver funding removal	2012/13	(916)	(916)	(916)	(916)	(916)
Efficiency Savings	2012/13	(522)	(522)	(522)	(522)	(522)

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to:

$1.329 million decrease related to the reallocation of overheads across departmental output expenses

$323,000 decrease in recoverable activities from 2015/16 to 2016/17, including recoverable secondments

$200,000 decrease from 2015/16 for the Central Agencies Shared Services development programme, and

$200,000 decrease from 2015/16 related to funding that was carried forward from 2012/13 to address cost pressures.

Provision of Financial Operations Services and Operational Advice (M31)#

Scope of Appropriation#

This appropriation is limited to the provision of services which support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.

Expenses and Revenue#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	30,709	29,809	30,950
Revenue from the Crown	26,688	26,688	27,325
Revenue from Others	4,021	3,621	3,625

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to improve economic performance and financial stewardship across the State Sector and export and financial markets, through provision of relevant and timely operational support, services and advice.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
All submitted Budget initiatives were accompanied by a cost benefit analysis, where required.	N/A	N/A	Achieved
Audit opinion issued by the Controller and Auditor-General on the Financial Statements of Government.	Unqualified	Unqualified	Unqualified
Required Economic and Fiscal Updates efficiently produced with key judgements and uncertainties clearly articulated and key assumptions have been appropriately tested.	N/A	N/A	Achieved
Monthly Financial Statements of Government produced in accordance with the PFA requirements and free from material errors.	Achieved	Achieved	Achieved
Management of liabilities and investigation of mechanisms to discharge the Crown's obligations in a timely manner ensuring any costs from the materialisation of liabilities are contained (see note on 'Management of Liabilities' below).	Achieved	Achieved	Achieved
Compliance with risk management policies and parameters for management of Crown lending and Crown bank accounts.	No breaches	No breaches	No breaches
Percentage of Four-year Plans submitted by agencies that meet the criteria expected of a credible medium term strategic plan.	75%	60%	75%
Investment Management and Asset Performance
All Tier 1 and Tier 2 investment intensive agencies have baseline asset performance measures defined in their annual reports.	N/A	N/A	100%
All Tier 1 and Tier 2 investment intensive agencies have baseline measures for benefits realisation on projects and programmes.	N/A	N/A	90%
All Tier 1 and Tier 2 investment intensive agencies have long term investment plans (LTIPs) covering a minimum of 10 years.	N/A	N/A	100%
Tier 1 and Tier 2 investment intensive agencies comply with Cabinet's investment management rules and standards.	100%	65%	100%
Key agency stakeholders with a project monitored through the Gateway programme agree with the statement: "Project monitoring advice provides me with valuable information on the status of my major projects".	85%	85%	85%
Senior Responsible Owners of major projects reviewed in the Gateway program agree that the "review was beneficial and will impact positively on the outcome of the programme/project" and "Report's recommendations will enable me to achieve improvements in the project's outcomes".	85%	85%	85%
New Zealand Export Credit Office
Number of new export credit policies underwritten.	70	60	70
Value of new exports supported.	$320 million	Not met (est. $300m)	$320 million
Value of new exposure of export credit policies.	$120 million	Met (est. $120m)	$120 million
Forecast total external engagements.	420	Met (est. 450)	420
Compliance with International Guidelines (OECD and WTO) and Delegated Mandate.	100%	100%	100%
Five-year Expense Ratio (Operating Expenses / Premium Earned).	Lower than 60%	Met (est. lower than 50%)	Lower than 60%
Five-year Loss Ratio (Claims Paid and Reserved / Premium Earned).	lower than 35%	Not met (est. 160%)	Lower than 40%

Management of Liabilities - This output class covers the management and resolution of contingent or actual liabilities associated with various Crown commitments and assets - for instance, gas and geothermal reserves, Treaty settlements and New Zealand House. In some cases, the Treasury is a provider of second-opinion advice rather than a lead agency on these matters.

Cost Benefit Analysis - This analysis should cover: problem definition, intervention logic, options analysis, evaluation of the initiative's contribution to the agency's/ sector's outcomes and result areas, how the new initiative will be implemented and evaluated, and options for scaling the initiative.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Share of costs for Budget 2015 whole-of-government initiatives	2015/16	(395)	(391)	(304)	(314)	(314)
Transfer to Vote Foreign Affairs for a Contribution to Global Infrastructure Hub	2014/15	(125)	(125)	(125)	-	-
Improving Investment Management System Performance and Capital Asset Management	2014/15	300	300	370	-	-
Transfer Gateway and Major Project Monitoring Activities from Vote State Services	2013/14	2,389	2,389	2,389	2,389	2,389
Analysis for Outcomes: Better use of the data to Improve Outcomes	2013/14	2,380	2,303	2,319	2,319	2,319
SSRSS and KiwiSaver funding removal	2012/13	(123)	(123)	(123)	(123)	(123)
Efficiency Savings	2012/13	(33)	(33)	(33)	(33)	(33)

Reasons for Change in Appropriation#

The increase in this appropriation for 2016/17 is mainly due to:

$1.744 million increase related to the reallocation of overhead costs relating to the Policy Advice-Finance appropriation and Social Housing Reform multi-category appropriation, and

$160,000 increase related to the transfer from 2015/16 to 2016/17 of quality review of regulatory impact statement assessments.

This increase is partly offset by:

$619,000 reduction in funding transferred to 2015/16 from previous years to support ongoing cost pressures and social housing reform programme

$400,000 reduction from 2015/16 related to the one-off costs for the Information Strategy project

$396,000 reduction from 2015/16 cost-recoverable activities including secondments, and

$200,000 reduction from 2015/16 in the Central Agencies Shared Services development programme.

Shared Support Services (M31)#

Scope of Appropriation#

This appropriation is limited to provision of support services to other agencies.

