Vote Canterbury Earthquake Recovery

APPROPRIATION MINISTER(S): Minister for Canterbury Earthquake Recovery (M85)

APPROPRIATION ADMINISTRATOR: Department of the Prime Minister and Cabinet

RESPONSIBLE MINISTER FOR DEPARTMENT OF THE PRIME MINISTER AND CABINET: Prime Minister

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Overview of the Vote

The Minister for Canterbury Earthquake Recovery is responsible for appropriations in Vote Canterbury Earthquake Recovery for the 2015/16 financial year covering the following:

Central Business District Rebuild Zone:

· A total of $313.849 million for Anchor Project development costs and land acquisitions annual and multi-year appropriations.

Residential Red Zone:

· A total of $59.197 million for red zone property acquisitions, demolition, clearance and management costs annual and multi-year appropriations.

Other Departmental Appropriations:

· A total of $80.609 million for managing the recovery and purchasing policy advice annual appropriations.

The Crown expects to receive by way of revenue recoveries for residential red zone properties from insurance companies plus contributions from third parties to offset Crown expenses currently estimated at $21 million for 2015/16.

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

Managing the Recovery (M85) 81,671 81,671 75,409 This appropriation is limited to expenses incurred in managing the recovery from the Canterbury Earthquakes. Policy Advice (M85) 6,096 6,096 5,200 This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the Canterbury Earthquake Recovery. Red Zone Property Acquisition Costs (M85) 305 305 - This appropriation is limited to the costs associated with the management of Canterbury Red Zone properties before settlement.

Total Departmental Output Expenses 88,072 88,072 80,609 Departmental Capital Expenditure Canterbury Earthquake Recovery Authority - Capital Expenditure PLA (M85) 194 194 - This appropriation is limited to the purchase or development of assets by and for the use of the Canterbury Earthquake Recovery Authority, as authorised by section 24(1) of the Public Finance Act 1989. Total Departmental Capital Expenditure 194 194 -

Non-Departmental Other Expenses Anchor Project Land Acquisition Expenses (M85) 9,593 9,593 - This appropriation is limited to legal, valuation, consulting and compensation expenses incurred in the purchase of anchor project land and for physical works for site clearance prior to development of anchor projects. Contributions towards legal fees (M85) 34 34 - This appropriation is limited to contributions towards legal fees incurred by property owners in the Red Zones in Canterbury selling properties to the Crown.

Mitigation of landslide hazards in the Port Hills (M85) 44 44 - This appropriation is limited to assisting the Christchurch City Council to respond to landslide hazards in the Port Hills exacerbated by the Canterbury Earthquakes. Total Non-Departmental Other Expenses 9,671 9,671 - Non-Departmental Capital Expenditure Anchor Project Land Acquisitions (M85) 75,291 75,291 - This appropriation is limited to the acquisition of land and buildings and site clearance for the central city anchor projects.

Christchurch Bus Interchange (M85) 30,088 30,088 - This appropriation is limited to the capital development of the Christchurch Bus Interchange as part of the central city anchor projects. Total Non-Departmental Capital Expenditure 105,379 105,379 -

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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 Canterbury Earthquake Recovery Land Ownership and Management MCA (M85) 62,910 62,910 59,197 The overarching purpose of this appropriation is to support the recovery of Canterbury through the purchase, clearance, maintenance and management of land affected by the Canterbury earthquakes. Departmental Output Expenses

Acquisition and Disposal Expenses 569 569 900 This category is limited to the Crown's costs incurred in transferring land and buildings in Canterbury. Non-Departmental Other Expenses Demolition of Built Structures 13,885 13,885 17,090 This category is limited to removal and making safe of built structures on Crown land in Canterbury.

Management and Clearance of Land 8,445 8,445 22,300 This category is limited to costs arising from the ownership of Crown land in Canterbury affected by the earthquakes. Mass Movement of Land 949 949 7,507 This category is limited to the assisting the Christchurch City Council to respond to the landslide hazards in the Port Hills exacerbated by the Canterbury earthquakes. Purchase of Land and Buildings - Operating 38,496 38,496 10,000 This category is limited to the purchase of land and buildings in Canterbury affected by the earthquakes excluding land and buildings for anchor projects.

Vendor Legal Fees 566 566 1,400 This category is limited to a contribution towards vendor's legal fees when selling land and buildings in Canterbury to the Crown. Development of Central City Anchor Projects MCA (M85) 68,736 68,736 158,479 The single overarching purpose of this appropriation is to support the development and delivery of Anchor Projects that form part of the Christchurch Central Recovery Plan. Non-Departmental Other Expenses

Christchurch Bus Interchange and associated Transport Infrastructure - Operating 2,684 2,684 34,235 This category is limited to the development of the Christchurch Bus Interchange and associated transport infrastructure. Christchurch Stadium - Operating - - 4,000 This category is limited to the development of the Christchurch Stadium.

