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Vote chapter

Vote Finance - Supplementary Estimates 2012/13

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Science and Innovation (M84)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Details of Appropriations

Details of Annual and Permanent Appropriations

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

Departmental Output Expenses

     

Administration of Crown Borrowing PLA (M31)

This appropriation is limited to expenses incurred in connection with administering borrowing by the Crown, as authorised by section 61(1) of the Public Finance Act 1989.
5,010 128 5,138

Administration of Derivative Transactions PLA (M31)

This appropriation is limited to expenses incurred in connection with administering derivative transactions of the Crown, as authorised by section 65H(2) of the Public Finance Act 1989.
1,126 - 1,126

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.
1,069 482 1,551

Administration of Investment of Public Money PLA (M31)

This appropriation is limited to expenses incurred in connection with administering the investment of public money, as authorised by section 65J(1) of the Public Finance Act 1989.
772 - 772

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.
4,617 (545) 4,072

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.
757 (321) 436

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.
35,291 (1,497) 33,794

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.
19,335 8,521 27,856

Provision of Financial Services to the New Zealand Local Government Funding Agency RDA (M31)

This appropriation is limited to expenses incurred in connection with the provision of financial services on a commercial basis to the New Zealand Local Government Funding Agency (LGFA).
465 (300) 165

Shared Support Services (M31)

This appropriation is limited to provision of support services to other agencies.
8,000 - 8,000

Total Departmental Output Expenses

76,442 6,468 82,910

Non-Departmental Output Expenses

     

Inquiries and Research into Productivity Related Matters MCOA (M31)

5,028 - 5,028
Inquiries into Productivity - Related Matters
This output class is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
4,525 - 4,525
Research into and Promotion of Productivity - Related Matters
This output class 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.
503 - 503

Management of New Zealand House, London (M31)

This appropriation is limited to the property management services in respect of New Zealand House, London.
1,000 - 1,000

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.
151 316 467

Management of the New Zealand Superannuation Fund (M31)

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.
528 - 528

Total Non-Departmental Output Expenses

6,707 316 7,023

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.
3,689,533 (75,234) 3,614,299

Total Non-Departmental Borrowing Expenses

3,689,533 (75,234) 3,614,299

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.
230 - 230

EQC Apportioned and Unclaimed Damage Expense (M31)

This appropriation is limited to enabling EQC to meet claimants' damage that has been apportioned to events for which they have not made a valid claim.
- 16,600 16,600

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.
500 (200) 300

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

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 Act 1956.
24,599 - 24,599

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 Act 1956.
673,284 (33,779) 639,505

Impairment of Loans to Taitokerau Forest Limited (M31)

This appropriation is limited to the expense incurred on the impairment of new loans to Taitokerau Forests Limited.
800 - 800

Landcorp Protected Land Agreement - Operating (M31)

This appropriation is limited to providing for operating costs incurred under the Landcorp Protected Land Agreement.
- 20,464 20,464

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.
37,000 (13,000) 24,000

New Zealand House, London (M31)

This appropriation is limited to the operational costs of New Zealand House, London.
15,450 (2,450) 13,000

Payments in respect of Guarantees and Indemnities PLA (M31)

This appropriation is limited to payments by the Crown under a guarantee or indemnity given under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.
- 4 4

Taitokerau Forests Limited Grant (M31)

This appropriation is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.
200 - 200

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 - 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 under Crown Deed of Support with AMI (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.
30,000 (16,322) 13,678

Total Non-Departmental Other Expenses

782,613 (28,683) 753,930

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.
1,900 2,754 4,654

Total Departmental Capital Expenditure

1,900 2,754 4,654

Non-Departmental Capital Expenditure

     

Crown Asset Management Limited (CAML) Equity Injection (M31)

This appropriation is limited to the capital injection for CAML to purchase and manage assets of receiverships under the Deposit Guarantee Scheme and other residual Crown assets.
- 397,941 397,941

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.
220,000 (172,567) 47,433

Landcorp Protected Land Agreement (M31)