Expenses and Revenue#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	13,221	12,021	14,313
Revenue from the Crown	-	-	-
Revenue from Others	13,221	12,721	14,313

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve quality, efficient support services for other agencies.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Services meet the standards and timeframes agreed with the three central agencies.	Achieved	Achieved	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Reasons for Change in Appropriation#

The increase in this appropriation for 2016/17 is mainly due to the full-year impact on shared support services associated with the transition of activities from the Canterbury Earthquake Recovery Authority to the Department of the Prime Minister and Cabinet from 1 March 2016.

2.3 - Departmental Capital Expenditure and Capital Injections#

The Treasury - Capital Expenditure PLA (M31)#

Scope of Appropriation

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

Capital Expenditure

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Forests/Agricultural	-	-	-
Land	-	-	-
Property, Plant and Equipment	3,197	3,197	1,865
Intangibles	3,077	3,077	2,375
Other	-	-	-
Total Appropriation	6,274	6,274	4,240

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal and replacement of life-expired assets in support of the delivery of Treasury services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure is in accordance with the Treasury capital asset management plan.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2016/17 is mainly due to completion of the business information hub project and one-off information technology expenditure to support the transfer of Canterbury Earthquake Recovery Authority functions to the Department of the Prime Minister and Cabinet.

Capital Injections and Movements in Departmental Net Assets

The Treasury

Details of Net Asset Schedule	2015/16 Estimated Actual $000	2016/17 Projected $000	Explanation of Projected Movements in 2016/17
Opening Balance	14,049	14,049
Capital Injections	-	4,548	Transfer of $1.145 million for the Business Information Hub project into 2016/17 and $3.403 million transfer from State Services Commission and Department of Prime Minister and Cabinet for accumulated depreciation reserves to provide for replacement of information technology assets which have transferred to the Treasury Central Agencies Shared Services.
Capital Withdrawals	-	-
Surplus to be Retained (Deficit Incurred)	-	-
Other Movements	-	-
Closing Balance	14,049	18,597

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Management of Anchor Projects by Otakaro Limited (M85)

Scope of Appropriation

This appropriation is limited to the Crown's contribution to Otakaro Limited's operating and financing expenses.

Expenses

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	7,467	7,467	23,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve continuation of Christchurch earthquake recovery of the Anchor Projects Programme and divestment of Crown-owned land in Christchurch.

How Performance will be Assessed and End of Year Reporting Requirements

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Otakaro Limited will manage and administer the Anchor Projects Programme and divestment of Crown-owned land in Christchurch in accordance with the company's purpose as set out in its Constitution and its Statement of Intent.	Achieved	Achieved	Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by Otakaro Limited in its 2016/17 Annual Report.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Establishment of Otakaro Limited	2015/16	7,467	23,000	23,200	23,300	21,600

Reasons for Change in Appropriation

The increase in this appropriation for 2016/17 is due to full-year funding for 2016/17 (as opposed to part-year funding for 2015/16) to enable the continuation of Greater Christchurch Earthquake Recovery Anchor Projects Programme and divestment of Crown-owned land in Christchurch.

Management of the Crown's Obligations for Geothermal Wells (M31)#

Scope of Appropriation#

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	467	150	151

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for non-departmental output expense is less than $5 million.

Service Providers#

Services will be provided by Aurecon Limited, MB Century and other providers if and when required.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to the cessation of a short-term increase in 2015/16 by way of an expense transfer from 2014/15 for remedial work on redundant geothermal assets at Wairakei.

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation#

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	628	628	528

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the management and administration of the Guardians of New Zealand Superannuation Fund.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for non-departmental output expense is less than $5 million.

Service Providers#

Services will be provided by Guardians of New Zealand Super Fund.

Reason for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to a fiscally neutral transfer of $100,000 from the Management of New Zealand House, London, multi-category appropriation, Operational Costs for 2015/16, in order to cover the New Zealand Superannuation Fund's increase in Board fees.

Tamaki Regeneration (M31)#

Scope of Appropriation#

This appropriation is limited to the housing demonstration projects and associated regeneration activity in the Tamaki area of Auckland.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	-	-	3,190

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the delivery of housing regeneration projects for Tamaki region managed by Tamaki Redevelopment Company Limited.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.

Service Providers#

Services will be provided by Tamaki Redevelopment Company.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Tamaki Redevelopment Company: Business Implementation Plan	2016/17	-	3,190	-	-	-

Reasons for Change in Appropriation#

This appropriation has been transferred to Vote Finance from Vote Building and Housing to enable delivery of Tamaki housing regeneration projects to align with the Crown's shareholding in Tamaki Redevelopment Company Limited.

Conditions on Use of Appropriation#

Reference	Conditions
Cabinet decisions	Funding and delivery as per the Tamaki Redevelopment Company Statement of Performance Expectations.

3.3 - Non-Departmental Borrowing Expenses#

Debt Servicing PLA (M31)#

Scope of Appropriation

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.

Expenses

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	3,424,513	3,424,513	3,448,298

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by s60(1)(b) of the PFA.

End of Year Performance Reporting

This borrowing expense appropriation is exempt from end of year performance reporting under s15A(4)(b) of the PFA.

Reasons for Change in Appropriation

The increase in this appropriation for 2016/17 is due to movements in forecast interest rates and the amount of debt outstanding.

3.4 - Non-Departmental Other Expenses#

Crown Residual Liabilities (M31)#

Scope of Appropriation

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

Expenses

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	86	15	60

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the administration of residual obligations arising from the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for non-departmental other expense is less than $5 million.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Establishment of Local Government Risk Agency	2014/15	(170)	(170)	(170)	(170)	-

Geothermal Wells Fund (M31)#

Scope of Appropriation#

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	1,500	-	500

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to an expense transfer from 2014/15 to 2015/16 relating to continuation of remedial work on redundant geothermal assets at Wairakei.