Metro Sports Facility - Operating 2,133 2,133 4,000 This category is limited to the development of Metro Sports Facility. Public Space - Operating 17,746 17,746 65,074 This category is limited to the development of the Crown owned public space.

Christchurch Convention Centre - Operating 3,223 3,223 - This category is limited to the development of the Christchurch Convention Centre. Earthquake Memorial - Operating 806 806 - This category is limited to the development of the Canterbury Earthquake Memorial.

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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 Christchurch Bus Interchange and associated Transport Infrastructure - Capital 18,644 18,644 3,400 This category is limited to the capital development of the Christchurch Bus Interchange and associated transport infrastructure. Christchurch Convention Centre - Capital - - 1,000 This category is limited to the capital development of the Christchurch Convention Centre. Earthquake Memorial - Capital - - 9,770 This category is limited to the capital development of the Canterbury Earthquake Memorial. Metro Sports Facility - Capital - - 1,000 This category is limited to the capital development of Metro Sports Facility. Public Space - Capital 23,500 23,500 36,000 This category is limited to the capital development of the Crown owned public space. Ownership and Divestment of Anchor Projects MCA (M85) 40,400 40,400 72,000 The single overarching purpose of this appropriation is the management of Anchor Projects and the divestment of land and anchor projects that form part of the Christchurch Central Recovery Plan. Non-Departmental Other Expenses Christchurch Bus Interchange and associated Transport Infrastructure 3,500 3,500 4,400 This category is limited to the maintenance, operation, ownership and divestment of the Christchurch Bus Interchange and associated Transport Infrastructure. Leasing Anchor Project Land 4,000 4,000 2,000 This category is limited to the financial impact of granting concessionary leases over anchor project land. Metro Sports Facility 2,000 2,000 200 This category is limited to the maintenance, operation, ownership and divestment of the Metro Sports Facility. Public Space 26,800 26,800 65,000 This category is limited to the maintenance, operation, ownership and divestment of the public space owned by the Crown in Christchurch City. Sale of Land 4,100 4,100 400 This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land. Multi-Category Expenses and Capital Expenditure - cont’d Procurement and Preparation of Land and Other Assets for the Development of Anchor 241,913 241,913 83,170 Projects MCA (M85) The single overarching purpose of this appropriation is procurement of land and other assets for anchor projects covered by the Christchurch Central Recovery Plan, making the lands and assets safe, and the holding of that land and those assets prior to development. Non-Departmental Other Expenses Pre-Development Holding Costs - Operating 2,509 2,509 6,000 This category is limited to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments. Procurement of Land and Assets - Operating 53,057 53,057 54,400 This category is limited to the purchase, acquisition and clearance of land and assets for anchor project development. Non-Departmental Capital Expenditure Land and Asset Acquisition - Capital 186,347 186,347 22,770 This category is limited to the cost of land and assets acquired for anchor project development. Total Multi-Category Expenses and Capital Expenditure 413,959 413,959 372,846 Total Annual and Permanent Appropriations 617,275 617,275 453,455

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Multi-Year Appropriations

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Non-Departmental Other Expenses Anchor Project Development Costs for Te Papa Ōtākaro / Avon River Original Appropriation 90,000 Precinct (M85) Adjustments to 2013/14 23,065 This appropriation is limited to the development of Te Papa Ōtākaro / Avon River Precinct as part of the central city anchor projects. Adjustments for 2014/15 (96,312) Adjusted Appropriation 16,753 Commences: 01 July 2013 Actual to 2013/14 Year End 8,882 Expires: 30 June 2015 Estimated Actual for 2014/15 7,871 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Anchor Project Development Costs for the Bus Interchange (M85) Original Appropriation 52,400 This appropriation is limited to the development costs of the central city Bus Adjustments to 2013/14 - Interchange as part of the central city anchor projects. Adjustments for 2014/15 (51,225) Commences: 01 October 2013 Adjusted Appropriation 1,175

Expires: 30 June 2015 Actual to 2013/14 Year End 1,175 Estimated Actual for 2014/15 - Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Anchor Project Development Costs for the Christchurch Stadium (M85) Original Appropriation 4,000 This appropriation is limited to the development of the Christchurch Stadium as Adjustments to 2013/14 - part of the central city anchor projects. Adjustments for 2014/15 (4,000) Commences: 01 July 2014 Adjusted Appropriation -

Expires: 30 June 2015 Actual to 2013/14 Year End - Estimated Actual for 2014/15 - Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Anchor Project Development Costs for the City Frame (M85) Original Appropriation 71,000 This appropriation is limited to the development of the City Frame as part of the Adjustments to 2013/14 (11,664) central city anchor projects. Adjustments for 2014/15 (56,508) Commences: 01 July 2013 Adjusted Appropriation 2,828