Purchase (including by reinvesting cash dividends) of redeemable preference shares in Landcorp under the Protected Land Agreement.
2,000 (2,000) -

Landcorp Protected Land Agreement - Capital (M31)

This appropriation is limited to providing for capital investments incurred under the Landcorp Protected Land Agreement.
- 8,000 8,000

New Zealand House, London, capital (M31)

This appropriation is limited to capital expenditure in relation to New Zealand House, London.
750 - 750

Solid Energy New Zealand Limited Funding (M31)

This appropriation is limited to provision of a loan (secured or unsecured) to, or purchase of assets from, Solid Energy New Zealand Limited.
- 50,000 50,000

Taitokerau Forests (M31)

This appropriation is limited to the provision of loans to Taitokerau Forests Ltd for forest management and development.
800 750 1,550

Total Non-Departmental Capital Expenditure

223,550 282,124 505,674

Total Annual and Permanent Appropriations

4,780,745 187,745 4,968,490

Details of Multi-Year Appropriations

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

Departmental Output Expenses

   

Implementation of Mixed Ownership Model (M31) (M31)

This appropriation is limited to the policy, operational, and transactional work to implement the Mixed Ownership Model.

Commences: 15 December 2011

Expires: 30 June 2015

Original Appropriation 46,802
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 46,802
Actual to 2011/12 Year End 6,639
Estimated Actual for 2012/13 23,850
Estimated Actual for 2013/14 15,313
Estimated Appropriation Remaining 1,000

Non-Departmental Other Expenses

   

Direct Sale costs for Implementing the Mixed Ownership Model (M31) (M31)

This appropriation is limited to the direct sales costs of implementing the Mixed Ownership Model.

Commences: 15 December 2011

Expires: 30 June 2015

Original Appropriation 56,000
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 56,000
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 18,150
Estimated Actual for 2013/14 33,850
Estimated Appropriation Remaining 4,000

Loyalty Bonus Scheme Related to Initial Public Offers (M31) (M31)

This appropriation is limited to expenses incurred by allocating shares under a loyalty bonus scheme to eligible investors in initial public offers.

Commences: 1 March 2013

Expires: 30 June 2016

Original Appropriation 40,000
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 40,000
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 40,000
Estimated Actual for 2013/14 -
Estimated Appropriation Remaining -

Details of Projected Movements in Departmental
Net Assets

The Treasury

The Treasury - Details of Projected Movements in Departmental Net Assets - Finance
Details of Net Asset Schedule 2012/13
Main Estimates Projections
$000
2012/13
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2012/13
Opening Balance 8,957 8,957 Supplementary Estimates opening balance reflects the audited results as at 30 June 2012.
Capital Injections - -  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

8,957 8,957  

Information Supporting the Supplementary Estimates Vote Finance

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Finance (M31), Minister for State Owned Enterprises (M65), Minister of Science and Innovation (M84)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Part 1 - Summary of the Vote

Part 1.3 - Trends in the Vote

Summary of Financial Activity

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

Appropriations

         
Output Expenses 98,149 15,318 316 15,634 113,783
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses 3,689,533 - (75,234) (75,234) 3,614,299
Other Expenses 808,613 - 3,467 3,467 812,080
Capital Expenditure 225,450 2,754 282,124 284,878 510,328
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

4,821,745 18,072 210,673 228,745 5,050,490

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 3,236,679 N/A 75,970 75,970 3,312,649
Capital Receipts 1,607 N/A 121,315 121,315 122,922

Total Crown Revenue and Capital Receipts

3,238,286 N/A 197,285 197,285 3,435,571

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Administration of Crown Borrowing PLA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering borrowing by the Crown, as authorised by section 61(1) of the Public Finance Act 1989.

Expenses and Revenue

Expenses and Revenue - Administration of Crown Borrowing PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,010 128 5,138
Revenue from Crown 5,009 128 5,137
Revenue from Other 1 - 1

Reasons for Change in Appropriation

The increase reflects forecast changes in the implementation of inflation indexed bonds and routine replacement of Debt Management Office information technology.

