Vote Business, Science and Innovation

APPROPRIATION MINISTER(S): Minister of Commerce and Consumer Affairs (M13), Minister for Tertiary Education, Skills and Employment (M14), Minister of Conservation (M16), Minister for Economic Development (M25), Minister of Energy and Resources (M28), Minister for Māori Development (M46), Minister of Tourism (M69), Minister of Science and Innovation (M84), Minister for Communications (M88) APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

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Overview of the Vote

Vote Business, Science, and Innovation is a merger of the following former votes: Vote Economic Development and Employment (minus the Employment appropriations, which are transferring to Vote Labour Market), Vote Commerce and Consumer Affairs, Vote Communications, Vote Energy, Vote Science and Innovation and Vote Tourism.

The Minister of Economic Development is responsible for Policy Advice and Related Services funding for 2015/16 that comprises:

· just over $19 million to support the Minister for Economic Development

· just over $11 million to support the Minister of Commerce and Consumer Affairs

· just over $6 million to support the Minister for Communications

· just over $6 million to support the Minister of Energy and Resources

· just under $8 million to support the Minister of Science and Innovation

· just over $1 million to support the Minister for Small Business, and

· just over $4 million to support the Minister of Tourism.

The Minister for Economic Development is responsible for Sector Analysis and Facilitation funding for 2015/16 that comprises:

· just under $2 million to support data analysis relating to the Economic Development portfolio, and

· just over $3 million to support research, analysis and dissemination of data relating to the Tourism portfolio.

The Minister of Commerce and Consumer Affairs is responsible for appropriations in the Vote for 2015/16 covering the following:

· a total of just under $68 million for matters relating to the development and delivery of consumer information, protection of intellectual property rights, administration of bankruptcies and liquidations, the registration and provision of statutory information from business registers, compliance and enforcement of trading standards and proceeds of crime provisions

· a total of just over $62 million provided to various Crown entities (including $33 million to the Commerce Commission and $28 million to the Financial Markets Authority) that are responsible for registration, monitoring, economic regulation, education and advice, compliance and enforcement activities to ensure businesses can compete, innovate, invest and trade, and consumers can purchase with confidence from competitive markets and have access to redress when transactions go wrong, and

· a total of just under $12 million for improving New Zealanders’ financial capability and the effectiveness of retirement income policies; the funding of financial reporting and auditing and assurance standards setting; and promoting better-performing businesses and investor confidence by setting rules and incentives for how firms are structured and managed.

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The Minister for Communications is responsible for appropriations in the Vote for 2015/16 covering the following:

· a total of just over $12 million for the management of New Zealand’s radio spectrum and Management of Emergency Telecommunications Services

· a total of $6 million for Commerce Commission costs to enforce regulated telecommunications services and undertake specific telecommunications regulatory functions

· a total of just over $31 million for the purchase of deaf relay services and the payment for infrastructure associated with Rural Broadband initiatives

· a total of just over $1 million to achieve upgraded telecommunications capabilities for the public to communicate with Government in emergencies

· a total of $1.500 million to achieve fibre connections between end-users, and Ultra-Fast Broadband and Rural Broadband Initiative providers’ cable

· a total of just over $2 million for international membership fees, support and administration costs related to enabling access to the telecommunications relay service, and

· a total of just over $190 million capital investment in ultrafast broadband infrastructure, and in subsidised equipment for hearing and speech impaired people.

The Minister of Communications is responsible for just under $92 million of Non-Tax revenue in 2015/16:

· $50 million from Telecommunications Development Levy

· $6 million from Telecommunications Levy

· just under $36 million from Radio Spectrum, and

· $14,000 from Contributions to the Chatham Islands Rural Broadband Investment project.

The Minister for Economic Development is responsible for appropriations in the Vote for 2015/16 covering the following:

· a total of just over $17 million for implementation of improvement in public sector procurement

· a total of just over $113 million for capital expenditure for all of the Ministry of Business, Innovation and Employment (MBIE)

· a total of just over $193 million for New Zealand Trade and Enterprise (NZTE) operating expenses and cash grant schemes

· a total of just under $78 million to provide grant assistance to screen productions that are internationally focused and produced in New Zealand

· a total of just over $1 million for operation of an independent structure for Film New Zealand

· a total of just under $15 million to support major events that provide economic, social, cultural and international profiling benefits to New Zealand

· a total of $2 million for depreciation on Auckland’s Queens Wharf

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· a total of just over $750,000 funding for management development, and

· a total of just under $13 million for capital investments in the early stage equity finance markets and offshore market development assistance to business.

The Minister of Energy and Resources is responsible for appropriations in the Vote for 2015/16 covering the following:

· a total of just over $20 million for modelling and analysis to support energy and resources sector policy advice, the management of the Crown mineral estate, and the administration of fuel quality monitoring programme, which is an industry levy funded activity

· a total of just over $77 million for the Electricity Authority’s work in regulating the electricity system, securing reserve energy supplies for New Zealand now and into the future, and ensuring that the regulatory body for the electricity industry is able to participate in litigation effectively

· a total of just over $56 million for the Energy Efficiency and Conservation Authority’s work in promoting energy efficiency, including by providing grants and assistance of just under $24 million for the Home Insulation programme targeting low income households

· a total of $2 million to support the acquisition and analysis of seismic information relating to New Zealand’s minerals, petroleum and geothermal resources

· a total of just under $9 million to manage and fund New Zealand’s oil stocks obligations with the International Energy Agency

· a total of just under $2 million for management and monitoring of responsibilities in the event of an emerging security situation, and planning and running an emergency conservation campaign and for international membership fees and to meet Ministry of Energy residual liabilities.

· a total of $2 million of capital expenditure for the provision of funding for the Crown loans scheme to assist public sector agencies to implement energy efficiency projects.

The Minister of Energy and Resources is responsible for just over $365 million of Tax and Non-Tax revenue in 2015/16:

· just under $229 million from petroleum and other Crown mineral royalties

· just over $96 million in levies from the Electricity Industry

· just over $38 million from coal and gas energy resource levies, and

· $2 million from repayment of energy efficiency loans.

The Minister of Science and Innovation is responsible for appropriations in the Vote for 2015/16 covering the following:

· a total of just over $20 million for contract management

· a total of just under $202 million for Crown Research Institutes (CRI’s) to provide greater financial certainty to deliver outcomes for the benefit of New Zealand and to assist the CRI’s to contribute to the outcomes in their statement of core purpose

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· a total of just over $300 million for research and research applications in the areas of high value manufacturing and services, biological industries, health and society, environmental, hazards and infrastructure and energy and minerals

· a total of just over $218 million forecast for 2015/16 for Research and Development Growth Grants multi-year appropriation (MYA), Targeted Business Research and Development Funding MYA, and Repayable Grants for Start-Ups to co-fund private businesses for investment, research, development projects, and funding for students to work in research and development active businesses

· a total of just under $70 million forecast for 2015/16 for National Science Challenges MYA to fund specific research projects in seeking answers to the most pressing issues of national significance facing New Zealand

· a total of just under $20 million for services by Callaghan Innovation for development and maintenance of strategic capabilities required to meet immediate and future needs of business and industry

· a total of just under $54 million for the Marsden Fund for excellent fundamental research

· a total of just under $12 million for fellowships and grants to support the development of future research leaders

· a total of just over $32 million for activities that build business innovation

· a total of just under $8 million for contract management services with regard to research, science and technology contract with organisations or individuals

· a total of just over $11 million for engaging New Zealanders with science and technology

· a total of just under $7 million for Research Contract Management

· a total of just under $6 million to meet the needs for traceable physical measurements in New Zealand and membership to the Convention du Metre

· a total of just under $10 million for Māori capability in undertaking research and innovation through Vision Mātauranga Capability Fund and Māori Innovation Fund

· a total of just over $40 million for grants to organisations in New Zealand and overseas which ensures infrastructures and projects that have system-wide benefits or are too large for any one institution to fund, but are of benefit to New Zealand, can take place

· a total of just over $10 million for international research relationships, and

· a total of just under $64 million capital expenditure to support the development of Callaghan Innovation’s strategic infrastructure.

The Minister of Tourism is responsible for appropriations in the Vote for 2015/16 covering the following:

· a total of just over $132 million for the promotion of New Zealand to key overseas markets as a visitor and business destination, the Tourism Growth Partnership initiative, seed and operational funding for national Cycleways, and funding for Tourism Facilities.

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

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Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Departmental Output Expenses

Commerce and Consumer Affairs: Consumer Information (M13) 2,427 2,427 2,427 This appropriation is limited to the development and delivery of information and programmes that increase the ability of consumers to transact with confidence. Commerce and Consumer Affairs: Official Assignee Functions (M13) 14,428 14,428 14,428 This appropriation is limited to the carrying out of statutory functions of the Official Assignee under the Insolvency Act 2006, the Companies Act 1993, the Proceeds of Crime Act 1991 and the Criminal Proceeds (Recovery) Act 2009. Commerce and Consumer Affairs: Registration and Granting of Intellectual Property Rights 17,612 17,612 16,912 (M13) This appropriation is limited to the granting, administration and enforcement of intellectual property rights, including patents, trademarks, designs, plant varieties, and geographical indications.

Commerce and Consumer Affairs: Registration and Provision of Statutory Information (M13) 26,162 26,162 29,084 This appropriation is limited to the administration of legislation providing for the registration and provision of documents and information services for businesses and other registry activities. Commerce and Consumer Affairs: Trading Standards (M13) 3,687 3,687 4,944 This appropriation is limited to compliance, enforcement, and monitoring activities associated with measurement, product safety and fuel quality. Communications: Management and Enforcement of the Radiocommunications Act 1989 9,641 9,641 9,641 (M88) This appropriation is limited to the management of the radio spectrum, including technical arrangements for the allocation of spectrum, representation of New Zealand’s international radio spectrum interests, and management of spectrum sales. Communications: Management of Emergency Telecommunications Services (M88) 251 251 2,606 This appropriation is limited to the management of upgrades to the telecommunications capabilities of the emergency response services. Economic Development: Implementation of Improvements in Public Sector Procurement 23,150 22,400 17,440 and Services to Business (M25) This appropriation is limited to improving and leading the public sector procurement reform programme and reducing the costs for and improving the service experience of businesses interacting with government.

Energy and Resources: Information Services (M28) - - 2,846 This appropriation is limited to the provision of modelling and analysis to support energy sector policy advice and associated international commitments. Energy and Resources: Management of the Crown Mineral Estate (M28) 17,458 17,458 17,458 Allocation and management of Crown-owned petroleum, coal and mineral resources under the Crown Minerals Act 1991 and minerals programmes issued under the Act. Science and Innovation: Science and Innovation Contract Management (M84) - - 20,205 This appropriation is limited to contract management, planning, monitoring and evaluating science and innovation outputs and impacts.

Administration of Fuel Quality Monitoring Programme (M28) 1,007 1,007 - This appropriation is limited to ensuring New Zealand’s retail fuel supply meets the Engine Fuel Specification regulations.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Canterbury Recovery (M25) 2,557 2,557 - This appropriation is limited to the co-ordination, and management of MBIE’s contribution to the Canterbury recovery. Communications and ICT Operational Policy, Ministerial Servicing and Crown Entity 186 186 - Monitoring (M88) This appropriation is limited to the development of operational policies in relation to information technology, New Zealand’s digital capability, telecommunications markets and regulation, broadband investment, postal services, and international fora related to New Zealand’s ICT interests, services to support the Minister, and monitoring the performance and compliance of Crown Entities. Energy and Resource Information Services (M28) 819 819 - Provision of information and technical advice on energy and resources, the management of the response to any international disruption in oil supplies, and the management of New Zealand’s energy-related international relations. Energy and Resource Information Services RDA (M28) 1,827 1,827 - Provision of information and technical advice on energy and resources, the management of the response to any international disruption in oil supplies, and the management of New Zealand’s energy-related international relations.

Energy and Resources Operational Policy, Ministerial Servicing and Crown Entity 2,226 2,226 - Monitoring (M28) This appropriation is limited to the development of operational policies in relation to the operation of energy and resource markets (electricity, oil, gas, geothermal, coal, minerals and natural related resources) and energy efficiency and conservation issues, services to support the Minister, and monitoring the performance and compliance of Crown Entities. Policy Advice - Communications (M88) 4,658 4,658 - This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.

Policy Advice - Energy and Resource Issues (M28) 4,261 4,261 - This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters. Policy Advice - Tourism (M69) 3,252 3,252 - This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters. Tertiary Education, Skills and Employment - Employment Sector Analysis and Facilitation 4,619 4,619 - (M14) This appropriation is limited to the provision of employment information, facilitation and matching services, and analysis of the functioning of the labour market.

Tourism Data and Operational Policy, Ministerial Servicing and Crown Entity Monitoring 4,659 4,103 - (M69) This appropriation is limited to collection, processing, analysis and dissemination of data on tourism; development of operational policies in relation to Tourism issues, research support, services to support the Minister, monitoring the performance and compliance of Crown Entities, and administering grants programmes. Total Departmental Output Expenses 144,887 143,581 137,991

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Departmental Capital Expenditure Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25) 87,374 87,374 113,063 This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Business, Innovation and Employment, as authorised by section 24(1) of the Public Finance Act 1989. Total Departmental Capital Expenditure 87,374 87,374 113,063

Non-Departmental Output Expenses Commerce and Consumer Affairs: Accounting and Assurance Standards Setting (M13) 4,410 4,410 4,410 This appropriation is limited to the funding of financial reporting and auditing and assurance standards setting for the purposes of promoting the quality of financial reporting. Commerce and Consumer Affairs: Administration of the Takeovers Code (M13) 1,494 1,494 1,494 The performance of statutory functions by the Takeovers Panel as specified in the Takeovers Act 1993.

Commerce and Consumer Affairs: Enforcement of Dairy Sector Regulation and Auditing of 935 935 1,772 Milk Price Setting (M13) This appropriation is limited to funding for reviewing Fonterra’s milk price setting arrangements, dispute resolution, enforcement and reports under the Dairy Industry Restructuring Act 2001 and related regulations. Commerce and Consumer Affairs: Enforcement of General Market Regulation (M13) 13,935 13,935 13,935 This appropriation is limited to the administration, education, enforcement, and adjudication activities of the Commerce Commission in relation to the Commerce Act 1986, the Fair Trading Act 1986, and the Credit Contracts and Consumer Finance Act 2003. Commerce and Consumer Affairs: Retirement Commissioner (M13) 6,092 6,092 5,782 This appropriation is limited to services from the Retirement Commissioner to raise the level of financial capability, improve the effectiveness of retirement income policies and monitor the provisions of the Retirement Villages Act 2003. Communications: Administrative Support for Telecommunications Relay Equipment and 1,719 1,719 1,519 Services (M88) This appropriation is limited to funding expenditure for administering contracts procuring the supply of telecommunications relay services textphones and other equipment for user access to relay service platforms (including video) and the cost for administering rental of relay user equipment and depreciating this equipment, together with sponsoring New Zealand Sign Language interpreter scholarships and the purchase of ancillary services to support the availability and uptake of relay services.

Communications: Emergency Telecommunications Services (M88) - - 1,204 This appropriation is limited to upgrading telecommunications capabilities for emergencies. Communications: Enforcement of Telecommunications Sector Regulation (M88) 6,000 6,000 6,000 This appropriation is limited to the regulation and monitoring of telecommunication services in accordance with the Telecommunications Act 2001. Communications: Fibre Drop Costs (M88) 1,679 1,679 1,500 This appropriation is limited to the cost of fibre connections to join priority users to Ultra-Fast Broadband and Rural Broadband Initiative providers’ cable in the roadway or network operators’ digital microwave radio towers.

Energy and Resources: Electricity Industry Governance and Market Operations (M28) 72,899 72,899 76,974 This appropriation is limited to formulating, monitoring and enforcing compliance with the regulations and rules governing the electricity industry and other outputs in accordance with the statutory functions under the Electricity Industry Act; and delivery of core electricity system and market operation functions, carried out under service provider contracts. Energy and Resources: Implementation of the Home Insulation Programme (M28) 2,500 2,500 2,500 This appropriation is limited to the implementation of the Home Insulation programme.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Energy and Resources: Management of IEA Oil Stocks (M28) 6,697 6,697 8,658 For the cost of managing and funding of oil stocks to meet International Energy Agency obligations. Science and Innovation: Biological Industries Research (M84) 94,918 94,918 92,153 This appropriation is limited to research and research applications to support productivity growth and sustainability of New Zealand’s primary industries, and the development of premium food and industrial biological products and technologies responsive to global consumer preferences.

Science and Innovation: Building Business Innovation (M84) - - 32,378 This appropriation is limited to activities that raise awareness about and increase business investment in Research and Development. Science and Innovation: Business Research and Development Contract Management (M84) 11,208 11,208 7,750 This appropriation is limited to selection of businesses or individuals for either the provision of Research Science and Technology output, or the award of grants, and to negotiate, manage and monitor appropriate contracts with these businesses or individuals. Science and Innovation: Crown Research Institute Core Funding (M84) 201,622 201,622 201,622 This appropriation is limited to Crown Research Institutes to create and maintain capability that is required for their core purpose and strategy.

Science and Innovation: Energy and Minerals Research (M84) 11,499 11,499 13,818 This appropriation is limited to research and research applications to improve mineral extraction, improve energy security and to obtain efficient and affordable energy use. Science and Innovation: Engaging New Zealanders with Science and Technology (M84) 8,269 7,869 11,169 This appropriation is limited to engaging New Zealanders with science and technology through approaches determined by the Minister. Science and Innovation: Environmental Research (M84) 32,447 32,447 31,535 This appropriation is limited to research and research applications to underpin the management, protection and enhancement of natural ecosystems, land and freshwater resources, climate and atmosphere within New Zealand, including Antarctica. Science and Innovation: Fellowships for Excellence (M84) 10,470 10,470 11,570 This appropriation is limited to encouraging the career development of the country’s talented early and mid-career researchers. Science and Innovation: Hazards and Infrastructure Research (M84) 14,185 14,185 11,392 This appropriation is limited to research and research applications to support hazard management and improve the durability of NZ urban and rural settlements. Science and Innovation: Health and Society Research (M84) 82,586 82,586 87,066 This appropriation is limited to research and research applications to improve the health and social well-being of New Zealanders.

Science and Innovation: High Value Manufacturing and Services Research (M84) 57,911 57,911 64,040 This appropriation is limited to research and research applications to develop new technologies, novel materials, and new products, processes and services for the manufacturing and technology sectors. Science and Innovation: Marsden Fund (M84) 52,383 52,383 53,627 This appropriation is limited to excellent investigator-initiated research.

Science and Innovation: National Measurement Standards (M84) 5,764 5,764 5,764 This appropriation is limited to providing specified standards to satisfy the needs for traceable physical measurement in New Zealand. Science and Innovation: Repayable Grants for Start-Ups (M84) 13,716 13,716 14,996 This appropriation is limited to funding for early stage businesses and development of business incubators and accelerators.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Non-Departmental Output Expenses - cont’d Science and Innovation: Research and Development Services and Facilities for Business 25,829 25,829 19,523 and Industry (M84) This appropriation is limited to providing research and technical expertise and facilities to business and industry. Science and Innovation: Research Contract Management (M84) 6,227 6,227 6,227 This appropriation is limited to selection of research, science and technology-related organisations and individuals for either the provision of research, science and technology outputs, or the award of grants; and negotiate, manage and monitor appropriate contracts with those organisations or individuals. Science and Innovation: Vision Mātauranga Capability Fund (M84) 5,257 5,257 6,567 This appropriation is limited to the development of skilled people and organisations undertaking research that supports the four themes of Vision Mātauranga; indigenous innovation, environmental sustainability, health and social well being, and exploring indigenous knowledge. Tourism: Marketing of New Zealand as a Visitor Destination (M69) 113,350 113,350 115,850 This appropriation is limited to the promotion of New Zealand as a visitor destination in key overseas markets.

Tourism: Tourism Growth Partnership (M69) 7,434 7,434 10,403 This appropriation is limited to the support of partnerships with industry that address strategic issues in the tourism sector. Building Innovation Potential (M84) 9,078 9,078 - This appropriation is limited to activities which build innovation potential through providing and enhancing access to information, training, mentoring, foresighting, networking and leadership across the innovation system, and facilitating human capital mobility, for both businesses and Research Science and Technology providers. Establishment of New Broadband Performance Testing (M88) 1,198 1,198 - This appropriation is limited to the setting up, development and implementation of a broadband testing methodology to support the New Zealand Telecommunications Forum’s Product Disclosure Code. Realising the Benefits of Innovation (M84) 16,000 16,000 - This appropriation is limited to activities that build the level of, and returns from, science and technology-driven innovation through providing tailored brokerage and access to advice, technical services and facilities, and creating linkages, projects and collaborations between business and industry and Research Science and Technology providers. Tertiary Education, Skills and Employment - Māori and Pasifika Trades Training Consortia 2,566 2,566 - (M14) This appropriation is limited to the provision of project management, co-ordination, employability skills training and evaluation by Māori and Pasifika Trades Training Consortia. Total Non-Departmental Output Expenses 902,277 901,877 923,198 Non-Departmental Other Expenses Commerce and Consumer Affairs: Contributions to International Organisations (M13) 485 485 485 This appropriation is limited to an annual fee for New Zealand’s membership of the World Intellectual Property Organization; International Patent Documentation Centre; International Organization for Standardization; International Electrotechnical Commission; International Union for the Protection of New Plant Varieties.

Commerce and Consumer Affairs: Financial Markets Authority Litigation Fund (M13) 2,000 2,000 2,000 This appropriation is limited to meeting the cost of major litigation activity arising from the enforcement of financial markets and securities markets law.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Commerce and Consumer Affairs: Takeovers Panel Litigation Fund (M13) 200 200 200 This appropriation is limited to meeting the cost of major litigation activity undertaken by the Takeovers Panel arising from it carrying out functions under the Takeovers Act 1993 and the Takeovers Code. Communications: Broadband Investment (Rural Supply) (M88) 22,159 9,159 533 This appropriation is limited to the provision of funding for grants or consumer subsidies relating to the deployment of broadband infrastructure in rural regions of New Zealand.

Communications: Contributions to International Telecommunications Organisations (M88) 970 970 970 This appropriation is limited to New Zealand’s membership of international telecommunications organisations. Communications: Telecommunications Development Levy Funded Procurement - Deaf 4,780 4,780 2,600 Relay Service TSO (M88) This appropriation is limited to the purchase of deaf relay services which is offset by the Telecommunications Development Levy. Communications: Telecommunications Development Levy Funded Procurement - Non- 28,520 28,520 28,000 Urban Infrastructure (M88) This appropriation is limited to the payment of grants and investment for non-urban infrastructure offset by the Telecommunications Development Levy. Economic Development: Depreciation on Auckland’s Queens Wharf (M25) 2,000 2,000 2,000 This appropriation is limited to depreciation expenses associated with Auckland’s Queens Wharf. Economic Development: Film New Zealand (M25) 1,300 1,300 1,300 This appropriation is limited to the operation of an independent structure for Film New Zealand, developing a marketing plan for the film sector and coordination of regional film offices. Economic Development: Major Events Development Fund (M25) 9,000 8,625 14,915 This appropriation is limited to support for major events that provide economic, social, cultural and international profiling benefits to New Zealand.