Government Superannuation Appeals Board (M31)#

Scope of Appropriation#

This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	50	50	50

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the on-going operations of the Government Superannuation Appeals Board.

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 information is unlikely to be informative because this appropriation is solely for payments of board fees, disbursements and allowances. Performance information relating to the administration of the payment is provided under the Provision of Financial Operations Services and Operational Advice appropriation.

Scope of Appropriation#

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Fund Act 1956.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	38,000	38,000	37,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the management and administration of the Government Superannuation Fund and the schemes, authorised by s15E and s95 of the Government Superannuation Act 1956 through payment of the Crown's share of the expenses of the Government Superannuation Fund Authority.

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 as this appropriation is solely for payments of the Crown's share of expenses relating to the management and administration of the Government Superannuation Fund and the schemes authorised by s15E and s95 of the Government Superannuation Fund Act 1956.

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Fund Act 1956.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	614,065	614,065	528,149

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to recognise the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown as authorised by s95AA of the Government Superannuation Fund Act 1956 in accordance with generally accepted accounting practice.

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 information is unlikely to be informative because this appropriation is solely for technical accounting treatment of the Crown's liability.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to a fall in the valuation of the Government Superannuation Fund liability as at 31 January 2016.

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	27,000	27,000	25,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the recognition of the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in s60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by s66 of the National Provident Fund Restructuring Act 1990.

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 information is unlikely to be informative because this appropriation is solely for costs payable to the National Provident Fund Scheme. Further information about the performance of the Scheme can be found in the National Provident Fund's Annual Report.

Reasons for Change in Appropriation#

The decrease reflects a revised forecast for the expected interest cost movements in relation to the National Provident Fund liability.

Review and Reform of Local Government Infrastructure Arrangements (M31)#

Scope of Appropriation#

This appropriation is limited to the review and reform of disaster funding for local government infrastructure, including contributions to expenses of the Local Government Risk Agency.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	1,625	1,625	1,605

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a review of, and develop reform options for the Crown's natural disaster funding arrangements for, local government infrastructure. This appropriation will also contribute to assessing the financial viability of the proposed Local Government Risk Agency (LGRA).

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s15(2)(b)(iii) of the PFA as the amount of this annual appropriation for non-departmental other expense is less than $5 million.

Service Providers#

Services will be provided by the Local Government Risk Agency.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Establishment of the Review and Reform of Local Government Infrastructure	2014/15	1,000	-	-	-	-
Additional funding for the Review and Reform of Local Government Infrastructure	2015/16	500	1,500	-	-	-

Unclaimed Money PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	250	40	250

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the repayment of unclaimed money authorised by s74(5) of the PFA.

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 information is unlikely to be informative because this appropriation is solely for the repayment of unclaimed money to claimants and repayments are made in accordance with s74(5) of the PFA.

Unclaimed Trust Money PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	250	-	250

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the repayment of money authorised by s70(2) of the PFA.

How Performance will be Assessed and End of Year Reporting Requirements#

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability in respect of share subscriptions in International Financial Institutions as it nears settlement, as authorised by section 5(2) of the International Finance Agreements Act 1961.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	1,605	1,605	2,920

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the recognition of interest unwind for Crown's liability to International Financial Institutions.

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 information is unlikely to be informative because this appropriation is solely for the interest unwind in respect of Crown's liability with International Financial Institutions.

Reasons for Change in Appropriation#

The increase in this appropriation for 2016/17 is due to interest expense being recognised for the full year in 2016/17 compared to six months in 2015/16.

Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31)#

Scope of Appropriation#

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.

Expenses#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	16,370	16,370	8,088

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the recognition of the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement.

How Performance will be Assessed and End of Year Reporting Requirements#

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to a revised forecast for the expected unwind of the discount rate in relation to the Crown Support Deed and the Uncalled Capital facility as the liability nears settlement.

3.5 - Non-Departmental Capital Expenditure#

International Financial Institutions PLA (M31)#

Scope of Appropriation

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.

Capital Expenditure

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	350,494	350,494	12,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide for the capital expenditure by New Zealand as a member of International Financial Institutions, as authorised by s5 of the International Finance Agreements Act 1961.

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 information is unlikely to be informative because this appropriation is solely for payments made by New Zealand as a member of International Financial Institutions. Performance information relating to the administration of the payment is provided under the Policy Advice - Finance appropriation.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Investment in Asian Infrastructure Investment Bank	2015/16	135,814	-	-	-	-
Increase subscription in International Bank of Reconstruction and Development	2014/15	18,500	-	-	-	-

Reasons for Change in Appropriation

The decrease in this appropriation for 2016/17 is due to the policy initiative to fund the investment in Asian Infrastructure Investment Bank of $135.814 million in 2015/16 and a forecast decrease in capital and debt funding to International Financial Institutions for 2016/17.

Loan Facility for Tamaki Redevelopment Company (M31)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Loan Facility for Tamaki Redevelopment Company (M31) This appropriation is limited to provision of a loan to Tamaki Redevelopment Company Limited. Commences: 31 March 2015 Expires: 30 June 2018	Original Appropriation	200,000
	Adjustments to 2014/15	-
	Adjustments for 2015/16	-
	Adjusted Appropriation	200,000
	Actual to 2014/15 Year End	-
	Estimated Actual for 2015/16	23,000
	Estimated Actual for 2016/17	78,000
	Estimated Appropriation Remaining	99,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to enable Tamaki Redevelopment Company Limited to accelerate regeneration action.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Payments are made consistent with the terms and conditions of the loan facility.	Achieved	Achieved	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Tamaki Redevelopment Company Limited in its 2016/17 Annual Report.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Loan Facility to Facilitate the Regeneration of the Tamaki Region	2014/15	100,000	50,000	-	-	-

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M31)#

Scope of Appropriation#

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited Debt.