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

Expenses and Revenue - Administration of Guarantees and Indemnities given by the Crown PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 1,069 482 1,551
Revenue from Crown 1,069 482 1,551
Revenue from Other - - -

Reasons for Change in Appropriation

The increase is due to the negotiation of asset transfers and litigation costs.

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

Expenses and Revenue - Crown Company Monitoring Advice to the Minister for StateOwned Enterprises and Other Responsible Ministers (M65) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 4,617 (545) 4,072
Revenue from Crown 4,617 (545) 4,072
Revenue from Other - - -

Reasons for Change in Appropriation

A realignment of work priorities has resulted in a reduction in resourcing. This is partially offset by additional funding for the monitoring of Accident Compensation Corporation and Housing New Zealand Corporation from 1 December 2012.

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

Expenses and Revenue - Crown Company Monitoring Advice to the Minister of Science and Innovation and the Minister for Economic Development (M84) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 757 (321) 436
Revenue from Crown 757 (321) 436
Revenue from Other - - -

Reasons for Change in Appropriation

A realignment of work priorities has resulted in a reduction in resourcing, partially offset by transfers from 2011/12 to 2012/13.

Implementation of Mixed Ownership Model (M31)

Scope of Appropriation and Expenses

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

Departmental Output Expenses

   

Implementation of Mixed Ownership Model (M31)

This appropriation is limited to the policy, operational, and transactional work to implement the Mixed Ownership Model.

Commences: 15 December 2011

Expires: 30 June 2015

Original Appropriation 46,802
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 46,802
Actual to 2011/12 Year End 6,639
Estimated Actual for 2012/13 23,850
Estimated Actual for 2013/14 15,313
Estimated Appropriation Remaining 1,000

Revenue

Revenue - Implementation of Mixed Ownership Model (M31) - Finance
  Budget
$000
Revenue from the Crown to end of 2013/14 45,628
Revenue from Others to end of 2013/14 174
Total Revenue 45,802

Reasons for Change in Appropriation

A $30 million Multi Year Appropriation (MYA) was established in December 2011 for expenses incurred to implement the Mixed Ownership Model. Since then, $2.802 million has been transferred into this MYA from the Departmental Output Expense: Extending the Mixed Ownership Model and $14 million from the Non-Departmental Expense: Direct Sale Costs of Implementing the Mixed Ownership Model.

Output Performance Measures and Standards

Output Performance Measures and Standards - Implementation of Mixed Ownership Model (M31) - Finance
  2012/13
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Advice to Government regarding the implementation of the mixed ownership model complies with the same quality standards agreed for treasury policy advice (refer conditions of Use in the Policy Advice - Finance appropriation) N/A Achieved Achieved

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

Expenses and Revenue - Policy Advice Finance (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 35,291 (1,497) 33,794
Revenue from Crown 35,279 (1,497) 33,782
Revenue from Other 12 - 12

Reasons for Change in Appropriation

The decrease is due to a realignment of work priorities resulting in a reduction in resourcing and a one-off contribution of $700,000 to the Department of the Prime Minister and Cabinet for costs for corporate services, partially offset by transfers and retention of under-spends from 2011/12 to 2013/14.

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

Expenses and Revenue - Provision of Financial Operations Services and Operational Advice (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 19,335 8,521 27,856
Revenue from Crown 19,334 5,779 25,113
Revenue from Other 1 2,742 2,743

Reasons for Change in Appropriation

The increase is attributable to $2.742 million for one-off cost-recoverable activities, $750,000 for the Optimise Finance initiative, $5.029 million in transfers due to a realignment of work priorities, and transfers from 2011/12 to 2012/13.

Provision of Financial Services to the New Zealand Local Government Funding Agency RDA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with the provision of financial services on a commercial basis to the New Zealand Local Government Funding Agency (LGFA).