Expires: 30 June 2015 Actual to 2013/14 Year End 2,175 Estimated Actual for 2014/15 653 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Anchor Project Development Costs for the Convention Centre (M85) Original Appropriation 7,000 This appropriation is limited to the development of the Convention Centre as Adjustments to 2013/14 1,967 part of the central city anchor projects. Adjustments for 2014/15 3,777 Commences: 01 July 2013 Adjusted Appropriation 12,744

Expires: 30 June 2015 Actual to 2013/14 Year End 1,986 Estimated Actual for 2014/15 10,758 Estimated Actual for 2015/16 - Estimated Appropriation Remaining -

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Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000 Anchor Project Development Costs for the Metro Sports Facility (M85) Original Appropriation 9,000 This appropriation is limited to the development of the Metro Sports Facility as Adjustments to 2013/14 984 part of the central city anchor projects. Adjustments for 2014/15 (7,133) Commences: 01 July 2013 Adjusted Appropriation 2,851

Expires: 30 June 2015 Actual to 2013/14 Year End 1,638 Estimated Actual for 2014/15 1,213 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Anchor Project Development Costs for the Transport Plan (M85) Original Appropriation 12,000 This appropriation is limited to the development and implementation of the Adjustments to 2013/14 (11,000) Transport Plan as part of the central city anchor projects. Adjustments for 2014/15 (660) Commences: 01 July 2013 Adjusted Appropriation 340

Expires: 30 June 2015 Actual to 2013/14 Year End 340 Estimated Actual for 2014/15 - Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Anchor Project Land Acquisition Expenses (M85) Original Appropriation 9,593 This appropriation is limited to legal, valuation, consulting and compensation Adjustments to 2013/14 (9,593) expenses incurred in the purchase of anchor project land and for physical works for site clearance prior to development of anchor projects. Adjustments for 2014/15 -

Adjusted Appropriation - Commences: 01 July 2014 Actual to 2013/14 Year End - Expires: 30 June 2015 Estimated Actual for 2014/15 - Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Bad and Doubtful Debts (M85) Original Appropriation 500 The appropriation is limited to recognition of bad and doubtful debts arising Adjustments to 2013/14 - from the implementation of the central city recovery plan. Adjustments for 2014/15 - Commences: 01 March 2015 Adjusted Appropriation 500

Expires: 30 June 2017 Actual to 2013/14 Year End - Estimated Actual for 2014/15 300 Estimated Actual for 2015/16 200 Estimated Appropriation Remaining - Canterbury Earthquake Memorial (M85) Original Appropriation 10,000 This appropriation is limited to the development of the Canterbury Earthquake Adjustments to 2013/14 - Memorial as part of the central city anchor projects. Adjustments for 2014/15 (9,576) Commences: 01 May 2014 Adjusted Appropriation 424

Expires: 30 June 2015 Actual to 2013/14 Year End - Estimated Actual for 2014/15 424 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 Other Expenses - cont’d Holding Costs for Land Acquired for Anchor Projects (M85) Original Appropriation 19,000 This appropriation is limited to the management of the land acquired for the Adjustments to 2013/14 866 central city anchor projects. Adjustments for 2014/15 (15,009) Commences: 01 July 2013 Adjusted Appropriation 4,857

Expires: 30 June 2015 Actual to 2013/14 Year End 2,597 Estimated Actual for 2014/15 2,260 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Impairment of Improvements (M85) Original Appropriation 51,000 This appropriation is limited to the impairment of improvements purchased in Adjustments to 2013/14 - conjunction with the land acquisition programme for the anchor projects. Adjustments for 2014/15 - Commences: 01 May 2014 Adjusted Appropriation 51,000

Expires: 30 June 2015 Actual to 2013/14 Year End 39,775 Estimated Actual for 2014/15 11,225 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Implementation of transport solutions to deliver An Accessible City in Original Appropriation 75,000 Christchurch (M85) Adjustments to 2013/14 - This appropriation is limited to the development and implementation of the accessible city chapter of the Christchurch Central Recovery Plan as part of Adjustments for 2014/15 (70,859) the central city anchor projects. Adjusted Appropriation 4,141

Commences: 01 May 2014 Actual to 2013/14 Year End 656

Expires: 30 June 2015 Estimated Actual for 2014/15 3,485 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Red Zone Property Management Costs (M85) Original Appropriation 70,000 This appropriation is limited to the costs associated with the management of Adjustments to 2013/14 - Canterbury Red Zone properties after settlement. Adjustments for 2014/15 (59,796) Commences: 01 July 2014 Adjusted Appropriation 10,204

