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Vote Transport - Economic Development and Infrastructure - Estimates 2014/2015

APPROPRIATION MINISTER(S): Minister of Transport (M72)

APPROPRIATION ADMINISTRATOR: Ministry of Transport

RESPONSIBLE MINISTER FOR MINISTRY OF TRANSPORT: Minister of Transport

Summary of the Vote

Overview

Vote Transport encompasses the funding of the road, rail, aviation and maritime transport modes. The major entities involved are the Ministry of Transport, the New Zealand Transport Agency and KiwiRail, as well as the other transport Crown entities, the Civil Aviation Authority (incorporating the Aviation Security Service), Maritime New Zealand and the Transport Accident Investigation Commission.

Road

The largest element of the Vote is the funding for roading ($3,873 million or 86% of the total Vote).

This is primarily the funding for the National Land Transport Programme which is funded from road tax revenue collected by the Crown ($2,850 million or 63% of the Vote).

$1,012 million of the balance (22%) relates to loans from the Crown:

  • $750 million for cash flow management. This appropriation does not take account of any repayments made and the facility may not exceed $250 million at any one time
  • $107 million to advance the construction of the Tauranga Eastern Link
  • $100 million to rebuild earthquake damaged roads in Christchurch
  • $55 million for projects in the Auckland Transport Package.
Rail

Funding for Rail makes up 11% of the Vote - $511 million, mainly:

  • $198 million for the KiwiRail Turnaround Plan, the aim of which is put the freight business on a commercially viable footing
  • $192 million for a loan to the Auckland Council to assist with the funding of the Electric Multiple Unit package
  • $90 million for a grant to the Auckland Council to assist with the funding of the Electric Multiple Unit package
  • $16 million for metro rail projects in Wellington.
Crown Entity and Other Funding

The balance of the Vote ($135 million) is mainly split between:

  • $33 million for the Ministry of Transport as departmental funding
  • $25 million for Crown entities for outputs. The transport Crown entities receive most of their funding from third party fees and charges
  • $26 million for SuperGold card public transport concessions
  • $19 million for weather forecasting services from the Meteorological Service of New Zealand
  • $18 million for road user charges and fuel excise duty activities which are funded from fees and road tax revenue.

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

Estimates of Appropriations

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2013/142014/15
Titles and Scopes of Appropriations by Appropriation TypeBudgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

Fuel Excise Duty Refund Administration (M72)

This appropriation is limited to the receipt and processing of applications for, and the refunding of, Fuel Excise Duty.
700700429

Milford Sound / Piopiotahi Aerodrome Operation and Administration (M72)

This appropriation is limited to the operation of Milford Sound/Piopiotahi aerodrome to provide a safe and efficient airport.
278278230

Search and Rescue Activity Coordination PLA (M72)

The estimated amount to be spent on the coordination of search and rescue activities as authorised by section 9(1) of Land Transport Management Act 2003.
1,1361,1361,201

Policy Advice and Related Outputs MCOA (M72)

31,94131,941-
Clifford Bay Ferry Terminal - Facilitation of Procurement
This output class is limited to the facilitation of the procurement of a ferry terminal at Clifford Bay.
650650-
Governance and Performance Advice on Crown Agencies
This output class is limited to monitoring of and advice on the governance, performance and capability of transport Crown agencies.
800800-
Ministerial Servicing
This output class is limited to services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
2,6002,600-
Policy Advice
This output class 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 transport.
27,89127,891-

Total Departmental Output Expenses

34,05534,0551,860

Departmental Capital Expenditure

Ministry of Transport - Capital Expenditure PLA (M72)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Transport, as authorised by section 24(1) of the Public Finance Act 1989.
510510350

Total Departmental Capital Expenditure

510510350

Non-Departmental Output Expenses

Accident or Incident Investigation and Reporting (M72)

This appropriation is limited to inquiries, investigations and activities in accordance with the Transport Accident Investigation Commission Act 1990.
3,8653,8653,865

Construction of Passing Opportunities on State Highway 2 between Napier and Gisborne (M72)

This appropriation is limited to the investigation, design and construction of passing opportunities on State highway 2 between Napier and Gisborne.
3,3503,350500

Crash Analysis (M72)

This appropriation is limited to operating the Crash Analysis System and performing associated crash analysis and research activities.
775775775

Licensing Activities (M72)

This appropriation is limited to land transport licensing services, including driver licensing, not met by user fees.
3,5453,5452,758

Maritime Port Security (M72)

This appropriation is limited to standby screening and searching services at ports.
145145145

Ministerial Servicing by the New Zealand Transport Agency (M72)

This appropriation is limited to Ministerial servicing by the New Zealand Transport Agency.
548548548

National Land Transport Programme PLA (M72)

The estimated amount to be spent on activities under the National Land Transport Programme, as authorised by section 9 (3) and (4) of the Land Transport Management Act 2003.
1,879,7471,879,7471,913,650

Road User Charges Collection (M72)

This appropriation is limited to collecting road user charges.
14,06114,06113,569

Road User Charges Investigation and Enforcement (M72)

This appropriation is limited to investigating evasion and enforcing of Road User Charges.
5,4245,4243,779

Road User Charges Refunds (M72)

This appropriation is limited to the processing of Road User Charge refunds.
450450450

Search and Rescue Activities (M72)

This appropriation is limited to the purchase of search and rescue activities and a search and rescue coordination service, including follow-up inquiries and reporting, associated with the searches and rescues undertaken.
3,3163,3163,316

Search and Rescue and Recreational Boating Safety Activities PLA (M72)

The estimated amount to be spent in relation to search and rescue and recreational boating safety activities, as authorised under Section 9 (1) of the Land Transport Management Act 2003.
5,8735,8736,943

SuperGold Card - Administration of the Public Transport Concessions Scheme (M72)

This appropriation is limited to the administration costs of the scheme to provide enhanced public transport concessions for SuperGold cardholders.
959595

Weather Forecasts and Warnings (M72)

This appropriation is limited to severe-weather warnings and a level of weather forecast services for land, coastal waters and oceanic areas for which New Zealand has international responsibility.
20,01720,01718,574

Policy Advice and Related Outputs - Civil Aviation MCOA (M72)

2,2192,219-
Health and Safety in Employment Activities - Civil Aviation
This output class is limited to health and safety activities, for which there is a designated responsibility.
440440-
International Relations and International Civil Aviation Organisation Obligations
This output class is limited to technical information and advice in relation to international matters affecting New Zealand aviation, to ensure the Minister's obligations in relation to international civil aviation agreements are met, and to promote the development of New Zealand aviation in the international context.
685685-
Ministerial Servicing - Civil Aviation
This output class is limited to services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
431431-
Policy Advice - Civil Aviation
This output class 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 civil aviation.
663663-

Policy Advice and Related Outputs - Maritime MCOA (M72)

7,5877,587-
Health and Safety in Employment Activities - Maritime
This output class is limited to health and safety activities, for which there is a designated responsibility.
954954-
Maritime Incident Response
This output class is limited to building capability to respond to complex maritime pollution incidents.
1,0771,077-
Maritime Safety and Marine Protection Services
This output class is limited to the development and delivery of regulatory services which are the responsibility of Maritime New Zealand under legislation
2,0782,078-
Policy Advice - Maritime
This output class 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 and Ministerial servicing.
3,4783,478-

Reinstatement of Local Roads in Canterbury (M72)

This appropriation is limited to the reinstatement of local roads in Canterbury following the earthquakes as approved by the New Zealand Transport Agency under relevant legislation.
30,80030,800-

Total Non-Departmental Output Expenses

1,981,8171,981,8171,968,967

Non-Departmental Other Expenses

Bad Debt Provision - Motor Vehicle Registration/Licences and Road User Charges (M72)

This appropriation is limited to provision for bad debts that arise from non payment of motor vehicle registrations and road user charges.
4,0004,0004,000

Membership of International Organisations (M72)

This appropriation is limited to non-discretionary payments to international transport related organisations.
573573743

Rail - Auckland Metro Rail Electric Multiple Unit Package (M72)

This appropriation is limited to a grant for the Auckland metro rail electric multiple unit package.
--90,000

Rail - Public Policy Projects (M72)

This appropriation is limited to public policy rail initiatives.
3,2703,2703,270

Rail - Railway Safety (M72)

This appropriation is limited to public safety works.
500500500

SuperGold Card - public transport concessions for cardholders (M72)

This appropriation is limited to providing enhanced public transport concessions for SuperGold cardholders.
23,90523,90525,905

Tauranga Maritime Incident Response (M72)

This appropriation is limited to responding to the MV Rena grounding off Tauranga.
1,6831,683300

Auckland Transport Package - Fair Value Write-down of Loan (M72)

This appropriation is limited to fair value write-down of Crown debt associated with the Auckland Transport Package, in accordance with generally accepted accounting practice.
122,000122,000-

Total Non-Departmental Other Expenses

155,931 155,931124,718

Non-Departmental Capital Expenditure

Auckland Transport Package Loan (M72)

This appropriation is limited to a loan to the New Zealand Transport Agency to accelerate projects in the Auckland Transport Package.
--55,000

Maritime New Zealand (M72)

This appropriation is limited to capital injection to Maritime New Zealand.
1,1001,1005,900

National Land Transport Programme - New Infrastructure for and Renewal of State Highways PLA (M72)

The estimated amount to be spent on capital works for new infrastructure and renewal of State Highways, as authorised by Section 9 (3) and (4) of the Land Transport Management Act 2003.
776,227776,227936,543

National War Memorial Park: Buckle Street Undergrounding Project (M72)

This appropriation is limited to the undergrounding of that part of State Highway 1 necessary for the establishment of the National War Memorial Park in Wellington.
25,00025,00010,000

NLTF Borrowing Facility for Short-Term Advances (M72)

This appropriation is limited to short-term advances to the New Zealand Transport Agency to manage variations between cash outlays from and flows of hypothecated revenue into the National Land Transport Fund, with the maximum amount of such advances at any one time not exceeding $250 million.
750,000160,000750,000

Rail - KiwiRail Turnaround Plan Funding (M72)

This appropriation is limited to approved capital expenditure that contributes to the KiwiRail Turnaround Plan outcomes.
93,84993,849198,000

Rail - Loan for Auckland Metro Rail Electric Multiple Unit Package (M72)

This appropriation is limited to a loan for the Auckland metro rail electric multiple unit package.
138,000138,000192,000

Rail - New Zealand Railways Corporation Loans (M72)

This appropriation is limited to loans to the New Zealand Railways Corporation to fund capital projects and provide working capital.
--10,750

Rail - Wellington Metro Rail Network Upgrade (M72)

The appropriation is limited to catch up investment in the Wellington metro rail network which will enable sustainable operation of the network through the Metro Rail Operating model.
36,14636,14616,343

Roading - Reinstatement of Earthquake Damaged Roads in Christchurch - Loan (M72)

This appropriation is limited to a loan to the New Zealand Transport Agency for the reinstatement of earthquake damaged local roads in Christchurch.
20,00020,000100,000

Tauranga Eastern Link Loan (M72)

This appropriation is limited to the government provision of a loan to the New Zealand Transport Agency to contribute towards the costs of the construction and tolling operations for the Tauranga Eastern Link Roading Project.
--107,000

Aviation Security Service (M72)

This appropriation is limited to meeting the ongoing capital costs of the security measures under international and domestic obligations, including accommodation and IT systems.
200200-

KiwiRail Equity Injection (M72)

This appropriation is limited to increasing Crown equity in the New Zealand Railways Corporation (KiwiRail).
25,00025,000-

Maritime New Zealand - Incident Response (M72)

This appropriation is limited to investment in capability to respond to complex maritime pollution incidents.
100100-

Maritime New Zealand Capital Expenditure PLA (M72)

The estimated amount to be spent in relation to Maritime New Zealand costs, as authorised by Section 9 (1) of the Land Transport Management Act 2003.
381381-

NLTF Borrowing Facility for a Short-Term Advance in 2012/2013 (M72)