Economic Development: Management Development Fund (M25) 756 756 756 This appropriation is limited to assistance to address the management capability gap in New Zealand, through the commissioning of research, stimulation of business interest and supply of management development services. Energy and Resources: Electricity Litigation Fund (M28) 444 200 444 This appropriation is limited to ensuring that the regulatory body for the electricity industry is able to participate in litigation effectively and without delay. Energy and Resources: International Energy Agency Contribution (M28) 150 150 150 Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency. Energy and Resources: International Energy Agency Subscription (M28) 170 170 170 Payment of annual subscription for membership of the International Energy Agency. Energy and Resources: Ministry of Energy Residual Liabilities (M28) 199 199 199 Payment of residual liabilities of the former Ministry of Energy and to meet urgent mine restoration and rehabilitation relating to the operations of the state coal mines prior to 1987. Science and Innovation: Advanced Network Capacity (M84) 4,000 4,000 4,000 This appropriation is limited to a grant to contribute to the operation of the Kiwi Advanced Research and Education Network ensuring advanced network capacity that will underpin New Zealand research. Science and Innovation: Australian Synchrotron (M84) 983 983 7,500 This appropriation is limited to a grant being New Zealand Government’s contribution to the operation of a synchrotron located in Victoria, Australia.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Non-Departmental Other Expenses - cont’d Science and Innovation: Convention Du Metre (M84) 135 135 135 This appropriation is limited to the payment of New Zealand’s annual subscription to the Convention du Metre. Science and Innovation: Genomics Research Infrastructure (M84) 110 110 12,725 This appropriation is limited to a grant to contribute towards the purchase and operation of infrastructure that will support genomics research. Science and Innovation: International Relationships (M84) 9,451 9,451 10,251 This appropriation is limited to grants for international research relationships. Science and Innovation: Māori Innovation Fund (M46) 2,000 400 3,000 This appropriation is limited to a contestable Fund to invest in initiatives that contribute to the achievement of the economic goals and priorities in He Kai Kei Aku Ringa and the Business Growth Agenda. Science and Innovation: National eScience Infrastructure (M84) 5,632 5,632 7,182 This appropriation is limited to a grant to contribute to the operation of the National eScience Infrastructure, including high-performance computational infrastructure and associated eScience services, that will support New Zealand research. Science and Innovation: Royal Society of New Zealand (M84) 500 500 500 This appropriation is limited to an annual grant to the Royal Society of New Zealand to contribute towards the Society’s aims and functions under the Royal Society of New Zealand Act 1997 to promote and advance science and technology. Science and Innovation: Science Collections and Infrastructure (M84) 7,898 7,898 7,898 This appropriation is limited to grants to contribute to the maintenance and retention of databases, collections and significant infrastructure dedicated to research purposes. Science and Innovation: Square Kilometre Array (M84) 639 639 778 This appropriation is limited to supporting New Zealand’s engagement on the Square Kilometre Array project in collaboration with Australia. Tourism: Maintaining the Quality of the Great Rides (M69) 2,000 2,000 2,000 This appropriation is limited to the provision of financial assistance to maintain the quality of the Great Rides of Ngā Haerenga, the New Zealand Cycle Trail. Tourism: National Cycleway Fund - Extension (M69) 500 500 3,935 This appropriation is limited to the provision of financial assistance for the development of a National Cycleway. Tourism: New Zealand Cycle Trail Incorporated Seed Funding (M69) 349 349 185 This appropriation is limited to the provision of operational funding to the New Zealand Cycle Trail Incorporated. Tourism: Tourism Facilities Development Grants (M69) - - 82 This appropriation is limited to the provision of government grants for non-commercial, nationally significant tourism facilities. Contribution to Wero Facilities (M69) 2,000 2,000 - This appropriation is limited to payment of a grant to the Counties Manukau Pacific Trust to assist in the development of the “Wero” facility as a regional community resource in South Auckland. Crown Contribution to Pike River Recovery and Related Matters (M28) 1,412 1,412 - This appropriation is limited to providing a Crown contribution towards the potential recovery of bodies in the Pike River Coal Mine and related matters. Energy and Resources: The Pike River Mine Site (M16) 1,878 1,878 - This appropriation is limited to expenditure on the management of the Pike River mine site, commemoration of the deceased men, and matters of collective interest to the Pike River families. Total Non-Departmental Other Expenses 112,620 97,401 114,893

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Non-Departmental Capital Expenditure Communications: Acquisition of Textphone Equipment (M88) 200 200 200 This appropriation is limited to purchasing textphones for the pool of textphones for deaf, hearing impaired and speech impaired people. Energy and Resources: Crown Energy Efficiency (M28) 2,000 2,000 2,000 This capital expenditure appropriation is limited to provision of funding for the Crown loans scheme to assist public sector agencies in implementing energy efficiency projects.

Science and Innovation: Callaghan Innovation (M84) 8,000 8,000 63,710 This appropriation is limited to capital expenditure to support the development of Callaghan Innovation’s strategic infrastructure. Total Non-Departmental Capital Expenditure 10,200 10,200 65,910 Multi-Category Expenses and Capital Expenditure

Advice and Support on Shaping the Science and Innovation System MCA (M84) 27,835 27,835 - The overarching purpose of this appropriation is to provide advice and support to Ministers and leadership in matters of the science and innovation sector. Departmental Output Expenses Policy Advice 6,286 6,286 - 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.

Science and Innovation Contract Management 12,430 12,430 - This category is limited to contract management, planning, monitoring and evaluating science and innovation outputs and impacts. Strategic Leadership in the Science and Innovation Sector 9,119 9,119 - This category is limited to ministerial services and leadership of the science and innovation sector. Commerce Commission Litigation Funds MCA (M13) 10,500 10,500 10,500 The single overarching purpose of this appropriation is to meet the costs of litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities.

Non-Departmental Other Expenses Commerce Commission Externally-Sourced Litigation 7,000 7,000 7,000 This category is limited to meeting the external direct costs of major litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities. Commerce Commission Internally-Sourced Litigation 3,500 3,500 3,500 This category is limited to meeting the internal costs of major litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities. Energy Efficiency and Conservation MCA (M28) 29,584 29,584 29,584 The single overarching purpose of this appropriation is to encourage, promote and support energy efficiency and conservation and the use of renewable energy.

Non-Departmental Output Expenses Electricity Efficiency 13,000 13,000 13,000 This category is limited to conducting electricity efficiency research, and development and administration of programmes that provide incentives for cost-effective energy efficiency and conservation, aimed at changing market behaviours. Energy Efficiency and Conservation 16,584 16,584 16,584 This category is limited to operational and policy outputs in accordance with statutory functions under the Energy Efficiency and Conservation Act 2000 and the government’s energy strategies.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Multi-Category Expenses and Capital Expenditure - cont’d Policy Advice and Related Outputs MCA (M25) 24,038 23,538 55,980 The single overarching purpose of this appropriation is to provide policy advice and other support services to Ministers in discharging their policy decision-making and other portfolio responsibilities. Departmental Output Expenses

Investigative Services - Trade Remedies - - 562 This category is limited to investigative services to support advice to the Minister of Commerce and Consumer Affairs to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges. Policy Advice - Commerce and Consumer Affairs - - 9,346 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 commerce and consumer affairs. Policy Advice - Communications - - 5,732 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 communications. Policy Advice - Economic Development 12,839 12,339 14,657 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 economic development. Policy Advice - Energy and Resources - - 5,500 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 energy and resources.

Policy Advice - Science and Innovation - - 4,948 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 science and innovation. Policy Advice - Small Business 1,234 1,234 1,234 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 small business. Policy Advice - Tourism - - 2,542 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 tourism. Related Services to Ministers - Commerce and Consumer Affairs - - 1,271 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to commerce and consumer affairs, including monitoring of Crown entities and statutory bodies. Related Services to Ministers - Communications - - 312 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to communications, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Economic Development 7,093 7,093 4,463 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to economic development, including monitoring of Crown entities and statutory bodies.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000

Related Services to Ministers - Energy and Resources - - 787 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to energy and resources, including monitoring of Crown entities and statutory bodies. Related Services to Ministers - Science and Innovation - - 2,808 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to science and innovation, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Small Business 217 217 217 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to small business. Related Services to Ministers - Tourism - - 1,601 This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to tourism, including monitoring of Crown entities and statutory bodies. Ministerial Services - Employment 504 504 - This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy-making), relating to Employment.

Policy Advice - Employment 2,151 2,151 - 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 Employment. Policy Advice and Related Outputs MCA (M13) 13,186 13,186 - The single 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.

Departmental Output Expenses Investigative Services - Trade Remedies 562 562 - This category is limited to investigative services to support advice to the Minister of Commerce to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges. Ministerial Services - Consumer Affairs 200 200 - This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) relating to Consumer Affairs.

Ministerial Services and Crown Entity Monitoring - Commerce 1,321 1,321 - This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) including monitoring of Crown Entities and Statutory Bodies relating to Commerce. Policy Advice - Commerce 9,648 9,648 - 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 Commerce. Policy Advice - Consumer Affairs 1,455 1,455 - 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 Consumer Affairs.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000 Multi-Category Expenses and Capital Expenditure - cont’d Sector Analysis and Facilitation MCA (M25) - - 5,133 The single overarching purpose of this appropriation is to provide services that support the effective functioning of individual economic sectors. Departmental Output Expenses

Sectoral and Regional Data and Analysis - Economic Development - - 1,931 This category is limited to the research, analysis and dissemination of data on economic performance of sectors and regions. Tourism Data and Analysis - Tourism - - 3,202 This category is limited to research, analysis and dissemination of data on tourism. Seed Co-Investment Fund MCA (M25) 8,684 8,684 8,330 The single overarching purpose of this appropriation is to provide capital to support the development of markets for early stage equity finance and venture capital.

Non-Departmental Output Expenses Investment Fund Management 2,330 2,330 2,800 This category is limited to operational Costs of the Venture and Seed Co-Investment Funds. Non-Departmental Capital Expenditure Seed Co-Investment Fund 6,354 6,354 5,530 This category is limited to providing capital to support the development of the market for early stage equity finance.

Services and Advice to Support Well-functioning Financial Markets MCA (M13) 26,184 26,184 26,184 The single overarching purpose of this appropriation is to support well-functioning financial markets through the activities of the Financial Markets Authority. Non-Departmental Output Expenses Performance of Investigation and Enforcement Functions 7,973 7,973 7,973 This category is limited to the performance of statutory functions relating to the investigation and enforcement of financial markets legislation, including the assessment of complaints, tips, and referrals.

Performance of Licensing and Compliance Monitoring Functions 12,556 12,556 12,556 This category is limited to the performance of statutory functions relating to licensing of market participants and risk-based monitoring of compliance, including with disclosure requirements under financial markets legislation. Performance of Market Analysis and Guidance, Investor Awareness, and Regulatory Engagement 5,655 5,655 5,655 Functions This category is limited to the performance of statutory functions relating to market intelligence, guidance, exemptions, investor education, and regulatory and government co-operation and advice.

Support New Market Opportunities to Grow Firms and Sectors for the Benefit of 28,216 28,216 30,531 New Zealand MCA (M25) The single overarching purpose of this appropriation is to promote growth by providing support to firms and sectors in securing new market opportunities. Non-Departmental Other Expenses International Growth Fund 27,212 27,212 29,327 This category is limited to helping firms to undertake the market development and business capability development activities required for in international markets, that will deliver benefits for both the firm and the wider New Zealand economy.

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2014/15 2015/16 Final Estimated Budgeted Actual Budget Titles and Scopes of Appropriations by Appropriation Type $000 $000 $000

Sector Strategies and Facilitation 1,004 1,004 1,204 This category is limited to assistance with the facilitation of specific sector initiatives, particularly in areas of major events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other government programmes and cash grants. Support the Growth and Development of New Zealand Firms, Sectors and Regions MCA 159,313 156,713 162,788 (M25) The single overarching purpose of this appropriation is to provide support for the growth and development of New Zealand firms, sectors and regions to maximise international business opportunities. Non-Departmental Output Expenses Collaborative Activity and Special Events 31,429 31,429 35,376 This category is limited to activities where NZTE collaborates with other New Zealand Agency partners to leverage New Zealand’s profile and diaspora in international markets, and secure and capitalise on special events or opportunities that support New Zealand’s export growth. International Business Growth Services 114,703 112,103 114,231 This category is limited to helping individual or group of firms internationalise by improving their capability and readiness; identifying and exploiting market opportunities; overcoming internationalisation barriers; providing customised advice and support; enabling access to international business networks; and matching capital with opportunities that support New Zealand’s economic growth. Services to Support the Growth and Development of New Zealand Businesses 13,181 13,181 13,181 This category is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information. Total Multi-Category Expenses and Capital Expenditure 327,540 324,440 329,030

Total Annual and Permanent Appropriations 1,584,898 1,564,873 1,684,085

Multi-Year Appropriations

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Departmental Output Expenses

Upgrading and Promoting the Consumer Powerswitch Website (M13) Original Appropriation 4,500 This appropriation is limited to upgrading the capability of Consumer Adjustments to 2013/14 - New Zealand’s Powerswitch website and promoting and facilitating the use of the website to consumers. Adjustments for 2014/15 -

Commences: 01 November 2010 Adjusted Appropriation 4,500 Actual to 2013/14 Year End 4,496 Expires: 30 June 2015 Estimated Actual for 2014/15 4 Estimated Actual for 2015/16 -

Estimated Appropriation Remaining -

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Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Non-Departmental Output Expenses Economic Regulation of Electricity Line Services 2014-2019 (M13) Original Appropriation 28,311 This appropriation is limited to the regulation of electricity lines services under Adjustments to 2013/14 - Part 4 of the Commerce Act 1986 for the period 2014-2019. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation 28,311

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 6,770 Estimated Actual for 2015/16 5,211 Estimated Appropriation Remaining 16,330 Economic Regulation of Gas Pipeline Services 2014-2019 (M13) Original Appropriation 9,684 This appropriation is limited to the regulation of gas pipeline services under Adjustments to 2013/14 - Part 4 of the Commerce Act 1986 for the period 2014-2019. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation 9,684

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 2,088 Estimated Actual for 2015/16 1,906 Estimated Appropriation Remaining 5,690 Economic Regulation of Specified Airport Services 2014-2019 (M13) Original Appropriation 2,763 This appropriation is limited to the regulation of specified airport services under Adjustments to 2013/14 - Part 4 of the Commerce Act 1986 for the period 2014-2019. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation 2,763

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 598 Estimated Actual for 2015/16 424 Estimated Appropriation Remaining 1,741 National Science Challenges (M84) Original Appropriation 252,722 This appropriation is limited to research and research applications to find Adjustments to 2013/14 - innovative solutions to fundamental issues New Zealand faces in its future development. Adjustments for 2014/15 6,520

Adjusted Appropriation 259,242 Commences: 01 October 2013 Actual to 2013/14 Year End - Expires: 30 June 2018 Estimated Actual for 2014/15 10,530 Estimated Actual for 2015/16 69,617 Estimated Appropriation Remaining 179,095 Research and Development Growth Grants (M84) Original Appropriation 393,000 This appropriation is limited to co-funding for private businesses to invest in a Adjustments to 2013/14 - multi-year programme of research and development. Adjustments for 2014/15 40,000 Commences: 01 July 2013 Adjusted Appropriation 433,000

Expires: 30 June 2017 Actual to 2013/14 Year End 47,447 Estimated Actual for 2014/15 119,200 Estimated Actual for 2015/16 157,600 Estimated Appropriation Remaining 108,753

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Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Resource Data Acquisition and Management (M28) Original Appropriation 8,000 This appropriation is limited to the acquisition and analysis of seismic Adjustments to 2013/14 - information relating to New Zealand’s minerals, petroleum and geothermal resources. Adjustments for 2014/15 -

Adjusted Appropriation 8,000 Commences: 01 July 2014 Actual to 2013/14 Year End - Expires: 30 June 2018 Estimated Actual for 2014/15 2,000 Estimated Actual for 2015/16 2,000 Estimated Appropriation Remaining 4,000 Security Management (M28) Original Appropriation 6,000 This appropriation is limited to the management of emergency events by the Adjustments to 2013/14 - System Operator, if required, including increased monitoring and management responsibilities in the event of an emerging security situation, and planning and Adjustments for 2014/15 - running an emergency conservation campaign. Adjusted Appropriation 6,000

Commences: 01 July 2012 Actual to 2013/14 Year End -

Estimated Actual for 2014/15 - Expires: 30 June 2017 Estimated Actual for 2015/16 1,200 Estimated Appropriation Remaining 4,800 Targeted Business Research and Development Funding (M84) Original Appropriation 173,000 This appropriation is limited to co-funding for private businesses to undertake Adjustments to 2013/14 (2,250) research and development projects and for funding students to work in research and development active businesses. Adjustments for 2014/15 -

Adjusted Appropriation 170,750 Commences: 01 July 2013 Actual to 2013/14 Year End 36,869 Expires: 30 June 2017 Estimated Actual for 2014/15 43,631 Estimated Actual for 2015/16 45,650 Estimated Appropriation Remaining 44,600 Non-Departmental Other Expenses Contestable Fund for Deployment of Marine Energy Devices (M28) Original Appropriation 4,949 This appropriation is limited to a contestable fund for marine energy generation Adjustments to 2013/14 (4,000) and associated administration. Adjustments for 2014/15 (949) Commences: 01 July 2011 Adjusted Appropriation -

Expires: 30 June 2016 Actual to 2013/14 Year End - Estimated Actual for 2014/15 - Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Home Insulation (M28) Original Appropriation 93,000 This appropriation is limited to grants towards insulation targeting low income Adjustments to 2013/14 - households. Adjustments for 2014/15 - Commences: 01 July 2013 Adjusted Appropriation 93,000

Expires: 30 June 2016 Actual to 2013/14 Year End 33,000 Estimated Actual for 2014/15 36,069 Estimated Actual for 2015/16 23,931 Estimated Appropriation Remaining -

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Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 New Zealand Screen Production Grant - International (M25) Original Appropriation 252,780 This appropriation is limited to providing grant assistance to screen productions Adjustments to 2013/14 - that are internationally focused and produced in New Zealand. Adjustments for 2014/15 517 Commences: 01 July 2014 Adjusted Appropriation 253,297

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 66,970 Estimated Actual for 2015/16 77,997 Estimated Appropriation Remaining 108,330 Non-Departmental Capital Expenditure Broadband Investment (Crown Fibre Holdings Capital Costs) (M88) Original Appropriation 408,000 This appropriation is limited to the provision of ongoing investment funding for Adjustments to 2013/14 774,500 Crown Fibre Holdings to implement the Government’s broadband investment commitment. Adjustments for 2014/15 (417,500)

Adjusted Appropriation 765,000 Commences: 22 August 2011 Actual to 2013/14 Year End 365,000 Expires: 30 June 2016 Estimated Actual for 2014/15 210,000 Estimated Actual for 2015/16 190,000 Estimated Appropriation Remaining - Venture Investment Fund (M25) Original Appropriation 37,453 This appropriation is limited to capital Investment to NZVIF to accelerate the Adjustments to 2013/14 - development of the New Zealand Venture Capital Market. Adjustments for 2014/15 (12,000) Commences: 01 July 2014 Adjusted Appropriation 25,453

Expires: 30 June 2018 Actual to 2013/14 Year End - Estimated Actual for 2014/15 10,378 Estimated Actual for 2015/16 4,518 Estimated Appropriation Remaining 10,557

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Total Annual, Permanent and Multi-Year Appropriations

2014/15 2015/16 Final Estimated Budgeted Actual Budget $000 $000 $000 Total Annual and Permanent Appropriations 1,584,898 1,564,873 1,684,085 Total MYA Departmental Output Expenses Forecasts 4 4 - Total MYA Non-Departmental Output Expenses Forecasts 188,417 184,817 283,608 Total MYA Non-Departmental Other Expenses Forecasts 103,039 103,039 101,928

Total MYA Non-Departmental Capital Expenditure Forecasts 220,378 220,378 194,518 Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts 2,096,736 2,073,111 2,264,139

Capital Injection Authorisations

2014/15 2015/16 Final Budgeted Estimated Actual Budget $000 $000 $000 Ministry of Business, Innovation and Employment - Capital 37,162 37,162 48,768 Injection (M25)

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Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

2014/15 2015/16 2016/17 2017/18 2018/19 Budgeted Budget Estimated Estimated Estimated Policy Initiative Appropriation $000 $000 $000 $000 $000

Grant to the Counties Manukau Non-Departmental Other Expense 2,000 - - - - Pacific Trust - Tourism: Contribution to Wero Facilities

BPS Seed Fund - Auckland Co- Policy Advice and Related 581 782 182 - - Design Lab Outputs MCA - Policy Advice - Economic Development MBIE - Capital Injection 40 - - - -

Upgraded Emergency Response Departmental Output Expense - 251 2,606 750 531 133 System Communications: Management of Emergency Telecommunications Services

Non-Departmental Output - 1,204 2,631 2,631 4,294 Expense - Communications: Emergency Telecommunications Services

New Business.Govt.NZ tools to Departmental Output Expense - - 1,150 1,250 1,350 1,350 reduce small business Commerce and Consumer compliance costs Affairs: Registration and Provision of Statutory Information Funding for Research and Non-Departmental Output - 20,000 20,000 - - Development Growth Grants Expense - Research and Development Growth Grants (MYA)

Non-Departmental Output - - - 20,000 20,000 Expense - Science and Innovation: Research and Development Growth Grants (annual) Extending the Ultra-Fast Policy Advice and Related - 1,800 1,800 1,700 1,000 Broadband Initiative Outputs MCA - Policy Advice - Communications

Single Identifier for all business Departmental Output Expense - - 2,242 2,410 1,984 1,984 entities - New Zealand Business Commerce and Consumer Number (NZBN) Affairs: Registration and Provision of Statutory Information MBIE - Capital Injection - 1,500 2,000 - -

The completion of the Non-Departmental Other Expense - 935 - - - Alps2Ocean Cycle Trail - Tourism: National Cycleway Fund - Extension

The Completion of the Twin Non-Departmental Other Expense - 3,000 - - - Coasts Cycle Trail - Tourism: National Cycleway Fund - Extension

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2014/15 2015/16 2016/17 2017/18 2018/19 Budgeted Budget Estimated Estimated Estimated Policy Initiative Appropriation $000 $000 $000 $000 $000

Natural Resource Sector Budget Non-Departmental Other Expense (949) - - - - Reprioritisation - Contestable Fund for Deployment of Marine Energy Devices (MYA)

Capital Injection required for MBIE - Capital Injection - 28,414 - - - the Vision 2015 Initiative In Vote Labour Market

Capital Injection required for the MBIE - Capital Injection - 1,038 2,845 2,107 596 Managing Our Borders Initiative In Vote Labour Market

Total 2,872 63,722 33,868 30,303 29,357

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24 VOTEBUSINESS, SCIEN ÷

ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR B.5 Vol.1 SECTOR AND INFRASTRUCTURE DEVELOPMENT - ECONOMIC 2015/16 OF APPROPRIATIONS THE ESTIMATES 1.2 - Trends in the Vote

Summary of Financial Activity

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Non- Departmental Departmental Estimated Transactions Transactions Total Actual Actual Actual Actual Budgeted Actual Budget Budget Budget Estimated Estimated Estimated $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 ANDCE INN OVATION Appropriations Output Expenses 968,376 987,506 1,026,074 1,045,615 1,235,585 1,230,279 137,991 1,206,806 1,344,797 1,278,057 1,285,461 1,258,213 Benefits or Related Expenses ------N/A - - - - - Borrowing Expenses ------Other Expenses 286,323 188,152 208,247 288,418 215,659 200,440 - 216,821 216,821 109,667 108,696 65,358 Capital Expenditure 56,628 149,564 166,436 290,428 317,952 317,952 113,063 260,428 373,491 183,434 166,697 194,407

Intelligence and Security Department Expenses ------N/A - - - - and Capital Expenditure Multi-Category Expenses and Capital Expenditure (MCA) Output Expenses 289,430 301,698 293,403 305,799 282,470 279,370 61,113 221,356 282,469 280,422 279,655 278,955 Other Expenses 26,636 28,429 32,030 22,324 38,716 38,716 - 41,031 41,031 41,731 41,731 41,731 Capital Expenditure 4,807 3,181 51,503 6,146 6,354 6,354 N/A 5,530 5,530 5,530 - - Total Appropriations 1,632,200 1,658,530 1,777,693 1,958,730 2,096,736 2,073,111 312,167 1,951,972 2,264,139 1,898,841 1,882,240 1,838,664 Crown Revenue and Capital Receipts Tax Revenue 35,708 36,363 34,486 35,408 37,200 39,512 N/A 37,400 37,400 35,200 36,000 35,000 Non-Tax Revenue 509,811 553,572 589,634 607,936 501,721 466,048 N/A 447,859 447,859 409,096 389,931 377,347 Capital Receipts 14,272 55,660 26,366 1,797 238,356 2,000 N/A 2,000 2,000 8,228 10,660 11,162

Total Crown Revenue and Capital Receipts 559,791 645,595 650,486 645,141 777,277 507,560 N/A 487,259 487,259 452,524 436,591 423,509

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

VOTE BUSINESS, SCIENCE AND INNOVATION

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

2014/15 2014/15 Estimated 2010/11 2011/12 2012/13 2013/14 Budgeted Actual Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments $000 $000 $000 $000 $000 $000

Appropriations Output Expenses (289,430) (301,698) (293,403) (305,799) (277,663) - 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 Expenses 289,430 301,698 293,403 305,799 277,663 - Other Expenses ------Capital Expenditure ------Total Appropriations ------

Crown Revenue and Capital Receipts Tax Revenue ------Non-Tax Revenue ------Capital Receipts ------Total Crown Revenue and Capital Receipts ------

1.3 - Analysis of Significant Trends

Output Expenses

· The increase in outputs is predominantly due to the expenditure profile increase in Science and Innovation research grants.

Other Expenses

· The decrease in expenditure between 2010/11 and 2011/12 relates to the transfer of funding from Science Collections and Infrastructure to CRI Core funding.

· The decrease in expenditure in 2016/17 onwards relates to the decreases in funding for the Home Insulation MYA, Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure, and the Australian Synchrotron.

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Capital

· The decrease in 2015/16 and the increases from 2016/17 to 2018/19 reflects the wind down of the current capital plan for the Crown entity, Crown Fibre Holdings, to fund the Ultra-Fast Broadband initiative.

· The capital investment in Callaghan Innovation.

Multi-Category Other Expenses

· The changes here relate to variable demands and costs with respect to Commerce Commission litigation activities.

· The trend here mainly reflects the phasing of the expenditure for the International Growth Fund appropriation.

Multi-Category Capital Expenditure

· The trend here mainly reflects the funding profile for the non-departmental capital investment fund Seed Co-Investment Fund.