Expires: 30 June 2015 Actual to 2013/14 Year End - Estimated Actual for 2014/15 10,204 Estimated Actual for 2015/16 - Estimated Appropriation Remaining - Residential Red Zone Property Demolition (M85) Original Appropriation 31,000 This appropriation is limited to tasks necessary to proceed with and expedite Adjustments to 2013/14 - demolitions associated with the Canterbury earthquakes and related compensation to Residential Red Zone property owners. Adjustments for 2014/15 1,635

Adjusted Appropriation 32,635 Commences: 01 July 2014 Actual to 2013/14 Year End - Expires: 30 June 2015 Estimated Actual for 2014/15 32,635 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 Capital Expenditure

Christchurch Bus Interchange (M85) Original Appropriation 30,088 This appropriation is limited to the capital development of the Christchurch Bus Adjustments to 2013/14 (30,088) Interchange as part of the central city anchor projects. Adjustments for 2014/15 - Commences: 01 July 2014 Adjusted Appropriation -

Expires: 30 June 2015 Actual to 2013/14 Year End - Estimated Actual for 2014/15 -

Estimated Actual for 2015/16 - Estimated Appropriation Remaining -

Total Annual, Permanent and Multi-Year Appropriations

2014/15 2015/16

Final Estimated Budgeted Actual Budget $000 $000 $000 Total Annual and Permanent Appropriations 617,275 617,275 453,455 Total MYA Non-Departmental Other Expenses Forecasts 81,028 81,028 200 Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts 698,303 698,303 453,655

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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 To support the implementation of Departmental Output Expenses - - 6,600 - - - the recovery after April 2016 Managing the Recovery (M85)

Policy Advice (M85) - 2,400 - - -

Financial Impact of Vesting of Non-Departmental Other - 19,500 - - - Completed Anchor Project Expenses - Ownership and Developments including Divestment of Anchor Projects Earthquake Memorial, Avon (M85) River Playground and East and North Frame

Financial Impact of Vesting of Non-Departmental Other 10,600 8,000 2,000 - - land in the Public Space, Bus Expenses - Ownership and Interchange, the Library and Divestment of Anchor Projects Metro Sports Facility and (M85) recognition of Concessionary Leases of Performing Arts Precinct in Christchurch

Expenses incurred while owning Non-Departmental Other 400 2,400 2,100 2,100 2,100 land and operating assets in the Expenses - Ownership and Christchurch central city Divestment of Anchor Projects (M85) The disposal and divestment of Non-Departmental Other 3,900 4,100 2,100 - - Anchor Project land in the South Expenses - Ownership and Frame, Retail Precinct, Library Divestment of Anchor Projects and Justice Precinct (M85)

Expenses incurred in the Non-Departmental Other 9,500 40,900 - - - purchase, preparation for Expenses - Procurement and development and holding of Preparation of Land and Other Anchor Project land before the Assets for the Development of start of a physical development Anchor Projects (M85) To recognise that the Crown is Non-Departmental Other 43,400 13,500 - - - demolishing buildings to allow for Expenses - Procurement and the redevelopment of the land for Preparation of Land and Other Anchor Projects Assets for the Development of Anchor Projects (M85)

New Funding for Development Non-Departmental Other 8,000 - - - - Costs of Christchurch Convention Expenses - Development of centre Central City Anchor Projects (M85) Total 75,800 97,400 6,200 2,100 2,100

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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

ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR B.5 Vol.1 B.5 SECTOR AND INFRASTRUCTURE DEVELOPMENT 2015/16 - ECONOMIC OF APPROPRIATIONS THE ESTIMATES 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 Appropriations Output Expenses 6,569 80,024 78,638 67,146 88,072 88,072 80,609 - 80,609 25,050 25,050 25,050 Benefits or Related Expenses ------N/A - - - - - Borrowing Expenses ------Other Expenses - 581,940 394,979 36,356 - - - 200 200 - - - Capital Expenditure 42 82 871 135 194 194 ------Intelligence and Security Department Expenses ------N/A - - - - and Capital Expenditure VOTECANTERBURY EART Multi-Category Expenses and Capital Expenditure (MCA) Output Expenses - 33,180 5,081 20,756 569 569 900 - 900 - - - Other Expenses 1,038,958 520,885 (1,352) 202,717 275,598 275,598 - 298,006 298,006 98,300 2,100 2,100 Capital Expenditure - - 100,914 290,262 333,870 333,870 N/A 73,940 73,940 12,500 - - Total Appropriations 1,045,569 1,216,111 579,131 617,372 698,303 698,303 81,509 372,146 453,655 135,850 27,150 27,150 Crown Revenue and Capital Receipts Tax Revenue ------N/A - - - - - Non-Tax Revenue - 130,933 40,219 70,352 6,203 6,203 N/A 21,379 21,379 - - - HQUAKE RECOVERY Capital Receipts - - - 375 - - N/A - - - 29,977 - Total Crown Revenue and Capital Receipts - 130,933 40,219 70,727 6,203 6,203 N/A 21,379 21,379 - 29,977 -

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 ÷

165 in the Details of Appropriations and Capital Injections.