This appropriation is limited to a short-term advance to the New Zealand Transport Agency to manage variations between cash outlays from, and flows of hypothecated revenue into, the National Land Transport Fund.
100,000100,000-

Total Non-Departmental Capital Expenditure

1,966,003 1,376,003 2,381,536

Multi-Category Expenses and Capital Expenditure

Policy Advice and Related Outputs MCA (M72)

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
--30,843
Departmental Output Expenses
Governance and Performance Advice on Crown Agencies
This category is limited to monitoring of and advice on the governance, performance and capability of transport Crown agencies.
--900
Ministerial Servicing
This category is limited to services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
--2,600
Policy Advice
This category 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 transport.
--27,343

Policy Advice and Related Outputs - Civil Aviation MCA (M72)

The overarching purpose of this appropriation is to regulate civil aviation and enhance aviation safety in New Zealand.
--2,219
Non-Departmental Output Expenses
Health and Safety in Employment Activities - Civil Aviation
This category is limited to health and safety activities, for which there is a designated responsibility.
--440
International Relations and International Civil Aviation Organisation Obligations
This category is limited to technical information and advice in relation to international matters affecting New Zealand aviation, to ensure the Minister's obligations in relation to international civil aviation agreements are met, and to promote the development of New Zealand aviation in the international context.
--685
Ministerial Servicing - Civil Aviation
This category is limited to services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
--431
Policy Advice - Civil Aviation
This category 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 civil aviation.
--663

Policy Advice and Related Outputs - Maritime MCA (M72)

The overarching purpose of this appropriation is to regulate and enhance safety in New Zealand's maritime environment.
--7,708
Non-Departmental Output Expenses
Health and Safety in Employment Activities - Maritime
This category is limited to health and safety activities, for which there is a designated responsibility.
--954
Maritime Incident Response
This category is limited to building capability to respond to complex maritime pollution incidents.
--1,198
Maritime Safety and Marine Protection Services
This category is limited to the development and delivery of regulatory services which are the responsibility of Maritime New Zealand under legislation
--2,078
Policy Advice - Maritime
This category 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 and Ministerial servicing.
--3,478

Total Multi-Category Expenses and Capital Expenditure

--40,770

Total Annual and Permanent Appropriations

4,138,316 3,548,316 4,518,201

Multi-Year Appropriations

Type, Title, Scope and Period of AppropriationsAppropriation, Adjustments and Use$000

Non-Departmental Other Expenses

Auckland Rail Development (M72)

This appropriation is limited to the renewal, upgrade, and electrification of the Auckland metropolitan rail network.

Commences: 01 July 2009

Expires: 30 June 2014

Original Appropriation663,875
Adjustments for 2012/13(278)
Adjustments to 2013/14 26,000
Adjusted Appropriation689,597
Actual to 2012/13 Year End625,619
Estimated Actual for 2013/1463,978
Estimated Actual for 2014/15-
Estimated Appropriation Remaining-

Non-Departmental Capital Expenditure

Joint Venture Airports - Crown Contribution (M72)

This appropriation is limited to enhancements to joint venture airport terminals and runways and the Crown's share of operating losses.

Commences: 01 July 2011

Expires: 30 June 2015

Original Appropriation2,000
Adjustments for 2012/13101
Adjustments to 2013/14 -
Adjusted Appropriation2,101
Actual to 2012/13 Year End551
Estimated Actual for 2013/141,050
Estimated Actual for 2014/15500
Estimated Appropriation Remaining-

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy InitiativeAppropriation2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Auckland Transport PackageAuckland Transport Package - Fair Value Write Down of Loan122,000----
Auckland Transport PackageAuckland Transport Package - Loan-55,00090,00065,00065,000
KiwiRail Turnaround PlanRail - KiwiRail Turnaround Plan Funding-198,000---
Maritime New Zealand - Information Technology SystemMaritime New Zealand-2,900---

Total

122,000255,90090,00065,00065,000

1.2 - Trends in the Vote

Summary of Financial Activity

2009/102010/112011/122012/132013/142014/152015/162016/172017/18
Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 Expenses1,982,6361,815,1701,898,1591,900,5921,974,1251,974,1251,8601,968,9671,970,8272,067,4712,132,5152,201,048
Benefits or Related Expenses------N/A-----
Borrowing Expenses------------
Other Expenses356,257413,936362,260180,845219,909219,909-124,718124,71826,41826,41826,418
Capital Expenditure1,078,5941,183,6811,367,8421,544,5661,967,5631,377,5633502,382,0362,382,3861,965,3141,927,8921,960,128
Intelligence and Security Department Expenses and Capital Expenditure-------N/A----
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses
39,64941,26440,07037,33541,74741,74730,8439,92740,77040,30539,57239,572
Other Expenses
------------
Capital Expenditure
------N/A-----

Total Appropriations

3,457,1363,454,0513,668,3313,663,3384,203,3443,613,34433,0534,485,6484,518,7014,099,5084,126,3974,227,166

Crown Revenue and Capital Receipts

Tax Revenue1,048,6801,151,6721,184,1611,203,7851,309,6301,309,630N/A1,419,3561,419,3561,521,0351,581,8281,632,621
Non-Tax Revenue75,82776,07476,46721,81748,17148,171N/A21,18321,18321,52921,71021,884
Capital Receipts------N/A-----

Total Crown Revenue and Capital Receipts

1,124,5071,227,7461,260,6281,225,6021,357,8011,357,801N/A1,440,5391,440,5391,542,5641,603,5381,654,505

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.

Adjustments to the Summary of Financial Activity table due to Vote Restructuring

2009/10
Adjustments
$000
2010/11
Adjustments
$000
2011/12
Adjustments
$000
2012/13
Adjustments
$000
2013/14
Budgeted
Adjustments
$000
2013/14
Estimated
Actual
Adjustments
$000

Appropriations

Output Expenses(39,649)(41,264)(40,070)(37,335)(41,747)(41,747)
Benefits or Related Expenses------
Borrowing Expenses------
Other Expenses------
Capital Expenditure------
Intelligence and Security Department Expenses and Capital Expenditure------
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses39,64941,26440,07037,33541,74741,747
Other Expenses------
Capital Expenditure------

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

Tax Revenue------
Non-Tax Revenue------
Capital Receipts------

Total Crown Revenue and Capital Receipts

------

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure. Appropriations that were multi-class output appropriations in 2013/14 are now multi-category appropriations.

1.3 - Analysis of Significant Trends

Analysis of Significant Trends

Significant trends in Vote Transport are discussed briefly below. In all of the tables, the 2009/10 to 2012/13 figures are actual and the other years are forecasts.

Tax Revenue

Road tax revenue is hypothecated by legislation to the National Land Transport Fund, the majority of which pays for the national roading network, as detailed in the National Land Transport Programme (NLTP). In 2014/15, the Crown is forecast to collect $3,165 million of road tax revenue.

There are three types of road tax revenue:

  • Fuel excise duty paid on fuel by the importer.
  • Road user charges paid by owners of diesel vehicles.
  • Motor vehicle registration fees paid by owners of most vehicles.

The first is collected by the New Zealand Customs Service and the others by the New Zealand Transport Agency.

The majority of the revenue is spent within Vote Transport with some in Vote Police for Road Policing activities ($297 million in 2014/15). Road tax revenue is forecast at least twice a year and the funding to the NLTP is adjusted upwards or downwards in line with revenue.

Revenue Trends

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m
Road user charges (net)9101,0161,0451,0661,1621,2681,3661,4241,473
Motor vehicle registration (net)171172175174185195202208212
Fuel excise duty refunds(32)(36)(36)(36)(38)(44)(47)(50)(53)

Vote Transport tax revenue

1,0491,1521,1841,2041,3091,4191,5211,5821,632
Fuel excise duty1,4701,4831,5141,5651,6321,7461,8601,9191,970

Total road tax revenue

2,5192,6352,6982,7692,9413,1653,3813,5013,602

The economic downturn continues to affect the revenue stream. Road user charges and fuel excise duty rates were increased in 2009, 2010, 2012 and 2013. The forecasts for outyears include agreed increases to petrol excise duty of 3 cents per litre on 1 July 2014 and 1 July 2015, and the equivalent for road user charges. Forecasts for 2016/17 and outyears assume increases equivalent to the Consumer Price Index on 1 July each year.

The road tax revenue is hypothecated to the National Land Transport Fund and therefore can be approved pursuant to a permanent legislative authority. For transparency, the expenditure proposed is shown in the Estimates although no appropriation is required. This disclosure provides a transparent view of the government's books as the road tax revenue is matched by equal expenditure. If the expenditure was not shown, the revenue would create an apparent surplus.

Appropriations by Purpose within Vote Transport

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m
National Land Transport Programme PLAs2,3922,4132,3692,4262,6562,8503,0653,1863,287
Loans from the Crown for roading-1101701208701,012903815815
Other funding from the Crown for roading projects10468524118111---
Rail798692877955361511877
Crown entities273021232731282323
Other8688130687471626262
Departmental funding505349303433333333

Total appropriations

3,4573,4543,6683,6634,2034,5194,0994,1264,227

The figures shown by type of appropriation in the Summary of Financial Activity table have been reanalysed by purpose, to allow for a more meaningful and straightforward explanation of the trends.

The funding by each purpose is explained in more detail below.

National Land Transport Programme (NLTP)

The key document which explains the current policy on land transport funding is the Government Policy Statement on Land Transport Funding. The current document relates to years 2012/13 to 2021/22 and came into force on 1 July 2012. This is a statutory document and a requirement of the Land Transport Management Act 2003. The Policy Statement sets out the Government's priorities for land transport, and sets ranges of expenditure on defined activities. From this, the New Zealand Transport Agency in conjunction with regional local bodies develops the three year NLTP to action these policy intentions. The current NLTP is for the years 2012/13 to 2014/15.

There are two permanent legislative authority appropriations (PLAs) for the NLTP - one operating and one capital in nature. The other sections of this document provide more detail on expenditure by the different activity classes.

In addition to the permanent legislative authority funding, there are some Crown appropriations for specific purposes.

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m

Appropriated under PLA

Operating1,7791,6961,7431,8191,8801,9142,0112,0762,145
Capital6137176266077769361,0541,1101,142

Sub total

2,3922,4132,3692,4262,6562,8503,0653,1863,287

Crown appropriations

Capital - cash flow management loan-110170120850750750750750
Capital - project loan----202621536565
Other10468524118111---

Sub total

1041782221611,0511,023903815815

Total appropriations

2,4962,5912,5912,5873,7073,8733,9684,0014,102

Permanent Legislative Authority Funding

The New Zealand Transport Agency balances the funding available between the operating and capital appropriations to deliver the NLTP. The Agency uses the capital appropriation to fund the delivery of new State highways, which includes the Roads of National Significance programme. For transparency, the Agency manages the funding by allocating sufficient funding to the operating appropriation to deliver the activities planned. Any shortfall is reflected in the capital appropriation and is managed using the loan facilities detailed below.

Crown Appropriations - Loans for the Management of a Three Year NLTP within the Annual Government Budget Cycle

The NLTP is a three-year programme, with the New Zealand Transport Agency Board required to approve funding for activity over multiple years. Variations in project timing, cost overruns and fluctuations in revenue may result in expenditure in a particular year exceeding the available funds, despite being within the expected range over the three years. Such negative cash flow variations may require adjustments to the land transport programme in the short to medium term.

This has been addressed by approving a borrowing facility to manage short-term cash flow variations between hypothecated revenue inflows and expenditure outflows. The facility allows the New Zealand Transport Agency greater flexibility and efficiency in managing the timing of any required adjustments to the programme. It has two components:

  • up to $150 million, for the purpose of managing regular seasonal cash flow cycles (to be repaid during the off-season, when revenue inflows exceed expenditure), and
  • up to $100 million, for the purpose of managing unexpected and unavoidable cash flow variations.