Capital Expenditure#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	142,362	142,362	275,778

What is Intended to be Achieved with this Appropriation#

This appropriation is required when Housing New Zealand Corporation and Housing New Zealand Limited refinance their loans and is intended to enable the Treasury to monitor and administer the expenditure on refinancing.

How Performance will be Assessed and End of Year Reporting Requirements#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Refinancing will be undertaken in accordance with the agreed policy.	100%	100%	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Finance in a report appended to the Treasury's Annual Report for 2016/17.

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Refinancing of Housing New Zealand Corporation and Housing New Zealand Debt	2015/16	142,362	275,778	337,002	127,185	-

Reasons for Change in Appropriation#

The increase in this appropriation for 2016/17 is due to the alignment of the appropriation with Housing New Zealand Corporation and Housing New Zealand Limited debt refinancing.

Transfer of Anchor Project Assets to Otakaro Limited (M85)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Transfer of Anchor Project Assets to Otakaro Limited (M85) This appropriation is limited to the transfer of Christchurch anchor project assets to Otakaro Limited. Commences: 01 April 2016 Expires: 30 June 2020	Original Appropriation	500,000
	Adjustments to 2014/15	-
	Adjustments for 2015/16	-
	Adjusted Appropriation	500,000
	Actual to 2014/15 Year End	-
	Estimated Actual for 2015/16	300,000
	Estimated Actual for 2016/17	200,000
	Estimated Appropriation Remaining	-

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a transfer of Christchurch anchor project assets to Otakaro Limited.

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 information is unlikely to be informative because this appropriation is solely to give effect to the technical transfer of Christchurch anchor project assets to Otakaro Limited.

Reasons for Change in Appropriation#

The decrease in the estimated expenditure for this appropriation reflects the timing of the transfer of assets to Otakaro Limited to enable it manage the Christchurch Anchor Project Assets and programme of work and that the total multi-year appropriation funding was established at a higher level than current asset values to provide for potential valuation increases.

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

Multi-Category Expenses and Capital Expenditure#

Greater Christchurch Anchor Projects (M85)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to support the recovery of Christchurch by contributing operating and capital funding for anchor projects covered by the Christchurch Central Recovery Plan.

Scope of Appropriation

Non-Departmental Other Expenses

Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure funded by contributions from parties other than the Crown.
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Bus Interchange and associated transport infrastructure.
Christchurch Convention Centre - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Convention Centre.
Christchurch Stadium - contributions from third parties
This category is limited to the development, operations and divestment of the Christchurch Stadium funded by contributions from parties other than the Crown.
Christchurch Stadium - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Christchurch Stadium.
Earthquake Memorial - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Canterbury Earthquake Memorial.
Financial Impact of Valuations
This category is limited to expenses incurred as a result of the Crown's decisions affecting valuations.
Leasing Anchor Project Land
This category is limited to the financial impact of granting concessionary leases over anchor project land.
Metro Sports Facility - contributions from third parties
This category is limited to the development, operations and divestment of the Metro Sports Facility funded by contributions from parties other than the Crown.
Metro Sports Facility - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of Metro Sports Facility.
Pre-Development Holding Costs - Operating
This category is limited to the Crown's contribution to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.
Procurement of Land and Assets - Operating
This category is limited to the Crown's contribution to the purchase, acquisition and clearance of land and assets for anchor project development.
Public Space - contributions from third parties
This category is limited to the development, operations and divestment of the Crown owned public space funded by contributions from parties other than the Crown.
Public Space - Operating
This category is limited to the Crown's contribution to the development, operations and divestment of the Crown owned public space.
Sale of Land
This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.
The Square - contributions from third parties
This category is limited to the development, operations and divestment of the Square funded by contributions from parties other than the Crown.

Non-Departmental Capital Expenditure

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Bus Interchange and associated transport infrastructure and to providing equity or loan capital to Otakaro Limited for that purpose.
Christchurch Convention Centre - Capital
This category is limited to the Crown's contribution to the capital development of the Christchurch Convention Centre and to providing equity or loan capital to Otakaro Limited for that purpose.
Earthquake Memorial - Capital
This category is limited to the Crown's contribution to the capital development of the Canterbury Earthquake Memorial and to providing equity or loan capital to Otakaro Limited for that purpose.
Land and Asset Acquisition - Capital
This category is limited to the Crown's contribution to the cost of land and assets to be acquired for anchor project development and to providing equity or loan capital to Otakaro Limited for that purpose.
Metro Sports Facility - Capital
This category is limited to the Crown's contribution to the capital development of Metro Sports Facility and to providing equity or loan capital to Otakaro Limited for that purpose.
Public Space - Capital
This category is limited to the capital development of the Crown owned public space and to providing equity or loan capital to Otakaro Limited for that purpose.