Expenses and Revenue

Expenses and Revenue - Provision of Financial Services to the New Zealand Local Government Funding Agency RDA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 465 (300) 165
Revenue from Crown - - -
Revenue from Other 465 (300) 165

Reasons for Change in Appropriation

Costs associated with supporting the Local Government Funding Agency will be lower than anticipated at set-up stage.

Part 2.2 - Non-Departmental Output Expenses

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

Expenses - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 151 316 467

Reasons for Change in Appropriation

The increase in 2012/13 reflects an expense transfer from 2011/12 of $116,000 for remedial work on redundant geothermal assets at Wairakei, and a $200,000 transfer from Geothermal Wells Fund to cover additional costs in 2012/13.

Summary of Service Providers for Non-Departmental Outputs

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Finance
  2012/13    
Provider Estimates
$000
Supplementary
Estimates
$000
Total
$000
Reporting
Mechanism
Expiry of
Resourcing
Commitment
Crown Entities          
The Guardians of New Zealand Superannuation 528 - 528 Providers annual report Ongoing
The New Zealand Productivity Commission
  • MCOA: Inquiries and Research into Productivity - Related Matters
5,028 - 5,028 Providers annual report Ongoing
Non-Government Organisations          
King Sturge International Property Consultants, London
  • Management of New Zealand House, London
1,000 - 1,000 Not required Ongoing
Aurecon Limited and other providers
  • Management of the Crown's Obligations for Geothermal Wells
151 316 467 Not required Ongoing

The above table summarises funding to be allocated through Vote Finance to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 4 - Details for Borrowing Expenses

Part 4.2 - 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

Expenses - Debt Servicing PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 3,689,533 (75,234) 3,614,299

Reasons for Change in Appropriation

The change reflects forecast interest rate movements and the amount of debt outstanding.

Part 5 - Details and Expected Results for Other Expenses

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: A more efficient and effective State sector.
Impact: The Crown's balance sheet is managed efficiently and effectively.
EQC Apportioned and Unclaimed Damage Expense
Landcorp Protected Land Agreement - Operating
Loyalty Bonus Scheme Related to Initial Public Offers

Direct Sale costs for Implementing the Mixed Ownership Model (M31)

Scope of Appropriation and Expenses

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

Non-Departmental Other Expenses

   

Direct Sale costs for Implementing the Mixed Ownership Model (M31)

This appropriation is limited to the direct sales costs of implementing the Mixed Ownership Model.

Commences: 15 December 2011

Expires: 30 June 2015

Original Appropriation 56,000
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 56,000
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 18,150
Estimated Actual for 2013/14 33,850
Estimated Appropriation Remaining 4,000

Reasons for Change in Appropriation

Direct Sale costs of Implementing Mixed Ownership Model was adjusted to align with the timing of partial asset sales.

EQC Apportioned and Unclaimed Damage Expense (M31)

Scope of Appropriation

This appropriation is limited to enabling EQC to meet claimants' damage that has been apportioned to events for which they have not made a valid claim.

Expenses

Expenses - EQC Apportioned and Unclaimed Damage Expense (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 16,600 16,600

Expected Results

Expected Results - EQC Apportioned and Unclaimed Damage Expense (M31) - Finance
  2012/13
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Upon receipt of invoices, payments made to EQC are accurate, timely, and in accordance with the agreed policy. - Met Met

 

Reasons for Change in Appropriation

A new non-departmental other expenses appropriation was set up in December 2012 to enable Earthquake Commission to pay for damage to insured property that normally falls outside of the criteria for compensation.

 

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

Expenses - Geothermal Wells Fund (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 500 (200) 300

Reasons for Change in Appropriation

A fiscally neutral transfer of $200,000 was made to cover additional costs incurred for the Management of the Crown's Obligations for Geothermal Wells.

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 Act 1956.

Expenses

Expenses - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 673,284 (33,779) 639,505

Reasons for Change in Appropriation

The Government Superannuation Fund Unfunded Liability was reduced as a result of 28 February 2013 Government Superannuation Fund revaluation.