The New Zealand Transport Agency is in charge of managing the facility and it draws down the loan and makes repayments as revenue levels permit. The constraint is that the loan balance may not exceed $250 million at any time. In calculating the size of the appropriation, only draw downs can be taken into account and so the appropriation is $750 million as shown above, but this is not a reflection of the net funding being provided. The Agency reports quarterly to the Minister of Transport on the ongoing management of the loan against its terms and conditions. The latter have been complied with.

During 2012/13, an additional facility of $100 million was provided - this was transferred to 2013/14 as it had not been drawn down.

Loans for Specific Projects

The Crown has provided three loan facilities for projects to the New Zealand Transport Agency.

$137 million was available for the construction of the Tauranga Eastern Link. During 2013/14, the Agency reduced the appropriation to $107 million, which is available in 2014/15. The loan will be repaid from tolling revenue.

The second loan is for the reinstatement of Canterbury's roads following the earthquakes. The New Zealand Transport Agency has been working with other agencies to assess what expenditure will be required. It has committed $50 million per annum from the National Land Transport Fund. More than this might put pressure on other projects to be delivered by the National Land Transport Programme.

The Crown appropriated $102 million of operating funding to Vote Transport in 2011/12 to 2013/14 for the reinstatement. During 2013/14, a cost sharing agreement for roading was agreed with the Christchurch City Council and the Crown agreed to provide the New Zealand Transport Agency with a loan of $183.420 million over 2013/14 to 2015/16. This will be repaid using the annual commitment of $50 million from the National Land Transport Fund.

The third loan is to accelerate projects in the Auckland transport package. $375 million is available over five years, of this $55 million is available in 2014/15.

Other Roading Funding from the Crown

Road tax is intended to be the primary source of funding for the NLTP but the Crown can appropriate additional funding if it wishes. The appropriation in the table above for 2009/10 mainly reflects the economic stimulus package which ended in 2010/11.

The other funding for roading in 2013/14 and 2014/15 is for specific projects - the roading around the National War Memorial Park in Wellington and improvements to the passing opportunities between Napier and Gisborne on State Highway 2.

Rail Funding

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m

To KiwiRail Group

Capital - Turnaround Plan-25025025094198---
Capital - loans and equity380552504302511---
Other projects38028516215910420877

To Others

Loans--60110138192---
Other381021556-90---

Total

798692877955361511877

Capital - Turnaround Plan

This Plan is a 10 year plan with the aim of making the KiwiRail freight business a sustainable business that is able to fund its ongoing operating and capital expenditure solely from customer revenue.

The Crown has appropriated $844 million in capital to the Plan over 2010/11 to 2013/14. It has now appropriated an additional $198 million for 2014/15. The funding is dependent on the approval of business cases and demonstrated progress towards objectives.

Capital - Loans and Equity

This balance mainly reflects existing loans being been rolled over and so requiring an appropriation. During 2012/13, $322 million of existing loans were converted to equity which explains the high balance in that year. This conversion will reduce the need for loan rollovers in the future. In 2014/15 there is $11 million for the rollover of a loan that is due to mature.

Operating and Capital for Project Funding

There have been a number of projects over time for the metro rail network in Wellington. At 1 July 2014, the projects are an appropriation of $88 million over the eight years to 2018/19 to upgrade the Wellington metro network and $4 million per annum for public policy and railway safety work.

Rail Related Funding to Other Parties

Currently the only rail funding to other parties is to Auckland Council for the Auckland Electric Multiple Unit package. From 2011/12, there has been a loan of $500 million appropriated until 2014/15 ($192 million). There is also a grant for this project of $90 million in 2014/15.

Funding to Crown Entities

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m
Output expense242321232625252323
Capital37--163--

Total

273021232731282323

Most transport Crown entity activity is funded from the NLTP or fees and charges and so the Crown funding is relatively small. The capital funding from 2013/14 of $10 million is to Maritime NZ, to replace a ground station for the search and rescue system ($7 million) and develop an information technology system ($3 million).

Other

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m
Total8688130687471626262

The 'Other' category is funding paid to third parties, fee funded work and one off projects. Key elements in 2014/15 are:

  • SuperGold card public transport concessions ($26 million)
  • purchase of weather forecasting services from the Meteorological Service of New Zealand ($19 million)
  • road user charges and fuel excise duty activities that are funded from fees and road tax revenue ($18 million).

The decrease from 2011/12 is mainly due to the winding down of the response to the MV Rena grounding and the transfer of responsibility for motor vehicle registration to the New Zealand Transport Agency.

Departmental Output Expenses

2009/10 $m 2010/11 $m 2011/12 $m 2012/13 $m 2013/14 $m 2014/15 $m 2015/16 $m 2016/17 $m 2017/18 $m
Funding to the Ministry323431303433333333
Funding for services contracted to New Zealand Transport Agency181918------

Total

505349303433333333

The Ministry had been responsible for road user charges administration and it contracted this activity to the New Zealand Transport Agency. From 2012/13, the activity was funded by way of a non-departmental output expense paid directly to the New Zealand Transport Agency.

Otherwise the departmental funding remains relatively stable:

  • in 2011/12 the Ministry transferred $1.250 million to Maritime New Zealand to assist with its planned activities while also managing the response to the grounding of the MV Rena
  • from 2012/13, departmental funding decreased by $900,000 as a result of the 3% efficiency saving required by the government.

Non-Tax Revenue

2009/10 $m 2010/11 $m2011/12 $m2012/13 $m2013/14 $m2014/15 $m2015/16 $m2016/17 $m 2017/18 $m
Road tax administration fees586061111212121212
Tolling revenue667778888
MV Rena receipt----28----
Other12108211111

Total

767676204821212121

The funding of motor vehicle register and road user charges administration activity has been undergoing change and this is reflected in the decrease in line 1) of the table above. From 2012/13, the administration fees for motor vehicle register activity became third party revenue of the New Zealand Transport Agency and the related non-departmental output expense appropriation was disestablished.

Tolling revenue comes from the Northern Gateway road that is currently the only road in the country being tolled by the Crown. Tolling began during 2008/09.

During 2012/13, the New Zealand Government received $27.600 million in settlement from the owners of the MV Rena. This money was held in an interest bearing trust account until the balance including interest was transferred to the Crown during 2013/14.

Other revenue was mainly related to the motor vehicle register and so has decreased due to the changes noted above. Now it is now solely fines, which are usually below $1 million per annum.

1.4 - Reconciliation of Changes in Appropriation Structure

Old StructureNew Structure
2013/14 Appropriations
in the 2013/14 Structure
2013/14
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2013/14 Appropriations
in the 2014/15 Structure
2013/14
(Restated)
$000
2014/15
$000
Policy Advice and Related Outputs MCOA31,941From Policy Advice and Related Outputs MCOA31,941To Policy Advice and Related Outputs MCA31,94130,843
Policy Advice and Related Outputs - Civil Aviation MCOA2,219From Policy Advice and Related Outputs - Civil Aviation MCOA2,219To Policy Advice and Related Outputs - Civil Aviation MCA2,2192,219
Policy Advice and Related Outputs - Maritime MCOA7,587From Policy Advice and Related Outputs - Maritime MCOA7,587To Policy Advice and Related Outputs - Maritime MCA7,5877,708

Total

41,74741,74741,74740,770

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Fuel Excise Duty Refund Administration (M72)

Scope of Appropriation

This appropriation is limited to the receipt and processing of applications for, and the refunding of, Fuel Excise Duty.

Expenses and Revenue

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation700700429
Revenue from the Crown700700429
Revenue from Others---

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve accurate and timely refunds of fuel excise duty to eligible applicants.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Average number of days taken to audit, process and pay FED refunds10 days10 days10 days

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Transport in its annual report.

Reasons for Change in Appropriation

The appropriation has reduced due to higher than usual costs in 2013/14.

Milford Sound / Piopiotahi Aerodrome Operation and Administration (M72)

Scope of Appropriation

This appropriation is limited to the operation of Milford Sound/Piopiotahi aerodrome to provide a safe and efficient airport.

Expenses and Revenue

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation278278230
Revenue from the Crown---
Revenue from Others278278230

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the safe and efficient operation of the Milford Sound/Piopiotahi aerodrome.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The aerodrome operation will conform with appropriate Civil Aviation Authority safety requirements100%100%100%
Operating costs within third-party revenue278,000278,000230,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Transport in its annual report.

Reasons for Change in Appropriation

The appropriation was higher in 2013/14 due to higher revenue from landing fees and also costs that had to be met.

Search and Rescue Activity Coordination PLA (M72)

Scope of Appropriation

The estimated amount to be spent on the coordination of search and rescue activities as authorised by section 9(1) of Land Transport Management Act 2003.

Expenses and Revenue

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,1361,1361,201
Revenue from the Crown1,1361,1361,201
Revenue from Others---

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of effective, well coordinated Search and Rescue capability.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Survey results show that the New Zealand Search and Rescue Council is at least 95% satisfied with the provision of effective support services and policy advice for the New Zealand search and rescue sector.New measureNew measureAchieved
Survey results show that the New Zealand search and rescue sector is at least 95% satisfied with the delivery of effective leadership and strategic coordination.New measureNew measureAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Transport in its annual report.

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Transport - Capital Expenditure PLA (M72)

Scope of Appropriation

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

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural---
Land---
Property, Plant and Equipment100100140
Intangibles410410210
Other---

Total Appropriation

510510350

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal of assets in support of the delivery of the Ministry of Transport's services.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Expenditure is in accordance with the Ministry's capital expenditure plan and asset management plan.100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Transport in its annual report.

Capital Injections and Movements in Departmental Net Assets

Ministry of Transport

Details of Net Asset Schedule2013/14
Estimated Actual
$000
2014/15
Projected
$000
Explanation of Projected Movements in 2014/15
Opening Balance2,7082,708
Capital Injections--
Capital Withdrawals--
Surplus to be Retained (Deficit Incurred)--
Other Movements--

Closing Balance

2,7082,708

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

Accident or Incident Investigation and Reporting (M72)

Scope of Appropriation

This appropriation is limited to inquiries, investigations and activities in accordance with the Transport Accident Investigation Commission Act 1990.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,8653,8653,865

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the conduct and completion of independent inquiries into selected aviation, rail and marine safety occurrences with the intent of helping to prevent recurrences.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of domestic inquiries completed20-252020-25
12 month rolling average of number of domestic inquiries in progress at each month's end303330
Number of inquiries by overseas jurisdictions assisted4-864-8

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Transport Accident Investigation Commission in its annual report.

Construction of Passing Opportunities on State Highway 2 between Napier and Gisborne (M72)

Scope of Appropriation

This appropriation is limited to the investigation, design and construction of passing opportunities on State highway 2 between Napier and Gisborne.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,3503,350500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to fund the completion of passing opportunities on State Highway 2 between Napier and Gisborne.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Work is carried out as per the agreed programme.100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2014/15 is because the project is scheduled to be completed in 2014/15.

Crash Analysis (M72)

Scope of Appropriation

This appropriation is limited to operating the Crash Analysis System and performing associated crash analysis and research activities.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation775775775

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide information to achieve targeted road safety improvement interventions.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Average number of days taken to enter crash reports (from date of receipt) into the Crash Analysis System20 days20 days 20 days

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Licensing Activities (M72)

Scope of Appropriation

This appropriation is limited to land transport licensing services, including driver licensing, not met by user fees.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,5453,5452,758

Components of the Appropriation

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Older driver licence holder subsidy1,4451,4451,445
Drug and alcohol assessment costs1,2001,2001,238
Driver licence stop orders90090075
Total3,5453,5452,758

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure that specific elements of the licensing system (Older driver licence holder subsidy; drug and alcohol assessment costs; and driver licence stop orders) are effectively and efficiently managed.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of drug or alcohol assessments funded1,400 - 1,5001,9001,800 - 2,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2014/15 is because the implementation of the driver licence stop order regime is complete and so the funding is now for the administration of the regime only.

Maritime Port Security (M72)

Scope of Appropriation

This appropriation is limited to standby screening and searching services at ports.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation145145145

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve preparedness to provide a maritime security response role to a high level threat situation affecting cruise ships or their passengers.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of major findings from the annual audit review of the readiness of maritime security supportNilNilNil

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Civil Aviation Authority in its annual report.