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1.4 - Reconciliation of Changes in Appropriation Structure

From 1 July 2015 the former Vote Economic Development and Employment (minus the Employment appropriations, which are transferring to Vote Labour Market), Vote Commerce and Consumer Affairs, Vote Communications, Vote Energy, Vote Science and Innovation and Vote Tourism are being merged to form Vote Business, Science and Innovation.

Unless otherwise shown in one of the tables below appropriations are transferring unchanged from the former Votes to the new Vote. The non-departmental output expense Māori and Pasifika Trades Training Consortia in former Vote Economic Development and Employment is transferring unchanged to Vote Labour Market.

The tables below show:

· transfers from appropriations and categories in all the former Votes to become categories of the Policy Advice and Related Outputs multi-category appropriation in Vote Business, Science and Innovation (Table 1.4.1)

· transfers from appropriations in the former Vote Tourism and former Vote Economic Development and Employment to become categories of the Sector Analysis and Facilitation multi-category appropriation in Vote Business, Science and Innovation (Table 1.4.2)

· all other transfers from appropriations and categories in the former Votes to become appropriations and categories in Vote Business, Science and Innovation, where the appropriation or category is being changed as it transfers (Table 1.4.3)

· a summary of transfers (Table 1.4.4).

Table 1.4.1 Transfers to Policy Advice and Related Outputs MCA

Old Structure New Structure

Appropriations to which 2014/15 Expenses (or Capital Amount 2014/15 2014/15 Appropriations (Current) Expenditure) have been Moved 2014/15 Appropriations (Restated) 2015/16 in the 2014/15 Structure $000 Moved from or to $000 in the 2015/16 Structure $000 $000 Vote Commerce and Transferred to: Vote Business, Science Consumer Affairs and Innovation Policy Advice and Policy Advice and Related Outputs MCA Related Outputs MCA Departmental Output Departmental Output Expense Expense

Policy Advice - Commerce 9,648 Policy Advice - Commerce 9,648 Policy Advice - Commerce 11,103 9,346 and Consumer Affairs and Consumer Affairs Policy Advice - Consumer 1,455 Policy Advice - Commerce 1,455 Affairs and Consumer Affairs

Ministerial Services - 1,321 Related Services to 1,321 Related Services to 1,521 1,271 Commerce Ministers - Commerce and Ministers - Commerce and Consumer Affairs Consumer Affairs

Ministerial Services - 200 Related Services to 200 Consumer Affairs Ministers - Commerce and Consumer Affairs Investigative Services - 562 Investigative Services - 562 Investigative Services - 562 562 Trade Remedies Trade Remedies Trade Remedies

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Old Structure New Structure

Vote Communications Transferred to: Policy Advice and Related Outputs MCA Departmental Output Departmental Output Expense Expense

Policy Advice - 4,658 Policy Advice - 4,658 Policy Advice - 4,745 5,732 Communications Communications Communications

Communications and ICT 186 Policy Advice - 87 Operational Policy, Communications Ministerial Servicing and Crown Entity Monitoring Related Services to 99 Related Services to 99 312 Ministers - Ministers - Communications Communications Vote Energy Transferred to: Policy Advice and Related Outputs MCA Departmental Output Departmental Output Expense Expense

Policy Advice - Energy and 4,261 Policy Advice - Energy and 4,261 Policy Advice - Energy and 5,250 5,500 Resource Issues Resources Resources

Energy and Resources 2,226 Policy Advice - Energy and 989 Operational Policy, Resources Ministerial Servicing and Crown Entity Monitoring

Related Services to 1,237 Related Services to 1,237 787 Ministers - Energy and Ministers - Energy and Resources Resources

Vote Science and Transferred to: Innovation

Advice and Support on Policy Advice and Shaping the Science and Related Outputs MCA Innovation System MCA Departmental Output Departmental Output Expense Expense

Policy Advice 6,286 Policy Advice - Science 6,286 Policy Advice - Science 6,286 4,948 and Innovation and Innovation

Strategic Leadership in the 9,119 Related Services to 2,280 Related Services to 2,280 2,808 Science and Innovation Ministers - Science and Ministers - Science and Sector Innovation Innovation Science and Innovation 6,839 See Table 1.4.3 Contract Management

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Old Structure New Structure

Vote Tourism Transferred to: Policy Advice and Related Outputs MCA Departmental Output Departmental Output Expense Expense

Policy Advice - Tourism 3,252 Policy Advice - Tourism 3,252 Policy Advice - Tourism 3,252 2,542

Tourism Data and 4,659 Related Services to 1,553 Related Services to 1,553 1,601 Operational Policy, Ministers - Tourism Ministers - Tourism Ministerial Servicing and Crown Entity Monitoring Sector Analysis and 3,106 See Table 1.4.2 Facilitation MCA

Vote Economic Transferred to: Development and Employment Departmental Output Expense Canterbury Recovery 2,557 Policy Advice - Economic 2,557 Development

Policy Advice and Related Outputs MCA Departmental Output Expense Policy Advice - Economic 12,839 Policy Advice - Economic 12,839 Policy Advice - Economic 15,396 14,657 Development Development Development Policy Advice - Small 1,234 Policy Advice - Small 1,234 Policy Advice - Small 1,234 1,234 Business Business Business

Ministerial Services and 7,093 Related Services to 7,093 Related Services to 7,093 4,463 Crown Entity Monitoring - Ministers - Economic Ministers - Economic Economic Development Development Development Ministerial Services - 217 Related Services to 217 Related Services to 217 217 Small Business Ministers - Small Business Ministers - Small Business Vote Labour Market See Vote Labour Market Table 1.4.1

Policy Advice and Related Outputs MCA Departmental Output Expense Ministerial Services - 504 Related Services to 504 Employment Ministers - Employment

Policy Advice - 2,151 Policy Advice - 2,151 Employment Employment Total 74,428 74,428 61,828 55,980

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Table 1.4.2 Transfers to Sector Analysis and Facilitation MCA

Old Structure New Structure

Appropriations to which 2014/15 Expenses (or Capital Amount 2014/15 2014/15 Appropriations (Current) Expenditure) have been Moved 2014/15 Appropriations (Restated) 2015/16 in the 2014/15 Structure $000 Moved from or to $000 in the 2015/16 Structure $000 $000 Vote Tourism Transferred to: Vote Business, Science and Innovation Sector Analysis and Sector Analysis and Facilitation MCA Facilitation MCA Departmental Output Departmental Output Departmental Output Expense Expense Expense

Tourism Data and 4,659 Tourism Data and Analysis 3,106 Tourism Data and Analysis 3,106 3,202 Operational Policy, - Tourism - Tourism Ministerial Servicing and Crown Entity Monitoring Policy Advice and Related 1,553 See Table 1.4.1 Outputs MCA Vote Economic Transferred to: Development and Employment Departmental Output Expense

Employment Sector 4,619 Sectoral and regional data 3,079 Sectoral and regional data 3,079 1,931 Analysis and Facilitation and analysis - Economic and analysis - Economic Development Development Vote Labour Market See Vote Labour Market Table 1.4.1

Departmental Output Expense Employment Sector 1,540 Analysis and Facilitation Total 9,278 9,278 6,185 5,133

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Table 1.4.3 Appropriations and categories that are changing as they transfer from one of the former Votes

Old Structure New Structure

Appropriations to which 2014/15 Expenses (or Capital Amount 2014/15 2014/15 Appropriations (Current) Expenditure) have been Moved 2014/15 Appropriations (Restated) 2015/16 in the 2014/15 Structure $000 Moved from or to $000 in the 2015/16 Structure $000 $000 Vote Commerce and Transferred to: Vote Business, Science Consumer Affairs and Innovation Departmental Output Departmental Output Expense Expense Trading Standards 3,687 Trading Standards 3,687 Trading Standards 4,694 4,944

Vote Energy Departmental Output Transferred to: Expense

Administration of Fuel 1,007 Trading Standards 1,007 Quality Monitoring Programme

Energy and Resource 819 Energy and Resources: 819 Energy and Resources: 2,646 2,846 Information Services Information Services Information Services Energy and Resource 1,827 Energy and Resources: 1,827 Information Services RDA Information Services Vote Science and Transferred to: Innovation Advice and Support on Shaping the Science and Innovation System MCA Departmental Output Departmental Output Expense Expense Science and Innovation 12,430 Science and Innovation 12,430 Science and Innovation 19,269 20,205 Contract Management Contract Management Contract Management

Strategic Leadership in the 9,119 Science and Innovation 6,839 Science and Innovation Contract Management Sector

Policy Advice and Related 2,280 See Table 1.4.1 Outputs MCA Vote Science and Transferred to: Innovation Non-Departmental Non-Departmental Output Expense Output Expense

Building Innovation 9,078 Building Business 9,078 Building Business 25,078 32,378 Potential Innovation Innovation Realising the Benefits of 16,000 Building Business 16,000 Innovation Innovation

Callaghan Innovation 25,829 Research and 25,829 Research and 25,829 19,523 Strategic Investment Development Services and Development Services and Facilities for Business and Facilities for Business and Industry Industry

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Old Structure New Structure

Appropriations to which 2014/15 Expenses (or Capital Amount 2014/15 2014/15 Appropriations (Current) Expenditure) have been Moved 2014/15 Appropriations (Restated) 2015/16 in the 2014/15 Structure $000 Moved from or to $000 in the 2015/16 Structure $000 $000 Vote Science and Transferred to: Innovation Non-Departmental Non-Departmental Capital Expenditure Capital Expenditure Advanced Technology 8,000 Callaghan Innovation 8,000 Callaghan Innovation 8,000 63,710 Institute

Multi-Category Appropriations

Vote Economic Transferred to: Vote Business, Science Development and and Innovation Employment

Support the Growth and Support the Growth and Development of Development of New Zealand Firms, New Zealand Firms, Sectors and Regions Sectors and Regions MCA MCA Non-Departmental Non-Departmental Output Expense Output Expense

Services to Support Sector 31,429 Collaborative Activity and 31,429 Collaborative Activity and 31,429 35,376 Development and Special Special Events Special Events Events International Business 114,703 International Business 114,703 International Business 114,703 114,231 Growth Services Growth Services Growth Services

Services to Support the 13,181 Services to Support the 13,181 Services to Support the 13,181 13,181 Growth and Development Growth and Development Growth and Development of New Zealand of New Zealand of New Zealand Businesses Businesses Businesses Total 247,109 247,109 244,829 306,394

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Table 1.4.4 Summary of Transfers

Old Structure New Structure

Appropriations to which 2014/15 Expenses (or Capital Amount 2014/15 2014/15 Appropriations (Current) Expenditure) have been Moved 2014/15 Appropriations (Restated) 2015/16 in the 2014/15 Structure $000 Moved from or to $000 in the 2015/16 Structure $000 $000 Total Table 1.4.1 74, 428 Total Table 1.4.1 74,428 Total Table 1.4.1 61,828 55,980 Total Table 1.4.2 9,278 Total Table 1.4.2 9,278 Total Table 1.4.2 6,185 5,133 Total Table 1.4.3 247,109 Total Table 1.4.3 247,109 Total Table 1.4.3 244,829 306,394

Less appropriations Less appropriations appearing in Table 1.4.1 appearing in Table 1.4.1 and Table 1.4.2 and Table 1.4.2

Tourism Data and (4,659) Tourism Data and (4,659) Operational Policy, Operational Policy, Ministerial Servicing and Ministerial Servicing and Crown Entity Monitoring Crown Entity Monitoring

Less appropriations Less appropriations appearing in Table 1.4.1 appearing in Table 1.4.1 and Table 1.4.3 and Table 1.4.3

Strategic Leadership in the (9,119) Strategic Leadership in the (9,119) Science and Innovation Science and Innovation Sector Sector

Less appropriations Less appropriations transferring to Vote transferring to Vote Labour Market Labour Market Related Services to (504) Related Services to (504) Ministers - Employment Ministers - Employment

Policy Advice - (2,151) Policy Advice - (2,151) Employment Employment Employment Sector (1,540) Employment Sector (1,540) Analysis and Facilitation Analysis and Facilitation Total 312,842 312,842 312,842 367,507

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

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Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Commerce and Consumer Affairs: Consumer Information (M13)

Scope of Appropriation

This appropriation is limited to the development and delivery of information and programmes that increase the ability of consumers to transact with confidence.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 2,427 2,427 2,427 Revenue from the Crown 2,233 2,233 2,233

Revenue from Others 294 294 294

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a trading environment in which consumers are well informed, adequately protected, trading is fair, and in which there is effective competition.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Implement a new approach in delivering online consumer New measure New measure By June 2016 protection information

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Savings to reflect efficiencies arising from the formation 2014/15 (38) (38) (38) (38) (38) of the new Ministry.

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Memorandum Account

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Motor Vehicle Traders Information Programme Opening Balance at 1 July 115 115 134 Revenue 106 186 106 Expenses (150) (167) (150) Transfers and Adjustments - - - Closing Balance at 30 June 71 134 90

Commerce and Consumer Affairs: Official Assignee Functions (M13) Scope of Appropriation

This appropriation is limited to the carrying out of statutory functions of the Official Assignee under the Insolvency Act 2006, the Companies Act 1993, the Proceeds of Crime Act 1991 and the Criminal Proceeds (Recovery) Act 2009.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 14,428 14,428 14,428 Revenue from the Crown 11,703 11,703 11,703 Revenue from Others 3,441 3,441 3,441

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of a formal process for dealing with unmanageable debt, which balances the rights of creditors and debtors, and that business can have confidence in. It also is intended to achieve the provision of a mechanism for the custody and control of assets restrained and forfeited by an order of the court.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Quality and timeliness of the insolvency functions demonstrated New measure New measure Between 1-2 by receiving and audit rating across all Insolvency Offices of between 1-2 (see note 1)

Note 1: Possible ratings are:

1 - a high level of compliance 2 - an acceptable level of compliance 3 - a marginal level of compliance 4 - an unacceptable level of compliance 5 - the office does not comply.

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End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Commerce and Consumer Affairs: Registration and Granting of Intellectual Property Rights (M13)

Scope of Appropriation

This appropriation is limited to the granting, administration and enforcement of intellectual property rights, including patents, trademarks, designs, plant varieties, and geographical indications.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 17,612 17,612 16,912 Revenue from the Crown 85 85 85

Revenue from Others 19,032 21,113 18,332

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the protection of robust intellectual property rights to allow New Zealand businesses to grow domestically and internationally.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Decisions to accept, grant or register intellectual property rights 99% 99% 99% made by the Intellectual Property Office and the Plant Variety Rights Office upheld

End of Year Performance Reporting

Performance will be assessed internally and reported on by the Ministry of Business, Innovation and Employment in its annual report.

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Current and Past Policy Initiatives

Reasons for Change in Appropriation

The decrease in this appropriation is due to an adjustment for $1.200 million in 2014/15 only to accommodate short term (one-off) cost pressures experienced by the Intellectual Property Office of New Zealand. This decrease is offset by a $500,000 increase in 2015/16 reflecting an increase in forecast in Trade Marks, Designs and Patents application volumes.

Memorandum Account

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Registration and Granting of Intellectual Property Rights Opening Balance at 1 July 8,330 8,330 13,991 Revenue 18,643 20,724 17,943

Expenses (17,138) (15,063) (16,438) Transfers and Adjustments - - - Closing Balance at 30 June 9,835 13,991 15,496

Commerce and Consumer Affairs: Registration and Provision of Statutory Information (M13)

Scope of Appropriation

This appropriation is limited to the administration of legislation providing for the registration and provision of documents and information services for businesses and other registry activities.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 26,162 26,162 29,084 Revenue from the Crown 2,494 2,494 4,192 Revenue from Others 21,476 29,718 22,700

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of registers and provide information that enables businesses to interact with government efficiently and effectively.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Online company name approvals and consents are processed 95% 95% 95% within 35 minutes of receipt during normal business hours

The Companies and Personal Property Securities Register 95% 95% 99% online registers are available (excluding agreed outages for scheduled maintenance) The increase use of Business.govt.nz for access to information 5% 5% 10% and advice, and to interact or transact with government

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 New Business.Govt.NZ tools to reduce small business 2015/16 - 1,150 1,250 1,350 1,350 compliance costs New Zealand Business Number - Single Identifier 2015/16 - 2,242 2,410 1,984 1,984 Savings to reflect efficiencies arising from the formation 2014/15 (263) (263) (263) (263) (263) of the new Ministry

Financial Markets Conduct Act 2013 2013/14 1,684 1,261 1,261 1,261 1,261

Reasons for Change in Appropriation

This appropriation increased by $2.922 million as a result of:

· $2.242 million funding relating to the introduction of the New Zealand Business Number (NZBN) initiative which will be a trusted single identifier enabling a business to interact with government agencies and other businesses more easily

· $1.150 million for Business.Govt.NZ tools to reduce small business compliance costs, and

· $180,000 representing increased activities in the Companies Office.

These increases are partially offset by:

· $423,000 in the requirements for the Financial Markets Conduct Act administration, and

· $227,000 in the cessation of the one-off International Business Registry reform program.

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Memorandum Account

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Registration and Provision of Statutory Information

Opening Balance at 1 July 3,863 3,863 10,099 Revenue 20,357 28,631 19,887 Expenses (22,573) (22,395) (22,103) Transfers and Adjustments - - - Closing Balance at 30 June 1,647 10,099 7,883

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Motor Vehicle Trades Register Opening Balance at 1 July 828 828 1,053 Revenue 1,067 1,035 1,067 Expenses (1,043) (810) (1,043) Transfers and Adjustments - - -

Closing Balance at 30 June 852 1,053 1,077

Commerce and Consumer Affairs: Trading Standards (M13)

Scope of Appropriation

This appropriation is limited to compliance, enforcement, and monitoring activities associated with measurement, product safety and fuel quality.

Expenses and Revenue

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 3,687 3,687 4,944

Revenue from the Crown 3,527 3,527 3,777 Revenue from Others 160 160 1,167

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Comparators for Restructured Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget Vote, Type and Title of Appropriation $000 $000 $000 Vote Commerce and Consumer Affairs - Departmental Output 1,007 1,007 - Expense - Administration of Fuel Quality Monitoring Programme

Vote Commerce and Consumer Affairs - Departmental Output 3,687 3,687 4,944 Expense - Trading Standards Total 4,694 4,694 4,944

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a trading environment in which businesses and consumers are well informed, adequately protected, trading is fair, and there is effective competition.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Quality and timeliness of administration of product safety and At least an acceptable At least an acceptable At least an acceptable weights and measures legislation demonstrated by an internal level of compliance level of compliance level of compliance audit and assurance rating (refer to note 1)

Undertake the Fuel Quality Monitoring (FQM) Programme for Annual publication of Annual publication of Annual publication of the enforcement of the Engine Fuel Specifications Regulations the FQM Report the FQM Report the FQM Report 2011 to promote confidence in the quality of the retail fuel supply

Note 1: Internal audit and assurance rating scale: High level of compliance, Acceptable level of compliance, Marginal level of compliance, and Unacceptable level of compliance.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation is mainly due to the transfer of the Administration of Fuel Quality Monitoring activity from Vote Energy. This activity is to be undertaken by the Trading Standards Team and fully aligned to the Trading Standards appropriation.

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Communications: Management and Enforcement of the Radiocommunications Act 1989 (M88)

Scope of Appropriation

This appropriation is limited to the management of the radio spectrum, including technical arrangements for the allocation of spectrum, representation of New Zealand’s international radio spectrum interests, and management of spectrum sales.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 9,641 9,641 9,641

Revenue from the Crown 320 320 320 Revenue from Others 6,885 7,868 6,885

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of effective and efficient allocation and licensing of the radio spectrum.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Submitted applications that are correctly registered or granted, 95% 95% 95% and documented interference complaints that are actioned within the work programme time frame

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

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Memorandum Account

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Management and Enforcement of Radiocommunications Act 1989

Opening Balance at 1 July 8,243 8,243 8,791 Revenue 6,885 7,868 6,885 Expenses (6,534) (7,320) (6,534) Transfers and Adjustments - - -

Closing Balance at 30 June 8,594 8,791 9,142

Communications: Management of Emergency Telecommunications Services (M88)

Scope of Appropriation

This appropriation is limited to the management of upgrades to the telecommunications capabilities of the emergency response services.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 251 251 2,606

Revenue from the Crown 251 251 2,606 Revenue from Others - - -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of upgrades to the telecommunications capabilities of the emergency response services in order to provide improved access to quality communications service.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Milestones achieved as per the project plan New measure New measure Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

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Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of this appropriation 2014/15 251 2,606 750 531 131

Reasons for Change in Appropriation

The increase in this appropriation reflects the expected cost of service delivery.

Economic Development: Implementation of Improvements in Public Sector Procurement and Services to Business (M25)

Scope of Appropriation

This appropriation is limited to improving and leading the public sector procurement reform programme and reducing the costs for and improving the service experience of businesses interacting with government.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 23,150 22,400 17,440 Revenue from the Crown 6,813 6,813 1,940

Revenue from Others 16,337 13,135 15,500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better public services and encourage business growth.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Uptake of all-of-government contracts Public service agencies that will have all-of-government For standard 2014/15 For standard 2014/15 80% contracts refer to Note 1 refer to Note 1

Participation in all-of-government contracts by state sector For standard 2014/15 For standard 2014/15 Increase agencies (excluding Boards of Trustees) to increase year on refer to Note 1 refer to Note 1 year Percentage of participating agencies satisfied or very satisfied For standard 2014/15 For standard 2014/15 70% refer to Note 1 refer to Note 1

Create a government procurement environment where business New measure New measure Improvement in can succeed, seen through an improvement in business business feedback feedback about the quality of government procurement practice from the annual government procurement business survey

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

A material improvement in government procurement capability and performance, leading to savings from value-based procurement including:

Reaching the savings target across public sector agencies For standard 2014/15 For standard 2014/15 $82m identified through the Government Procurement Reform agenda refer to Note 2 refer to Note 1 for the financial year Building towards a forecasted saving realised over the life of the New measure New measure $415.1m initial government contracts

Reduce business costs (using effort as a proxy for cost) from On-going to 30 June On-going to 30 June On-going to 30 June dealing with Government by 25% by 2017; government services 2017 2017 2017 to business have similar key performance ratings and leading private sector firms by 2017 Produce a detailed business case to confirm Dispute Resolution New measure New measure By 31 January 2016 Centre of Excellence approach as the best value for money option, outline the potential delivery plan, and assess affordability

Note 1: The 2014/15 performance standard was ‘Eighty per cent for public service agencies within 12 months of contract establishment. Participation in all-of-government contracts by state sector agencies (excluding Boards of Trustees) to increase year on year. Seventy five per cent of participating agencies satisfied or very satisfied.’

Note 2: The 2014/15 performance standard was ‘Agency savings $68.600 million over financial year. All- of-Government Income $7.248 million over financial year.’

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The decrease in this appropriation is due to:

· the cessation of time limited funding for Better Public Services of $4 million

· an expense transfer relating to non-government organisation procurement of $544,000 from 2013/14,

· one-off funding for World Trade Organization procurement agreements of $56,000, and

· reductions in time limited funding for: Dispute resolution $50,000; Telecommunications as a Service $541,000; and Banking, consulting and insurance procurement $519,000.

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Memorandum Account

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Government Procurement Reform Agenda

Opening Balance at 1 July (4,776) (4,776) (7,576) Revenue 16,337 13,135 15,395 Expenses (16,337) (15,935) (15,395) Transfers and Adjustments - - - Closing Balance at 30 June (4,776) (7,576) (7,576)

Energy and Resources: Information Services (M28)

Scope of Appropriation

This appropriation is limited to the provision of modelling and analysis to support energy sector policy advice and associated international commitments.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation - - 2,846 Revenue from the Crown - - 1,019

Revenue from Others - - 1,827

Comparators for Restructured Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget Vote, Type and Title of Appropriation $000 $000 $000 Vote Energy - Departmental Output Expense - Energy and 1,827 1,827 - Resources Information Services RDA

Vote Energy - Departmental Output Expense - Energy and 1,019 1,019 - Resources Information Services Vote Business, Science and Innovation - Departmental Output - - 2,846 Expense - Energy and Resources Information Services Total 2,846 2,846 2,846

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of information and technical advice on energy and resources.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

New Zealand’s obligations for reporting energy information to For standard 2014/15 For standard 2014/15 All international international organisations, including the International Energy refer to Note 1 refer to Note 1 requirements are met Agency, Asia Pacific Economic Cooperation and United Nations Framework Convention on Climate Change are met

All publications and information provided on projections of For standard 2014/15 For standard 2014/15 Quality Assurance energy supply and demand and energy sector greenhouse gas refer to Note 2 refer to Note 2 protocols are followed emissions are reliable

Note 1: The 2014/15 performance standard was ‘All international requirements are met. Data is provided to the international organisations by their stated deadlines.’

Note 2: The 2014/15 performance standard was ‘All publications are reviewed for completeness and accuracy before publication. Methodologies are reviewed externally, on an as required basis and published on Ministry of Business, Innovation and Employment’s website.’