Landcorp Protected Land Agreement - Operating (M31)

Scope of Appropriation

This appropriation is limited to providing for operating costs incurred under the Landcorp Protected Land Agreement.

Expenses

Expenses - Landcorp Protected Land Agreement Operating (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 20,464 20,464

Reasons for Change in Appropriation

This is a new appropriation to provide for operating expenditure under the Landcorp Protected Land Agreement. Recognition and settlement of operating costs includes interest, management fees and accumulated losses.

Expected Results

Expected Results - Landcorp Protected Land Agreement Operating (M31) - Finance
  2012/13
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Payments for capital are made to Landcorp Farming Limited are made in accordance with the agreement. - - Met

 

 

Loyalty Bonus Scheme Related to Initial Public Offers (M31)

Scope of Appropriation and Expenses

Multi-Year Appropriations - Finance
Type, Title, Scope and Period of Appropriations Appropriation, 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: 1 March 2013

Expires: 30 June 2016

Original Appropriation 40,000
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 40,000
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 40,000
Estimated Actual for 2013/14 -
Estimated Appropriation Remaining -

Reasons for Change in Appropriation

This new appropriation was established to cover the costs of running a Loyalty Bonus Share Issue from the Mighty River Power Initial Public Offer.

Expected Results

Expected Results - Loyalty Bonus Scheme Related to Initial Public Offers (M31) - Finance
  2012/13
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Recognition of the obligations in the Financial Statements of the Government of issuing loyalty bonus shares for Mighty River Power. - Met Met

 

 

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

Expenses - National Provident Fund Schemes Liability Under Crown Guarantee PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 37,000 (13,000) 24,000

Reasons for Change in Appropriation

This reduction reflects the updated forecast interest cost in relation to the National Provident Fund liability.

New Zealand House, London (M31)

Scope of Appropriation

This appropriation is limited to the operational costs of New Zealand House, London.

Expenses

Expenses - New Zealand House, London (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 15,450 (2,450) 13,000

Reasons for Change in Appropriation

The reduction reflects decreased depreciation expense due to a downward revaluation of property, plant and equipment at New Zealand House in London.

Payments in respect of Guarantees and Indemnities PLA (M31)

Scope of Appropriation

This appropriation is limited to payments by the Crown under a guarantee or indemnity given under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.

Expenses

Expenses - Payments in respect of Guarantees and Indemnities PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 4 4

Reasons for Change in Appropriation

One-off amount for the tax component of a deposit guarantee payment.

Unwind of Discount Rate used in the Present Value Calculation of Payment under Crown Deed of Support with AMI (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

Expenses - Unwind of Discount Rate used in the Present Value Calculation of Payment under Crown Deed of Support with AMI (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 30,000 (16,322) 13,678

Reasons for Change in Appropriation

This reduction is due to the revaluation of the Crown Deed of Support over a ten-year period.

Reporting Mechanisms

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Crown Residual Liabilities Not required
EQC Apportioned and Unclaimed Damage Expense Annual report of Earthquake Commission
Direct Sale Costs for Implementing Mixed Ownership Model Not required
Geothermal Wells Fund Not required
Government Superannuation Appeals Board Not required
Government Superannuation Fund - Crown's Share of Expenses PLA Annual report of the Government Superannuation Fund Authority
Government Superannuation Fund Unfunded Liability PLA Not required
Impairment of Loans to Taitokerau Forests Limited Not required
Landcorp Protected Land Agreement - Operating Annual report of Landcorp Farming Limited
Loyalty Bonus Scheme Related to Initial Public Offers Not required
National Provident Fund Schemes - Liability Under Crown Guarantee PLA Not required
New Zealand House, London Annual Report of the New Zealand Government Property Corporation
Payments in Respect of Guarantees and Indemnities Not required
Taitokerau Forests Limited Grant Not required
Unclaimed Money PLA Not required
Unclaimed Trust Money PLA Not required
Unwind of Discount Rate used in the Present Value Calculation of Payment under Crown deed of Support with AMI Annual report of Southern Earthquake Response Services

The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental other expenses appropriation.