Ministerial Servicing by the New Zealand Transport Agency (M72)

Scope of Appropriation

This appropriation is limited to Ministerial servicing by the New Zealand Transport Agency.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation548548548

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the effective delivery of support to executive government and parliamentary processes.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of ministerial servicing that meets statutory time frames.100%90%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

National Land Transport Programme PLA (M72)

Scope of Appropriation

The estimated amount to be spent on activities under the National Land Transport Programme, as authorised by section 9 (3) and (4) of the Land Transport Management Act 2003.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,879,7471,879,7471,913,650

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide support to investment from the National Land Transport Fund in the maintenance and improvement of land transport networks and services, including co-investment with local authorities in local roads and public transport.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Management of the funding allocation system
Total cost of management of the funding allocation system as a percentage of the NLTP expenditure
Percentage of activities that are delivered to agreed standards and timeframes100%100%100%
Road Safety Promotion
Percentage of road safety advertising campaigns that meet or exceed their agreed success criteria75%75%75% or greater
Maintenance and Operation of Local Roads
Cost of emergency reinstatement $55 million$85 million$80-85 million
Cost of maintaining and operating the network (excluding emergency work) per network lane km$2,400 - $2,700$2,836
Maintenance and Operation of State Highways
Cost of maintaining and operating the network excluding emergency reinstatement ($ per lane km)$11,000 - $12,000$12,602
Cost of emergency reinstatement$46 million$60 million$50-55 Million
New and Improved Infrastructure for Local Roads
Length of road reconstruction and new roads completed (lane km)100 km170 km120-200 km
Length of bridge replacements (lane km)1 km1 km1-1.5 km
Public Transport Services
Number of passengers using public transport subsidised by the New Zealand Transport Agency (includes bus, train, ferry)130 - 140 million133 million 147-154 million
Fare revenue as a percentage of total expenditure> 47%>47%>47%
Renewal of Local Roads
Percentage of sealed network resurfaced (based on road length in lane km)> 6%7%6-8%
Percentage of network rehabilitated (based on road length in lane km)1 - 2%1%1 - 2%
Percentage of unsealed network metalled (based on road length in centreline km)20 - 35%30%20 - 35%
Cost of renewals (excluding emergency reinstatement) per network lane km $2,800 - $3,300$2,746
Surface condition of the sealed network (100-Cl) (average of index for the whole of the network)>9798%97% or greater
Pavement integrity of the sealed network (100-Pll) (average of index for the whole of the network)>9394%94% or greater
Renewal of State Highways
Percentage of activities that are delivered to agreed standards and timeframes > 90%> 90%> 90%
Cost of renewals (excluding emergency reinstatement) per network lane km$8,000 - $9,000$7,715

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The appropriation represents the operating expenditure of the National Land Transport Programme and its size varies each year depending on the activities in the Programme and the road tax revenue available.

The Government Policy Statement on Land Transport Funding identifies ranges of expenditure that the government wishes to commit to different roading activities. The New Zealand Transport Agency in conjunction with regional bodies then develops the National Land Transport Programme, detailing how the funding will be spent and what it will deliver within the ranges. The Government Policy Statement and the National Land Transport Programme are three year documents. The current documents took effect from 1 July 2012.

The current indicative expenditure for 2013/14 and 2014/15 is shown below. Expenditure may vary year on year for activities depending on the particular work being undertaken. More detail is available from the New Zealand Transport Agency's website.

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Funding1,879,7471,879,7471,913,650
Made up of expenditure on the following activities:
Road Safety Promotion34,20034,20032,050
Maintenance and Operation of Local Roads285,000285,000285,000
Maintenance and Operation of State Highways347,200347,200359,000
Management of Funding Allocation System30,00030,00030,000
New and Improved Infrastructure for Local Roads147,500147,500160,000
Public Transport Services and Infrastructure302,991302,991308,000
Renewal of Local Roads248,000248,000249,000
Sector Research4,5004,5006,100
Transport Planning18,35618,35618,500
Walking and Cycling15,00015,00016,000
State Highway Renewals447,000447,000450,000

Conditions on Use of Appropriation

ReferenceConditions
Performance guidelinesAll activities are assessed in accordance with the methodology set in the Planning, Programming and Funding Manual and Section 20 of the Land Transport Management Act 2003.

Road User Charges Collection (M72)

Scope of Appropriation

This appropriation is limited to collecting road user charges.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation14,06114,06113,569

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the accurate collection of road user charges through the provision of licenses for diesel vehicles to support the National Land Transport Fund.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of activities that are delivered to agreed standards and timeframesNew measureNew measure100%
Costs per Road User Charge transaction$5.19
Number of products/services delivered or processes2,500,000 - 2,700,0002,400,0002,500,000 - 2,700,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The change is due to variable funding for the Road User Charges Trade Plates project.

Road User Charges Investigation and Enforcement (M72)

Scope of Appropriation

This appropriation is limited to investigating evasion and enforcing of Road User Charges.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation5,4245,4243,779

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the accurate collection of road user charges information and, through education and enforcement, intends to achieve low levels of road user charges evasion and timely payment by users of road user charges.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of products/services delivered or processes (investigations & audits). This includes both light and heavy vehicle road user charges investigation and enforcement activities (Road User Charges Act 2012)23,000 - 25,00023,00022,000 - 25,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

An expense transfer from a previous year means that the 2013/14 appropriation was higher than usual. The figure for 2014/15 is a more usual amount.

Road User Charges Refunds (M72)

Scope of Appropriation

This appropriation is limited to the processing of Road User Charge refunds.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation450450450

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve accurate and timely refunds of Road User Charges to eligible applicants.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of products/services delivered or processes (refunds applications processed)46,000 - 49,00039,00036,000 - 40,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Search and Rescue Activities (M72)

Scope of Appropriation

This appropriation is limited to the purchase of search and rescue activities and a search and rescue coordination service, including follow-up inquiries and reporting, associated with the searches and rescues undertaken.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,3163,3163,316

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a prompt and well-coordinated search and rescue response, across sea, air and land environments that saves lives and provides assurance for all people in New Zealand's international area of responsibility.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of time the 24/7 uninterrupted co-ordination service is provided 100%100%100%
Percentage of time a minimum of two fully trained Search and Rescue officers on duty 24/7100%100%100%
Percentage of beacons data verified every two years (at 30 June)65%23%65%

End of Year Performance Reporting

Performance information for this appropriation will be reported by Maritime New Zealand in its annual report.

Search and Rescue and Recreational Boating Safety Activities PLA (M72)

Scope of Appropriation

The estimated amount to be spent in relation to search and rescue and recreational boating safety activities, as authorised under Section 9 (1) of the Land Transport Management Act 2003.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation5,8735,8736,943

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a sustained reduction in the identified systemic risks within the New Zealand Search and Rescue system to reduce the number of preventable Search and Rescue related fatalities in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Delivery of the national search and rescue support programme agreed by the NZ Search and Rescue Council with the providing bodies100%100%100%
People who recall boating safety television advertising (as gauged by survey)85%95%75%
Develop and maintain Service Level Agreements with key providers in the Search and Rescue community. Key agreement measures are:
-Provision of expert services to the Coordination Authorities100%100%100%
-Provision of Incident Management Team members to the Coordination Authorities on request100%100%100%
-Participation in joint Search and Rescue exercises100%100%100%
-Provision of Search and Rescue related information100%100%100%
National Search and Rescue training and education to improve interagency cooperation and understanding90%90%90%
Delivery of the national search and rescue support programme agreed by the NZ Search and Rescue Council with the providing bodies100%100%100%

End of Year Performance Reporting

Performance information for this appropriation in respect of the funding provided to Maritime New Zealand will be reported by Maritime New Zealand in its annual report.

Performance information for the balance of the appropriation will be reported by the Minister in a report appended to the Ministry of Transport's annual report.

Service Providers

Provider2013/14
Budgeted
$000
2013/14
Estimated Actual
$000
2014/15
Budget
$000
Reporting to the
House
Expiry of
Resourcing
Commitment

Crown Entities

Maritime New Zealand3,0843,0844,154Maritime New Zealand's annual report-

Non-Government Organisations

Coastguard New Zealand1,8741,8741,874Ministry of Transport's annual report-
New Zealand Land Search & Rescue Inc650650650Ministry of Transport's annual report-
Surf Life Saving New Zealand200200200Ministry of Transport's annual report-
Amateur Radio Emergency Communications656565Ministry of Transport's annual report-
Total5,8735,8736,943

Reasons for Change in Appropriation

The increase in 2014/15 is additional funding under section 9(1) of the Land Transport Management Act 2003 to pay for additional services.

SuperGold Card - Administration of the Public Transport Concessions Scheme (M72)

Scope of Appropriation

This appropriation is limited to the administration costs of the scheme to provide enhanced public transport concessions for SuperGold cardholders.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation959595

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve accurate and timely administration of the SuperGold Card scheme.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Average number of working days taken to process and pay claims received from local authorities20 days20 days 20 days

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Weather Forecasts and Warnings (M72)

Scope of Appropriation

This appropriation is limited to severe-weather warnings and a level of weather forecast services for land, coastal waters and oceanic areas for which New Zealand has international responsibility.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation20,01720,01718,574

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the procurement of weather services to minimise risk to life and property through public weather forecasts and emergency support.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provision of agreed services As per contractAs per contractAs per contract
Minimum percentage of forecasts of severe-weather events which successfully predicted the event (probability of detection)90%90%90%
Maximum percentage of forecasts of severe-weather events which are subsequently found to be false alarms (false alarm ratio)25%25%25%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister in a report appended to the Ministry of Transport's annual report.

Service Providers

The Meteorological Service of New Zealand is the service provider for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Increase for the provision of weather forecasting services2013/141,443----

Reasons for Change in Appropriation

An increase to the 2013/14 appropriation means the amount for that year was higher than usual.

3.4 - Non-Departmental Other Expenses

Bad Debt Provision - Motor Vehicle Registration/Licences and Road User Charges (M72)

Scope of Appropriation

This appropriation is limited to provision for bad debts that arise from non payment of motor vehicle registrations and road user charges.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation4,0004,0004,000

What is Intended to be Achieved with this Appropriation

This appropriation provides for incurring the expense involved in covering bad debt from non-payment of motor vehicle registrations and road user charges.

End of Year Performance Reporting

An exemption was granted under s.15D(2)(b)(iii) of the PFA because this is a non-departmental other expense appropriation that is less than $5 million.

Membership of International Organisations (M72)

Scope of Appropriation

This appropriation is limited to non-discretionary payments to international transport related organisations.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation573573743

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve involvement in international communities (International Maritime Organisation, International Civil Aviation Organisation, World Meteorological Organisation) by New Zealand bodies.

End of Year Performance Reporting

An exemption was granted under s.15D(2)(b)(iii) of the PFA because this is a non-departmental other expense appropriation that is less than $5 million.

Service Providers

Provider2013/14
Budgeted
$000
2013/14
Estimated Actual
$000
2014/15
Budget
$000
Reporting to the
House
Expiry of
Resourcing
Commitment
International Maritime Organisation363680Exempt-
World Meteorological Organisation222222262Exempt-
International Civil Aviation Organisation315315401Exempt-
Total573573743-

Reasons for Change in Appropriation

Costs in 2013/14 were lower than expected. The figure for 2014/15 is a more usual amount.

Rail - Auckland Metro Rail Electric Multiple Unit Package (M72)

Scope of Appropriation

This appropriation is limited to a grant for the Auckland metro rail electric multiple unit package.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--90,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to facilitate construction and purchase of 57 three-car sets of electric multiple units, a depot and related infrastructure.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Work on the electric multiple units, depot and related infrastructure is carried out per the agreed programmeNew measureNew measure100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister in a report appended to the Ministry of Transport's annual report.

Service Providers

Auckland Council is the service provider for this appropriation.