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Energy and Resources Information Services - 2012/13 (38) (38) (38) (38) (38) Efficiency Dividend

Reasons for Change in Appropriation

This new appropriation is a result of merging the Energy and Resources Information Services annual appropriation, and the Energy and Resources Information Services revenue dependant appropriation commencing in 2015/16.

Energy and Resources: Management of the Crown Mineral Estate (M28)

Scope of Appropriation

Allocation and management of Crown-owned petroleum, coal and mineral resources under the Crown Minerals Act 1991 and minerals programmes issued under the Act.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 17,458 17,458 17,458 Revenue from the Crown 11,303 11,303 11,303 Revenue from Others 6,162 5,989 6,162

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the efficient allocation and management of Crown-owned petroleum and mineral resources.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Royalties from Crown estate grow year on year overtime New measure New measure Achieved (subject to market conditions and geologic production constraints) Survey results show that Iwi have increased capability and New measure New measure Increased Iwi confidence to engage with New Zealand Petroleum and confidence and Minerals capabilities New Zealand Petroleum and Minerals statutory consultation New measure New measure 100% of obligations met requirements Geo-scientific information held by New Zealand Petroleum and New measure New measure Increases year on year Minerals New systems implemented to improve efficiency of resource New measure New measure System improvements allocation and permit processing against baseline 100% of petroleum and 80% of mineral permit applications are Updated measure Updated measure Achieved granted or declined within 120 days and 6 months respectively

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Memorandum Account

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Management of Crown Mineral Estate Opening Balance at 1 July 511 511 (156) Revenue 6,162 5,898 6,162 Expenses (6,834) (6,656) (6,834)

Transfers and Adjustments - - - Closing Balance at 30 June (161) (156) (828)

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Science and Innovation: Science and Innovation Contract Management (M84)

Scope of Appropriation

This appropriation is limited to contract management, planning, monitoring and evaluating science and innovation outputs and impacts.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation - - 20,205

Revenue from the Crown - - 20,205 Revenue from Others - - -

Comparators for Restructured Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget Vote, Type and Title of Appropriation $000 $000 $000

Old Vote Science and Innovation MCA - Science and Innovation Contract Management 12,430 12,430 - MCA - Strategic Leadership in the Science and Innovation 6,839 6,839 - Sector New Vote Business, Science and Innovation

Departmental Output Expense - Science and Innovation - - 20,205 Contract Management Total 19,269 19,269 20,205

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the efficient and effective allocation and contracting of research, science and technology grants to maximise their returns to New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Applications are processed in accordance with specific 100% 100% 100% guidelines Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing science contracts assessed against contract outputs 100% 100% 100%

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End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Reasons for Change in Appropriation

This new appropriation is made up of funding transferred from two categories in Vote Science and Innovation Multi Category Appropriation - Advice and Support on Shaping the Science and Innovation System:

· Science and Innovation Contract Management, and

· Strategic Leadership in the Science and Innovation Sector categories.

In addition, in 2015/16, $1 million of reprioritised funding has been made available to support internationalisation and multi-national corporation research and development attraction to New Zealand and $680,000 of reprioritised funding has been made available for the development of a ‘Science and Innovation System Performance Report.’

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Business, Innovation and Employment - Capital Expenditure PLA (M25)

Scope of Appropriation

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

Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Forests/Agricultural - - -

Land - - - Property, Plant and Equipment 20,729 20,729 21,025 Intangibles 66,645 66,645 92,038

Other - - - Total Appropriation 87,374 87,374 113,063

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the implementation of the Ministry of Business, Innovation and Employment’s capital expenditure plan.

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How Performance will be Assessed and End of Year Reporting Requirements

Expenditure supports the delivery of the Ministry of Business, Innovation and Employment’s output performance measures in accordance with the Ministry of Business, Innovation and Employment’s capital asset management priorities for 2015/16.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Reasons for Change in Appropriation

The appropriation increased by $25.689 million from 2014/15 to 2015/16. This is mainly due to the Vision 2015 and the Managing Our Borders initiatives relating to the Immigration portfolios. This is partially offset by a one-off increase in 2014/15 only, which represents cash spent on capital assets to match the Ministry of Business, Innovation and Employment’s approved 2014/15 capital expenditure programme.

Capital Injections and Movements in Departmental Net Assets

Ministry of Business, Innovation and Employment

2014/15 Estimated 2015/16 Actual Projected Details of Net Asset Schedule $000 $000 Explanation of Projected Movements in 2015/16 Opening Balance 189,157 221,891 Capital Injections 37,162 48,768 Capital injections are required mainly for the following initiatives: $28.414 million for Vision 2015, $17.600 million for the Refugee Resettlement Facilities, $1.038 million for Managing our Borders, and $1.500 million for the Business Registries. Capital Withdrawals (2,000) (3,000) Companies Office memorandum account withdrawal of $2 million in 2014/15 and $3 million in 2015/16. Surplus to be Retained (Deficit (2,428) - Incurred) Other Movements - -

Closing Balance 221,891 267,659

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Part 3 - Details of Non-Departmental Appropriations

3.1 - Non- Departmental Output Expenses

Commerce and Consumer Affairs: Accounting and Assurance Standards Setting (M13)

Scope of Appropriation

This appropriation is limited to the funding of financial reporting and auditing and assurance standards setting for the purposes of promoting the quality of financial reporting.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 4,410 4,410 4,410

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the development and issuing of accounting and auditing, and assurance standards, and associated documents that align with international standards and are harmonised with Australian standards where applicable.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Development and Issuing of Accounting, and Auditing and Assurance Standards and Associated Documents Number of exposure drafts, standards and related documents 65-80 (depends on 99-112 (depends on 39-49 (depends on issued output of International output of International output of International Boards) Boards) Boards)

Standards reflect relevant international standards with 100% compliance 100% compliance 100% compliance departures only to improve quality and are harmonised with Australia where appropriate Statutory due process requirements followed 100% compliance 100% compliance 100% compliance Standards relating to existing standards suites issued in time for 100% compliance 100% compliance 100% compliance the commencement date to be no later than the international commencement date (where relevant)

End of Year Performance Reporting

Performance information for this appropriation will be reported by the External Reporting Board in its annual report.

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Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Proposed Fee and Levy Charges 2012/13 105 105 105 105 105

Commerce and Consumer Affairs: Administration of the Takeovers Code (M13)

Scope of Appropriation

The performance of statutory functions by the Takeovers Panel as specified in the Takeovers Act 1993.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 1,494 1,494 1,494

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve efficient takeovers law, compliance with the Takeovers Code, and shareholders in Code companies being better informed.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Enforcement of Takeovers Code and of Schemes of Arrangement involving Code companies Percentage of practitioners are satisfied overall with process 90% 90% 90% and with professionalism of the Takeovers Panel Executive

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Takeovers Panel in its annual report.

Commerce and Consumer Affairs: Enforcement of Dairy Sector Regulation and Auditing of Milk Price Setting (M13)

Scope of Appropriation

This appropriation is limited to funding for reviewing Fonterra’s milk price setting arrangements, dispute resolution, enforcement and reports under the Dairy Industry Restructuring Act 2001 and related regulations.

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Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 935 935 1,772

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve more efficient operation of dairy markets through the facilitation of competition.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Number of determinations (includes determinations, 0-1 0 0 -1 clarifications, reviews and amendments) Average time taken to complete dairy determinations 120 working days Refer to note 1 120 working days

Percentage of stakeholders who find determinations and 80% Refer to note 2 80% supporting reasons clear

Number of reports completed (monitoring reports, summary and 2 2 2-3 analysis reports, information disclosure reports, ministerial reports) Number of substantial pieces of advice provided to government 0-2 0 1-3 (demand driven)

Percentage of stakeholders who rate our reports good or above 80% Refer to note 1 80% Percentage of reports completed within the agreed timeframes 100% 100% 100% Number of successful legal challenges of the Commerce 0 0 0 Commission’s processes

Note 1: No determinations are expected to be completed during 2014/15, so the time taken cannot be calculated.

Note 2: Survey to be completed in June 2015

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Funding for Dairy Industry Restructuring Amendment 2012/13 251 340 340 340 340 Act Provisions Dairy Regulatory Framework - Fonterra’s Milk Price, 2011/12 905 905 905 905 905 Capital Restructure and Share Valuation

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Reasons for Change in Appropriation

The increase in funding is to allow the Commerce Commission to produce the report on the state of competition in the New Zealand dairy industry required under s148A of the Dairy Industry Restructuring Act 2001.

Commerce and Consumer Affairs: Enforcement of General Market Regulation (M13)

Scope of Appropriation

This appropriation is limited to the administration, education, enforcement, and adjudication activities of the Commerce Commission in relation to the Commerce Act 1986, the Fair Trading Act 1986, and the Credit Contracts and Consumer Finance Act 2003.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 13,935 13,935 13,935

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve more competitive markets and ensure consumers’ interests are protected.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Percentage of successfully defended determinations appeals 100% 100% 100% over five years Average number of working days from date of registration to 40 days 64 days 40 days date of decision for merger clearance applications

Average number of working days from date of decision to date 10 days 34 days 10 days of publication of reasons for declined clearance applications Number of clearance applications processed (demand driven) 10-22 17 10-22 Number of authorisation applications processed (demand 0-4 2 0-4 driven) Percentage of investigations decided within 18 months of the 100% 98% 100% investigation being opened

Percentage of investigations decided within 12 months of the 90% 96% 95% investigation being opened

The percentage of surveyed businesses that have received a 95% Refer to note 1 95% compliance advice or warning letter from the Commission in the last 12 months that report that the Commission’s communications and guidance are clear and/or useful Number of market structure investigations completed 0-5 2 0-5

Number of coordinated behaviour investigations completed 8-14 6 5-14

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Number of unilateral conduct investigations completed 2-6 3 2-6 Number of Fair Trading Act investigations completed 200-300 220 200-300 Number of product safety and information standards 100-150 100 80-120 investigations completed

Number of Credit Contracts and Consumer Finance Act 40-60 40 40-60 investigations completed Number of Commission guidelines and fact sheets provided 5-20 20 2-10 Number of substantial pieces of advice provided to government 5-15 6 2-10 (demand driven) Percentage of stakeholders who find our publications clear Target to be set once Refer to note 1 92% and/or useful baseline established

Number of successful legal challenges of the Commission’s 0 0 0 processes

Note 1: Surveys to be completed by June 2015.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Transfer to assist in the establishment of the 2014/15 (2,500) (2,500) (2,500) (2,500) (2,500) Commerce Commission Litigation Funds MCA

Commerce and Consumer Affairs: Retirement Commissioner (M13)

Scope of Appropriation

This appropriation is limited to services from the Retirement Commissioner to raise the level of financial capability, improve the effectiveness of retirement income policies and monitor the provisions of the Retirement Villages Act 2003.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 6,092 6,092 5,782

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve more New Zealanders becoming financially capable, putting them in the best possible position to reach their life goals and reach retirement in good financial health.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Increasing numbers of New Zealanders participate in quality Refer to note 1 Refer to note 4 Positive change in financial education and are motivated to change their behaviour financial behaviours demonstrating financial capability New Zealanders have greater awareness and appreciation of Refer to note 2 Refer to note 5 Increased appreciation issues surrounding New Zealand’s retirement income policy of retirement issues

The effects of the Retirement Villages Act is independently Refer to note 3 Refer to note 6 Minister satisfied with monitored and relevant information is made available to Commissioner’s advice residents and intending residents of retirement villages

Note 1: Previous Budgeted Standard was ‘Marketing monitor results for 2014/15 show an improvement from 2013/14 results’.

Note 2: Previous Budgeted Standard was ‘Index is updated November 2014 and May 2015’.

Note 3: Previous Budgeted Standard was ‘The Minister is satisfied or better with the completeness, clarity and timeliness of the Retirement Commissioner’s advice or recommendation provided on any draft codes of practice’.

Note 4: Estimated Actual Standard is ‘More New Zealanders recognise the importance of financial literacy and undertake financial education programmes and are motivated to take greater control of their money’.

Note 5: Estimated Actual Standard is ‘More New Zealanders have an awareness of the issues surrounding New Zealanders retirement income policy’.

Note 6: Estimated Actual Standard is ‘Relevant information is made available to residents and the Minister is satisfied with the Retirement Commissioner’s advice and recommendations’.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Commission for Financial Capability in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Transfer of Responsibility for Retirement Commissioner 2011/12 5,782 5,782 5,782 5,782 5,782

Reasons for Change in Appropriation

There was a one-off transfer of funding from Vote Science and Innovation to develop financial literacy pilot programmes targeted to Māori and Pacific people, which increased the appropriation only for 2014/15. The appropriation reverts back to baselines for 2015/16 and out years.

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Conditions on Use of Appropriation

Reference Conditions New Zealand Superannuation and Retirement Part 4 of the New Zealand Superannuation and Retirement Income Act 2001 provides the Income Act 2001 constitution, appointment, functions, powers and duties of the Commissioners. Retirement Villages Act 2003 Part 3 provides for the monitoring and other functions of the Retirement Commissioner. Part 4 provides for the Commissioner to approve members eligible for appointment to a disputes panel. Part 5 provides for the Commissioner to make recommendations to the Minister on any draft Code of Practice or variation, and to publish information and receive submissions on any Codes of Practice or variation. Crown Entities Act 2004 The Crown Entities Act 2004: · provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy) · clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity, and · sets out reporting and accountability requirements.

Communications: Administrative Support for Telecommunications Relay Equipment and Services (M88)

Scope of Appropriation

This appropriation is limited to funding expenditure for administering contracts procuring the supply of telecommunications relay services textphones and other equipment for user access to relay service platforms (including video) and the cost for administering rental of relay user equipment and depreciating this equipment, together with sponsoring New Zealand Sign Language interpreter scholarships and the purchase of ancillary services to support the availability and uptake of relay services.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 1,719 1,719 1,519

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the procurement of telecommunications relay services, administration of relay user equipment rental, and sponsorship of New Zealand Sign Language interpreter scholarships.

End of Year Performance Reporting

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

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Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment

Consultel Associates Ltd 78 78 78 Monthly Status On-going Report CSD - Communication Service for 216 216 216 Monthly Status On-going the Deaf Report Sprint International Ltd 1,425 1,425 1,225 Monthly Status On-going Report

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Video Remote Interpreting Service 2013/14 250 250 250 250 250

Communications: Emergency Telecommunications Services (M88)

Scope of Appropriation

This appropriation is limited to upgrading telecommunications capabilities for emergencies.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation - - 1,204

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve upgraded telecommunications capabilities for the public to communicate with Government in emergencies.

End of Year Performance Reporting

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

Service Providers

No suppliers have been selected yet for Emergency Telecommunications Services.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the appropriation 2015/16 - 1,204 2,631 2,631 4,294

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Reasons for Change in Appropriation

This new appropriation was established to assist with the upgrade of telecommunications capabilities relating to the emergency response system.

Communications: Enforcement of Telecommunications Sector Regulation (M88)

Scope of Appropriation

This appropriation is limited to the regulation and monitoring of telecommunication services in accordance with the Telecommunications Act 2001.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 6,000 6,000 6,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the promotion of competition in the telecommunications market for the long-term benefit of end-users.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

New Zealand’s position in The Organisation for Economic New measure New measure Achieved Co-operation and Development’s ranking improves for fixed broadband services (connections per 100 of the New Zealand population) A year-on-year increase in the average connection speed of New measure New measure Achieved 40% (as measured by Akamai) Determinations Number of determinations (includes determinations, 2-4 2-4 4-5 clarifications, reviews and amendments)

Average time to complete telecommunications determinations 6 months 4 months 6 months (refer to note 1)

Completion date for the Unbundled Bitstream Access (UBA) and 30 April 2015 Not met 30 September 2015 Unbundled Copper Local Loop (UCLL) Final Pricing Principle (FPP) determinations Percentage of stakeholders who find the determinations and 80% Refer to note 2 80% supporting reasons clear

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Public Reports and Advice to Officials

Number of reports completed (monitoring reports, summary and 3-8 3 3 analysis reports, information disclosure reports, ministerial reports) Number of substantial pieces of advice provided to officials to 2-4 1 1-3 inform policy design

Percentage of stakeholders who rate our reports good or above 80% Refer to note 2 80% Percentage of reports completed by the set date 100% 100% 100% Compliance and Enforcement Number of compliance assessments completed 0-4 2 0-1

Number of enforcement cases taken or settled 0-1 0 0-1 Percentage of compliance assessments completed by the set 100% 100% 100% date

Note 1: The average time to complete telecommunications determinations excluding the UBA and UCLL FPP determinations.

Note 2: Survey to be conducted in June 2015.

End of Year Performance Reporting

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

Communications: Fibre Drop Costs (M88)

Scope of Appropriation

This appropriation is limited to the cost of fibre connections to join priority users to Ultra-Fast Broadband and Rural Broadband Initiative providers’ cable in the roadway or network operators’ digital microwave radio towers.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 1,679 1,679 1,500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve fibre connections for the Ultra-fast Broadband and Rural Broadband Initiatives.

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End of Year Performance Reporting

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

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Ultra-Fast Broadband and Rural 1,679 1,679 1,500 As above 30 June 2016 Broadband Initiative Providers

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Fibre Drop for Schools 2011/12 4,530 - - - -

Reasons for Change in Appropriation

The decrease in this appropriation is the reflection of its last year of operation. The project is on track to connect 97.7% of schools to broadband at speeds of at least 100mbps by 31 December 2015. A transfer of $1.500 million to 2015/16 will allow for this target to be achieved.

Economic Regulation of Electricity Line Services 2014-2019 (M13)

Scope of Appropriation and Expenses

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

Economic Regulation of Electricity Line Services 2014-2019 (M13) Original Appropriation 28,311 This appropriation is limited to the regulation of electricity lines services under Adjustments to 2013/14 - Part 4 of the Commerce Act 1986 for the period 2014-2019. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation 28,311

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 6,770 Estimated Actual for 2015/16 5,211

Estimated Appropriation Remaining 16,330

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of regulated electricity lines services at prices and quality that would have been available if the market were competitive, for the long-term benefit of consumers.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Number of determinations (includes determinations, 10-29 20 5-11 clarifications, reviews and amendments)

Percentage of Part 4 of the Commerce Act 1986 determinations 100% 100% 100% completed by statutory deadlines Percentage of stakeholders who find determinations and 80% Refer to note 1 80% supporting reasons clear

Number of reports completed (monitoring reports, summary and 1-4 2 2-3 analysis reports, information disclosure reports, ministerial reports)

Number of substantial pieces of advice provided to government 0-7 0 0-5 (demand driven) Percentage of stakeholders who rate our reports good or above 80% Refer to note 1 80% Percentage of reports completed within the agreed timeframes 100% 100% 100% Number of compliance assessments completed 48 48 48

Number of enforcement cases taken or settled 0-3 1 0-1 Percentage of compliance assessments completed within the 100% 100% 100% agreed timeframes Number of successful legal challenges of the Commerce 0 0 0 Commission’s processes

Note 1: Survey to be completed in June 2015.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Establishment of the Economic Regulation of Electricity 2014/15 7,244 4,737 3,797 4,486 8,047 Line Services

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Economic Regulation of Gas Pipeline Services 2014-2019 (M13)

Scope of Appropriation and Expenses

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

Economic Regulation of Gas Pipeline Services 2014-2019 (M13) Original Appropriation 9,684 This appropriation is limited to the regulation of gas pipeline services under Adjustments to 2013/14 - Part 4 of the Commerce Act 1986 for the period 2014-2019. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation 9,684

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 2,088 Estimated Actual for 2015/16 1,906

Estimated Appropriation Remaining 5,690

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of regulated gas pipeline services at prices and quality that would have been available if the market were competitive, for the long-term benefit of consumers.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Number of determinations (includes determinations, 6-16 10 6-10 clarifications, reviews and amendments)

Number of reports completed (monitoring reports, summary and 1-3 2 1-2 analysis reports, information disclosure reports, ministerial reports) Number of substantial pieces of advice provided to government 0-4 0 0-2 (demand driven) Percentage of stakeholders who rate our reports good or above 80% Refer to note 1 80% Percentage of reports completed within the agreed timeframes 100% 100% 100% Number of compliance assessments completed 10 10 10 Number of enforcement cases taken or settled 0-1 0 0-1

Percentage of compliance assessments completed within the 100% 100% 100% agreed timeframes Number of successful legal challenges of the Commerce 0 0 0 Commission’s processes

Note 1: Survey to be completed in June 2015.

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End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the Economic Regulation of Gas 2014/15 1,580 2,414 2,958 1,443 1,289 Pipeline Services programme

Economic Regulation of Specified Airport Services 2014-2019 (M13)

Scope of Appropriation and Expenses

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

Economic Regulation of Specified Airport Services 2014-2019 (M13) Original Appropriation 2,763 This appropriation is limited to the regulation of specified airport services under Adjustments to 2013/14 - Part 4 of the Commerce Act 1986 for the period 2014-2019. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation 2,763

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 598 Estimated Actual for 2015/16 424 Estimated Appropriation Remaining 1,741

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of specified airport services at prices and quality that would have been available if the market were competitive, for the long-term benefit of consumers.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Number of determinations (includes determinations, 2-5 1 2-5 clarifications, reviews and amendments) Percentage of Part 4 of the Commerce Act 1986 determinations 100% 100% 100% completed by statutory deadlines

Percentage of stakeholders who find determinations and 80% Refer to note 1 80% supporting reasons clear

Number of reports completed (monitoring reports, summary and 1-4 2 1 analysis reports, information disclosure reports, ministerial reports) Number of substantial pieces of advice provided to government 1-4 0 1-4 (demand driven)

Percentage of stakeholders who rate our reports good or above 80% Refer to note 1 80%

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Percentage of reports completed within the agreed timeframes 100% 100% 100% Number of compliance assessments completed 3 3 3 Number of enforcement cases taken or settled 0-1 0 0-1 Percentage of compliance assessments completed within the 100% 100% 100% agreed timeframes

Number of successful legal challenges of the Commerce 0 0 0 Commission’s processes

Note 1: Survey to be completed in June 2015.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the Economic Regulation of Specified 2014/15 597 425 481 874 386 Airport Services programme

Energy and Resources: Electricity Industry Governance and Market Operations (M28)

Scope of Appropriation

This appropriation is limited to formulating, monitoring and enforcing compliance with the regulations and rules governing the electricity industry and other outputs in accordance with the statutory functions under the Electricity Industry Act; and delivery of core electricity system and market operation functions, carried out under service provider contracts.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 72,899 72,899 76,974

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Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 System operator service provider costs 40,139 39,596 42,266

Other service provider costs 12,431 12,510 12,979 Facilitate consumer participation 2,000 2,000 3,000 Electricity Authority operations 18,329 18,793 18,729

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve competition in, reliable supply by, and the efficient operation of the electricity industry for the long term benefit of consumers.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard The percentage of notifications of alleged breaches completed 80% 80% 85% or referred to the Rulings Panel within three months of notification

Electricity system and market operation performance will be Contract, Code and Contract, Code and Contract, Code and assessed by monitoring service provider performance to ensure performance standards performance standards performance standards that contract and Code requirements, including performance met met met standards, are met

Top priority market development projects, as listed in the Refer to note 1 Refer to note 1 80% Statement of Performance Expectations, achieve planned deliverables for the year Code development decisions meet statutory and internal quality New measure New measure 75% rated as very standards, including cost benefit assessment, as assessed by good, 100% as good or external review better

Note 1: The 2014/15 performance standard was ‘At least 5 of the 6 top priority market development initiatives complete planned milestones’.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Electricity Authority - Three Year Customer Switching 2014/15 2,000 3,000 2,500 - - Fund

Electricity Authority - System Operator Service Provider 2013/14 5,306 8,381 7,944 7,944 7,944 Agreement (SOSPA) Market for Financial Transmission Rights 2012/13 960 960 960 960 960

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Reasons for Change in Appropriation

The increase in this appropriation is due to funding for policy promoting consumer participation.

Energy and Resources: Implementation of the Home Insulation Programme (M28)

Scope of Appropriation

This appropriation is limited to the implementation of the Home Insulation programme.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 2,500 2,500 2,500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the implementation of the home insulation programme.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Administer grants for retrofitting insulation: Funding arrangements are consistent with the basic principles Full compliance with Full compliance with Full compliance with articulated by the Controller and Auditor General basic principle basic principle basic principle

Deliver an audit regime to provide confidence that installations are fit for purpose and represent value for money: Audit and control of Warm Up New Zealand: Healthy Homes At least 5% audited and At least 5% audited and At least 5% audited and install quality 90% pass rate 95% pass rate 95% pass rate Audit and control of Warm Up New Zealand: Healthy Homes All identified faults All identified faults All identified faults install quality rectified rectified rectified

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Energy, Efficiency and Conservation Authority in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the Home Insulation programme 2013/14 2,500 2,500 - - -

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Energy and Resources: Management of IEA Oil Stocks (M28)

Scope of Appropriation

For the cost of managing and funding of oil stocks to meet International Energy Agency obligations.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 6,697 6,697 8,658

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve New Zealand meeting its 90 day oil stock holding obligation as a member of the International Energy Agency.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard New Zealand meets its International Energy Agency obligations New Zealand has 90 New Zealand has 90 New Zealand has 90 day oil stock reserves day oil stock reserves day oil stock reserves

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Energy and Resources in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 New Zealand’s International Oil Stockholding Obligation 2013/14 3,333 5,658 - - -

Reasons for Change in Appropriation

The increase in this appropriation is due to cost fluctuations of buying sufficient stocks between years as a result of changes in oil prices, demand, and domestic production.