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

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

Capital Expenditure - The Treasury Capital Expenditure PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 912 1,696 2,608
Intangibles 988 1,058 2,046
Other - - -

Total Appropriation

1,900 2,754 4,654

Reasons for Change in Appropriation

The increase is to provide for the establishment of a common information technology platform across the three central agencies.

Part 6.2 - Non-Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: A more efficient and effective State sector.
Impact: The Crown's balance sheet is managed efficiently and effectively.
Landcorp Protected Land Agreement - Capital
Solid Energy New Zealand Limited Funding

Crown Asset Management Limited (CAML) Equity Injection (M31)

Scope of Appropriation

This appropriation is limited to the capital injection for CAML to purchase and manage assets of receiverships under the Deposit Guarantee Scheme and other residual Crown assets.

Capital Expenditure

Capital Expenditure - Crown Asset Management Limited (CAML) Equity Injection (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 397,941 397,941

Reasons for Change in Appropriation

The increase reflects an expense transfer from 2011/12 to 2012/13 to cover the capital injection of residual assets into Crown Asset Management Limited.

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

Capital Expenditure - International Financial Institutions PLA (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 220,000 (172,567) 47,433

Reasons for Change in Appropriation

Forecasts have been aligned to the latest information provided by international financial institutions on anticipated requests for additional capital.

Landcorp Protected Land Agreement (M31)

Scope of Appropriation

Purchase (including by reinvesting cash dividends) of redeemable preference shares in Landcorp under the Protected Land Agreement.

Capital Expenditure

Capital Expenditure - Landcorp Protected Land Agreement (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 2,000 (2,000) -

Reasons for Change in Appropriation

This appropriation has been replaced with a new Landcorp Protected Land Agreement - Capital appropriation.

Landcorp Protected Land Agreement - Capital (M31)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Landcorp Protected Land Agreement Capital (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 8,000 8,000

Reasons for Change in Appropriation

This is a new appropriation to provide for the capital expenditure incurred under the Landcorp Protected Land Agreement.

Expected Results

Expected Results - Landcorp Protected Land Agreement Capital (M31) - Finance
  2012/13
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Payments for capital are made to Landcorp Farming Limited are made in accordance with the agreement. - - Met

 

Solid Energy New Zealand Limited Funding (M31)

Scope of Appropriation

This appropriation is limited to provision of a loan (secured or unsecured) to, or purchase of assets from, Solid Energy New Zealand Limited.

Capital Expenditure

Capital Expenditure - Solid Energy New Zealand Limited Funding (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 50,000 50,000

Reasons for Change in Appropriation

This new appropriation was established to fund operating requirements of Solid Energy New Zealand Limited.

Expected Results

Expected Results - Solid Energy New Zealand Limited Funding (M31) - Finance
  2012/13
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Payments made to Solid Energy are in accordance with agreements negotiated. - Met Met

 

Taitokerau Forests (M31)

Scope of Appropriation

This appropriation is limited to the provision of loans to Taitokerau Forests Ltd for forest management and development.

Capital Expenditure

Capital Expenditure - Taitokerau Forests (M31) - Finance
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 800 750 1,550

Reasons for Change in Appropriation

The timing of draw-downs of Taitokerau Forests Limited loan facility is uncertain. The increase reflects a transfer of $750,000 from 2011/12 to 2012/13 for further draw-downs on the loan agreement.

Reporting Mechanisms

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Crown Asset Management Limited (CAML) Equity Injection Annual Report of Crown Asset Management Limited
International Financial Institutions PLA Not required
Landcorp Protected Land Agreement - Capital Annual Report of Landcorp Farming Limited
New Zealand House, London, Capital Annual report of the New Zealand Government Property Corporation
Solid Energy New Zealand Limited Funding Annual Report of Solid Energy New Zealand Limited
Taitokerau Forests Not required

The above table indicates the mechanisms to be used for reporting actual results for each non-departmental capital expenditure appropriation.