VOTE CANTERBURY EARTHQUAKE RECOVERY

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 - (33,180) (5,081) (20,756) (569) (569) Benefits or Related Expenses ------Borrowing Expenses ------

Other Expenses (1,038,958) (520,885) 1,352 (202,717) (275,598) (275,598) Capital Expenditure - - (100,914) (290,262) (333,870) (333,870) Intelligence and Security Department Expenses and ------Capital Expenditure Multi-Category Expenses and Capital Expenditure (MCA)

Output Expenses - 33,180 5,081 20,756 569 569 Other Expenses 1,038,958 520,885 (1,352) 202,717 275,598 275,598 Capital Expenditure - - 100,914 290,262 333,870 333,870 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 (Departmental)

The key initiative that impacts this trend is the continued funding to support the activities of the Canterbury Earthquake Recovery Authority. The funding agreed in 2012/13 Budget reflected a potential transfer for functions to other entities upon the termination of powers available to the Minister and the Authority under the Canterbury Earthquake Recovery Act 2011.

Decisions on the future delivery arrangements are being progressed and the funding for 2016/17 and out years reflects a significantly reduced delivery model.

Other Expenses (Non-Departmental)

The key initiatives that impact this trend are linked to specific Anchor Project activities as follows.

· Te Papa Ōtākaro / Avon River Precinct.

· East and North Frame.

· South Frame.

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Capital Expenditure (Non-Departmental)

The purchase of Land for Anchor Project is the main use of for the Non-Departmental capital expenditure. Other Anchor Projects with programmed capital expenditure are as follows:

· Land Acquisition for Anchor Projects.

· Christchurch Bus Interchange and associated Transport Infrastructure.

· Development of Public Space.

· Metro Sports Facility.

· Christchurch Convention Centre.

Revenue (Non-Departmental)

The Crown forecasts insurance recoveries from insurance companies and other recoveries from external entities for the residential red zone programme. As the programme declines so does the amount of projected recoveries. The small increase forecast represents the outstanding offers for decisions impacted by the Quake Outcasts litigation.

1.5 - Relationship between Individual Appropriations and the Work Programmes

Programme of work Appropriations Residential Rebuild Programme Canterbury Earthquake Recovery Land Ownership and Management (MCA) Bad and Doubtful Debts (MYA) Building and Maintain Confidence in the Rebuild Managing the Recovery Policy Advice Christchurch Central City Rebuild Programme Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects (MCA) Development of Central City Anchor Projects (MCA) Ownership and Divestment of Anchor Projects (MCA) Bad and Doubtful Debts (MYA)

Social Recovery Programme Managing the Recovery Policy Advice

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Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Managing the Recovery (M85)

Scope of Appropriation

This appropriation is limited to expenses incurred in managing the recovery from the Canterbury Earthquakes.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 81,671 81,671 75,409 Revenue from the Crown 80,882 80,882 75,409

Revenue from Others 789 789 -

Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Implementation of Rebuild Activities 27,731 27,731 26,400 Corporate Services support for the Authority 20,550 20,550 19,309

Strategy and Governance of the Authority 13,880 13,880 15,700 Communications to support the Recovery programmes 9,030 9,030 6,900 Ensuring the momentum of the Social Recovery 10,480 10,480 7,100 Total 81,671 81,671 75,409

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the recovery of Christchurch and wider Canterbury region from the 2010 and 2011 earthquakes and aftershocks in a timely manner, including land recovery, economic recovery, social recovery and infrastructure recovery.

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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 Whether the residents of greater Christchurch are kept informed 100% 100% 100% on issues associated with the various recovery plans.

Whether all outstanding land zoning decisions have been 100% 80% 100% finalised and offers to affected residents have been made to support the Land Recovery programme.

Whether residents have access to the contact centre during 100% 100% 100% office hours and regular community meetings are held to support the Social Recovery programme.

Whether the work to support the Infrastructure Recovery 100% 100% 100% through the review and monitoring of Christchurch City Council and Waimakariri District Council infrastructure response and rebuild work programmes have been completed.

Whether Anchor Projects have commenced construction with 100% 100% 100% approved funding in place to support the Economic Recovery of Canterbury.

End of Year Performance Reporting

Performance information for this appropriation will be reported in the Canterbury Earthquake Recovery Authority section of the Department of the Prime Minister and Cabinet's Annual Report.