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National Science Challenges (M84)

Scope of Appropriation and Expenses

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

National Science Challenges (M84) Original Appropriation 252,722 This appropriation is limited to research and research applications to find Adjustments to 2013/14 - innovative solutions to fundamental issues New Zealand faces in its future development. Adjustments for 2014/15 6,520

Commences: 01 October 2013 Adjusted Appropriation 259,242 Actual to 2013/14 Year End - Expires: 30 June 2018 Estimated Actual for 2014/15 10,530 Estimated Actual for 2015/16 69,617

Estimated Appropriation Remaining 179,095

Note: On expiry of the multi-year appropriation funding continues through the annual appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improvement in innovative solutions to fundamental issues New Zealand faces by drawing scientists together to achieve a common goal through collaboration.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard All of proposals assessed against eligibility and assessment 2-4 Updated measure Achieved criteria within agreed timeframes

Percentages of contracts assessed to achieve their objectives New measure New measure 100% and critical steps

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Building better homes, towns, and cities challenge 2015/16 - 2,088 2,216 2,216 - Transfer of contestable funds from Research fund 2014/15 4,099 12,039 26,620 34,464 - appropriations

Implementing the National Science Challenges 2013/14 41,000 41,000 41,000 43,600 -

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Research and Development Growth Grants (M84)

Scope of Appropriation and Expenses

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

Research and Development Growth Grants (M84) Original Appropriation 393,000 This appropriation is limited to co-funding for private businesses to invest in a Adjustments to 2013/14 - multi-year programme of research and development. Adjustments for 2014/15 40,000 Commences: 01 July 2013 Adjusted Appropriation 433,000

Expires: 30 June 2017 Actual to 2013/14 Year End 47,447 Estimated Actual for 2014/15 119,200 Estimated Actual for 2015/16 157,600

Estimated Appropriation Remaining 108,753

Note: On expiry of the multi-year appropriation funding continues through the annual appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve additional investment in research and development by established businesses so that they grow further and faster.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of businesses receiving a growth grant that maintain 70% 70% 70% or increase their research and development expenditure over the grant period

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Funding for Research and Development Growth Grants 2015/16 - 20,000 20,000 - - - note 1 International Growth Package 2013/14 96,600 101,500 104,000 - -

Note 1: A further $20 million baseline was approved for the Research and Development Growth Grants programme that has been allocated to the Research and Development Growth Grants annual appropriation commencing 2017/18.

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Resource Data Acquisition and Management (M28)

Scope of Appropriation and Expenses

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

Resource Data Acquisition and Management (M28) Original Appropriation 8,000 This appropriation is limited to the acquisition and analysis of seismic Adjustments to 2013/14 - information relating to New Zealand’s minerals, petroleum and geothermal resources. Adjustments for 2014/15 -

Commences: 01 July 2014 Adjusted Appropriation 8,000 Actual to 2013/14 Year End - Expires: 30 June 2018 Estimated Actual for 2014/15 2,000 Estimated Actual for 2015/16 2,000

Estimated Appropriation Remaining 4,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of public good information about geological prospectivity of particular areas to generate commercial interest in exploration.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Administer the Resources Data Acquisition and Management For standard 2014/15 For standard 2014/15 All criteria met (refer to Fund, to advance knowledge of New Zealand’s minerals, refer to note 1 refer to note 1 note 2) petroleum and geothermal resources

Note 1: The 2014/15 performance standard was ’Work is undertaken to agreed timelines and meets contract conditions. All allocations meet the Ministry’s procurement and financial guidelines.’

Note 2: Criteria relate to work being undertaken to agreed timelines and meeting contract conditions, and all allocations meeting the Ministry’s procurement and financial guidelines

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Energy and Resources in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the Resource Data Acquisition and 2014/15 2.000 2.000 2,000 2,000 - Management programme

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Science and Innovation: Biological Industries Research (M84)

Scope of Appropriation

This appropriation is limited to research and research applications to support productivity growth and sustainability of New Zealand’s primary industries, and the development of premium food and industrial biological products and technologies responsive to global consumer preferences.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 94,918 94,918 92,153

Components of the Appropriation

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Science and Innovation research projects through annual 69,518 68,578 63,813 contestable rounds

Partnership funding that supports high-quality research aimed at 22,000 22,500 26,000 increasing the competitiveness of New Zealand industries and strengthening fees between research organisations and research users

All other research and innovation projects 3,400 2,340 2,340

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in productivity and sustainability for New Zealand’s primary sector through research, science, technology and related activities.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Percentage of applications are assessed against eligibility and 100% 100% 100% assessment criteria within agreed timeframes (refer to note 1)

Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing science contracts assessed against contract outputs 100% 100% 100% (refer to note 2)

Note 1: Assessment criteria are predetermined. For 2015/16 investment rounds these are criteria set out in the relevant Gazette notice, and in the corresponding Sector Investment Plan and Request for Proposals.

Note 2: The outputs are those defined in the contract and to be achieved by the end of the contract.

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End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Crown Research Institutes 40,651 40,651 40,651 See above As per contracts Other providers 52,767 52,767 53,002 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Transfer of Contestable Fund to National Science 2014/15 (375) (2,240) (6,624) (10,914) (10,914) Challenges Pre-Seed Accelerator Contracts to High Value 2013/14 (1,007) (1,007) - - - Manufacturing and Services Research

International Growth Package (Business R&D Grants) 2013/14 (6,800) (6,800) (6,800) (6,800) (6,800) Crown Research Institute Core Purpose (New NDOC) 2011/12 (65,788) (65,788) (65,788) (65,788) (65,788)

Reasons for Change in Appropriation

The decrease in this appropriation is due to:

· a one-off transfer of $2 million from 2013/14 to 2014/15 to reflect the delay in spending from the partnership funds due to some industry groups not submitting applications as early as they had anticipated, and

· a net movement of $1.865 million to the National Science Challenges Multi-Year Appropriation to support the development of National Science Challenges.

This is offset by a transfer of $1.100 million in 2014/15 to the Engaging New Zealanders with Science and Technology appropriation in 2015/16 to fund the Science in Society project implementation.

Science and Innovation: Building Business Innovation (M84)

Scope of Appropriation

This appropriation is limited to activities that raise awareness about and increase business investment in Research and Development.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation - - 32,378

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Comparators for Restructured Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget Vote, Type and Title of Appropriation $000 $000 $000 Vote Science and Innovation - Non-Departmental Output 9,078 9,078 - Expense - Building Innovation Potential Vote Science and Innovation - Non-Departmental Output 16,000 16,000 - Expense - Realising the Benefits of Innovation Vote Business, Science and Innovation - Non-Departmental - - 32,378 Output Expense - Building Business Innovation Total 25,078 25,078 32,378

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the acceleration in the growth of knowledge intensive firms in New Zealand through contributing to a stronger culture of innovation and increased skills and expertise.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Number of business-related contacts to Customer Engagement >100 average per 200 >200 average per Centre seeking access to business services month month Total number of customers using each Innovation Service New measure New measure Establish baseline Percentage of surveyed customers that agree or strongly agree New measure New measure Establish baseline that Callaghan Innovation has added value to their business

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This new appropriation is a result of an internal review of Callaghan Innovation appropriations. The Building Innovation Potential and Realising the Benefits of Innovation appropriations have been merged to establish this appropriation as they provided very similar outputs.

The differences between pre and post merged appropriation values is due to an operational adjustment transfer of $7.300 million from:

· Realising the Benefits of Innovation to Callaghan Innovation Strategic Investment ($3.600 million), and

· Business Research and Development Contract Management ($3.700 million).

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Science and Innovation: Business Research and Development Contract Management (M84)

Scope of Appropriation

This appropriation is limited to selection of businesses or individuals for either the provision of Research Science and Technology output, or the award of grants, and to negotiate, manage and monitor appropriate contracts with these businesses or individuals.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 11,208 11,208 7,750

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the efficient and effective allocation and contracting of research, science and technology outputs, and grants to maximise their returns to New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Contracts are monitored and managed to maximise the 100% 100% 100% likelihood of delivering on the contract outcomes (refer to note 1)

Percentage of growth, project and student fellowship New measure New measure 90% applications approved within 30 working days of receipt of the completed application

Percentage of repayable grant applications processed within New measure New measure 90% five working days

Note 1: Applies to contracts greater than 6 months in duration and/or greater than $30,000 value.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Administration of the Incubator Support Programme 2014/15 263 263 263 263 263 Transfer of funds from Science and Innovation Contract 2012/13 3,754 3,754 3,754 3,754 3,754 Management

Transfer of funds from Strategic Leadership in the 2012/13 2,502 2,502 2,502 2,502 2,502 Science and Innovation Sector

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Reasons for Change in Appropriation

The decrease in this appropriation is mainly due to a one-off transfer of $3.700 million in 2014/15 from the Realising the Benefits of Innovation appropriation. This was due to a redistribution of indirect costs to this appropriation (the original appropriation was set on the basis of direct costs only) and an increase in business facing staff.

Science and Innovation: Crown Research Institute Core Funding (M84)

Scope of Appropriation

This appropriation is limited to Crown Research Institutes to create and maintain capability that is required for their core purpose and strategy.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 201,622 201,622 201,622

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the ability for Crown Research Institutes to deliver on their core purpose and strategies through core funding.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Crown Research Institutes manage and administer their core Achieved Achieved Achieved funding in accordance with their Statements of Corporate Intent and their core funding agreement

Components of the Appropriation

Refer to the Service Providers table below.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

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Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment AgResearch Limited 38,889 38,889 38,889 See above As per contracts Institute of Environmental 7,723 7,723 7,723 See above As per contracts Science and Research Limited

Institute of Geological and 27,115 27,115 27,115 See above As per contracts Nuclear Science Limited Landcare Research New Zealand 24,205 24,205 24,205 See above As per contracts Limited National Institute of Water and 42,854 42,854 42,854 See above As per contracts Atmospheric Research Limited

New Zealand Institute for Plant 43,103 43,103 43,103 See above As per contracts and Food Research Limited

New Zealand Forest Research 17,733 17,733 17,733 See above As per contracts Institute Limited (trading as Scion)

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Core funding from High Value Manufacturing and 2015/16 - 2,200 2,200 2,200 2,200 Services Research

Transfer to Callaghan Innovation Strategic Investment 2012/13 (18,523) (18,523) (18,523) (18,523) (18,523) Increase in Industrial Research Limited core purpose 2011/12 5,000 2,800 2,800 2,800 2,800 Crown Research Institute (CRI) Core Purpose 2011/12 215,145 212,945 212,945 212,945 212,945

Science and Innovation: Energy and Minerals Research (M84)

Scope of Appropriation

This appropriation is limited to research and research applications to improve mineral extraction, improve energy security and to obtain efficient and affordable energy use.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 11,499 11,499 13,818

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in mineral extraction and energy security, and efficient and affordable energy use through research, science, technology and related activities.

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How Performance will be Assessed and End of Year Reporting Requirements

Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing contracts assessed against contract outputs (refer to 100% 100% 100% note 2)

Note 1 - Assessment criteria are predetermined. For 2015/16 investment rounds these are criteria set out in the relevant Gazette notice, and in the corresponding Sector Investment Plan and Request for Proposals.

Note 2 - The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Crown Research Institutes 4,900 4,900 4,900 See above As per contracts Other providers 6,599 6,599 8,918 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Transfer of contestable funding to National Science 2016/17 - - (296) (395) - Challenges

Contestable Science Funding 2015/16 - 2,273 4,854 4,854 4,854 Crown Research Institute (CRI) Core Purpose 2011/12 (9,706) (9,706) (9,706) (9,706) (9,706)

Reasons for Change in Appropriation

The increase in this appropriation is mainly due to an initiative of $2.273 million in Budget 2014 for Contestable Science Funding, intended to reduce annual volatility in the contestable funds.

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Science and Innovation: Engaging New Zealanders with Science and Technology (M84)

Scope of Appropriation

This appropriation is limited to engaging New Zealanders with science and technology through approaches determined by the Minister.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 8,269 7,869 11,169

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the increased engagement by New Zealanders with science and technology.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Initiatives are developed and managed to align with objectives Achieved Achieved Achieved of the fund

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment

Royal Society of New Zealand 5,144 5,144 5,144 See above As per contracts Other providers 3,125 2,725 6,025 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Transfer Futureintech to Callaghan Innovation 2013/14 (1,244) (1,244) (1,244) (1,244) (1,244) Transfer funding for Prime Ministers Advisory 2013/14 (675) (675 (675 (675 (675 Committee Transfer from New Zealand Trade and Enterprise for 2012/13 1,244 1,244 1,244 1,244 1,244 Futureintech

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Reasons for Change in Appropriation

The increase in this appropriation is due to:

· the reprioritisation of $2.200 million from Fellowships for Excellence and Biological Industries Research in 2014/15 to fund the Science in Society project implementation in 2015/16, and

· a transfer of $700,000 in 2014/15 to Multi-Category Appropriation Advice and Support on Shaping the Science and Innovation System, Contract Management category, to support communications and evaluation activities to implement the “A Nation of Curious Minds - A National Strategic Plan for Science in Society”.

Conditions on Use of Appropriation

Reference Conditions Cabinet decision Engage New Zealanders with science and technology through approaches determined by the Minister of Science and Innovation.

Science and Innovation: Environmental Research (M84)

Scope of Appropriation

This appropriation is limited to research and research applications to underpin the management, protection and enhancement of natural ecosystems, land and freshwater resources, climate and atmosphere within New Zealand, including Antarctica.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 32,447 32,447 31,535

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in the management, protection and enhancement of New Zealand’s natural resources research, science, technology and related activities.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Percentage of applications are assessed against eligibility and 100% 100% 100% assessment criteria within agreed timeframes (refer to note 1) Percentage of contracts assessed to achieve their objectives 95% 100% 100% and critical steps Maturing contracts assessed against contract outputs (refer to 95% 100% 100% note 2)

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Note 2 - The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment

Crown Research Institutes 26,958 26,958 26,958 See above As per contracts Other providers 5,489 5,489 4,577 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Contestable Science Funding 2015/16 - 1,163 1,163 5,273 5,723 Transfer of contestable funding to National Science 2014/15 (724) (2,799) (10,166) (11,651) - Challenges

Crown Research Institute Core Funding 2011/12 (38,324) (38,324) (38,324) (38,324) (38,324)

Reasons for Change in Appropriation

The decrease in this appropriation is due to a net movement of $2.075 million to support the National Science Challenges.

This is offset by an initiative of $1.163 million in Budget 2014 for Contestable Science Funding, intended to reduce annual volatility in the contestable funds.

Science and Innovation: Fellowships for Excellence (M84)

Scope of Appropriation

This appropriation is limited to encouraging the career development of the country’s talented early and mid-career researchers.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 10,470 10,470 11,570

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in career development opportunities for New Zealand’s early to mid-career researchers.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Monitor and assess reporting from the investment agent against Achieved Achieved Achieved contractual agreements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Royal Society of New Zealand 9,820 9,820 9,820 See above As per contracts Other providers 650 650 1,750 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 International Growth Package (Business R&D Grants) 2013/14 (5,700) (5,700) (5,700) (5,700) (5,700) Science Entrepreneurial Scheme 2011/12 1,707 1,707 1,707 1,707 1,707

Reasons for Change in Appropriation

The increase in this appropriation is due to a transfer of $1.100 million in 2014/15, to the Engaging New Zealanders with Science and Technology appropriation in 2015/16 to fund the implementation of the Science in Society project.

Conditions on Use of Appropriation

Reference Conditions Cabinet decision Established by terms of reference that set out the funding delivery mechanisms, operable criteria and expected levels of research commitment in each mechanism.

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Science and Innovation: Hazards and Infrastructure Research (M84)

Scope of Appropriation

This appropriation is limited to research and research applications to support hazard management and improve the durability of NZ urban and rural settlements.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 14,185 14,185 11,392

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in the durability and sustainability of New Zealand’s urban and rural settlements through research, science, technology and related activities.

How Performance will be Assessed and End of Year Reporting Requirements

Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing contracts assessed against contract outputs (refer to 100% 100% 100% note 2)

Note 2: The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment

Callaghan Innovation 8,200 8,200 5,200 See above As per contracts Crown Research Institutes 5,985 5,985 6,192 See above As per contracts

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Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Building better homes, towns, and cities challenge 2015/16 - (2,088) (2,216) (2,216) (2,665) Contestable Science Funding 2015/16 - 2,205 2,205 2,205 2,205

Transfer of contestable funding to National Science 2015/16 - (3,000) (3,413) (3,550) - Challenges Reprioritisation of funding for social housing initiatives - 2014/15 (1,680) (1,500) - - - transfer to Vote Social Development Crown Research Institute (CRI) Funding 2011/12 (12,754) (12,754) (12,754) (12,754) (12,754)

Reasons for Change in Appropriation

The decrease in this appropriation is mainly due to:

· a transfer of $3 million in 2015/16 to the National Science Challenges multi-year appropriation to fund the second tranche of National Science Challenges, and

· a transfer of $2.088 million in 2015/16 to the National Science Challenges multi-year appropriation to support the “Building Better Home Challenge” initiative.

The above is offset by an initiative of $2.205 million in Budget 2014 for Contestable Science Funding, intended to reduce annual volatility in the contestable funds.

Science and Innovation: Health and Society Research (M84)

Scope of Appropriation

This appropriation is limited to research and research applications to improve the health and social well- being of New Zealanders.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 82,586 82,586 87,066

Components of the Appropriation

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000

Funding managed by the Health Research Council to support 77,175 77,175 77,175 research that has the potential to improve health outcomes and delivery of healthcare and to produce economic gain for New Zealand Science and Innovation research projects through annual 5,411 5,411 9,891 contestable rounds

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in the health and social well-being of New Zealanders through research, science, technology and related activities.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of applications are assessed against eligibility and 100% 100% 100% assessment criteria within agreed timeframes (refer to note 1) Percentage of contracts assessed against their objectives and 100% 100% 100% critical steps Maturing contracts assessed against contract outputs (refer to 100% 100% 100% note 2) Monitor and assess reporting from the funding agent against the Achieved Achieved Achieved output agreement

Note 2: The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Health Research Council 77,175 77,175 77,175 See above As per contracts Crown Research Institutes 4,954 4,954 9,485 See above As per contracts

Other providers 457 457 406 See above As per contracts

Current and Past Policy Initiatives

Rephase of Youth at Risk in NZ contract 2013/14 (88) 1,392 - - -

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Reasons for Change in Appropriation

The increase in this appropriation is due to:

· an initiative of $3 million in Budget 2014 for Contestable Science Funding, and

· the rephase of Youth at Risk in New Zealand contract with a net movement of $1.480 million

Science and Innovation: High Value Manufacturing and Services Research (M84)

Scope of Appropriation

This appropriation is limited to research and research applications to develop new technologies, novel materials, and new products, processes and services for the manufacturing and technology sectors.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 57,911 57,911 64,040

Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Science and Innovation research projects through annual 50,394 50,394 55,946 contestable rounds

Funding for publicly funded research organisations to allocate to 4,294 4,294 4,294 early stage commercialisation of ideas All other research and innovation projects 3,800 3,800 3,800

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in New Zealand’s manufacturing and services sector through research, science, technology and related activities.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of applications are assessed against eligibility and 100% 100% 100% assessment criteria within agreed timeframes (refer to note 1) Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing contracts assessed against contract outputs (refer to 100% 100% 100% note 2)

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Note 2: The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment

Crown Research Institutes 7,450 7,450 7,365 See above As per contracts Other providers 50,461 50,461 56,675 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Contestable Science Funding 2015/16 - 6,051 6,051 6,051 6,051 Transfer of contestable funding to National Science 2014/15 (3,000) (4,000) (5,500) (7,125) - Challenges MYA

International Growth Package (Business R&D Grants) 2013/14 (110,200) (110,200) (110,200) (110,200) (110,200) Establishment of Callaghan Innovation (previously 2012/13 30,000 30,000 30,000 30,000 30,000 named Advanced Technology Institute) Crown Research Institute (CRI) Core Purpose 2011/12 (10,342) (10,342) (10,342) (10,342) (10,342)

Reasons for Change in Appropriation

The increase in this appropriation is due to:

· a Contestable Science Funding initiative from Budget 2014 of $6.051 million

· a one off transfer of $1.200 million in 2014/15 to Callaghan Innovation Strategic Investment to support the Food Innovation Network, and

· a re-prioritisation of $578,000 in 2015/16 to Square Kilometre Array appropriation.

This is offset by:

· a net movement of $1 million to the National Science Challenges multi-year appropriation to fund the second tranche of National Science Challenges, and

· a $700,000 transfer between years from 2013/14 in relation to Christchurch Innovation Precinct.

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Science and Innovation: Marsden Fund (M84)

Scope of Appropriation

This appropriation is limited to excellent investigator-initiated research.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 52,383 52,383 53,627

Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

The Marsden Fund supports excellence in science, engineering, 52,383 52,383 53,627 maths, social sciences and the humanities in New Zealand by providing grants for investigator-initiated research

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in investigator-led research in areas of science, engineering, maths, social sciences and the humanities.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Monitor and assess reporting from the investment agent against Achieved Achieved Achieved the funding agreement

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Royal Society of New Zealand 52,383 52,383 53,627 See above As per contracts

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Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Funding Alignment 2013/14 628 1,872 - - - International Growth Package 2013/14 5,000 5,000 5,000 5,000 5,000

Reasons for Change in Appropriation

The increase in this appropriation is due to the rephasing of $1.244 million between 2014/15 and 2015/16 to reflect alignment of funding with contracted payments.

Conditions on Use of Appropriation

Reference Conditions Terms of Reference - Marsden Fund - 2012. An objective of the Marsden Fund is to contribute to the development of advanced skills in New Zealand including support for continuing training of post-doctoral level researchers and support for the establishment of early careers of new and emerging researchers. The Marsden Fund is open to applicants that meet the Marsden Fund’s eligibility criteria. The eligibility criteria are determined by the Marsden Fund Council. The eligibility criteria must: · ensure successful proposals are consistent with the nature and objectives of the Marsden Fund stated above, and · applicants are New Zealand-based researchers undertaking research to be carried out in New Zealand or overseas if its nature demands that it be carried out elsewhere. Collaborating researchers from outside New Zealand are able to be included in proposals, but are not able to receive direct funding support for their time or institutional costs. Otherwise, the Council may, from time to time adjust the eligibility criteria of the Marsden Fund to increase its effectiveness in achieving the Marsden Fund’s objectives.

Science and Innovation: National Measurement Standards (M84)

Scope of Appropriation

This appropriation is limited to providing specified standards to satisfy the needs for traceable physical measurement in New Zealand.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 5,764 5,764 5,764

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the global success of firms selling products and services that depend on accurate and internationally accepted traceable physical measurements.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Provision of national measurements and standards and related Updated measure Updated measure Achieved services in accordance with statutory obligations under section 4 of the Measurement Standards Act, reported annually to the Minister and accepted

All technical procedures related to the maintenance of national Updated measure Updated measure Achieved measurement standards (in accordance with the resolutions and recommendations of the Metre Convention) independently reviewed and validated, with all external review actions completed by 30 June 2016

End of Year Performance Reporting

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

Conditions on Use of Appropriation

Reference Conditions Measurements Standards Act 1992 The Minister of Science and Innovation shall provide for the use throughout New Zealand of uniform units of measurement of physical quantities, and for the establishment and maintenance of standards of measurement of physical quantities.

Science and Innovation: Repayable Grants for Start-Ups (M84)

Scope of Appropriation

This appropriation is limited to funding for early stage businesses and development of business incubators and accelerators.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 13,716 13,716 14,996

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the development and growth of new technology focussed business start-ups.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of incubator contracts that are assessed as 90% 90% 90% delivering as required (founder-focused and technology- focused)

Percentage of businesses from technology-focused incubators New measure New measure 90% entering into repayable loans agreements

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Profile of Incubator Operational Funding 2014/15 1,000 - (1,000) (1,000) - Repayable Grants and Incubator Support Programme 2014/15 4,556 4,556 4,556 4,556 4,556 Accelerator Programme 2013/14 750 750 - - - International Growth Package 2013/14 7,800 10,200 10,200 10,200 10,200

Reasons for Change in Appropriation

The increase in this appropriation is due to $2.400 million phased funding increase for the International Growth Package initiative.

The above is offset by:

· $1 million phasing of Business Incubator Operational Funding in 2014/15, and

· $120,000 net movement in transfer of operational funding to administer the ‘repayable grants’ programme as was the original policy intent of the programme.