Expenses, Revenue and Capital Expenditure

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	440,417	65,521	203,887
Non-Departmental Other Expenses
Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties	100	-	-
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating	41,788	12,078	31,329
Christchurch Convention Centre - Operating	8,016	8,016	1,500
Christchurch Stadium - contributions from third parties	100	-	-
Christchurch Stadium - Operating	4,000	-	-
Earthquake Memorial - Operating	8	-	122
Financial Impact of Valuations	2,831	2,831	-
Leasing Anchor Project Land	6,000	-	-
Metro Sports Facility - contributions from third parties	100	-	-
Metro Sports Facility - Operating	9,389	2,912	2,043
Pre-Development Holding Costs - Operating	5,463	-	6,000
Procurement of Land and Assets - Operating	75,514	-	-
Public Space - contributions from third parties	100	-	-
Public Space - Operating	105,217	11,262	49,281
Sale of Land	2,684	2,684	-
The Square - contributions from third parties	100	-	-
Non-Departmental Capital Expenditure
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital	7,860	590	-
Christchurch Convention Centre - Capital	24,500	16,000	95,400
Earthquake Memorial - Capital	3,625	-	3,996
Land and Asset Acquisition - Capital	104,384	-	-
Metro Sports Facility - Capital	1,000	-	-
Public Space - Capital	37,638	9,148	14,216

Comparators for Restructured Appropriation

Vote, Type and Title of Appropriation	Final Budgeted $000	Estimated Actual $000	Budget $000
	2015/16		2016/17
Vote Canterbury Earthquake Recovery, Multi-Category Expenses and Capital Expenditure, Development of Central City Anchor Projects MCA	37,509	37,509	-
Vote Canterbury Earthquake Recovery, Multi-Category Expenses and Capital Expenditure, Ownership and Divestment of Anchor Projects MCA	30,366	30,366	-
Vote Canterbury Earthquake Recovery, Multi-Category Expenses and Capital Expenditure, Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects MCA	27,982	27,982	-
Vote Finance, Multi-Category Expenses and Capital Expenditure, Greater Christchurch Anchor Projects MCA	440,417	65,521	203,887
Total	536,274	161,378	203,887

Note that all the categories in the three multi-category appropriations in Vote Canterbury Earthquake Recovery for 2015/16 shown in this table correspond to categories in the multi-category appropriation in Vote Finance for 2016/17.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of Anchor Projects and divestment of Crown owned land in Christchurch.

How Performance will be Assessed for this Appropriation

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Payments made in respect of Greater Christchurch Anchor Projects are made in accordance with the terms and conditions of the relevant funding agreements and agreed timelines.	Achieved	Achieved	Achieved

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Non-Departmental Other Expenses
Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties
This category is intended to support the development, operations and divestment of the Christchurch Bus Interchange.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.	Exempt	Exempt	Exempt
Christchurch Bus Interchange and Associated Transport Infrastructure - Operating
This category is intended to ensure the ongoing operation and eventual divestment of the Christchurch Bus Interchange.
Payments are made in line with the terms and conditions of the funding agreement.	Achieved	Achieved	Achieved
Christchurch Convention Centre - Operating
This category is intended to advance the Convention Centre project in line with Government decisions.
The project will be progressed in line with Government decisions and agreed project timelines.	Achieved	Achieved	Achieved
Christchurch Stadium - contributions from third parties
This category is intended to support the development, operations and divestment of the Christchurch Stadium.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.	Exempt	Exempt	Exempt
Christchurch Stadium - Operating
This category is intended to take forward the Crown's position on the Stadium project.
The project will be progressed in line with Government decisions and agreed project timelines.	Achieved	Achieved	Achieved
Earthquake Memorial - Operating
This category is intended to support the construction and divestment of the Canterbury Earthquake Memorial.
The project will be progressed in line with the agreed project timelines.	Achieved	Achieved	Achieved
Financial Impact of Valuations
This category is intended to record expenses resulting from valuation movements.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to record expenses resulting from valuation movements.	Exempt	Exempt	Exempt
Leasing Anchor Project Land
This category is intended to record expenses resulting from the granting of concessionary leases.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for technical accounting treatment to record expenses resulting from the granting of concessionary leases.	Exempt	Exempt	Exempt
Metro Sports Facility - contributions from third parties
This category is intended to support the construction of Metro Sports Facility.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.	Exempt	Exempt	Exempt
Metro Sports Facility - Operating
This category is intended to support the construction and divestment of Metro Sports Facility.
The project will be progressed in line with the agreed project timelines.	Achieved	Achieved	Achieved
Pre-Development Holding Costs - Operating
This category is intended to achieve the efficient management of Anchor project land prior to construction.
Land is managed in accordance with Crown's commercial and regeneration interests.	Achieved	Achieved	Achieved
Procurement of Land and Assets - Operating
This category is intended to support the acquisition and clearance of land for the Anchor projects.
Land and assets are acquired and made ready in accordance with project outcomes and timelines.	Achieved	Achieved	Achieved
Public Space - contributions from third parties
This category is intended to support the development, operations and divestment of the Crown owned public space.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.	Exempt	Exempt	Exempt
Public Space - Operating
This category is intended to support the construction and divestment of Crown-owned public space in Christchurch.
Projects are progressed in line with the agreed project agreed timelines.	Achieved	Achieved	Achieved
Sale of Land
This category is intended to record the financial impact of land sales.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional information is unlikely to be informative because this appropriation is solely for recording the financial impact of land sales.	Exempt	Exempt	Exempt
The Square - contributions from third parties
This category is intended to support the development, operations and divestment of the Square.
An exemption was granted under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative as this appropriation is solely for the payments funded by contributions from third parties.	Exempt	Exempt	Exempt
Non-Departmental Capital Expenditure
Christchurch Bus Interchange and Associated Transport Infrastructure - Capital
This category is intended to ensure the ongoing operation and eventual divestment of the Christchurch Bus Interchange.
Expenditure is in line with the agreed project timelines.	Achieved	Achieved	Achieved
Christchurch Convention Centre - Capital
This category is intended to advance the Convention Centre project in line with Government decisions.
Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.	Achieved	Achieved	Achieved
Earthquake Memorial - Capital
This category is intended to support the construction and divestment of the Canterbury Earthquake Memorial.
Expenditure is in line with the agreed project timelines.	Achieved	Achieved	Achieved
Land and Asset Acquisition - Capital
This category is intended to support the acquisition of land for the Anchor projects.
Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.	Achieved	Achieved	Achieved
Metro Sports Facility - Capital
This category is intended to support the construction of Metro Sports Facility.
Payments to Otakaro for capital expenditure are made in line with the terms and conditions of the funding agreement.	Achieved	Achieved	Achieved
Public Space - Capital
This category is intended to support the construction and divestment of Crown-owned public space in Christchurch.
Expenditure is in line with the agreed project timelines.	Achieved	Achieved	Achieved