Reasons for Change in Appropriation

When funding was approved it was agreed that the grant funding for the project would not be available until after the $500 million loan was drawn, which is now forecast to happen in 2014/15.

Rail - Public Policy Projects (M72)

Scope of Appropriation

This appropriation is limited to public policy rail initiatives.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,2703,2703,270

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve public policy rail initiatives that do not always have a financial benefit, but have positive effects on the community.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The public policy projects are carried out in line with the programme.100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by KiwiRail in its annual report.

Rail - Railway Safety (M72)

Scope of Appropriation

This appropriation is limited to public safety works.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation500500500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improvements in community safety around railway lines and stations.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A safer railway systemAchievedAchievedAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by KiwiRail in its annual report.

SuperGold Card - public transport concessions for cardholders (M72)

Scope of Appropriation

This appropriation is limited to providing enhanced public transport concessions for SuperGold cardholders.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation23,90523,90525,905

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve greater access and mobility opportunities to SuperGold cardholders through the off-peak public transport concession.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Regional councils will implement enhanced public transport concessions for SuperGold Cardholders100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Increase to meet demand2013/146,0008,000---

Reasons for Change in Appropriation

The increase in this appropriation for 2014/15 is due to the variable funding granted in Budget 2013.

Tauranga Maritime Incident Response (M72)

Scope of Appropriation

This appropriation is limited to responding to the MV Rena grounding off Tauranga.

Expenses

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,6831,683300

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective oversight of MV Rena response activities.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Maritime New Zealand manages the response to the incident as tasked by the Crown and any issues arising are managed appropriatelyAchievedAchievedAchieved
Maritime New Zealand provides effective oversight of ongoing Rena response activities by third party operators covering: wreck reduction and debris removal; container recovery; shoreline clean-up including any residual oil; ongoing claim reconciliation; and technical advice and support to the Bay of Plenty Regional Council regarding application of the Resource Management ActOngoingOngoingAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by Maritime New Zealand in its annual report.

Reasons for Change in Appropriation

The change in this appropriation for 2014/15 is due to the matching of funding to the projected expenditure.

3.5 - Non-Departmental Capital Expenditure

Auckland Transport Package Loan (M72)

Scope of Appropriation

This appropriation is limited to a loan to the New Zealand Transport Agency to accelerate projects in the Auckland Transport Package.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--55,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the planning and delivery of the acceleration of projects in the Auckland Transport Package.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The loan will be drawn down for the purposes and on the terms agreed between New Zealand Transport Agency and the Minister of Transport--100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Auckland Transport Package2014/15-55,00090,00065,00065,000

Reasons for Change in Appropriation

This appropriation provides a loan facility to accelerate projects in the Auckland Transport package. Funding varies between years to match projected expenditure.

Joint Venture Airports - Crown Contribution (M72)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of AppropriationsAppropriations, Adjustments and Use$000

Joint Venture Airports - Crown Contribution (M72)

This appropriation is limited to enhancements to joint venture airport terminals and runways and the Crown's share of operating losses.

Commences: 01 July 2011

Expires: 30 June 2015
Original Appropriation2,000
Adjustments to 2012/13101
Adjustments for 2013/14-
Adjusted Appropriation2,101
Actual to 2012/13 Year End551
Estimated Actual for 2013/141,050
Estimated Actual for 2014/15500
Estimated Appropriation Remaining-

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve maintenance of the Crown's interest in joint venture airports, making air travel available in centres that would otherwise not have airports.

End of Year Performance Reporting

An exemption was granted under s.15D(2)(b)(iii) of the Public Finance Act 1989 because this is a non-departmental capital expense appropriation that is less than $15 million.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Continued support for joint venture airports2011/12500500---

Maritime New Zealand (M72)

Scope of Appropriation

This appropriation is limited to capital injection to Maritime New Zealand.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,1001,1005,900

Components of the Appropriation

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Replacement ground station for Search and Rescue satellite system1,1001,1003,000
Information Technology system to support Maritime Operator Safety System and Seafarer Certification Rules--2,900

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure continued effective functioning of a distress beacon system in New Zealand and its international area of responsibility, and the provision of a new Information Technology system to support Maritime Operator Safety System and Seafarer Certification Rules.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Ground station is developed in line with the time-line for the new satellite system100%100%100%
Ground station is developed in line with COSPAS-SARSAT standards100%100%100%
MNZ System Reform is developed in line with the business requirements as detailed in respective statements of work for successful implementation of MOSS and SeaCertNew measureNew measureAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by Maritime New Zealand in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Replacement ground station for Search and Rescue satellite system2013/141,1003,0003,100--
Information Technology system to support Maritime Operator Safety System and Seafarer Certification Rules2014/15-2,900---

Reasons for Change in Appropriation

The change in this appropriation for 2014/15 is due to the matching of funding to the projected expenditure.

National Land Transport Programme - New Infrastructure for and Renewal of State Highways PLA (M72)

Scope of Appropriation

The estimated amount to be spent on capital works for new infrastructure and renewal of State Highways, as authorised by Section 9 (3) and (4) of the Land Transport Management Act 2003.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation776,227776,227936,543

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a resilient and secure transport network while helping to reduce deaths and serious injuries from road crashes, by ensuring the established state highway network asset condition is sustained by an ongoing capital investment programme.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of State Highway programme completed (construction phase)> 90%> 90%> 90%
Percentage of activities that are delivered to agreed standards and timeframes> 90%> 90%> 90%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The appropriation has increased in line with the forecast road tax revenue available and the proposed expenditure on the different elements of the National Land Transport Programme.

The Government Policy Statement on Land Transport Funding 2012/13 to 2021/22 contains a range of expenditure of $950 million to $1,300 million for this activity class in 2014/15. The New Zealand Transport Agency will make use of the loans available to it for cash flow management to cover the shortfall.

National War Memorial Park: Buckle Street Undergrounding Project (M72)

Scope of Appropriation

This appropriation is limited to the undergrounding of that part of State Highway 1 necessary for the establishment of the National War Memorial Park in Wellington.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation25,00025,00010,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the completion of the National War Memorial Park: Buckle Street Undergrounding Project.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of activities delivered to agreed standards and timeframe.100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2014/15 is due to the project coming to an end during 2014/15.

NLTF Borrowing Facility for Short-Term Advances (M72)

Scope of Appropriation

This appropriation is limited to short-term advances to the New Zealand Transport Agency to manage variations between cash outlays from and flows of hypothecated revenue into the National Land Transport Fund, with the maximum amount of such advances at any one time not exceeding $250 million.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation750,000160,000750,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable short-term cash flow management for the National Land Transport Fund.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
The loan will be drawn down for the purposes and on the terms agreed between New Zealand Transport Agency and the Minister of Transport100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Rail - KiwiRail Turnaround Plan Funding (M72)

Scope of Appropriation

This appropriation is limited to approved capital expenditure that contributes to the KiwiRail Turnaround Plan outcomes.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation93,84993,849198,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve investment in KiwiRail to put its freight business on a commercially viable footing.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Progress is made towards the success factors identified by the Minister of Transport and KiwiRail as key to the Turnaround Strategy100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by KiwiRail in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
KiwiRail Turnaround Plan - year 52014/15-198,000---
KiwiRail Turnaround Plan - year 42013/1493,849----

Reasons for Change in Appropriation

The KiwiRail Turnaround Plan is a ten year plan to put the rail freight business on a commercially viable footing. $844 million has been appropriated over 2010/11 to 2013/14 and this funding is a further investment in the Turnaround Plan.

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionThe drawdown of this funding by KiwiRail in 2014/15 is subject to approval by shareholding Ministers

Rail - Loan for Auckland Metro Rail Electric Multiple Unit Package (M72)

Scope of Appropriation

This appropriation is limited to a loan for the Auckland metro rail electric multiple unit package.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation138,000138,000192,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to facilitate construction and purchase of 57 three-car sets of electric multiple units, a depot and related infrastructure.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All loan draw downs and payments are made in accordance with the documentation and process outlined in the loan agreement between the Crown and Auckland Council100%100%100%
Work on the electric multiple units, depot and related infrastructure is carried out per the agreed programmeNew measureNew measure100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister in a report appended to the Ministry of Transport's annual report.

Reasons for Change in Appropriation

The amount of the appropriation varies from year to year to match expected draw downs of the loan.

Rail - New Zealand Railways Corporation Loans (M72)

Scope of Appropriation

This appropriation is limited to loans to the New Zealand Railways Corporation to fund capital projects and provide working capital.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--10,750

What is Intended to be Achieved with this Appropriation

This appropriation is intended to maintain existing capital funding arrangements for KiwiRail.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All documentation and transactional requirements are metN/AN/A100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by KiwiRail in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Loans to the New Zealand Railways Corporation2014/15-10,750---

Reasons for Change in Appropriation

The increase in this appropriation for 2014/15 is due to a one-off rollover of a maturing loan.

Rail - Wellington Metro Rail Network Upgrade (M72)

Scope of Appropriation

The appropriation is limited to catch up investment in the Wellington metro rail network which will enable sustainable operation of the network through the Metro Rail Operating model.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation36,14636,14616,343

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve significant improvements to the Wellington Metro network, to improve and maintain the reliability of commuter services.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Work is carried out per the agreed programme100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by KiwiRail in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Funding for Wellington Metro Rail investment2011/1211,20312,8138,97510,41410,732

Reasons for Change in Appropriation

The decrease in this appropriation for 2014/15 is due to funding varying each year depending on planned activities. Funding has been rephased since the appropriation's creation in 2011/12 and so no longer agrees to the figures shown above in the Initiatives table.

Roading - Reinstatement of Earthquake Damaged Roads in Christchurch - Loan (M72)

Scope of Appropriation

This appropriation is limited to a loan to the New Zealand Transport Agency for the reinstatement of earthquake damaged local roads in Christchurch.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation20,00020,000100,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support the reinstatement of local roads in Canterbury.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of activities that are delivered to agreed standards and timeframes100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report

Reasons for Change in Appropriation

The change in this appropriation for 2014/15 is due to the matching of funding to the projected expenditure.

Tauranga Eastern Link Loan (M72)

Scope of Appropriation

This appropriation is limited to the government provision of a loan to the New Zealand Transport Agency to contribute towards the costs of the construction and tolling operations for the Tauranga Eastern Link Roading Project.

Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation--107,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the earlier construction of the Tauranga Eastern Link Road.

How Performance will be Assessed and End of Year Reporting Requirements

2013/142014/15
Assessment of PerformanceBudgeted
Standard
Estimated Actual
Standard
Budget
Standard
The loan will be drawn down for the purposes and on the terms agreed between New Zealand Transport Agency and the Minister of TransportNew measureNew measure100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Transport Agency in its annual report.

Reasons for Change in Appropriation

The change in this appropriation for 2014/15 is due to the matching of funding to the projected expenditure.

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

Multi-Category Expenses and Capital Expenditure

Policy Advice and Related Outputs (M72)

Overarching Purpose Statement

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.

Scope of Appropriation

Departmental Output Expenses
Governance and Performance Advice on Crown Agencies
This category is limited to monitoring of and advice on the governance, performance and capability of transport Crown agencies.
Ministerial Servicing
This category is limited to services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
Policy Advice
This category 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 transport.

Expenses, Revenue and Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--30,843

Departmental Output Expenses

Governance and Performance Advice on Crown Agencies--900
Ministerial Servicing--2,600
Policy Advice--27,343

Funding for Departmental Output Expenses

Revenue from the Crown

--30,843
Governance and Performance Advice on Crown Agencies--900
Ministerial Servicing--2,600
Policy Advice--27,343

Revenue from Others

---
Governance and Performance Advice on Crown Agencies---
Ministerial Servicing---
Policy Advice---

Comparators for Restructured Appropriation

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Vote Transport

Departmental Output Expenses

Clifford Bay Ferry Terminal - Facilitation of Procurement650650-
Governance and Performance Advice on Crown Agencies800800900
Ministerial Servicing2,6002,6002,600
Policy Advice27,89127,89127,343
Total31,94131,94130,843

The previous multi-class output appropriation Policy Advice and Related Outputs MCOA has been converted to a multi-category appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a transport system that maximises economic and social benefits for New Zealand, and minimises harm.