Science and Innovation: Research and Development Services and Facilities for Business and Industry (M84)

Scope of Appropriation

This appropriation is limited to providing research and technical expertise and facilities to business and industry.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 25,829 25,829 19,523

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve growth in knowledge intensive firms’ global scale and competitiveness through the provision of niche science, engineering, technology, and design services.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard 10 research and development subcontracts between Callaghan New measure New measure Achieved Innovation and other research and development providers totalling more than $2 million Number of New Zealand businesses with research and technical New measure New measure 150 service contracts Commercial revenue from domestic customers New measure New measure $6 million

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 High Performance Working initiative 2013/14 1,000 1,000 1,000 1,000 1,000 Transfer of funds from Crown Research Institute Core 2013/14 18,523 18,523 18,523 18,523 18,523 Funding

Reasons for Change in Appropriation

The decrease in this appropriation is due to one-off adjustments in 2014/15 only as follows:

· $3.600 million transfer from the Realising the Benefits of Innovation appropriation to reflect attributable costs as Callaghan Innovation becomes fully staffed and implements its business case, and

· $2.706 million adjustments to support the Food Innovation project.

Science and Innovation: Research Contract Management (M84) Scope of Appropriation

This appropriation is limited to selection of research, science and technology-related organisations and individuals for either the provision of research, science and technology outputs, or the award of grants; and negotiate, manage and monitor appropriate contracts with those organisations or individuals.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 6,227 6,227 6,227

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve assurance that contractual arrangements are met.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Monitor and assess reporting from the funding and investment Achieved Achieved Achieved agents against the contractual agreements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Health Research Council 3,210 3,210 3,210 See above As per contracts

Royal Society of New Zealand 2,879 2,879 2,879 See above As per contracts Fulbright New Zealand 138 138 138 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Amalgamation of Ministry of Research, Science and 2011/12 2,000 2,000 2,000 2,000 2,000 Technology and Foundation of Research, Science and Technology

Science and Innovation: Vision Mātauranga Capability Fund (M84)

Scope of Appropriation

This appropriation is limited to the development of skilled people and organisations undertaking research that supports the four themes of Vision Mātauranga; indigenous innovation, environmental sustainability, health and social well being, and exploring indigenous knowledge.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 5,257 5,257 6,567

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve development of skilled people and organisations undertaking research supporting four themes of Vision Mātauranga.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of applications are assessed against eligibility and 100% 100% 100% assessment criteria within agreed timeframes (refer to note 1) Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing contracts assessed against contract outputs (refer to 100% 100% 100% note 2)

Note 2: The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Health Research Council 1,982 1,982 1,982 See above As per contract Callaghan Innovation 34 34 20 See above As per contract Crown Research Institutes 425 425 399 See above As per contract

Other providers 2,816 2,816 4,166 See above As per contract

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Accommodate Future Investment Processes 2012/13 600 600 - - -

Reasons for Change in Appropriation

The increase in this appropriation is due to:

· an expense transfer of $310,000 in 2014/15 to Vote Commerce and Consumer Affairs to support financial literacy pilot programmes targeted to Māori and Pacific people, and

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· a re-prioritisation of $1 million in 2014/15 to Policy Advice and Related Services to Ministers multi- category appropriation, Policy Advice - Economic Development category, to support greater regional economic growth in 2015/16 and 2016/17.

Security Management (M28)

Scope of Appropriation and Expenses

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

Security Management (M28) Original Appropriation 6,000 This appropriation is limited to the management of emergency events by the Adjustments to 2013/14 - System Operator, if required, including increased monitoring and management responsibilities in the event of an emerging security situation, and planning and Adjustments for 2014/15 - running an emergency conservation campaign. Adjusted Appropriation 6,000 Commences: 01 July 2012 Actual to 2013/14 Year End -

Expires: 30 June 2017 Estimated Actual for 2014/15 - Estimated Actual for 2015/16 1,200

Estimated Appropriation Remaining 4,800

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve enhanced security of supply in the electricity system during periods of emerging or actual security situations.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

The Electricity Authority decisions in relation to the security Refer to note 1 Refer to note 1 Process and criteria management appropriation made in accordance with the agreed met (refer to note 2) process and criteria

Note 1: The 2014/15 performance standard was ’Funding decisions by the Electricity Authority follow the agreed process, and are in accordance with the criteria.’

Note 2: Funding decisions by the Electricity Authority follow the process and criteria agreed between the Electricity Authority and System Operator.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Establishment of the Security Management programme 2012/13 1,200 1,200 1,200 - -

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Targeted Business Research and Development Funding (M84)

Scope of Appropriation and Expenses

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

Targeted Business Research and Development Funding (M84) Original Appropriation 173,000 This appropriation is limited to co-funding for private businesses to undertake Adjustments to 2013/14 (2,250) research and development projects and for funding students to work in research and development active businesses. Adjustments for 2014/15 -

Commences: 01 July 2013 Adjusted Appropriation 170,750 Actual to 2013/14 Year End 36,869 Expires: 30 June 2017 Estimated Actual for 2014/15 43,631 Estimated Actual for 2015/16 45,650

Estimated Appropriation Remaining 44,600

Note: On expiry of the multi-year appropriation funding continues through the annual appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve further and faster growth by established businesses through investment in research and development.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of businesses completing research and New measure New measure 80% development project grants that positively rate Callaghan Innovation’s assistance as valuable in their final reports

Percentage of surveyed recipients who would recommend the New measure New measure 80% research and development experience grants to others

End of Year Performance Reporting

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

Current and Past Policy Initiatives

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Tourism: Marketing of New Zealand as a Visitor Destination (M69)

Scope of Appropriation

This appropriation is limited to the promotion of New Zealand as a visitor destination in key overseas markets.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 113,350 113,350 115,850

Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Deliver key visitor messages through the 100% Pure 55,445 55,445 56,669 New Zealand campaign activity Deliver key visitor messages through third parties such as 14,474 14,474 14,793 media, opinion leaders, and broadcast production Partner with the travel industry to convert interest in 24,461 24,461 25,000 New Zealand into travel and to extend marketing reach Provide information to global travel sellers to encourage them to 13,139 13,139 13,429 market New Zealand Deliver information for potential visitors 5,045 5,045 5,156 Communicate and engage with New Zealand’s tourism industry 786 786 803 to align industry investment with Tourism New Zealand areas of focus

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in the value of international visitors to New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard International Growth package: Support growing emerging markets Number of famils from emerging markets (refer to note 1) Updated measure Updated measure At least 95 Media hosted from emerging markets Updated measure Updated measure At least 54 outlets International Growth Package: Increasing the value of business events Conference bids supported through the Conference Assistance Updated measure Updated measure At least 40 Programme Success rate for bids supported through the Conference Updated measure Updated measure At least 60% Assistance Programme funding

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard International Growth Package: Premium Travel Segment Number of famils from Premium Sector (refer to note 1) Updated measure Updated measure At least 54

Media hosted from Premium Sector Updated measure Updated measure At least 24 outlets Lift tourism yields from key markets Brand campaigns in Australia, China, USA, UK, Germany, and Updated measure Updated measure At least 14 Japan Brand campaigns in emerging markets Updated measure Updated measure At least 6

Number of partnered campaigns in Australia, China, USA, UK, New measure New measure At least 31 Germany, and Japan International Public Relations Activities: Total value of Updated measure Updated measure At least $90,000,000 Equivalent Advertising Value Information from Visitors Website: Average monthly ‘active Updated measure Updated measure At least 793,000 visits’ to newzealand.com Information from Visitors: Level of user satisfaction with iSite Updated measure Updated measure At least 9 maintained or improved: Average score on user survey out of 10

Quality Assurance: Increase the proportion of guest rights Updated measure Updated measure From 55% provided by Qualmark commercial accommodation Awareness of 100% Pure New Zealand logo as measured by New measure New measure At least 50% the International Visitor Survey Grow the number of travel agents who are ‘100% Pure New measure New measure At least 1,000 New Zealand specialists’

Major trade events attended by Tourism New Zealand New measure New measure Minimum of 25

Note 1: “famil” is a free or low cost trip for travel agents or consultants provided as a means of promoting their service.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 International Growth Package 2013/14 29,500 32,000 32,000 32,000 32,000 Three-Year Marketing Strategy 2011/12 15,000 15,000 15,000 15,000 15,000

Reasons for Change in Appropriation

The increase in this appropriation is due to the International Growth Package initiative allocation, a $2.500 million increase between 2014/15 and 2015/16.

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Tourism: Tourism Growth Partnership (M69)

Scope of Appropriation

This appropriation is limited to the support of partnerships with industry that address strategic issues in the tourism sector.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 7,434 7,434 10,403

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the strategic changes required to overcome constraints to growth, and lift the value that international tourism delivers to New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Provide advice to Minister and gain approval on content of Achieved Achieved Achieved Portfolio Statement that guides investment

Undertake and complete funding round each year Achieved Achieved At least one each year Percentage of contracts assessed against their objectives and Updated measure Updated measure 100% critical steps as per the monitoring plan

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Tourism in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Tourism Growth Partnership Initiative 2013/14 (222) (222) (222) (222) (222) International Growth Package 2013/14 7,000 7,000 7,000 7,000 7,000

Reasons for Change in Appropriation

The increase in this appropriation is due to a $2.403 million transfer from 2013/14 to 2015/16 to reflect the additional time required to assess proposals for the grant funds established in 2013/14. In 2014/15, $566,000 was transferred from this appropriation for China Market information related projects.

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3.4 - Non- Departmental Other Expenses

Commerce and Consumer Affairs: Contributions to International Organisations (M13)

Scope of Appropriation

This appropriation is limited to an annual fee for New Zealand’s membership of the World Intellectual Property Organization; International Patent Documentation Centre; International Organization for Standardization; International Electrotechnical Commission; International Union for the Protection of New Plant Varieties.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 485 485 485

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve New Zealand’s continued participation in, and contribution to, worldwide development of standards and protection of intellectual property.

End of Year Performance Reporting

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

Commerce and Consumer Affairs: Financial Markets Authority Litigation Fund (M13)

Scope of Appropriation

This appropriation is limited to meeting the cost of major litigation activity arising from the enforcement of financial markets and securities markets law.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 2,000 2,000 2,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve regulation of New Zealand’s financial markets through successful litigation activity.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard The Financial Markets Authority (FMA) delivers a strong and For standard Litigation undertaken Litigation undertaken credible monitoring and enforcement regime to uphold the 2014/15 refer to as per Fund’s use as per Fund’s use Government’s financial and securities markets law. The FMA note 1 conditions conditions undertakes litigation that is one of the tools used in carrying out its enforcement functions under its enabling statutes

Note 1: The 2014/15 performance standard was ‘The FMA undertakes litigation using the Litigation Fund as per the condition of use.’

End of Year Performance Reporting

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

Conditions on Use of Appropriation

Reference Conditions

An Output Agreement between the Financial Criteria to be specified in the Output Agreement for costs and expenses arising from Markets Authority and the Minister of litigation between the FMA and another party involving external legal counsel and/or Commerce. consultants and expert witnesses, with direct costs of at least $10,000 (GST excl), excluding FMA overheads.

Commerce and Consumer Affairs: Takeovers Panel Litigation Fund (M13)

Scope of Appropriation

This appropriation is limited to meeting the cost of major litigation activity undertaken by the Takeovers Panel arising from it carrying out functions under the Takeovers Act 1993 and the Takeovers Code.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 200 200 200

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve efficient takeovers law, compliance with the Takeovers Code, and shareholders in Code companies being better informed.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Ensuring adequate funding is available from time to time for the Refer to note 1 Refer to note 2 Refer to note 2 Takeovers Panel to undertake civil proceedings under the Takeovers Act 1993 or in relation to the Takeovers Code or Schemes of Arrangement under s236A of the Companies Act 1993, which is unpredictable in both occurrence and extent

Note 1: The former performance standard was ‘Litigation is undertaken with respect to eligible cases, according to criteria as set out in the Output Agreement.’

Note 2: The performance standard is ‘Litigation is undertaken with respect to eligible cases, according to criteria as set out in the litigation Fund Guidelines.’

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Takeovers Panel in its annual report.

Conditions on Use of Appropriation

Reference Conditions Litigation Fund Guidelines All cases require the involvement of senior counsel and/or consultants and expert witnesses, and involve expenditure of at least $10,000 (GST exclusive) excluding Panel overheads. Use of the Fund must be approved by the Panel.

Communications: Broadband Investment (Rural Supply) (M88)

Scope of Appropriation

This appropriation is limited to the provision of funding for grants or consumer subsidies relating to the deployment of broadband infrastructure in rural regions of New Zealand.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 22,159 9,159 533

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve grants or consumer subsidies relating to the deployment of broadband infrastructure in rural regions of New Zealand.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Rural broadband (capable of peak speeds of at least 5 megabits Rollout targets are met Rollout targets are met Rollout targets are met per second) is available to 86% of rural homes and businesses by the end of 2016

Vendors comply with contractual arrangements for the supply of Meet obligations as Meet obligations as Meet obligations as telecommunications services associated with Rural Broadband specified in the contract specified in the contract specified in the contract Initiatives

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Communications in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

The decrease in this appropriation is the reflection of its last year of operation.

Communications: Contributions to International Telecommunications Organisations (M88)

Scope of Appropriation

This appropriation is limited to New Zealand’s membership of international telecommunications organisations.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 970 970 970

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve annual membership to the Asia Pacific Telecommunity and the International Telecommunications Union.

End of Year Performance Reporting

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

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Communications: Telecommunications Development Levy Funded Procurement - Deaf Relay Service TSO (M88) Scope of Appropriation

This appropriation is limited to the purchase of deaf relay services which is offset by the Telecommunications Development Levy.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 4,780 4,780 2,600

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the purchase of deaf relay services from service providers.

End of Year Performance Reporting

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

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Administrative Support for 4,780 4,780 2,600 See above On-going Telecommunications Relay Equipment and Services

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Telecommunications Industry Levies 2011/12 2,500 2,600 2,700 2,700 2,700

Communications: Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure (M88) Scope of Appropriation

This appropriation is limited to the payment of grants and investment for non-urban infrastructure offset by the Telecommunications Development Levy.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 28,520 28,520 28,000

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the payment of grants and investment for non-urban infrastructure associated with the Rural Broadband Initiatives.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Vendors comply with contractual arrangements for the supply of Meet obligations as Meet obligations as Meet obligations as telecommunications services associated with Rural Broadband specified in contract specified in contract specified in contract Initiatives

Rural broadband (capable of peak speeds of at least 100 New measure New measure Achieved megabits per second) is available to 97.7% of schools by the end of 2015

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Communications in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Vodafone 6,000 6,000 5,900 See above 30 June 2016 Chorus 22,520 22,520 22,100 See above 30 June 2016

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Telecommunications Industry Levies 2011/12 42,000 17,000 - - -

Reasons for Change in Appropriation

The decrease in this appropriation by $3 million is due to the estimated profile spend (decrease of $25 million) at the time of the establishment of the appropriation. This decrease is offset by an increase (net movement of $22 million) of $11 million being transferred from 2014/15 to 2015/16 on advice from Vodafone and Chorus that, while project delivery is currently on track, expenditure is lower than forecast due to more projects occurring in the final year.

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Economic Development: Depreciation on Auckland’s Queens Wharf (M25)

Scope of Appropriation

This appropriation is limited to depreciation expenses associated with Auckland’s Queens Wharf.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 2,000 2,000 2,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of expenses incurred as part of the depreciation of Auckland’s Queens Wharf.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for recognition of depreciation expenses.

Economic Development: Film New Zealand (M25)

Scope of Appropriation

This appropriation is limited to the operation of an independent structure for Film New Zealand, developing a marketing plan for the film sector and coordination of regional film offices.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 1,300 1,300 1,300

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve access to New Zealand for screen production purposes through marketing, facilitation, and coordination provided by Film New Zealand.

End of Year Performance Reporting

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

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Economic Development: Major Events Development Fund (M25)

Scope of Appropriation

This appropriation is limited to support for major events that provide economic, social, cultural and international profiling benefits to New Zealand.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 9,000 8,625 14,915

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve support for major events providing economic, social, cultural, and international benefits for New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Additional economic, social and cultural, and international Refer to note 1 Refer to note 1 Achieved exposure benefits are leveraged from new and existing major events through funding directed to 10 to 15 major events

Note 1: The 2014/15 performance standard was ‘Funding directed to 10 to 15 major events to achieve a portfolio of major events where 100% achieve additional net social, cultural or economic benefits’.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Economic Development in the Vote Business, Science and Innovation Non-departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Support the hosting of the 2015 ICC Cricket World Cup 2014/15 (1,000) (1,355) - - - - transfer to Vote Sports and Recreation

Reasons for Change in Appropriation

The increase in this appropriation is due to a transfer of $6.270 million from 2013/14 to 2015/16 to reflect forecasted number of applications.

This is partially offset by a transfer in 2015/16 over 2014/15 of $355,000 to Vote Sports and Recreation to support the hosting of the 2015 International Cricket Council (ICC) Cricket World Cup.

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Economic Development: Management Development Fund (M25)

Scope of Appropriation

This appropriation is limited to assistance to address the management capability gap in New Zealand, through the commissioning of research, stimulation of business interest and supply of management development services.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 756 756 756

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase of management capability in New Zealand, contributing to business capability and higher levels of innovation, and to increase the number of productive and successful people, communities, and regions.

End of Year Performance Reporting

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

Energy and Resources: Electricity Litigation Fund (M28)

Scope of Appropriation

This appropriation is limited to ensuring that the regulatory body for the electricity industry is able to participate in litigation effectively and without delay.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 444 200 444

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure that the Electricity Authority is able to participate in litigation, or take prosecutions in accordance with its powers under the Electricity Industry Act 2010.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard The Electricity Authority uses the litigation fund in accordance For standard 2014/15 For standard 2014/15 Criteria met (refer to with the criteria for use of the fund refer to note 1 refer to note 1 note 2)

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Note 1: The 2014/15 performance standard was ’Litigation fund used in accordance with the criteria.’

Note 2: Litigation fund used in accordance with the criteria in the Output Agreement between the Minister of Energy and Resources and the Electricity Authority.

End of Year Performance Reporting

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

Energy and Resources: International Energy Agency Contribution (M28) Scope of Appropriation

Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 150 150 150

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the support of energy related research undertaken by the International Energy Agency. End of Year Performance Reporting

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

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 International Energy Agency and International 2011/12 120 120 120 120 120 Renewable Energy Agency contribution reprioritisations

Energy and Resources: International Energy Agency Subscription (M28)

Scope of Appropriation

Payment of annual subscription for membership of the International Energy Agency.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 170 170 170

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the maintenance of membership of the International Energy Agency.

End of Year Performance Reporting

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

Energy and Resources: Ministry of Energy Residual Liabilities (M28)

Scope of Appropriation

Payment of residual liabilities of the former Ministry of Energy and to meet urgent mine restoration and rehabilitation relating to the operations of the state coal mines prior to 1987.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 199 199 199

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the work undertaken to appoint, and liaise with, auditors of mine site rehabilitation work costs, and the sharing of those costs between the Crown and Solid Energy New Zealand.

End of Year Performance Reporting

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

Home Insulation (M28)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Home Insulation (M28) Original Appropriation 93,000 This appropriation is limited to grants towards insulation targeting low income Adjustments to 2013/14 - households. Adjustments for 2014/15 - Commences: 01 July 2013 Adjusted Appropriation 93,000

Expires: 30 June 2016 Actual to 2013/14 Year End 33,000 Estimated Actual for 2014/15 36,069 Estimated Actual for 2015/16 23,931 Estimated Appropriation Remaining -

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve energy savings and health benefits to households at risk of housing related illness.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Provide subsidised retrofits to houses occupied by low income 16,000 retrofits 20,000 retrofits 12,000 retrofits families with children, the elderly and people at risk of housing related illness

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Energy Efficiency and Conservation Authority in its annual report.

Current and Past Policy Initiatives

New Zealand Screen Production Grant - International (M25)

Scope of Appropriation and Expenses

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

New Zealand Screen Production Grant - International (M25) Original Appropriation 252,780 This appropriation is limited to providing grant assistance to screen productions Adjustments to 2013/14 - that are internationally focused and produced in New Zealand. Adjustments for 2014/15 517 Commences: 01 July 2014 Adjusted Appropriation 253,297

Expires: 30 June 2019 Actual to 2013/14 Year End - Estimated Actual for 2014/15 66,970 Estimated Actual for 2015/16 77,997 Estimated Appropriation Remaining 108,330

Note: On expiry of the multi-year appropriation funding continues through the annual appropriation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an enduring number of screen productions that are internationally focussed and produced in New Zealand.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

At least four international and domestic large scale film At least 4 6 Achieved productions located in New Zealand

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Economic Development in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the New Zealand Screen Production 2014/15 57,650 86,800 50,556 57,774 57,774 Grant - International - MYA

Science and Innovation: Advanced Network Capacity (M84)

Scope of Appropriation

This appropriation is limited to a grant to contribute to the operation of the Kiwi Advanced Research and Education Network ensuring advanced network capacity that will underpin New Zealand research.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 4,000 4,000 4,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in innovation, knowledge and learning by connecting New Zealand research and education networks to each other and the world through an advanced research and education network.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Grant made to Research and Education Advanced Network Achieved Achieved Achieved New Zealand in accordance with Crown funding agreement

Monitor and assess reporting from Research and Education Achieved Achieved Achieved Advanced Network New Zealand against the Crown funding agreement

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End of Year Performance Reporting

Performance information for this appropriation will be reported by the Research and Education Advanced Network New Zealand in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Release of the Research Infrastructure Contingency 2013/14 4,000 4,000 4,000 4,000 4,000

Science and Innovation: Australian Synchrotron (M84)

Scope of Appropriation

This appropriation is limited to a grant being New Zealand Government’s contribution to the operation of a synchrotron located in Victoria, Australia.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 983 983 7,500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a contribution to the operation of a synchrotron located in Victoria, Australia.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Grant made to New Zealand Synchrotron Group in accordance Achieved Achieved Achieved with Crown funding agreement

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Fund RV Tangaroa Operating Costs 2014/15 (517) (517) - - - New Zealand’s contribution to the Australian 2012/13 1,500 1,500 1,500 1,500 1,500 Synchrotron

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Reasons for Change in Appropriation

The increase in this appropriation is due to a transfer of $6.517 million from 2014/15 to 2015/16 to reflect the timing of negotiations over the funding arrangements and decisions on ownership of the facility.

Conditions on Use of Appropriation

Reference Conditions

Ministry of Business, Innovation and The Minister of Finance and the Minister of Science and Innovation to jointly approve the Employment B/13/04 - Briefing to Joint draw-down of the Australian Synchrotron funding, following submission of a satisfactory Ministers, 8 February 2013 business case.

Science and Innovation: Convention Du Metre (M84)

Scope of Appropriation

This appropriation is limited to the payment of New Zealand’s annual subscription to the Convention du Metre.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 135 135 135

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of the annual subscription to the Convention du Metre.

End of Year Performance Reporting

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

Science and Innovation: Genomics Research Infrastructure (M84)

Scope of Appropriation

This appropriation is limited to a grant to contribute towards the purchase and operation of infrastructure that will support genomics research.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 110 110 12,725

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in access for New Zealand scientists to genomics infrastructure and expertise to enhance innovation, economic development and international competitiveness.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Grant made to New Zealand Genomics Limited in accordance Achieved Achieved Achieved with the Crown Funding Agreement

Monitor and assess reporting from New Zealand Genomics Achieved Achieved Achieved Limited to assess its effectiveness and efficiency in providing genomics infrastructure and services

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 NZ Genomics Limited Rephase 2012/13 (400) 8,725 - - -

Reasons for Change in Appropriation

The increase in this appropriation is due to:

· the net-rephasing of $9.125 million between 2014/15 and 2015/16 as a result of an independent financial and cash flow analysis of New Zealand Genomics Limited

· re-prioritisation of $1.490 million in 2014/15 to Science and Innovation Contract Management appropriation for the development of a stronger information and monitoring system for financial years between 2015/16 to 2018/19

· re-prioritisation of $1 million in 2014/15 to Science and Innovation Contract Management appropriation to fund the internationalisation and multinational corporation attraction work in 2015/16, and

· re-prioritisation of $1 million in 2014/15 to Māori Innovation Fund appropriation in 2015/16 for Māori economic development.

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Science and Innovation: International Relationships (M84)

Scope of Appropriation

This appropriation is limited to grants for international research relationships.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 9,451 9,451 10,251

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved international flows of people, ideas, investment and trade through support of international research relationships.

How Performance will be Assessed and End of Year Reporting Requirements

Percentage of contracts assessed to achieve their objectives 100% 100% 100% and critical steps Maturing contracts assessed against contract outputs (refer to 100% 100% 100% note 2)

Note 2: The outputs are those defined in the contract and to be achieved by the end of the contract.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Health Research Council 1,245 1,245 1,245 See above As per contracts

Royal Society of New Zealand 1,401 1,401 1,401 See above As per contracts Crown Research Institutes 1,030 1,030 1,030 See above As per contracts Other providers 5,775 5,775 6,575 See above As per contracts

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Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Alignment of funding to the requirement of International 2013/14 100 900 824 - - Programmes Transfer to establish the China Science and Innovation 2013/14 (700) (700) (700) (700) (700) Counsellor Budget

Reasons for Change in Appropriation

The increase in this appropriation of $800,000 is due to an expense transfer from 2013/14 to reflect the alignment of funding with International Programmes.