Service Providers for the Multi-Category Appropriation

Delivery of Greater Christchurch Anchor Projects will be undertaken by &Omac;takaro Limited.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2016/17 Annual Report.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Christchurch Convention Centre - Capital	2015/16	23,500	94,500	Withheld (note 1)	Withheld (note 1)	Withheld (note 1)
Christchurch Convention Centre - Operating	2015/16	9,900	1,000	Withheld (note 1)	Withheld (note 1)	Withheld (note 1)
Public Space - Operating	2015/16	5,000	5,600	-	-	-
Land and Assets Acquisition - Capital	2015/16	(26,900)	-	-	-	-
Christchurch Bus Interchange and associated Transport Infrastructure - Operating	2015/16	700	700	700	700	-
Procurement of Land and Assets - Operating	2015/16	12,000	-	-	-	1,500
Metro Sports Facility - Operating	2015/16	6,000	-	-	-	-
Metro Sports Facility - contributions from third parties	2015/16	100	-	-	-
Christchurch Stadium - contributions from third parties	2015/16	100	-	-	-	-
Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties	2015/16	100	-	-	-	-
The Square - contributions from third parties	2015/16	100	-	-	-	-
Public Space - contributions from third parties	2015/16	100	-	-	-	-

Note 1 - Estimated expenditure for 2017/18 to 2019/20 is withheld as publication is likely to unreasonably prejudice the commercial position of the Crown.

Reasons for Change in Appropriation

Funding was transferred over from Vote Canterbury Earthquake Recovery from 1 April 2016, for the continuation of Anchor Projects and divestment of Crown owned land in Christchurch. The decrease in this appropriation is in line with the decline in activities.

Overarching Purpose Statement#

The overarching purpose of this appropriation is to provide for inquiries into, and research and promotion of, productivity-related matters.

Scope of Appropriation#

Non-Departmental Output Expenses

Inquiries into Productivity-Related Matters
This category is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
Research into and Promotion of Productivity-Related Matters
This category is limited to the New Zealand Productivity Commission undertaking research into and promoting public understanding of productivity-related matters in accordance with the New Zealand Productivity Commission Act 2010.

Expenses, Revenue and Capital Expenditure#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	5,030	5,030	5,030
Non-Departmental Output Expenses
Inquiries into Productivity-Related Matters	4,401	4,401	4,401
Research into and Promotion of Productivity-Related Matters	629	629	629

What is Intended to be Achieved with this Appropriation#

The appropriation is intended to achieve:

inquires in accordance with the New Zealand Productivity Commission Act 2010, and
research in accordance with the New Zealand Productivity Commission Act 2010.

How Performance will be Assessed for this Appropriation#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
The Board of the New Zealand Productivity Commission will meet to manage and administer in accordance with their Statement of Intent.	Achieved	Achieved	Achieved

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Non-Departmental Output Expenses
Inquiries into Productivity-Related Matters
This category is intended to achieve improved productivity analysis and advice in New Zealand.
The Commission's recommendations are agreed and implemented - as a result of their recommendations (typically through inquiry work), better decisions are made that lead to improved productivity.	Achieved	Achieved	Achieved
Improved productivity analysis and advice in New Zealand - scarce resources for productivity work are better coordinated, leading to more influential and effective research outcomes.	Achieved	Achieved	Achieved
Improved public understanding of productivity issues - people and organisations gain a better understanding of what productivity is and why it is important, increasing the likelihood that productivity improvements are made.	Achieved	Achieved	Achieved
Research into and Promotion of Productivity-Related Matters
This category is intended to achieve the promotion of productivity-related matters.
Define and undertake research on, and promote understanding of, productivity-related matters. The Commission will publish research papers and further the development of collaborative research partnerships. As part of their collaboration, they will work with other government agencies and the wider research community through chairing the 'Productivity Hub'.	Achieved	Achieved	Achieved

Service Providers for the Multi-Category Appropriation#

Services will be delivered by New Zealand Productivity Commission.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in a report appended to its 2016/17 Annual Report.

Management of Landcorp Protected Land Agreement (M31)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is meeting the Crown's responsibilities under the Landcorp Protected Land Agreement.

Scope of Appropriation#

Non-Departmental Other Expenses

Operating Costs
This category is limited to providing operating costs incurred under the Landcorp Protected Land Agreement.

Non-Departmental Capital Expenditure

Capital Investments
This category is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.

Expenses, Revenue and Capital Expenditure#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	5,500	3,700	4,250
Non-Departmental Other Expenses
Operating Costs	3,500	2,200	2,250
Non-Departmental Capital Expenditure
Capital Investments	2,000	1,500	2,000

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the Crown's responsibilities under the Protected Land Agreement.

How Performance will be Assessed for this Appropriation#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Management of Protected Land Agreement
This appropriation is intended to achieve the Crown's responsibilities under the Protected Land Agreement.	Exempt	Exempt	Exempt

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Non-Departmental Other Expenses
Operating Costs
This category is intended to achieve the provision for operating costs incurred under the Landcorp Protected Land Agreement.
An exemption was granted under s15D(2)(b)(iii) of the PFA as annual expenditure under this category is less than $5 million.	Exempt	Exempt	Exempt
Non-Departmental Capital Expenditure
Capital Investments
This category is intended to achieve the provision of capital investments incurred under the Landcorp Protected Land Agreement.
An exemption was granted under s15D(2)(b)(iii) of the PFA as annual expenditure under this category is less than $15 million.	Exempt	Exempt	Exempt

Current and Past Policy Initiatives#

Policy Initiative	Year of First Impact	2015/16 Final Budgeted $000	2016/17 Budget $000	2017/18 Estimated $000	2018/19 Estimated $000	2019/20 Estimated $000
Landcorp under expenditure reprioritised and applied to Local Government Risk Agency	2015/16	-	(250)	(250)	(1,000)	(500)

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to an expense transfer from 2014/15 to 2015/16 relating to the operating costs incurred in the management of protected land.

