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
| 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 MattersThis 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 MattersThis 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
|
5,028 | - | 5,028 | Providers annual report | Ongoing |
| Non-Government Organisations | |||||
King Sturge International Property Consultants, London
|
1,000 | - | 1,000 | Not required | Ongoing |
Aurecon Limited and other providers
|
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
| 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 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
| 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
| 2012/13 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 16,600 | 16,600 |
Expected Results
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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.