Science and Innovation: Māori Innovation Fund (M46)

Scope of Appropriation

This appropriation is limited to a contestable Fund to invest in initiatives that contribute to the achievement of the economic goals and priorities in He Kai Kei Aku Ringa and the Business Growth Agenda.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 2,000 400 3,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve identification and development opportunities for leveraging Māori assets and addressing capability issues identified through the business case development process.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Transfer of the appropriation from Vote Māori Affairs 2014/15 2,000 2,000 2,000 2,000 -

Reasons for Change in Appropriation

This increase in this appropriation is a result of a $1 million transfer from the Genomics Research Infrastructure funding for Māori economic development.

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Science and Innovation: National eScience Infrastructure (M84)

Scope of Appropriation

This appropriation is limited to a grant to contribute to the operation of the National eScience Infrastructure, including high-performance computational infrastructure and associated eScience services, that will support New Zealand research.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 5,632 5,632 7,182

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve increased access and use of a high performance computer infrastructure by New Zealand’s research sector.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Grant made to National eScience Infrastructure in accordance Achieved Achieved Achieved with Crown funding agreement

Monitor and assess reporting from the National eScience Achieved Achieved Achieved Infrastructure against the Crown funding and associated contractual agreements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

The increase in this appropriation is due to a transfer of $1.550 million in 2014/15 only as a reprioritisation to Science and Innovation Contract Management Appropriation in 2015/16 to 2018/19 for the development of a ‘Science and Innovation System Performance Report’.

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Science and Innovation: Royal Society of New Zealand (M84)

Scope of Appropriation

This appropriation is limited to an annual grant to the Royal Society of New Zealand to contribute towards the Society’s aims and functions under the Royal Society of New Zealand Act 1997 to promote and advance science and technology.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 500 500 500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve ability for the Royal Society of New Zealand to deliver on its core functions.

End of Year Performance Reporting

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

Science and Innovation: Science Collections and Infrastructure (M84)

Scope of Appropriation

This appropriation is limited to grants to contribute to the maintenance and retention of databases, collections and significant infrastructure dedicated to research purposes.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 7,898 7,898 7,898

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in the access to science and research information through maintenance and retention of databases, collections and significant infrastructure dedicated to research purposes.

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How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Grants made to maintain and retain databases, collections and Achieved Achieved Achieved significant infrastructure dedicated to research purposes

Monitor and assess reporting against the contractual Achieved Achieved Achieved agreements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Science and Innovation in the Vote Business, Science and Innovation Non-Departmental Appropriations Report.

Service Providers

2014/15 2014/15 2015/16 Expiry of Budgeted Estimated Actual Budget Reporting to the Resourcing Provider $000 $000 $000 House Commitment Crown Research Institutes 7,638 7,638 7,638 See above As per contracts

Other providers 260 260 260 See above As per contracts

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 NZ Ocean Survey 20/20 Programme 2014/15 2,071 2,071 2,071 2,071 - RV Tangaroa Operating Costs 2014/15 517 517 - - - Rephase funding to align with Research Infrastructure 2013/14 550 550 - - - and Marine Research priorities

Crown Research Institute (CRI) Core Purpose 2011/12 (17,619) (17,619) (17,619) (17,619) (17,619)

Science and Innovation: Square Kilometre Array (M84)

Scope of Appropriation

This appropriation is limited to supporting New Zealand’s engagement on the Square Kilometre Array project in collaboration with Australia.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000

Total Appropriation 639 639 778

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved benefits for New Zealand’s science, economic development, and the Information and Communications Technology (ICT) sector through access to the Square Kilometre Array (SKA) - a global astronomy radio project.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This relates to a reprioritisation of funding from High Value Manufacturing and Services Research Appropriation in 2014/15 to match contract commitments in 2015/16 and 2016/17.

Tourism: Maintaining the Quality of the Great Rides (M69)

Scope of Appropriation

This appropriation is limited to the provision of financial assistance to maintain the quality of the Great Rides of Ngā Haerenga, the New Zealand Cycle Trail.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 2,000 2,000 2,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the maintenance, long-term sustainability and success of the Ngā Haerenga, the New Zealand Cycle Trail.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Ngā Haerenga - the New Zealand Cycle Trail 2014/15 2,000 2,000 2,000 2,000 2,000

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Tourism: National Cycleway Fund - Extension (M69)

Scope of Appropriation

This appropriation is limited to the provision of financial assistance for the development of a National Cycleway.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 500 500 3,935

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the completion of the National Cycleway Project - Ngā Haerenga, (The New Zealand Cycle Trails) to the required standard and thereby provide economic and social benefits for communities.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 The completion of the Alps2Ocean Cycle Trail 2015/16 - 935 - - -

The completion of the Twin Coasts Cycle Trail 2015/16 - 3,000 - - -

Reasons for Change in Appropriation

The increase in this appropriation is due to funding to complete the Alps2Ocean and the Twin Coasts cycle trails.

Tourism: New Zealand Cycle Trail Incorporated Seed Funding (M69)

Scope of Appropriation

This appropriation is limited to the provision of operational funding to the New Zealand Cycle Trail Incorporated.

Expenses

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 349 349 185

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of operational funding for the New Zealand Cycle Trail Incorporated Society to promote the long term sustainability and success of the Ngā Haerenga, the New Zealand Cycle Trail.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Approval to Establish and Provide Short-term Funding 2013/14 349 185 - - -

Reasons for Change in Appropriation

The decrease in this appropriation is due to the profile of short-term funding approved at the establishment stage.

Tourism: Tourism Facilities Development Grants (M69) Scope of Appropriation

This appropriation is limited to the provision of government grants for non-commercial, nationally significant tourism facilities.

Expenses

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation - - 82

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an improvement in the quality and reliability of tourism infrastructure.

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Approval to establish and provide short-term funding for 2012/13 (267) (185) - - - the NZ Cycle Trail

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Reasons for Change in Appropriation

This appropriation has had nil funding for the years 2012/13 to 2014/15 as a result of financial contributions to the establishment of the NZ Cycle Trail Incorporated with a primary focus on sustaining the New Zealand Cycle Trail.

3.5 - Non- Departmental Capital Expenditure

Broadband Investment (Crown Fibre Holdings Capital Costs) (M88)

Scope of Appropriation and Expenses

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

Broadband Investment (Crown Fibre Holdings Capital Costs) (M88) Original Appropriation 408,000 This appropriation is limited to the provision of ongoing investment funding for Adjustments to 2013/14 774,500 Crown Fibre Holdings to implement the Government’s broadband investment commitment. Adjustments for 2014/15 (417,500)

Commences: 22 August 2011 Adjusted Appropriation 765,000 Actual to 2013/14 Year End 365,000 Expires: 30 June 2016 Estimated Actual for 2014/15 210,000

Estimated Actual for 2015/16 190,000 Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve ongoing investment funding for Crown Fibre Holdings as part of the Government’s Ultra-Fast Broadband commitment.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Ultra-fast broadband (capable of peak speed of 100 megabits Rollout targets are met Rollout targets are met Rollout targets are met per second) is available to 90% of businesses, schools and health service providers in ultra-fast broadband candidates areas by the end of 2015 and 75% of New Zealanders by the end of 2019

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Crown Fibre Holdings Ltd in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the Broadband Investment (Crown 2011/12 100,000 8,000 - - - Fibre Holdings Capital Costs)

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Communications: Acquisition of Textphone Equipment (M88)

Scope of Appropriation

This appropriation is limited to purchasing textphones for the pool of textphones for deaf, hearing impaired and speech impaired people.

Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 200 200 200

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the purchase of textphones for deaf, hearing impaired, and speech impaired people.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental capital expenditure is less than $15 million.

Energy and Resources: Crown Energy Efficiency (M28)

Scope of Appropriation

This capital expenditure appropriation is limited to provision of funding for the Crown loans scheme to assist public sector agencies in implementing energy efficiency projects.

Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 2,000 2,000 2,000

What is Intended to be Achieved with this Appropriation

The appropriation is intended to achieve the delivery of energy efficiency savings in the public sector.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

To facilitate savings within the public sector from energy efficiency projects: Expected annual energy efficiency savings as a percentage of Refer to note 1 Refer to note 1 Not less than 20% the capital costs of the projects

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Note 1: The former standard was ‘Annual cost savings of at least 20% of the value of energy efficiency projects’.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Energy, Efficiency and Conservation Authority in its annual report.

Science and Innovation: Callaghan Innovation (M84)

Scope of Appropriation

This appropriation is limited to capital expenditure to support the development of Callaghan Innovation’s strategic infrastructure.

Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 8,000 8,000 63,710

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve capital support for the purchase or development of assets by, and for the use, of Callaghan Innovation.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Any physical and virtual infrastructure investment is aligned with Achieved Achieved Achieved the overall strategy, mix of services and business engagement model Any major capital project proposal is developed in accordance Achieved Achieved Achieved with published Treasury business case guidance

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Callaghan Innovation Business Planning 2013/14 27,510 - - - - Establishment of Callaghan Innovation (previously 2012/13 20,600 23,600 - - - named Advanced Technology Institute)

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Reasons for Change in Appropriation

The increase in this appropriation by $55.710 million is due to:

· a net movement of $80.220 million (transfer of $40.110 million from 2014/15 to 2015/16) due to timing in the Callaghan Innovation capital programme, and

· $3 million expected original profile of spend.

This is offset by a one-off transfer of $27.510 million in 2014/15 only required until the needs of Callaghan Innovation are known as part of its business planning process.

Venture Investment Fund (M25) Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Venture Investment Fund (M25) Original Appropriation 37,453 This appropriation is limited to capital Investment to NZVIF to accelerate the Adjustments to 2013/14 - development of the New Zealand Venture Capital Market. Adjustments for 2014/15 (12,000) Commences: 01 July 2014 Adjusted Appropriation 25,453

Expires: 30 June 2018 Actual to 2013/14 Year End - Estimated Actual for 2014/15 10,378 Estimated Actual for 2015/16 4,518 Estimated Appropriation Remaining 10,557

What is Intended to be Achieved with this Appropriation

This category is intended to achieve the provision of funds to be co-invested with the private sector to address the capital market gap by providing new risk capital to emerging high growth New Zealand companies.

How Performance will be Assessed and End of Year Reporting Requirements

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Selection of Venture Capital Fund Managers - Selection Standard practices are Standard practices are Standard practices are methodology and due diligence to select investment managers; followed followed followed investment charters and governance processes conform to industry standard practice

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Venture Investment Fund in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 The establishment of the New Zealand Venture 2014/15 10,378 10,518 8,278 8,279 - Investment Fund MYA from an annual appropriation

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

Multi- Category Expenses and Capital Expenditure

Commerce Commission Litigation Funds (M13)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to meet the costs of litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities.

Scope of Appropriation

Non-Departmental Other Expenses

Commerce Commission Externally-Sourced Litigation This category is limited to meeting the external direct costs of major litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities.

Commerce Commission Internally-Sourced Litigation This category is limited to meeting the internal costs of major litigation activity undertaken by the Commerce Commission arising from its general market or sector specific activities.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 10,500 10,500 10,500 Non-Departmental Other Expenses Commerce Commission Externally-Sourced Litigation 7,000 7,000 7,000

Commerce Commission Internally-Sourced Litigation 3,500 3,500 3,500

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the best possible outcomes for New Zealanders in competitive and regulated markets by enabling the Commission to undertake major or complex litigation where appropriate.

How Performance will be Assessed for this Appropriation

Performance will be assessed through identified changes in competitive behaviour arising from use of the litigation fund.

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

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Commerce Commission Litigation Funds Non-Departmental Other Expenses Commerce Commission Externally-Sourced Litigation

This category is intended to achieve the best possible outcomes for New Zealanders in competitive and regulated markets by enabling the Commission to undertake major or complex externally-sourced litigation where appropriate. Enforcement is a critical element in promoting competitive Using the Fund Using the Fund Using the Fund markets. The Commerce Commission litigates to protect the according to conditions according to conditions according to conditions competitive process and to deter others from behaving for use for use for use anticompetitively, thereby making a significant contribution to economic welfare Commerce Commission Internally-Sourced Litigation

This category is intended to achieve the best possible outcomes for New Zealanders in competitive and regulated markets by enabling the Commission to undertake major or complex internally-sourced litigation where appropriate Enforcement is a critical element in promoting competitive Using the Fund Using the Fund Using the Fund markets. The Commerce Commission litigates to protect the according to conditions according to conditions according to conditions competitive process and to deter others from behaving for use for use for use anticompetitively, thereby making a significant contribution to economic welfare

End of Year Performance Reporting

Performance information for this appropriation will be reported as an appendix to the Ministry of Business, Innovation and Employment’s annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Commerce Commission Externally-Sourced Litigation 2014/15 7,000 7,000 7,000 7,000 7,000 Commerce Commission Internally-Sourced Litigation 2014/15 3,500 3,500 3,500 3,500 3,500

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Conditions on Use of Appropriation

Reference Conditions Criteria for use of the fund is set out in the The Commerce Commission will access the Other Expenses appropriation only in relation annual Output Agreement to litigation that it has assessed as meeting the criteria set out below. Access to the appropriation will be restricted to eligible cases, being cases: i) with total costs estimated to be not less than $200,000 (GST exclusive), such costs: · to exclude Commission overheads · to be calculated as follows, as the case may be: · from the time when the Commission instructs legal counsel with a view to possible litigation, until the completion of the case, or · for the period from the decision of the initiating party to take legal process involving the Commission, until the completion of the case, and ii) relating to any regulatory regime the Commission is responsible for enforcing, or iii) involving international, national, major network, or other major companies, or a major issue affecting a particular industry, or iv) requiring the use of: · senior external legal counsel · consultants and expert witnesses (eg, economic, accounting, engineering, scientific), or v) where there is a risk of costs of the order of $100,000 (GST exclusive), being awarded by the Courts for or against the Commission. Where the criteria apply and a decision is taken to use the Litigation Fund, then the Fund may be used, regardless of whether litigation eventuates, or the matter is settled, or a decision is taken not to proceed.

Energy Efficiency and Conservation (M28)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to encourage, promote and support energy efficiency and conservation and the use of renewable energy.

Scope of Appropriation

Non-Departmental Output Expenses

Electricity Efficiency This category is limited to conducting electricity efficiency research, and development and administration of programmes that provide incentives for cost-effective energy efficiency and conservation, aimed at changing market behaviours.

Energy Efficiency and Conservation This category is limited to operational and policy outputs in accordance with statutory functions under the Energy Efficiency and Conservation Act 2000 and the government’s energy strategies.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 29,584 29,584 29,584 Non-Departmental Output Expenses Electricity Efficiency 13,000 13,000 13,000 Energy Efficiency and Conservation 16,584 16,584 16,584

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improvements in energy efficiency, energy conservation, and renewable energy in accordance with the New Zealand Energy Efficiency and Conservation Strategy 2011-2016.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by following the performance measures specified in each category below.

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

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Energy Efficiency and Conservation Non-Departmental Output Expenses Electricity Efficiency

This category is intended to achieve a contribution to making improvements in electricity efficiency in the consumer and business markets. Deliver energy savings from electricity levy funded activities: Electricity savings (GWh, PJ) cumulative, and per annum Refer to note 1 Refer to note 1 2195 GWh (7.9PJ);371 GWh p.a. (1.3 PJ)

Dollar Value of electricity saved per annum New measure New measure $32.6 million Energy Efficiency and Conservation

This category is intended to achieve a contribution to making improvements in energy efficiency, energy conservation and renewable energy.

Energy Efficiency Conservation Authority (EECA) awareness New measure New measure 67% and energy savings: Consumer market percentage awareness/recall amongst the target audience of television viewers aged 18 plus EECA awareness and energy savings: Consumer market New measure New measure 42% percentage people inspired to take action EECA awareness and energy savings: Business market New measure New measure 40% percentage awareness of EECA Business initiatives EECA awareness and energy savings: Business market New measure New measure 30% percentage of aware businesses ready to take action

Note 1: The former standard was ‘1,836 GWh (6.6 PJ); 601 GWh p.a. (2.2 PJ)’

End of Year Performance Reporting

Performance information for this appropriation will be reported as an appendix to the Ministry of Business, Innovation and Employment’s annual report.

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Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000 Establishment of the MCA Energy Efficiency and 2014/15 34,103 35,052 34,103 34,103 34,103 Conservation

Policy Advice and Related Outputs (M25)

Overarching Purpose Statement

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

Scope of Appropriation

Departmental Output Expenses

Investigative Services - Trade Remedies This category is limited to investigative services to support advice to the Minister of Commerce and Consumer Affairs to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden import surges.

Policy Advice - Commerce and Consumer Affairs 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 commerce and consumer affairs.

Policy Advice - Communications 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 communications.

Policy Advice - Economic Development 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 economic development.

Policy Advice - Energy and Resources 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 energy and resources.

Policy Advice - Science and Innovation 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 science and innovation.

Policy Advice - Small Business 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 small business.

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Policy Advice - Tourism 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 tourism.

Related Services to Ministers - Commerce and Consumer Affairs This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to commerce and consumer affairs, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Communications This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to communications, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Economic Development This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to economic development, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Energy and Resources This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to energy and resources, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Science and Innovation This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to science and innovation, including monitoring of Crown entities and statutory bodies.

Related Services to Ministers - Small Business This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to small business.

Related Services to Ministers - Tourism This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to tourism, including monitoring of Crown entities and statutory bodies.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 24,038 23,538 55,980 Departmental Output Expenses Investigative Services - Trade Remedies - - 562

Policy Advice - Commerce and Consumer Affairs - - 9,346 Policy Advice - Communications - - 5,732 Policy Advice - Economic Development 12,839 12,339 14,657 Policy Advice - Energy and Resources - - 5,500

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2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Policy Advice - Science and Innovation - - 4,948 Policy Advice - Small Business 1,234 1,234 1,234 Policy Advice - Tourism - - 2,542 Related Services to Ministers - Commerce and Consumer - - 1,271 Affairs Related Services to Ministers - Communications - - 312 Related Services to Ministers - Economic Development 7,093 7,093 4,463 Related Services to Ministers - Energy and Resources - - 787 Related Services to Ministers - Science and Innovation - - 2,808

Related Services to Ministers - Small Business 217 217 217 Related Services to Ministers - Tourism - - 1,601 Funding for Departmental Output Expenses Revenue from the Crown 22,627 22,627 55,102

Investigative Services - Trade Remedies - - 562 Policy Advice - Commerce and Consumer Affairs - - 9,239 Policy Advice - Communications - - 5,732 Policy Advice - Economic Development 12,178 12,178 14,233 Policy Advice - Energy and Resources - - 5,478

Policy Advice - Science and Innovation - - 4,948 Policy Advice - Small Business 1,234 1,234 1,234 Policy Advice - Tourism - - 2,542 Related Services to Ministers - Commerce and Consumer - - 1,246 Affairs

Related Services to Ministers - Communications - - 312 Related Services to Ministers - Economic Development 6,343 6,343 4,163 Related Services to Ministers - Energy and Resources - - 787 Related Services to Ministers - Science and Innovation - - 2,808

Related Services to Ministers - Small Business 217 217 217 Related Services to Ministers - Tourism - - 1,601 Revenue from Others 1,411 1,411 878 Investigative Services - Trade Remedies - - - Policy Advice - Commerce and Consumer Affairs - - 107

Policy Advice - Communications - - - Policy Advice - Economic Development 661 661 424 Policy Advice - Energy and Resources - - 22 Policy Advice - Science and Innovation - - -

Policy Advice - Small Business - - - Policy Advice - Tourism - - -

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2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Related Services to Ministers - Commerce and Consumer - - 25 Affairs Related Services to Ministers - Communications - - - Related Services to Ministers - Economic Development 750 750 300

Related Services to Ministers - Energy and Resources - - - Related Services to Ministers - Science and Innovation - - - Related Services to Ministers - Small Business - - - Related Services to Ministers - Tourism - - -

Comparators for Restructured Appropriation

2014/15 2015/16

Budgeted Estimated Actual Budget Vote, Type and Title of Appropriation $000 $000 $000 Vote Commerce and Consumer Affairs - Investigative Services - 562 562 562 Trade Remedies Policy Advice - Commerce and Consumer Affairs 11,103 11,103 9,346 Policy Advice - Communications 4,745 4,745 5,732

Policy Advice - Economic Development 15,396 15,396 14,657 Policy Advice - Energy and Resources 5,250 5,250 5,500 Policy Advice - Science and Innovation 6,286 6,286 4,948 Policy Advice - Small Business 1,234 1,234 1,234 Policy Advice - Tourism 3,252 3,252 2,542

Related Services to Ministers - Commerce and Consumer 1,521 1,521 1,271 Affairs Related Services to Ministers - Communications 99 99 312 Related Services to Ministers - Economic Development 7,093 7,093 4,463 Related Services to Ministers - Energy and Resources 1,237 1,237 787

Related Services to Ministers - Science and Innovation 2,280 2,280 2,808 Related Services to Ministers - Small Business 217 217 217 Related Services to Ministers - Tourism 1,553 1,553 1,601 Total 61,828 61,828 55,980

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective policy advice and support to Ministers and ensure Crown entities are appropriately monitored.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by the following performance measures specified in each category below.

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

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Policy Advice and Related Outputs Departmental Output Expenses Investigative Services - Trade Remedies This category is intended to achieve a fair international trading environment for NZ manufacturers through the imposition of anti-dumping and countervailing duties on imported goods, and to allow NZ manufacturers time to adjust to competition from surges of imported goods through the imposition of temporary safeguard measures, where an investigation has established that either action is justified. Number of product-by-country investigations, reviews and Demand led but Demand led but Demand led but reassessments actioned following applications from estimate 4 estimate 4 estimate 4 New Zealand industries Timeliness of interested parties being advised of essential facts 100% (refer to note 1) 100% (refer to note 1) 100% and conclusions on which a final determination will be based Timeliness of reports to allow the Minister of Commerce to make 100% (refer to note 2) 100% (refer to note 2) 100% final determinations Quality of investigations as indicated by them being recognised 0 (refer to note 3) 0 (refer to note 3) 0 (refer to note 3) by the parties involved as consistent with the requirements of either the Dumping and Countervailing Duties Act 1988 or the Temporary Safeguard Authorities Act 1987, and by the lack of grounds for successful court challenges or successful World Trade Organisation (WTO) dispute settlement action Policy Advice - Commerce and Consumer Affairs This category is intended to achieve the provision of high quality policy advice to Ministers. The satisfaction of the Minister of Commerce and Consumer At least 70% At least 70% At least 70% Affairs with the policy advice service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155 Policy Advice - Communications This category is intended to achieve the provision of high quality policy advice to Ministers. The satisfaction of the Minister for Communications with the At least 70% At least 70% At least 70% policy advice service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155 Policy Advice - Economic Development This category is intended to achieve the provision of high quality policy advice to Ministers. The satisfaction of the Minister for Economic Development with 70% 70% 70% the policy advice service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Policy Advice - Energy and Resources This category is intended to achieve timely, high quality policy advice as measured by the satisfaction of the Minister, external review of the Ministry’s policy advice, and hourly cost of policy advice. The satisfaction of the Minister of Energy and Resources with 70% 70% 70% the policy advice service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155 Policy Advice - Science and Innovation This category is intended achieve the provision of high quality policy advice to Ministers. The satisfaction of the Minister of Science and Innovation with 70% 70% 70% the policy advice service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155 Policy Advice - Small Business This category is intended to achieve the provision of high quality policy advice to Ministers. The satisfaction of the Minister for Small Business with the 70% 70% 70% policy advice service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155 Policy Advice - Tourism This category is intended to achieve the provision of high quality policy advice to support Ministerial decision-making on government policy matters relating to tourism. The satisfaction of the Minister of Tourism with the policy advice At least 70% At least 70% At least 70% service, as per the common satisfaction survey Technical quality of policy advice papers assessed by a survey At least an average of At least an average of At least an average of with a methodological robustness of 80% 73% 73% 73% The total cost per hour of producing policy outputs At most $155 At most $155 At most $155 Related Services to Ministers - Commerce and Consumer Affairs This category is intended to achieve effective and efficient ministerial services, and to monitor the performance and compliance of Crown entities and statutory bodies. Ministers receive advice on entities’ Statements of Intent, New measure New measure 100% Annual Report and Quarterly Reports, within four weeks of receipt Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Related Services to Ministers - Communications This category is intended to achieve effective and efficient ministerial services, and to monitor the performance and compliance of Crown entities. Ministers receive advice on entities’ Statements of Intent, New measure New measure 100% Annual Report and Quarterly Reports, within four weeks of receipt Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed to an acceptable standard within either specified or statutory timeframes Related Services to Ministers - Economic Development This category is intended to achieve effective and efficient ministerial services, and to monitor the performance and compliance of Crown entities and statutory bodies. Ministers receive advice on entities Statements of Intent, Annual 100% 100% 100% Report and Quarterly Reports, within four weeks of receipt Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes Related Services to Ministers - Energy and Resources This category is intended to achieve effective and efficient ministerial services, and to monitor the performance and compliance of Crown entities. Ministers receive advice on entities’ Statements of Intent, New measure New measure 100% Annual Report and Quarterly Reports, within four weeks of receipt Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes Related Services to Ministers - Science and Innovation This category is intended to achieve effective and efficient ministerial services, and to monitor the performance and compliance of Crown entities. Ministers receive advice on entities’ Statements of Intent, New measure New measure 100% Annual Report and Quarterly Reports, within four weeks of receipt Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes Related Services to Ministers - Small Business This category is intended to achieve effective and efficient ministerial services. Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Related Services to Ministers - Tourism This category is intended to achieve effective and efficient ministerial services, and to monitor the performance and compliance of Crown entities. Ministers receive advice on entities’ Statements of Intent, New measure New measure 100% Annual Report and Quarterly Reports, within four weeks of receipt Responses to Parliamentary Questions, ministerial 95% or above 95% or above 95% or above correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes

Note 1: 100 per cent no later than 150 days from initiation.