How Performance will be Assessed for this Appropriation

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Related Outputs

How performance will be assessed for the MCA as a whole
Transport network congestion in the five largest metropolitan areas will decrease over the medium termNew measureNew measureOn track
New Zealand trends in port productivity will increase over the medium termNew measureNew measureOn track
Fewer deaths and serious injuries within the New Zealand transport system over the medium termNew measureNew measureOn track
Level of greenhouse gases emitted by the transport sector will not increase over the medium termNew measureNew measureOn track

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Related Outputs

Departmental Output Expenses

Governance and Performance Advice on Crown Agencies
This category is intended to achieve high performing transport Crown agencies, the activities of which are transparent and well aligned to Government policy priorities.
Advice on transport Crown entity board appointments provided to agreed timeframesAchievedAchievedAchieved
Twice yearly Ministry strategic discussions with each Crown entity Chair / BoardAchievedAchievedAchieved
Assessment of technical quality of Ministry policy advice (based largely on annual external review of policy advice by NZIER)AchievedAchievedAchieved
Ministerial Servicing
This category is intended to achieve the effective delivery of support to executive government and parliamentary processes
Number of items of ministerial correspondence addressed by the Ministry1,400 for direct action, 1,700 for direct action including draft reply350 for direct action, 687 for direct action including draft reply1,400 for direct action, 1,700 for direct action including draft reply
Percentage of draft replies to ministerial correspondence completed within 10 working days80%87.4%80%
Percentage of Official Information Act requests replied to within statutory timeframes100%86.7%100%
Percentage of Ministerial Servicing items that meet quality characteristics (refer conditions on use of Appropriation)90%100%90%
Policy Advice
This category is intended to ensure that the government has policy advice available to it on how to maximise the transport sector economic and social benefits, and minimise harm; or for any other policy initiatives it seeks to pursue
95% of key initiatives contained in the annual work programme are completed or progressed as agreed, or as subsequently amended by the agreement between the Minister and the Chief Executive95%Achieved95%
Percentage of policy advice papers that meet the Advice Quality Characteristics (refer conditions on use of Appropriation)100%100%100%
Assessment of technical quality of Ministry advice is an average score of 7.5, or more, of all papers assessed through an annual external review of policy advice by NZIERAchievedAchievedAchieved
At least twice yearly revenue forecasting provided for use in Crown accounts and Budget forecastsAchievedAchievedAchieved
The agreed rules programme, including variations, is deliveredAchievedNot AchievedAchieved
Satisfaction of the Minister of Transport with the policy advice service, as per the satisfaction survey80%60%75%
The total cost per hour of producing outputs$160$147$160
Final policy advice to Minister on reforms to the Civil Aviation Act (1990) and the Airport Authorities Act (1966) by 30 June 2015New measureNew measureAchieved
Delivery of Intelligent Transport Systems first year actions from the Action Plan by 30 June 2015New measureNew measureAchieved
The agreed Funding Review programme, including variations, is deliveredNew measureNew measureAchieved
The Government Policy Statement on Land Transport 2015/16 to 2024/25 is in place by 30 June 2015.New measureNew measureAchieved
100% of the Ministry's deliverables for each of the five work streams specified in the 2013 to 2015 Safer Journeys Action Plan are implemented as agreed with the Minister.New measureNew measureAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Transport in its annual report.

Reasons for Change in Appropriation

The decrease in this appropriation is mainly because:

  • the work on Clifford Bay was completed in 2013/14. The 2013/14 funding includes $415,000 carried forward to cover these costs
  • there was a carry forward to 2013/14 of $600,000 which means the 2013/14 figure is higher than 2014/15 by this amount.

Policy Advice and Related Outputs - Civil Aviation (M72)

Overarching Purpose Statement

The overarching purpose of this appropriation is to regulate civil aviation and enhance aviation safety in New Zealand.

Scope of Appropriation

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Civil Aviation
This category is limited to health and safety activities, for which there is a designated responsibility.
International Relations and International Civil Aviation Organisation Obligations
This category is limited to technical information and advice in relation to international matters affecting New Zealand aviation, to ensure the Minister's obligations in relation to international civil aviation agreements are met, and to promote the development of New Zealand aviation in the international context.
Ministerial Servicing - Civil Aviation
This category is limited to services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
Policy Advice - Civil Aviation
This category 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 civil aviation.

Expenses, Revenue and Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--2,219

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Civil Aviation--440
International Relations and International Civil Aviation Organisation Obligations--685
Ministerial Servicing - Civil Aviation--431
Policy Advice - Civil Aviation--663

Comparators for Restructured Appropriation

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Vote Transport

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Civil Aviation440440440
International Relations and International Civil Aviation Organisation Obligations685685685
Ministerial Servicing - Civil Aviation431431431
Policy Advice - Civil Aviation663663663
Total2,2192,2192,219

The previous multi-class output appropriation Policy Advice and Related Outputs - Civil Aviation MCOA has been converted to a multi-category appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a safe and secure airspace environment through the implementation and monitoring of rules and regulations and the management of risk for all aviation activities.

How Performance will be Assessed for this Appropriation

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Related Outputs - Civil Aviation

The 2014/15 survey results indicate an improvement over the June 2011 survey results in relation to the perceptions and confidence of the travelling public and other stakeholders in the safety and security of air transport. The June 2011 results are:
  • 72% of residents travellers felt extremely or very safe and secure
  • 86% of overseas travellers felt extremely or very safe and secure
  • 44% of 27 key stakeholders were satisfied with the safety and security performance of the New Zealand civil aviation system
New measureNew measureSurvey results reflect an improvement over the June 2011 results

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Related Outputs - Civil Aviation

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Civil Aviation
This category is intended to achieve compliance with the provisions of the Health and Safety in Employment Act 1992 in the aviation sector, for those who work on board aircraft while the aircraft is operating.
Number of health and safety in employment investigations, audits, and inspections35-5535-5535-55
Percentage of health and safety in employment investigations, audits, and inspections that follow policy and procedural requirements95%100%100%
Percentage of health and safety in employment investigation and audit reports issued within agreed timeframes95%100%100%
International Relations and International Civil Aviation Organisation Obligations
This category is intended to achieve administration of New Zealand's international civil aviation obligations and interests within the delegations of the Minister of Transport.
The Civil Aviation Authority administers New Zealand's international Civil Aviation obligations and interests as delegated by the Minister.
  • International engagement is undertaken that meets the objectives of the Civil Aviation Authority International Engagement Strategy.
95% of objectives met95% of objectives met95% of objectives met
International Civil Aviation Organization (ICAO) coordinated validation mission carried out as a result of a significant safety concern raised by ICAOnewnilnil
Ministerial Servicing - Civil Aviation
This category is intended to achieve the effective delivery of support to executive government and parliamentary processes
Reports, correspondence and Parliamentary Questions are acceptable to the Minister (as assessed by annual survey)95% of papers acceptable95% of papers acceptable95% of papers acceptable
Policy Advice - Civil Aviation
This category is intended to achieve a high level of safety and security standards within the New Zealand civil aviation system.
Development of sound policy advice proactively identifies and addresses regulatory issues within the Civil Aviation system.
  • Policy papers meet the standards set out in the CAA policy development procedures as assessed by an annual independent audit.
95% meet standard95% meet standard95% meet standard

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Civil Aviation Authority (CAA) in its annual report, and by the Ministry of Transport (as appropriation administrator) in the CAA annual report.

Policy Advice and Related Outputs - Maritime (M72)

Overarching Purpose Statement

The overarching purpose of this appropriation is to regulate and enhance safety in New Zealand's maritime environment.

Scope of Appropriation

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Maritime
This category is limited to health and safety activities, for which there is a designated responsibility.
Maritime Incident Response
This category is limited to building capability to respond to complex maritime pollution incidents.
Maritime Safety and Marine Protection Services
This category is limited to the development and delivery of regulatory services which are the responsibility of Maritime New Zealand under legislation
Policy Advice - Maritime
This category 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 and Ministerial servicing.

Expenses, Revenue and Capital Expenditure

2013/142014/15
Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--7,708

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Maritime--954
Maritime Incident Response--1,198
Maritime Safety and Marine Protection Services--2,078
Policy Advice - Maritime--3,478

Comparators for Restructured Appropriation

2013/142014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Vote Transport

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Maritime954954954
Maritime Safety and Marine Protection Services2,0782,0782,078
Policy Advice - Maritime3,4783,4783,478
Maritime Incident Response1,0771,0771,198
Total7,5877,5877,708

The previous multi-class output appropriation Policy Advice and Related Outputs - Maritime MCOA has been converted to a multi-category appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve robust regulatory advice, risk-focused compliance practices and well-prepared marine pollution response capability.

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

2013/142014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Related Outputs - Maritime

Non-Departmental Output Expenses

Health and Safety in Employment Activities - Maritime
This category is intended to achieve the provision of regulatory services that are established under Health and Safety in Employment Act as the responsibility of Maritime New Zealand.
Prosecutions brought under the Health and Safety in Employment Act that are successful75%100%75%
Maritime Incident Response
This category is intended to achieve the implementation of recommendations from the Murdoch review of Maritime New Zealand's response to the Rena grounding to improve the efficiency and effectiveness of New Zealand's response to complex maritime incidents.
Develop a national maritime incident plan that includes; OPRC-HNS elements, salvage, non-oil pollution, volunteer communication and community engagement elements and plan.CompletedCompletedNo longer a measure
Develop and maintain offshore oil spill response capabilityCapability maintainedCapability maintainedCapability maintained
Complete review of Maritime New Zealand non-oil capabilityOngoingOngoingCompleted
Maritime Safety and Marine Protection Services
This category is intended to achieve the provision of reliable maritime navigation aids.
Percentage of time lighthouses are available99.8%100%99.8%
Percentage of time a 24-hour Distress and Safety Radio Service is provided100%100%100%
Policy Advice - Maritime
This category is intended to achieve the development of fit for purpose policy in relation to maritime safety, security and environmental protection; and the provision of services to Ministers to enable them to discharge their portfolio accountabilities.
All written policy reports/advice to Ministers meet Maritime New Zealand's quality criteria (content, form and analysis)100%100%100%
All written policy reports/advice to Ministers are completed by the due date100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by Maritime New Zealand (MNZ) in its annual report, and by the Ministry of Transport (as appropriation administrator) in the MNZ annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2013/14
Budgeted
$000
2014/15
Budget
$000
2015/16
Estimated
$000
2016/17
Estimated
$000
2017/18
Estimated
$000
Maritime Health and Safety in Employment Activities2012/13528528528528528

Reasons for Change in Appropriation

The change in this appropriation is due to the matching of funding to the projected expenditure for the Maritime Incident Response category.

Introduction

Purpose of the Estimates of Appropriations

The Estimates of Appropriations (the Estimates) provides members of Parliament with:

  • Details of the terms of all proposed appropriations and of capital injections to departments and Offices of Parliament.
  • Supporting information providing for each appropriation or category of a multi-category appropriation:
    • a concise explanation of what is intended to be achieved, and
    • (unless an appropriation has been exempted from end-of-year performance reporting)
      • a concise explanation of how performance will be assessed
      • who will report on what was achieved with the appropriation, and
      • in what document that report will be presented to the House of Representatives.

The information ensures that Parliament can exercise an appropriate level of scrutiny and control over the Government's operating and investing activities and provides a basis against which Parliament can, after the end of the financial year, assess actual performance against each appropriation (or category of a multi-category appropriation).

The 10 sector volumes of the Estimates are presented to the House of Representatives on the same day as the government introduces the main Appropriation Bill for each financial year.