Management of New Zealand House, London (M31)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to ensure that New Zealand House, London is well managed.

Scope of Appropriation#

Non-Departmental Output Expenses

Property Management
This category is limited to the property management services in respect of New Zealand House, London.

Non-Departmental Other Expenses

Operational Costs
This category is limited to the operational costs of New Zealand House, London.
Renegotiation of Lease Arrangements
This category is limited to activities to re-gear the lease on New Zealand House, London (including The Royal Opera Arcade and Her Majesty's Theatre).

Non-Departmental Capital Expenditure

Capital Expenditure
This category is limited to capital expenditure in relation to New Zealand House, London.

Expenses, Revenue and Capital Expenditure#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	17,360	15,110	16,650
Non-Departmental Output Expenses
Property Management	800	800	1,000
Non-Departmental Other Expenses
Operational Costs	13,900	13,900	13,000
Renegotiation of Lease Arrangements	410	410	1,900
Non-Departmental Capital Expenditure
Capital Expenditure	2,250	-	750

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to ensure that New Zealand House, London is well managed.

How Performance will be Assessed for this Appropriation#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Management of New Zealand House, London
New Zealand House, London is well managed.	Exempt	Exempt	Exempt

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Non-Departmental Output Expenses
Property Management
This category is intended to achieve the provision of management of New Zealand House property in London.
An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category is less than $5 million.	Exempt	Exempt	Exempt
Non-Departmental Other Expenses
Operational Costs
This category is intended to achieve the provision of operational costs of New Zealand House in London.
An exemption was granted under s15D(2)(b)(ii) of the PFA as this category is solely for costs payable to the New Zealand Government Property Corporation to fund the operations of New Zealand House in London.	Exempt	Exempt	Exempt
Renegotiation of Lease Arrangements
This category is intended to achieve the renegotiation of the lease arrangements for New Zealand House, London
An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category is less than $5 million.	Exempt	Exempt	Exempt
Non-Departmental Capital Expenditure
Capital Expenditure
This category is intended to achieve the provision of capital expenditure on New Zealand House property in London.
An exemption was granted under s15D(2)(b)(iii) of the PFA as the annual expenditure under this category is less than $15 million.	Exempt	Exempt	Exempt

Service Providers#

Services are provided through Jones Lang LaSalle International Property Consultants, London.

Reasons for Change in Appropriation#

The decrease in appropriation in 2016/17 is due to an expense transfer from 2014/15 to 2015/16 to provide for reactive maintenance on the property.

Management of the Crown's Agreement with Taitokerau Forests Limited (M31)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.

Scope of Appropriation#

Non-Departmental Other Expenses

Grants
This category is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
Impairment of Loans
This category is limited to the expense incurred on the impairment and write-down of loans to Taitokerau Forests Limited.

Non-Departmental Capital Expenditure

Loans
This category is limited to the provision of loans to Taitokerau Forests Limited for forest management and development.

Expenses, Revenue and Capital Expenditure#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	7,364	6,664	1,830
Non-Departmental Other Expenses
Grants	473	473	230
Impairment of Loans	5,791	5,791	1,100
Non-Departmental Capital Expenditure
Loans	1,100	400	500

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve meeting the Crown's responsibilities under its agreement with Taitokerau Forests Limited.

How Performance will be Assessed for this Appropriation#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Management of the Crown's Agreement with Taitokerau Forests Limited
The agreement with Taitokerau Forests Limited will be managed ensuring delivery of the Crown's responsibilities.	Exempt	Exempt	Exempt

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Non-Departmental Other Expenses
Grants
This category is intended to achieve the provision of a grant to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this annual category for non-departmental other expenses is less than $5 million.	Exempt	Exempt	Exempt
Impairment of Loans
This category is intended to achieve the provision for expenses incurred on the impairment and write-down of loans to Taitokerau Forests Limited.
An exemption was granted under s15D(2)(b)(ii) of the PFA as performance information is unlikely to be informative as this category is solely for the technical accounting treatment under the loan agreement with Taitokerau Forests Limited.	Exempt	Exempt	Exempt
Non-Departmental Capital Expenditure
Loans
This category is intended to achieve provision of loans to Taitokerau Forests Limited for forest management and development.
An exemption was granted under s15D(2)(b)(iii) of the PFA as the amount of this category is less than $15 million.	Exempt	Exempt	Exempt

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to an expense transfer of $7.994 million from 2014/15 to 2015/16 and $1.630 million from 2015/16 to 2016/17. In addition, the expenditure profile was amended in Budget 2015 that moved forward funding from outyears into 2014/15 and 2015/16 in order to incentivise Taitokerau Forestry blocks landowners to exit the Crown arrangement through a provision of modest concessions and for the Crown to continue to fulfil its responsibilities in respect of arrangements with Taitokerau Forests Limited. This funding profile for 2015/16, after removing for the expense transfer into 2016/17, was $830,000 higher.

Overarching Purpose Statement#

The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making Housing New Zealand Corporation stock available to social housing providers.

Scope of Appropriation#

Departmental Output Expenses

Implementation of the Social Housing Reform Programme
This category is limited to the policy, operational, and transactional work to implement the Government's reform of social housing.