Current and Past Policy Initiatives

Increase in funding to support strategic initiatives 2014/15 30,000 20,000 - - - Release of Christchurch Central Development 2014/15 9,775 9 703 - - - Unit funding Continued operation of the Canterbury Earthquake 2011/12 38,758 39,106 22,250 22,250 22,250 Recovery Authority

Reasons for Change in Appropriation

The decrease in this appropriation is due to projected decline in activities and programmes undertaken by the Canterbury Earthquake Recovery Authority leading up to April 2016 and limited operations beyond this date.

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Policy Advice (M85)

Scope of Appropriation

This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the Canterbury Earthquake Recovery.

Expenses and Revenue

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 6,096 6,096 5,200

Revenue from the Crown 6,096 6,096 5,200 Revenue from Others - - -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve quality decision-making by Ministers on the formation of government policy matters relating to the Canterbury Earthquake Recovery.

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 level of confidence and satisfaction of the Minister of 100% 95% 85% Canterbury Earthquake Recovery in the development of high- quality policy advice to support effective decision making.

· The satisfaction of the Minister for Canterbury Earthquake - - 80% Recovery with the policy advice service, as per the common satisfaction survey (At least).

· Technical quality of policy advice papers assessed by a 80% 80% 80% survey with a methodological robustness of 80% (At least an average of).

· The total cost per hour of producing outputs (At most). $100 $100 $100

End of Year Performance Reporting

Performance information for this appropriation will be reported in the Canterbury Earthquake Recovery Authority section of the Department of the Prime Minister and Cabinet'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 Departmental Costs after April 2016 2015/16 - 2,400 - - - Continued operation of the Canterbury Earthquake 2011/12 4,300 3,800 2,800 2,800 2,800 Recovery Authority

Reasons for Change in Appropriation

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Part 3 - Details of Non-Departmental Appropriations

3.4 - Non- Departmental Other Expenses

Bad and Doubtful Debts (M85)

Scope of Appropriation and Expenses

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

Bad and Doubtful Debts (M85) Original Appropriation 500 The appropriation is limited to recognition of bad and doubtful debts arising Adjustments to 2013/14 - from the implementation of the central city recovery plan. Adjustments for 2014/15 - Commences: 01 March 2015 Adjusted Appropriation 500

Expires: 30 June 2017 Actual to 2013/14 Year End - Estimated Actual for 2014/15 300

Estimated Actual for 2015/16 200 Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve accurate reporting of the value of Crown receivables for various programmes managed by the Canterbury Earthquake Recovery Authority.

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

Whether bad and doubtful debts are recognised appropriately - - 100% with in the financial statements.

End of Year Performance Reporting

The Minister for Canterbury Earthquake Recovery will report the performance information for this appropriation in an annex to the Annual Report for the Department of the Prime Minister and Cabinet.

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

Multi- Category Expenses and Capital Expenditure

Canterbury Earthquake Recovery Land Ownership and Management (M85)

Overarching Purpose Statement

The overarching purpose of this appropriation is to support the recovery of Canterbury through the purchase, clearance, maintenance and management of land affected by the Canterbury earthquakes.

Scope of Appropriation

Departmental Output Expenses

Acquisition and Disposal Expenses This category is limited to the Crown's costs incurred in transferring land and buildings in Canterbury.

Non-Departmental Other Expenses

Demolition of Built Structures This category is limited to removal and making safe of built structures on Crown land in Canterbury.

Management and Clearance of Land This category is limited to costs arising from the ownership of Crown land in Canterbury affected by the earthquakes.

Mass Movement of Land This category is limited to the assisting the Christchurch City Council to respond to the landslide hazards in the Port Hills exacerbated by the Canterbury earthquakes.

Purchase of Land and Buildings - Operating This category is limited to the purchase of land and buildings in Canterbury affected by the earthquakes excluding land and buildings for anchor projects.

Vendor Legal Fees This category is limited to a contribution towards vendor's legal fees when selling land and buildings in Canterbury to the Crown.

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Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 62,910 62,910 59,197 Departmental Output Expenses Acquisition and Disposal Expenses 569 569 900 Non-Departmental Other Expenses Demolition of Built Structures 13,885 13,885 17,090 Management and Clearance of Land 8,445 8,445 22,300 Mass Movement of Land 949 949 7,507 Purchase of Land and Buildings - Operating 38,496 38,496 10,000 Vendor Legal Fees 566 566 1,400 Funding for Departmental Output Expenses Revenue from the Crown 569 569 900 Acquisition and Disposal Expenses 569 569 900 Revenue from Others - - - Acquisition and Disposal Expenses - - -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a comprehensive solution to issues relating to Residential Red Zone property owners in both flat lands and Port Hills.

How Performance will be Assessed for this Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Residential Red Zone property owners have received an offer 100% 95% 100% and agreements are made for the acquisition of remaining properties.