Information No Longer in the Estimates of Appropriations

Following recent amendments to the Public Finance Act 1989 (PFA), and subsequent changes to the format and content of the Estimates, the following information is no longer in the Estimates:

Content Where to find this information
The Summary Tables The Summary tables which provide a high-level perspective and comparative “ready reference” for all appropriations (annual, permanent and MYAs) are available online: www.treasury.govt.nz/budget/2014/summarytables/estimates
Forecast financial statements Departments' forecast financial statements will be presented to the House as part of each department's annual report for the previous financial year.
Statements of forecast service performance Departmental statements of forecast service performance are no longer needed in the information supporting the Estimates, as end-of-year reporting on what has been achieved with each appropriation will be directly against each appropriation rather than in a statement of service performance.
Statements of intent Departmental statements of intent are no longer bolted on to the relevant sector volume of the Estimates. Each department's most recent strategic intentions must be available on the department's website, and must be presented to the House of Representatives no later than when the annual report for the previous financial year is presented, possibly in the same document as the annual report or grouped with those of other agencies in a sector.

How the Estimates of Appropriations are Organised

The Estimates of Appropriations are organised into 10 volumes (B.5 Vols 1-10) by sector, each of which covers one or more Votes. The scope of each sector and the allocation of Votes to a sector reflect a balancing of three desired characteristics - namely that each volume should, where possible:

  • reflect natural sectors
  • keep together Votes administered by the same department, and
  • keep together Votes allocated to a particular select committee of the House of Representatives for examination.

The number of sectors and coverage of each sector was set initially in consultation with the Finance and Expenditure Committee.

There are 54 Votes for 2014/15 as:

  • Vote Economic Development and Vote Employment have been combined into Vote Economic Development and Employment
  • Vote Commerce and Vote Consumer Affairs have been combined into Vote Commerce and Consumer Affairs, and
  • Vote Veterans' Affairs - Social Development has been merged into Vote Social Development.

The table below shows the Votes by Sector and which departments are in each sector.

Votes in Each Sector

Votes by Sector Department Administering Vote(s)

Economic Development and Infrastructure Sector - B.5 Vol.1

 
Vote Economic Development and Employment Ministry of Business, Innovation and Employment
Vote ACC  
Vote Commerce and Consumer Affairs  
Vote Communications  
Vote Energy  
Vote Immigration  
Vote Labour  
Vote Tourism  
Vote Canterbury Earthquake Recovery Canterbury Earthquake Recovery Authority
Vote Transport Ministry of Transport

Education and Science Sector - B.5 Vol.2

 
Vote Education Ministry of Education

Vote Tertiary Education

 
Vote Education Review Office Education Review Office
Vote Science and Innovation Ministry of Business, Innovation and Employment

Environment Sector - B.5 Vol.3

 
Vote Environment Ministry for the Environment
Vote Conservation Department of Conservation
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment

External Sector - B.5 Vol.4

 
Vote Foreign Affairs and Trade Ministry of Foreign Affairs and Trade
Vote Official Development Assistance  
Vote Defence Ministry of Defence
Vote Defence Force New Zealand Defence Force
Vote Customs New Zealand Customs Service

Finance and Government Administration Sector - B.5 Vol.5

 
Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance The Treasury
Vote Revenue Inland Revenue Department
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Parliamentary Service Parliamentary Service
Vote Audit Controller and Auditor-General
Vote Ombudsmen Office of the Ombudsmen

Health Sector - B.5 Vol.6

 
Vote Health Ministry of Health

Justice Sector - B.5 Vol.7

 
Vote Justice Ministry of Justice
Vote Courts  
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office

Māori, Other Populations and Cultural Sector - B.5 Vol.8

 
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations Ministry of Justice
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Statistics Statistics New Zealand
Vote Internal Affairs Department of Internal Affairs
Vote Arts, Culture and Heritage Ministry for Culture and Heritage
Vote Sport and Recreation  

Primary Sector - B.5 Vol.9

 
Vote Primary Industries Ministry for Primary Industries
Vote Food Safety  
Vote Lands Land Information New Zealand

Social Development and Housing Sector - B.5 Vol.10

 
Vote Social Development Ministry of Social Development
Vote Senior Citizens  
Vote Housing Ministry of Business, Innovation and Employment

Appropriations

Purpose and Nature of Appropriations

An appropriation is a statutory authority from Parliament allowing the Crown or an Office of Parliament to incur expenses or capital expenditure.

Neither the Crown nor an Office of Parliament can legally incur any expense or capital expenditure - as those terms are defined in the PFA - unless it is expressly authorised by or under an Act of Parliament.

Limits Created by Appropriations

Each appropriation is allocated to, and managed as, one of seven types of appropriation.

Each appropriation has a defined scope that limits the uses or activities for which the expenses or capital expenditure can be incurred. The scope should be sufficient on its own to establish the nature and extent of the authority to incur expenses or capital expenditure. The wording of the appropriation scope should achieve the balance between being sufficiently precise to act as an effective constraint against non-authorised activities and not so specific that it inadvertently limits activity intended to be authorised.

Except in a very limited number of cases (eg, permanent appropriations or revenue dependent appropriations) an appropriation also limits the amount of expenses or capital expenditure that can be incurred, and the time period within which those expenses or capital expenditure can be incurred.

Aside from the very limited exclusions provided for in the PFA, the amount of expense or capital expenditure authorised by an appropriation is measured in accordance with generally accepted accounting practice.

Responsibility for Appropriations

The PFA requires each appropriation to be the responsibility of one Minister (or the Speaker) and to be administered by one department (or an Office of Parliament).

A Vote is a group of appropriations (and can be a single appropriation) administered by a single department. Different appropriations within a Vote may be the responsibility of different Ministers.

Types of Appropriation

The PFA provides for seven types of appropriation. Four appropriation types authorise the incurring of expenses; one type authorises the incurring of capital expenditure; and the remaining types authorise both. These appropriation types can be further differentiated by whether the expenses or capital expenditure are departmental or non-departmental transactions.

Appropriation Type Transaction Status Description
Output Expenses Departmental Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).
  Non-Departmental Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.
Benefits or Related Expenses Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in transferring resources (generally to individuals for their personal benefit) for which the Crown receives nothing directly in return. (Prior to 1 July 2014, this appropriation type was called Benefits and other Unrequited Expenses.)

Examples include Job Seeker Support and Emergency Benefit, Student Allowances and various scholarships and awards.

Borrowing Expenses Departmental

Authorises the incurring of interest or other financing expenses for loans made to a department or an Office of Parliament, or public securities (undertakings that represent part of the public debt) issued by a department or an Office of Parliament.

In practice, limitations on the rights of departments to borrow or issue securities and limitations on how Offices of Parliament can be funded mean that this type of appropriation is unlikely to be used.

  Non-Departmental

Authorises the incurring of interest or other financing expenses for loans made to the Crown (excluding departments), or public securities (undertakings that represent part of the public debt) issued by the Crown.

Crown debt management is centralised, which means that most debt-servicing expenses appear in Vote Finance.

Other Expenses Departmental

Authorises expenses to be incurred by a department or an Office of Parliament that are not either output expenses or borrowing expenses.

Other expenses should be used only for events that cannot be related back to output production, such as redundancy costs arising from a government decision to cease purchasing certain types of outputs, or a loss on sale of assets made surplus by departmental restructuring.

  Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) that are not structured or managed as output expenses, benefits or related expenses, or borrowing expenses.

Other expenses is the residual appropriation type, which should not be used where an appropriation could be better classified or managed as one of the other appropriation types (eg, as output expenses).

Examples include disposal of an asset for less than market value, grants to community organisations, subscriptions for membership of international bodies and remuneration of independent statutory officers.

Capital expenditure Departmental Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.
  Non-Departmental Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.
Expenses or Capital expenditure Incurred by an Intelligence and Security Department Departmental Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.
Multi-Category Appropriations Departmental or
Non-Departmental
Allows separate categories of departmental output expenses, non-departmental output expenses, departmental other expenses, non-departmental other expenses, or non-departmental capital expenditure to be grouped together in one appropriation provided all the categories contribute to a single overarching purpose.

Types of Output Expense Appropriations

Some variation is possible for output expense appropriations. For example, the constraint on the amount of expense that can be incurred is not always a fixed sum.

Output Expense Appropriations Type and Authority Description, Constraints on Form and Typical Application

Standard Output Expense Appropriations

(section 7A(1)(a), Public Finance Act 1989)

Departmental or non-departmental:  Authorise a department or an Office of Parliament to incur expenses in supplying a specified category of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase a specified category of outputs.

Annual or multi-year:  The authority lapses at the end of the financial year or multi-year period specified.

Single category of output expenses only:  The scope is limited to a single category of outputs (a grouping of similar or related outputs).

Amount limited by Appropriation Act: The amount of a standard output expense appropriation is limited to a set amount of NZ dollars specified in an Appropriation Act.

Typical application:  The normal or default form for an output expense appropriation, used for a wide range of outputs for which the flexibility offered by a multi-category appropriation is not required.

Revenue-Dependent Appropriations (RDA)

(section 21(1), Public Finance Act 1989)

Departmental only:  Authorise a department or an Office of Parliament to incur expenses in supplying a specified category of outputs (goods and services) that are not paid for directly by the Crown.

A proposed RDA must be approved by the Minister of Finance, before it is presented in the Estimates.  Each category of outputs for which an RDA is approved is listed in an Appropriation Act for the relevant financial year.

Annual only:  The authority lapses at the end of the financial year specified.

Single category of output expenses only:  The scope of an RDA is limited to a single category of outputs (a grouping of similar or related outputs).

Amount limited by amount of revenue earned:  The amount of an RDA is limited tothe amount of revenue earned by a department or an Office of Parliament from other departments or from parties other than the Crown during a financial year.  The Minister of Finance can further direct a department to incur expenses to a level lower than the amount of revenue earned, though such directions have been rare.

Typical application:  An RDA provides flexibility to respond to unanticipated changes in the level of external demand for a category of outputs, where the full cost of the outputs is met by external parties and not the Crown.

Appropriation Period

Three kinds of appropriation can be distinguished on the basis of period - annual and multi-year (as referred to in the above table on types of output expense appropriations), and permanent:

  • Annual Appropriations - Most appropriations allow expenses or capital expenditure to be incurred only during a particular financial year. The amounts for RDAs are forecasts only.
  • Multi-Year Appropriations (MYAs) - The PFA also permits appropriations that allow expenses or capital expenditure to be incurred during a specified period that spans the whole or parts of more than one financial year, but no more than five financial years.
  • Permanent Appropriations (sometimes referred to as permanent legislative authorities or PLAs) -Permanent appropriations are authorised by legislation other than an Appropriation Act and continue in effect until revoked by Parliament. Generally the authorising legislation will impose limits on the scope of the appropriation and not its amount. For those appropriations with limits set in cash terms, section 11(2) of the Public Finance Act 1989 requires that they be reported on an accrual basis. The usual legislative wording allows for expenses to be incurred for the purpose specified in the legislation “without further appropriation than this section”. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

Types of Crown Revenue and Capital Receipts

An operating and capital split also applies to Crown revenue and receipts. The following table outlines the three Crown revenue/receipt types:

Crown Revenue Type Transaction Status Description
Tax Revenue Non-Departmental Tax payable to the Crown, such as Income Tax, GST and Fringe Benefit Tax
Non-Tax Revenue Non-Departmental Revenue earned by the Crown from its investing and other operating activities.  Examples include interest income, capital charges and dividends from State-owned enterprises.
Capital Receipts Non-Departmental

Capital received by the Crown:

  • when loans are raised (which appear in Vote Finance) or repayments of principal are made on debts owed to the Crown (for example, in Vote Social Development), or
  • when capital assets are sold.

Capital Injections and Movements in Net Assets

A capital injection is an investment by the Crown in a department (or an Office of Parliament), which increases the department's net asset balance. Section 12A of the PFA requires capital injections to departments or an Office of Parliament to be authorised under an Appropriation Act.

Further information on capital injections and other movements in a department's net asset balance appears in the Estimates in a Vote that has appropriations belonging to a department's Responsible Minister. The movements reconcile a department's opening and closing net asset balances. This makes it easier to see the balance sheet flows.