Non-Departmental Output Expenses

Direct Sale Costs for Implementing the Social Housing Reform Programme
This category is limited to direct sales costs of implementing the Government's reform of social housing.

Expenses, Revenue and Capital Expenditure#

	2015/16		2016/17
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	17,825	16,644	11,460
Departmental Output Expenses
Implementation of the Social Housing Reform Programme	10,925	9,744	7,860
Non-Departmental Output Expenses
Direct Sale Costs for Implementing the Social Housing Reform Programme	6,900	6,900	3,600
Funding for Departmental Output Expenses
Revenue from the Crown	10,875	10,875	7,858
Implementation of the Social Housing Reform Programme	10,875	10,875	7,858
Revenue from Others	50	50	2
Implementation of the Social Housing Reform Programme	50	50	2

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the development of a variety of social housing in New Zealand and grow the community housing sector by making the Housing New Zealand Corporation stock available to social providers.

How Performance will be Assessed for this Appropriation#

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Social Housing Reform
The social housing reform programme is developed to allow the progress of transactions.	Achieved	Achieved	Achieved

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

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2015/16		2016/17
Departmental Output Expenses
Implementation of the Social Housing Reform Programme
This category is intended to achieve policy development and operational support for the Government's reform of social housing.
Develop policies and prepare legal documentation in light of progress with the social housing reform programme, including initial transactions.	Achieved	Achieved	Achieved
Develop policies, commercial structures and standard form contractual documentation to support the social housing reform programme and the development of the community housing sector through transactions.	N/A	N/A	Achieved
Non-Departmental Output Expenses
Direct Sale Costs for Implementing the Social Housing Reform Programme
This category is intended to achieve the Cabinet-mandated transactions under the Government's reform of social housing.
Progress Cabinet-mandated transactions as scheduled.	Achieved	Achieved	Achieved
Reach contractual close of the transactions in Tauranga and Invercargill in 2016/17.	N/A	N/A	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Treasury in its 2016/17 Annual Report.

Reasons for Change in Appropriation#

The decrease in this appropriation for 2016/17 is due to one-off policy set-up and establishment costs in 2015/16.

Vote Finance - Finance and Government Administration Sector - Estimates 2016/2017

Formats and related files

Overview of the Vote#

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Departmental Output Expenses

Administration of Crown Borrowing, Securities, Derivative Transactions and Investment PLA (M31)

Administration of Guarantees and Indemnities Given by the Crown PLA (M31)

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers (M65)

Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84)

Policy Advice - Finance (M31)

Provision of Financial Operations Services and Operational Advice (M31)

Shared Support Services (M31)

Total Departmental Output Expenses

Departmental Capital Expenditure

The Treasury - Capital Expenditure PLA (M31)

Total Departmental Capital Expenditure

Non-Departmental Output Expenses

Management of Anchor Projects by Otakaro Limited (M85)

Management of the Crown's Obligations for Geothermal Wells (M31)

Management of the New Zealand Superannuation Fund (M31)

Tamaki Regeneration (M31)

Total Non-Departmental Output Expenses

Non-Departmental Borrowing Expenses

Debt Servicing PLA (M31)

Total Non-Departmental Borrowing Expenses

Non-Departmental Other Expenses

Crown Residual Liabilities (M31)

Geothermal Wells Fund (M31)

Government Superannuation Appeals Board (M31)

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)

Government Superannuation Fund Unfunded Liability PLA (M31)

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)

Review and Reform of Local Government Infrastructure Arrangements (M31)

Unclaimed Money PLA (M31)

Unclaimed Trust Money PLA (M31)

Unwind of Discount Rate Used in the Present Value Calculation of Payment for Shares in International Financial Institutions PLA (M31)

Unwind of Discount Rate Used in the Present Value Calculation of Payment Under Crown Deed of Support with Southern Response Earthquake Services Ltd (M31)

Auckland Council Loans: Loss on Early Repayment (M31)

Government Inquiry into Foreign Trust Disclosure Rules (M31)

Impairment of Investment in Southern Response Earthquake Services Ltd (M31)

Solid Energy New Zealand Limited - Payments for Environmental Rehabilitation PLA (M31)

Write-Off of Historical Investment in Solid Energy (M31)

Total Non-Departmental Other Expenses

Non-Departmental Capital Expenditure

International Financial Institutions PLA (M31)

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M31)

Crown Asset Management Limited - Acquisition of Residual Assets (M31)

Otakaro Limited Equity Injection (M85)

Southern Response Earthquake Services Ltd: Equity Investment (M31)

Transfer of Housing New Zealand Corporation's Tamaki Housing Stock to Tamaki Redevelopment Company (M31)

Total Non-Departmental Capital Expenditure

Multi-Category Expenses and Capital Expenditure

Greater Christchurch Anchor Projects MCA (M85)

Non-Departmental Other Expenses

Christchurch Bus Interchange and Associated Transport Infrastructure - Operating

Christchurch Convention Centre - Operating

Earthquake Memorial - Operating

Metro Sports Facility - Operating

Pre-Development Holding Costs - Operating

Public Space - Operating

Christchurch Bus Interchange and Associated Transport Infrastructure - contributions from third parties

Christchurch Stadium - contributions from third parties

Christchurch Stadium - Operating

Financial Impact of Valuations

Leasing Anchor Project Land

Metro Sports Facility - contributions from third parties

Procurement of Land and Assets - Operating

Public Space - contributions from third parties

Sale of Land

The Square - contributions from third parties

Non-Departmental Capital Expenditure

Christchurch Convention Centre - Capital

Earthquake Memorial - Capital

Public Space - Capital

Christchurch Bus Interchange and Associated Transport Infrastructure - Capital

Land and Asset Acquisition - Capital

Metro Sports Facility - Capital

Inquiries and Research into Productivity-Related Matters MCA (M31)

Non-Departmental Output Expenses