Note 2: 100 per cent no later than 180 days from initiation of an investigation.

Note 3: Zero performance standard pertains to ’No successful court challenges or successful WTO dispute settlement actions’.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Investigative Services - Trade Remedies Savings to reflect efficiencies arising from the formation 2014/15 (22) (22) (22) (22) (22) of the new Ministry Policy Advice - Commerce and Consumer Affairs Savings to reflect efficiencies arising from the formation 2014/15 (249) (249) (249) (249) (249) of the new Ministry

Policy Advice - Communications Extension of the Ultra-Fast Broadband Initiative 2015/16 - 1,800 1,800 1,700 1,000 Savings to reflect efficiencies arising from the formation 2014/15 (254) (254) (254) (254) (254) of the new Ministry Policy Advice - Economic Development

Better Public Services - Seed Fund - Auckland Co- 2014/15 581 782 182 - - Design Lab Savings to reflect efficiencies arising from the formation 2014/15 (353) (353) (353) (353) (353) of the new Ministry Policy Advice - Energy and Resource Issues Savings to reflect efficiencies arising from the formation 2014/15 (159) (159) (159) (159) (159) of the new Ministry

Reinstate Efficiency Dividend 2012/13 177 177 177 177 177

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Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

Policy Advice - Science and Innovation Savings to reflect efficiencies arising from the formation 2014/15 (135) (129) (129) (129) (129) of the new Ministry Policy Advice - Small Business Savings to reflect efficiencies arising from the formation 2014/15 (48) (48) (48) (48) (48) of the new Ministry

Policy Advice - Tourism Savings to reflect efficiencies arising from the formation 2014/15 (47) (47) (47) (47) (47) of the new Ministry Related Services to Ministers - Commerce and Consumer Affairs Savings to reflect efficiencies arising from the formation 2014/15 (21) (21) (21) (21) (21) of the new Ministry

Related Services to Ministers - Communications Savings to reflect efficiencies arising from the formation 2014/15 (43) (43) (43) (43) (43) of the new Ministry Related Services to Ministers - Economic Development

Efficiency Dividend 2012/13 (105) (105) (105) (105) (105) Related Services to Ministers - Energy Efficiency Dividend 2012/13 (23) (23) (23) (23) (23) Related Services to Ministers - Small Business Savings to reflect efficiencies arising from the formation 2014/15 (7) (7) (7) (7) (7) of the new Ministry

Related Services to Ministers - Tourism Savings to reflect efficiencies arising from the formation 2014/15 (178) (178) (178) (178) (178) of the new Ministry

Reasons for Change in Appropriation

This appropriation together with the categories was previously in the old Vote Commerce and Consumer Affairs, Vote Communications, Vote Economic Development and Employment, Vote Energy, Vote Science and Innovation, and Vote Tourism. The transfer of this appropriation and the categories from these Votes to the new Vote Business, Science and Innovation is a result of simplifying the structure of the Votes administered by the Ministry of Business, Innovation and Employment and consolidating appropriations in line with the recent changes to the Public Finance Act 1989.

Policy Advice - Commerce and Consumer Affairs

The reduction in this category is related to:

· an amendment to the Ministry of Business, Innovation and Employment cost allocation methodology in 2014/15 of $1.600 million

· a one-off increase in 2014/15 of $120,000 to provide for MBIE’s transition costs for the transfer of Standards New Zealand functions to MBIE, and

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· a one-off increase in 2014/15 of $37,000 to provide for overseas travel costs relating to Chief Negotiators’ meetings in Ottawa and Taipei, and the ANZTEC Joint Commission meeting in Taipei.

Policy Advice - Economic Development

The increase in this category is due to:

· increased funding for the Auckland Co-Design Lab of $147,000

· increased funding of $500,000 to enhance the economic position of Māori and unlocking opportunities for Māori businesses and investment activity, and promoting collaboration between iwi and other regional organisations in the regions in which regional action plans are being developed

· the consolidation of Canterbury Recovery appropriation ($2.557 million)

· increased funding of $266,000 for Regional Growth Studies, and

· this is offset by the cost allocation model being refined ($920,000) and one-off revenue gross ups in 2014/15 ($232,000).

Policy Advice - Science and Innovation

The reduction in this category is related to an amendment to the Ministry of Business, Innovation and Employment cost allocation methodology in 2014/15 of $1.450 million.

This is offset by an increase of $112,000 due to the phasing of the baseline when the output class was created.

Policy Advice - Tourism

The reduction in this category is related to an amendment to the Ministry of Business, Innovation and Employment cost allocation methodology in 2014/15 of $700,000 and one-off funding of $10,000 in 2014/15 for the China Market Information Project.

Related Services to Ministers - Commerce and Consumer Affairs

The reduction in this category is related to an amendment to the Ministry of Business, Innovation and Employment cost allocation methodology in 2014/15 of $250,000.

Related Services to Ministers - Economic Development

The reduction in this category is related to:

· an amendment to the Ministry of Business, Innovation and Employment cost allocation methodology in 2014/15 of $1.910 million

· reduced revenue related to the Convention Centre of $667,000, and

· a one off expense transfer in 2014/15 of $53,000 for Volunteer Net.

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Sector Analysis and Facilitation (M25)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to provide services that support the effective functioning of individual economic sectors.

Scope of Appropriation

Departmental Output Expenses

Sectoral and Regional Data and Analysis - Economic Development This category is limited to the research, analysis and dissemination of data on economic performance of sectors and regions.

Tourism Data and Analysis - Tourism This category is limited to research, analysis and dissemination of data on tourism.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation - - 5,133

Departmental Output Expenses Sectoral and Regional Data and Analysis - Economic - - 1,931 Development Tourism Data and Analysis - Tourism - - 3,202 Funding for Departmental Output Expenses

Revenue from the Crown - - 4,994 Sectoral and Regional Data and Analysis - Economic - - 1,931 Development Tourism Data and Analysis - Tourism - - 3,063 Revenue from Others - - 139

Sectoral and Regional Data and Analysis - Economic - - - Development Tourism Data and Analysis - Tourism - - 139

Comparators for Restructured Appropriation

2014/15 2015/16

Budgeted Estimated Actual Budget Vote, Type and Title of Appropriation $000 $000 $000 Vote Economic Development and Employment - Departmental 3,079 3,079 1,931 Output Expense - Sectoral and regional data and analysis Vote Tourism - Departmental Output Expense - Tourism Data 3,106 3,106 3,202 and Analysis Total 6,185 6,185 5,133

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What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a knowledge and understanding of trends to inform decision- making of businesses, sectors and regions.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by following the performance measures specified in each category below.

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

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Sector Analysis and Facilitation MCA Departmental Output Expense

Sectoral and Regional Data and Analysis - Economic Development

This category is intended to achieve the generation of more trust and confidence in markets, allow business to assess and develop markets with ease, and increase international trade and investment. Sector and regional data and analysis published on the New measure New measure 100% Ministry’s website within agreed timeframes

Tourism Data and Analysis - Tourism

This category is intended to achieve knowledge and understanding that enables businesses to assess and develop markets with ease and increases international trade and investment.

Meet New Zealand Department of Statistics Official Statistics Refer to note 1 Not achieved Achieved Standards for all core Tourism datasets published by the Ministry

Tourism data and analysis is published on the website of the New measure New measure 100% Ministry of Business, Innovation and Employment within agreed timeframes

Note 1: The former standard was ‘Maintain conformity with Official Statistics Standards’.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Reasons for Change in Appropriation

The categories were previously departmental output expense appropriations in the old Vote Economic Development and Employment, and Vote Tourism. The transfer of these departmental output expense appropriations from these Votes to the new Vote Business, Science and Innovation is a result of simplifying the structure of the Votes administered by the Ministry of Business, Innovation and Employment and consolidating appropriations in line with the 2013 changes to the Public Finance Act 1989.

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Sectoral and Regional Data and Analysis - Economic Development

Funding for this category of decreased as a result of a one-off transfer of $1.600 million in 2014/15 from Policy Advice - Employment for the Canterbury Skills and employment Hub, and offset by $400,000 as a result of the Ministry’s cost allocation model.

Conditions on Use of Appropriation

Reference Conditions

Joint Ministers letter signed 28-Jan 2015 · Any proposed transfer of funding between categories would require the agreement of the affected portfolio ministers and, · no limits will be set on transferring funding between MCA categories, but this will be regularly reviewed.

Seed Co-Investment Fund (M25)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to provide capital to support the development of markets for early stage equity finance and venture capital.

Scope of Appropriation

Non-Departmental Output Expenses

Investment Fund Management This category is limited to operational Costs of the Venture and Seed Co-Investment Funds.

Non-Departmental Capital Expenditure

Seed Co-Investment Fund This category is limited to providing capital to support the development of the market for early stage equity finance.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 8,684 8,684 8,330 Non-Departmental Output Expenses

Investment Fund Management 2,330 2,330 2,800 Non-Departmental Capital Expenditure Seed Co-Investment Fund 6,354 6,354 5,530

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of funds to be co-invested with the private sector for emerging high growth New Zealand companies that require new risk capital for growth.

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How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed following the performance measures specified in the each category below.

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

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Seed Co-Investment Fund Non-Departmental Output Expenses

Investment Fund Management

This category is intended to achieve the provision of risk capital for growth for emerging high growth New Zealand companies where there is a capital market gap.

An exemption was granted under s15D(2)(b)(iii) of the Public Exempt Exempt Exempt Finance Act as the amount of the non-departmental expense is less than $5 million. Non-Departmental Capital Expenditure

Seed Co-Investment Fund

This category is intended to achieve the provision of funds to be co-invested with the private sector to address the capital market gap for emerging high growth New Zealand companies that require new risk capital for growth. An exemption was granted under s15D(2)(b)(iii) of the Public Exempt Exempt Exempt Finance Act as the amount of the non-departmental capital expenditure is less than $15 million.

Note 1: The 2014/15 performance standard was ‘100 per cent adherence with the agreed performance measures. Compliance monitoring as specified in the Output Agreement’

End of Year Performance Reporting

Exemptions were granted under s15D(2)(b)(iii) of the Public Finance Act.

Reasons for Change in Appropriation

Investment Fund Management

The increase in the category of $470,000 in 2015/16 reflects a transfer from the Seed Co-Investment Fund.

Seed Co-Investment Fund

The increase in the category is due to a transfer of funding of $6 million in 2015/16 from the Venture Investment Fund to address imbalances between the two funds and ensure that the appropriations match market demands. This was offset by a transfer of $470,000 in 2015/16 to Investment Fund Management. Note there was no funding in the Seed Co-Investment Fund Category in 2015/16 before these transfers.

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Services and Advice to Support Well-functioning Financial Markets (M13)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to support well-functioning financial markets through the activities of the Financial Markets Authority.

Scope of Appropriation

Non-Departmental Output Expenses

Performance of Investigation and Enforcement Functions This category is limited to the performance of statutory functions relating to the investigation and enforcement of financial markets legislation, including the assessment of complaints, tips, and referrals.

Performance of Licensing and Compliance Monitoring Functions This category is limited to the performance of statutory functions relating to licensing of market participants and risk-based monitoring of compliance, including with disclosure requirements under financial markets legislation.

Performance of Market Analysis and Guidance, Investor Awareness, and Regulatory Engagement Functions This category is limited to the performance of statutory functions relating to market intelligence, guidance, exemptions, investor education, and regulatory and government co-operation and advice.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 26,184 26,184 26,184 Non-Departmental Output Expenses Performance of Investigation and Enforcement Functions 7,973 7,973 7,973

Performance of Licensing and Compliance Monitoring Functions 12,556 12,556 12,556 Performance of Market Analysis and Guidance, Investor 5,655 5,655 5,655 Awareness, and Regulatory Engagement Functions

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve fair, efficient, and transparent financial markets.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by following the performance measures specified in each category below.

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

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Services and Advice to Support Well-functioning Financial Markets Non-Departmental Output Expenses Performance of Investigation and Enforcement Functions

This category is intended to achieve fair, efficient, and transparent financial markets through Financial Markets Authority’s (FMA) regulatory and enforcement actions. Risk-based, proportionate and timely action against misconduct:

Seventy per cent of inquiries and investigations are conducted 70% >70% 70% within the timeframes and standards defined in the enforcement governance framework

FMA works with the Serious Fraud Office on all investigations of 100% 100% 100% (refer to note 1) joint-interest in accordance with Memorandum of Understanding (MoU) arrangements Details of all public enforcement actions are published on FMA’s 100% 100% 100% (refer to note 1) website

A report on the key issues and themes arising from One report One report One report investigations and enforcement activities and outcomes is published annually

Ninety per cent of MoU requests for assistance are completed 90% >90% 90% within agreed time frames to the satisfaction of international regulators

Eighty per cent of misconduct reports about market participants once received by FMA’s assistance team are processed within established time frames: Acknowledged within two working days 80% >80% 80% Evaluated and determined for further action, referral or closing 80% >80% 80% and the reporter is advised within 10 working days of receiving all relevant information Frontline regulator referrals or cases requiring urgent attention 80% >80% 80% prioritised for action within one working day. Performance of Licensing and Compliance Monitoring Functions This category is intended to achieve compliance of market participants and frontline regulators.

Risk-based monitoring and surveillance:

On receipt of fully completed application for a licence, 90% are processed in accordance with established processes and timeframes: Qualifying Financial Entities will be processed within 60 working 90% >90% 90% (refer to note 1) days Statutory Supervisors and Securities Trustees will be processed 90% >90% 90% (refer to note 1) within 60 working days

Authorised Financial Advisers will be processed within 20 90% >90% 90% (refer to note 1) working days

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Reviews of registered securities markets and accredited bodies 100% 100% 100% are completed and published annually FMA conducts five thematic monitoring projects per annum 5 5 5 (refer to note 1) FMA publishes five reports on significant issues arising from 5 5 5 (refer to note 1) monitoring and surveillance work per annum

Regulated offers are screened for risk-based review within five 100% 100% 100% (refer to note 1) working days after a new Product Disclosure Statement is lodged or a new prospectus is registered One hundred per cent of high-risk offer documents for regulated 100% 100% 100% (refer to note 1) offers are reviewed post-registration or lodgement In one hundred per cent of cases where FMA intervenes, 100% 100% 100% (refer to note 1) disclosures are improved or documents withdrawn Less than five per cent of licensing decisions are successfully Less than 5% Less than 5% Less than 5% (refer to challenged note 1)

Performance of Market Analysis and Guidance, Investor Awareness, and Regulatory Engagement Functions This category is intended to achieve investors having access to resources that help them make more informed decisions. Market analysis and guidance:

Sixty per cent of respondents to the annual market participant 60% 60% 60% (refer to note 1) survey agree that FMA consults well when introducing significant changes to the regulatory framework Market participants’ input is proactively gained and considered 100% 100% 100% (refer to note 1) prior to establishing all significant new guidance Quarterly briefings are provided to the Minister of Commerce 100% 100% 100% (refer to note 1) highlighting key priorities for reform

Ninety per cent of completed applications for exemptions are 90% >90% 90% processed within six weeks of receiving all relevant information or as agreed with applicant Internal threat/risk assessments are produced in accordance 100% 100% 100% (refer to note 1) with FMA’s Intelligence and Risk Framework Government agencies are “satisfied” with the quality of advice Satisfied Satisfied Satisfied and assistance provided by FMA Market and investor engagement:

Ninety per cent of enquiries receive a substantive response from 90% >90% 90% FMA within 20 working days of FMA receiving all relevant information 50 public engagements are undertaken annually by FMA’s staff 50 50 50 (refer to note 1) The number of website visits increases from the 2012/13 220,000 >220,000 220,000 (refer to note baseline 1)

Seventy per cent of respondents to the annual market 70% 70% 70% (refer to note 1) participant survey say their level of awareness and understanding of FMA’s actions has increased in the past year FMA publishes investor messages on all significant thematic 100% 100% 100% (refer to note 1) risks

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Note 1: The Financial Markets Authority is rewriting their Statement of Intent and Statement of Performance Expectations to reflect increased responsibilities under the Financial Markets Conduct Act 2013. Some of the performance information indicated for the appropriation may change during the year.

End of Year Performance Reporting

Performance information for this appropriation will be reported as an appendix to the Ministry of Business, Innovation and Employment’s annual report.

Support New Market Opportunities to Grow Firms and Sectors for the Benefit of New Zealand (M25)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to promote growth by providing support to firms and sectors in securing new market opportunities.

Scope of Appropriation

Non-Departmental Other Expenses

International Growth Fund This category is limited to helping firms to undertake the market development and business capability development activities required for in international markets, that will deliver benefits for both the firm and the wider New Zealand economy.

Sector Strategies and Facilitation This category is limited to assistance with the facilitation of specific sector initiatives, particularly in areas of major events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other government programmes and cash grants.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 28,216 28,216 30,531

Non-Departmental Other Expenses International Growth Fund 27,212 27,212 29,327

Sector Strategies and Facilitation 1,004 1,004 1,204

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in firms undertaking market development and business capability development activities, and the co-funding of feasibility studies of investment cases required for growth in new markets that delivers benefits for the firm and the New Zealand economy.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by following the performance measures specified in each category below.

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

2014/15 2015/16

Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Support New Market Opportunities to grow Firms and Sectors for the benefit of New Zealand Non-Departmental Other Expenses International Growth Fund

This category is intended to achieve market development and business capability development activities required for growth in international markets, by firms that delivers benefits for the firm and the NZ economy. Number of International Growth Fund (IGF) grants awarded 60 (demand driven) 60 60 (demand driven) Realised direct economic impact from completed IGF projects New measure New measure 4:1

Net promoter score for IGF New measure New measure Baseline 2015/16 Sector Strategies and Facilitation

This category is intended to achieve co-fund feasibility studies which are used to develop and present the business case for investment in New Zealand. Number of Strategic Investment Fund grants awarded Up to 6 grants 6 Up to 6 grants

End of Year Performance Reporting

Performance information for this appropriation will be reported as an appendix to the Ministry of Business, Innovation and Employment’s annual report

Reasons for Change in Appropriation

International Growth Fund

The increase in this category is mainly due to transfers made in 2014/15 to Services to Support Sector Development and Special Events to fund a programme of leverage activity at the Rugby World Cup in England and Wales in 2014/15 ($1.500 million) and to fund the expansion of the New Zealand Programme in 2015/16, to deliver an updated business toolkit, a training programme and a public relations programme ($1 million).

Sector Strategies and Facilitation

The increase in this category reflects a transfer in 2014/15 of $200,000 to fund a programme of leverage activity at the Rugby World Cup in England and Wales.

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Support the Growth and Development of New Zealand Firms, Sectors and Regions (M25)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to provide support for the growth and development of New Zealand firms, sectors and regions to maximise international business opportunities.

Scope of Appropriation

Non-Departmental Output Expenses

Collaborative Activity and Special Events This category is limited to activities where NZTE collaborates with other New Zealand Agency partners to leverage New Zealand’s profile and diaspora in international markets, and secure and capitalise on special events or opportunities that support New Zealand’s export growth.

International Business Growth Services This category is limited to helping individual or group of firms internationalise by improving their capability and readiness; identifying and exploiting market opportunities; overcoming internationalisation barriers; providing customised advice and support; enabling access to international business networks; and matching capital with opportunities that support New Zealand’s economic growth.

Services to Support the Growth and Development of New Zealand Businesses This category is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 159,313 156,713 162,788 Non-Departmental Output Expenses

Collaborative Activity and Special Events 31,429 31,429 35,376 International Business Growth Services 114,703 112,103 114,231 Services to Support the Growth and Development of 13,181 13,181 13,181 New Zealand Businesses

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Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Non-Departmental Output: International Business Growth Services

Enabling access to international networks and market 60,703 58,103 60,231 opportunities International capability and readiness building 34,000 34,000 34,000 Matching capital with opportunities that support New Zealand 13,000 13,000 13,000 growth Customised advice and support 7,000 7,000 7,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve assistance to firms to develop and grow international business and exports, to develop business and management capability to improve individual firms, and to support key sector initiatives and special events that can provide significant economic benefit for New Zealand.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by following the performance measures specified in each category below.

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

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Support the Growth and Development of New Zealand Firms, Sectors and Regions Non-Departmental Output Expenses Collaborative Activity and Special Events

This category is intended to achieve key sector initiatives and special events that can provide significant economic benefits for New Zealand. Net promoter score for the New Zealand Story New measure New measure Baseline 2015/16 Value of contracts secured through the Government to New measure New measure $7million Government Partnership Office International Business Growth Services

This category is intended to achieve development and growth of firms’ international business and exports to generate economic benefits for New Zealand. Number of intensively account managed (F700) customers in 525 - 575 Exceeded 675 - 725 New Zealand Trade and Enterprise’s (NZTE) customer portfolio Total number of customers in NZTE’s customer portfolio 3000-3500 (demand 3000-3500 (demand 3000-3500 (demand (excluding those intensively managed) driven) driven) driven)

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard

Percentage of intensively account managed (F700) customers Meets or exceeds Exceeds 2013/14 result Meets or exceeds that agree or strongly agree that NZTE has added value to their 2013/14 result 2014/15 result business

Percentage of NZTE customers that agree or strongly agree that Meets or exceeds Exceeds 2013/14 result 60% NZTE has added value to their business (excluding those 2013/14 result intensively account managed) Total value of deals effected with NZTE involvement Meets or exceeds Exceeds 2013/14 result Meets or exceeds 2013/14 result 2014/15 result

Annual growth in international revenue for NZTE’s intensively 2% points higher than 2% points higher than 3% points higher than account managed customers with annual export revenue under NZ’s overall export NZ’s overall export NZ’s overall export $500m growth growth growth The total value of Capital deployed (debt and equity) with NZTE $600 million $600 million $600 million involvement will be at least Potential direct economic impact ratio for approved International 4:1 4:1 4:1 Growth Fund grants

Number of Coalitions under active management New measure New measure 25 (demand driven) Percentage of coalition objectives met New measure New measure 60% Per cent ratio of potential Direct Economic Impact to capital New measure New measure Baseline 2015/16 deployed for investment deals Number of international growth outcomes achieved with NZTE New measure New measure Meets or exceeds assistance 2014/15 result

Net promoter score for NZTE services New measure New measure 45 Services to Support the Growth and Development of New Zealand Businesses

This category is intended to achieve the development of business and management capability to improve individual firm and wider business performance and generate economic benefits for New Zealand.

Number of businesses receiving business development services 2,500 (demand driven) 2,500 (demand driven) 2,500 (demand driven) through the Regional Partner Network Total net promoter score for the Regional Partner Network. Baseline to be Baseline to be Meets or exceeds established in 2014/15 established in 2014/15 2014/15 result

End of Year Performance Reporting

Performance information for this appropriation will be reported as an appendix to the Ministry of Business, Innovation and Employment’s annual report.

Current and Past Policy Initiatives

Year of 2014/15 2015/16 2016/17 2017/18 2018/19 First Budgeted Budget Estimated Estimated Estimated Policy Initiative Impact $000 $000 $000 $000 $000

International Business Growth Services

New Zealand Trade and Enterprise 2014/15 7,000 14,400 14,400 14,400 14,400 Services to Support Sector Development and Special Events New Zealand Trade and Enterprise 2014/15 3,000 5,400 5,400 4,000 4,000

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Reasons for Change in Appropriation

Collaborative Activity and Special Events

The increase in this category is due to:

· an increase in funding for the number of New Zealand companies serviced by NZTE, from 500 to 700, in international export markets, especially in China and the Middle East, and to deliver high impact programmes (an increase from $3 million in 2014/15 to $5.400 million in 2015/16)

· the increase for leveraging activity at the 2016 Rugby World Cup for $1.500 million

· funding of $1 million for The New Zealand Story programme, and

· the increase for foreign exchange movements (an increase of $47,000 between 2014/15 and 2015/16).

These increases are offset by a one-off transfer from the Ministry of Foreign Affairs and Trade in 2014/15 to support the Government-to-Government Partnerships office in 2014/15 of $1 million.

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