Movement Type Description
Capital injections Investment by the Crown in a department, which increases the department's closing net asset balance.
Capital withdrawals Returns of capital by a department to the Crown, which reduce the department's closing net asset balance.
Surplus to be retained/(Deficit incurred) The net surplus forecast to be retained by a department from its operations for a financial year in accordance with section 22(1) of the PFA, or the forecast deficit for the department.  A surplus or deficit will, respectively, increase or decrease the department's closing net asset balance.
Other movements This section is for any other movements that will affect the increases the department's net asset balance. For example movements in asset revaluation reserves.

Guide to Reading the Estimates of Appropriations

After the introduction in each sector volume, the following information is provided, where applicable, for each Vote within the sector.

Title page The title page specifies the appropriation Minister(s) responsible for existing and proposed appropriations in the Vote, the appropriation administrator, and the responsible Minister for the department.
Summary A plain-language overview of the focus of the appropriations in the Vote.
Details of each appropriation and capital injections

One or more tables containing information on each appropriation in a Vote:

Annual and Permanent Appropriations - The title, scope, and amount of each annual and permanent appropriation, the title and single overarching purpose of each multi-category appropriation and the title, scope and forecast amount of each category within a multi-category appropriation.  The annual amounts for which parliamentary authority is sought in the Appropriation (2014/15 Estimates) Bill appear in bold type. As permanent appropriations have already been approved by Parliament, their amounts are forecasts, not a limit, so are not shown in bold type.

Multi-Year Appropriations - The type, title, scope and amount of each MYA , including any adjustments since originally appropriated, amounts incurred or estimated for particular years, and the estimated remaining balance.

Capital Injection Authorisations - The name of the department seeking the additional capital. The amount for which parliamentary authority is sought in the Appropriation (2014/15 Estimates) Bill appears in bold type.

Supporting information

 
Part 1 - Vote as a Whole

Part 1.1 New Policy initiatives - A table showing how new initiatives (if any) and the associated expenses or capital expenditure are allocated to appropriations in the Vote. References are included where appropriations in other Votes are affected by the same initiative.

Part 1.2 Trends in the Vote- A presentation of the actual and estimated trends in the Vote:

Summary of Financial Activity - A table showing financial information for the Vote over the preceding five years (actual, budgeted or estimated actual), the current year (Budget) and the following three years (estimated) for each type of appropriation and Crown revenue and capital receipts.  Where Votes have been combined or separated, appropriations have been moved into/out of a Vote, or where categories of expenses or capital expenditure have been moved into/out of a multi-category appropriation, to the extent practicable the information in the table is restated as if these adjustments had occurred before the beginning of the current year.

Adjustments to the Summary of Financial Activity - A table showing any restated adjustments made to the preceding five years of the Summary of Financial Activity table. Where no restatement has occurred, a statement to this effect is inserted under this sub-heading.

Part 1.3  Analysis of Significant Trends - High-level analysis of appropriations and Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, explanations of significant changes and may also contain graphical presentations.

Part 1.4 Reconciliation of Changes in Appropriation Structure - a table providing a reconciliation and explanation of any changes in the structure or classification of appropriations (and categories within MCAs) made in the Budget year to facilitate traceability of expenditure between financial years.

Part 1.5 Relationship between individual Appropriations and the Work Programme - An optional table to be used when the relationship between individual Appropriations and the Work Programmeis not readily apparent from the information provided elsewhere in the supporting information.

Guide to Reading the Estimates of Appropriations (continued)

Parts 2-4 Information Provided for each Appropriation or Capital Injection
(where applicable)
Part 2 - Departmental Appropriations Part 3 - Non-Departmental Appropriations Part 4 - MCAs
  Part 2.1
Output Expenses
Part 2.2
Other Expenses*
Part 2.3
Capital Expenditure and Capital Injections**
Part 3.1
Output Expenses
Part 3.2
Benefits or Related Expenses
Part 3.3
Borrowing Expenses
Part 3.4
Other Expenses
Part 3.5
Capital Expenditure
Part 4
Expense and Capital Expenses
Title of the appropriation.
The scope of the appropriation. N/A
The single overarching purpose statement for an MCA. N/A N/A N/A N/A N/A N/A N/A N/A
The scope of each category in a multi-category appropriation. N/A N/A N/A N/A N/A N/A N/A N/A
A table showing the budgeted amount and estimated actual expenditure for the previous financial year, and the budgeted amount for the appropriation for the current financial year. ✓ and revenue sources ✓ for capital expenditure
Components of the appropriation or category (where applicable). This information, while not required by the PFA, allows for more meaningful information to be provided where the expense is more than $50 million. N/A N/A
Comparators for restructured appropriations or categories (where applicable). N/A
What is intended to be achieved with each appropriation.
How performance will be assessed for each appropriation (or a statement of why the appropriation has been exempted from this requirement) or capital injection. N/A
What is intended to be achieved with each category of an MCA, and (if not exempted from reporting) how performance will be assessed. N/A N/A N/A N/A N/A N/A N/A N/A
Which appropriation Minister or agency will report at the end-of-year on the performance of the appropriation or capital injection (if not exempted from reporting) and the name of the document the information will appear in when tabled in the House. N/A
Service providers table (or text if there is only one service provider), which identifies the main service providers for each non-departmental output expense and non-departmental other expense appropriations. N/A N/A N/A N/A N/A N/A
Current and past policy initiatives (if any). The current and past policy initiatives tables provides a five-year history of announced initiatives that impact on the Budget year, the preceding year, and the following three years. N/A
Reasons for change, which explain significant changes of amounts of an appropriation between years (if any).
Conditions on use of appropriation, which can include administrative criteria and processes contained in legislation, regulation and Government decisions. N/A N/A N/A
Memorandum accounts (if any), which record accumulated surpluses and deficits incurred in the provision of outputs on a basis of full cost-recovery from third parties (including other departments. N/A N/A N/A N/A N/A N/A N/A
Multi-year appropriations (if any). The information provided is similar to other information above, with the exception of memorandum accounts. N/A N/A N/A N/A N/A
Capital injections and movements in departmental net assets table. This table shows how capital injections to be authorised relate to movements in departmental net assets and what any capital injection is for. N/A N/A N/A N/A N/A N/A N/A N/A

* This appropriation is used for the salaries of the Officers of Parliament as determined by the Remuneration Authority and for events that cannot be related back to output production.

** The purchase or development of assets by a department (other than an intelligence and security department) is made under a permanent appropriation authorised by section 24 of the PFA. Capital expenditure is defined in the PFA as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories.

Useful Links

  • The suite of documents presented to the House on Budget day can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2014
  • Summary Tables, which are available online, provide a high-level perspective and comparative “ready reference” for all appropriations (annual, permanent and MYAs). They cover:
    • the trends for all Votes - showing actual or estimated actual totals for the five years to 2013/14, Budget totals proposed for 2014/15 and estimated totals for the three financial years to 2017/18 with respect to each type of appropriation and of Crown revenue and capital receipts
    • each appropriation type and total appropriations - showing budgeted and estimated actual totals for 2013/14 and totals proposed for 2014/15 for each Vote
    • current-year revenue-dependent appropriations for each Vote
    • multi-year appropriations by Vote, appropriation type and period
    • capital injection authorisations for 2014/15, and
    • types of Crown revenue and Crown capital receipts for 2013/14 and 2014/15 associated with each Vote.

For inclusion in the Summary Tables, MYAs are converted into actual or forecast amounts for each financial year. The summary tables can be accessed www.treasury.govt.nz/budget/2014/summarytables/estimates

An electronic archive of Budgets of the Government of New Zealand from 1997 to 2013 can be accessed here: www.treasury.govt.nz/budget/archive

How the Estimates Relate to Other Performance Information presented to the House

This section outlines the relationship between the information in the Estimates and other performance information presented to the House.

Strategic Intentions

Each department, Office of Parliament, Crown entity and Public Finance Act Schedule 4A company presents information on its strategic intentions to the House, at least once every three years. It may be more frequently if the responsible Minister requires it; there is a material or significant change in the intentions; or the information in the strategic intentions is false or misleading.

Strategic intentions set the out the direction of an agency and how the agency is organised to get there. The information must cover at least the next four financial years, and may include the current financial year. An agency's most recent strategic intentions must always be available on the agency's website, and can be presented to the House with other information eg, the annual report for the previous financial year or grouped with other agencies in a sector.

Annual Performance Expectations

What an agency (eg, department, Office of Parliament, Crown entity or other service provider) intends to achieve with expenditure from appropriations in the next financial year and how each agency will demonstrate its performance (if not exempted) is available in the Estimates.

In addition, Crown entities and Public Finance Act Schedule 4A companies may have reportable outputs that are funded from revenue other than appropriations. What each agency intends to achieve and how it will demonstrate its performance for all its reportable outputs are presented to the House in a Statement of Performance Expectations. The Statement of Performance Expectations must always be available on an agency's website and can be presented to the House with other information eg, the strategic intentions or annual report.

End of Year Performance Information

Performance information on what has been achieved with each appropriation as a whole and each category of a multi-category appropriation is provided to the House in the document most recently indicated in the Estimates or Supplementary Estimates. For example, reporting against appropriations would typically be provided to the House with the annual report of the appropriation administrator (department or Office of Parliament), the Crown entity receiving the appropriation, or in a Minister's report. Alternatively, information on the performance of an appropriation may be provided in a separate sector or thematic report where this would be more useful to Parliament.

Departmental, Office of Parliament, Crown entity, PFA Schedule 4A Company annual reports, and Ministerial reports on what has been achieved with appropriations are required to be provided to the House in the timeframes indicated below:

  • Departmental and Office of Parliament annual report -each department's annual report must be presented 3-4 months after the end of the financial year. The annual report includes the financial statements for the previous financial year, the financial forecasts for the current financial year, the statement of expenses and capital expenditure, and reporting against the department's strategic intentions and annual performance expectations contained in the Estimates.
  • Crown entity orPFA Schedule 4A company annual report - each annual report must be presented 4-5 months after the end of the financial year and includes the financial statements, as well as reporting against the Crown entity's strategic intentions and annual performance expectations from all sources of reportable revenue.
  • Appropriation Minister's annual report - the appropriation Minister must be presented within 4 months after the end of the financial year on the use of non-departmental appropriations that are not reported to the House thorough any other mechanism and have not been exempted from year-end reporting under s.15D of the PFA.

Terms and Definitions

The table below contains terms that are used in the Estimates of Appropriations.

Term Definition
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation Minister The Minister responsible for specific appropriations being sought within a Vote.  As several Ministers may now hold appropriations within a single Vote, each appropriation will have a tag (M1, M2 etc) identifying the Minister responsible for that line item.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Capital injection Investment by the Crown in a department, which increases the department's net asset balance.
Capital withdrawals Returns of capital by a department to the Crown, which reduce the department's closing net asset balance.
Category A grouping of similar or related expenses or a grouping of similar or related capital expenditure.
Crown revenue Revenue earned on behalf of the Crown.  These flows are accounted for as revenue to the Crown rather than as departmental revenue.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the Public Finance Act 1989.
Estimated actual

For an amount, the estimated actual incorporates the actual amount that has been spent and an estimate of the amount to be spent for the rest of the year. 

For anything else, the estimated actual incorporates actual performance that has been achieved and an estimate of performance for the rest of the year. 

Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year.  [An accrual concept measured in accordance with generally accepted accounting practice.]
GST Goods and services tax.  Appropriations are stated GST exclusive.
MCA Multi-category appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Office of Parliament There are three Offices of Parliament - the Office of the Auditor General, the Office of the Ombudsmen, and the office of the Parliamentary Commissioner for the Environment. Each is headed by an Officer of Parliament.
Outputs Goods or services supplied by departments and other entities to external parties.  Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989.
PLA Permanent Legislative Authority - the traditional term for an appropriation authorised for an indefinite period by legislation other than an Appropriation Act (also known as a permanent appropriation).
RDA Revenue-dependent appropriations, which are authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity.  In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown.  These flows are accounted for as departmental revenue.  Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties.  Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by one department or Office of Parliament.