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 Departmental Output Expenses Acquisition and Disposal Expenses This category is intended to achieve timely settlement for all red zone property owners who have accepted a Crown offer to purchase land and improvements. Properties are settled in a timely manner. 100% 100% - Red zone property owners who have accepted an offer from the - - 100% Crown have accepted and settlement has occurred.

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Non-Departmental Other Expenses Demolition of Built Structures This category is intended to achieve a managed, safe and timely demolition of built structures on Crown land acquired as part of the Residential Red Zone Programme. The number of built structures demolished on Crown owned the 6,000 7,000 - flat lands. The number of built structures demolished in the Port Hills. 100 130 270 Management and Clearance of Land This category is intended to achieve a simple and practical process in order to provide clarity and support for land-owners, residents and business in those areas, to recover insurance claims on behalf of the Crown and manage the residential red zone and leave the land in a clear of structures and grassed state prior to decisions on the future use of the damaged land are made. All residential red zone properties cleared and grassed pending 85% 85% 100% decisions on future use. Insurance and Earthquake Commission recoveries for property 80% 80% 100% and land damage received. Mass Movement of Land This category is intended to achieve a co-ordinated approach between the Crown and the Christchurch City Council for the mitigation of the landslide hazards in the Port Hills. The percentage of the work programme for the mitigation of 10% 10% 100% landslide hazards in the Port Hills agreed between the Crown and the Christchurch City Council. The percentage of agreed work programme for the mitigation of - - 75% landslide hazards in the Port Hills underway or completed. Purchase of Land and Buildings - Operating This category is intended to achieve a robust settlement process for the Crown's offer to purchase Red Zone properties. It will provide certainty, confidence and simplicity that these land owners require in the Red Zone. Ensuring that Crown conveyencers are adequately funded to 100% 100% 100% undertake settlements. All offers made to affected Red Zone land owners. - - 100% Property owners eligible for an offer and completed the - - 100% agreement for sale and purchase have settled with the Crown. Vendor Legal Fees This category is intended to achieve a robust settlement process by assisting property owners in seeking their own independent legal advice when they sell their red zone property to the Crown. Owners of former red zone properties have received a 100% 100% 100% contribution to the vendors legal fees to a maximum of $750 per property.

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End of Year Performance Reporting

The Department of the Prime Minister and Cabinet will report the performance information for this appropriation as an Annex to its Annual Report.

Service Providers

Activity in the residential red zone includes the demolition of built structures, site clearance, security and vegetation management in the flat lands and Port Hills. A number of contractors have been appointed to the panel of providers for this work and are selected to provide discrete pieces of work or undertake demolition projects.

In addition, a significant portion of funding has been set aside to purchase residential properties. These transactions are with residents in the Port Hills and flat lands and can not be disclosed individually.

A table detailing the actual level of expenditure for major contracts and the recipients of those funds will be included in an annex reporting on Non-Departmental activities attached to the 2015/16 Annual Report of the Department of the Prime Minister and Cabinet.

Reasons for Change in Appropriation

The decrease in this appropriation is due to the winding down the acquisition programme although the activities to support the programme will continue until decisions on future use of the red zone land are made.

Development of Central City Anchor Projects (M85)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to support the development and delivery of Anchor Projects that form part of the Christchurch Central Recovery Plan.

Scope of Appropriation

Non-Departmental Other Expenses

Christchurch Bus Interchange and associated Transport Infrastructure - Operating This category is limited to the development of the Christchurch Bus Interchange and associated transport infrastructure.

Christchurch Stadium - Operating This category is limited to the development of the Christchurch Stadium.

Metro Sports Facility - Operating This category is limited to the development of Metro Sports Facility.

Public Space - Operating This category is limited to the development of the Crown owned public space.

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Non-Departmental Capital Expenditure

Christchurch Bus Interchange and associated Transport Infrastructure - Capital This category is limited to the capital development of the Christchurch Bus Interchange and associated transport infrastructure.

Christchurch Convention Centre - Capital This category is limited to the capital development of the Christchurch Convention Centre.

Earthquake Memorial - Capital This category is limited to the capital development of the Canterbury Earthquake Memorial.

Metro Sports Facility - Capital This category is limited to the capital development of Metro Sports Facility.

Public Space - Capital This category is limited to the capital development of the Crown owned public space.

Residential Housing - Capital This category is limited to the capital development of residential housing.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 68,736 68,736 158,479 Non-Departmental Other Expenses Christchurch Bus Interchange and associated Transport 2,684 2,684 34,235 Infrastructure - Operating

Christchurch Convention Centre - Operating 3,223 3,223 - Christchurch Stadium - Operating - - 4,000 Earthquake Memorial - Operating 806 806 - Metro Sports Facility - Operating 2,133 2,133 4,000

Public Space - Operating 17,746 17,746 65,074 Non-Departmental Capital Expenditure Christchurch Bus Interchange and associated Transport 18,644 18,644 3,400 Infrastructure - Capital Christchurch Convention Centre - Capital - - 1,000

Earthquake Memorial - Capital - - 9,770 Metro Sports Facility - Capital - - 1,000 Public Space - Capital 23,500 23,500 36,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the co-ordinated delivery of Anchor Projects as described in the Christchurch Central Recovery Plan.

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How Performance will be Assessed for this Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Development of Anchor Projects are on schedule for completion 50% 50% 65% as determined by each individual business case.

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 Non-Departmental Other Expenses Christchurch Bus Interchange and associated Transport Infrastructure - Operating See the Christchurch Bus Interchange and associated Transport Infrastructure Capital Expenditure category for performance measures. Christchurch Stadium - Operating This category is intended to achieve the production of a business case or scoping study to support the development of a covered stadium in Christchurch. Initial business case preparation for the Christchurch Stadium - - 10% prepared for consideration in Budget 2015 (completion at least). Scope the need for the development of the proposed - - 100% Christchurch Stadium including a review on the social and economic impact of a delay in the delivery of the project (completion at least). Metro Sports Facility - Operating See the Metro Sports Facility Capital Expenditure category for performance measures. Public Space - Operating See the Public Space Capital Expenditure category for performance measures. Non-Departmental Capital Expenditure Christchurch Bus Interchange and associated Transport Infrastructure - Capital This category is intended to achieve the delivery of integrated transport solutions for the recovery of the central city and associated anchor projects including the successful development over the 13 months to June 2015 of a new Bus Interchange to provide greater Christchurch with a transport hub and offer an easy commute into the central city. The new interchange will support the integration of transport services across greater Christchurch. The design and construction of the integrated transport solutions - - 80% for the recovery of the central city and associated Anchor Projects are on schedule for completion according to the business plan (completion at least). The Manchester Street “super stop” for buses is on schedule for - - 80% completion according to the business plan (completion at least). The Tuam Street “super stop” for buses is on schedule for - - 80% completion according to the business plan (completion at least).

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Christchurch Convention Centre - Capital

This category is intended to achieve the development of a Australasian class facility that contributes to economic recovery of Canterbury. The staged development includes the preparation of a robust business case and selection of the lead consortia to support the construction of the Christchurch Convention Centre and the adjacent precinct. Business plan for the development of the Christchurch 50% 50% 80% Convention Centre is completed successfully (completion at least).

Development agreement for the Christchurch Convention - - 80% Centre is approved (completion at least). Development of the Christchurch Convention Centre is started - - 10% (completion at least).

Master planning for the balance of the Christchurch Convention - - 60% Centre precinct is agreed and work commenced on the developments (completion at least). Earthquake Memorial - Capital

This category is intended to achieve a suitable commemorative memorial following the earthquakes in Canterbury that affected many people, locally, nationally and internationally. 185 people died in Christchurch as a result of the 22 February 2011 earthquake, and many others were seriously injured. As a national memorial, the Canterbury Earthquake Memorial will honour all those affected, and form part of the greater Christchurch recovery. Construction of the Canterbury Earthquake Memorial - - 85% commenced by 22 February 2016 according to its business plan (completion at least).

Construction of the Canterbury Earthquake Memorial completed - - 54% by 30 September 2016 according to its business plan (completion at least). Metro Sports Facility - Capital

This category is intended to achieve the development of a facility that contributes to social recovery of Christchurch. The staged development includes the preparation of a robust business case and selection of the preferred supplier to support the construction of the Metro Sports Facility.

Business case for the Metro Sports Facility is completed 85% 85% 85% successfully (completion at least). Metro Sports Facility is on schedule for completion according to - - 10% its business case (completion at least).

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Public Space - Capital

This category has a number of key intentions to achieve based on elements of the Christchurch Central Recovery Plan including the Te Papa Ōtākaro / Avon River Precinct and the Frame. Avon River Precinct (mix of operating and capital expenditure)

This category is intended to achieve a successful development of Te Papa Ōtākaro / Avon River Precinct in conjunction with the Christchurch City Council and Te Rūnanga o Ngāi Tahu will tie new compact central business district of the city back to river.

· Te Papa Ōtākaro / Avon River Precinct has been delivered - - 96% successfully

· “Margaret Mahy Playground” element of Precinct has been - - 85% delivered successfully by 30 September 2015 (construction least)

· “Victoria Square” element of the Precinct has been - - 80% delivered successfully by 31 July 2016 (construction at least)

· “The Terraces” element of the Precinct has been delivered - - 75% successfully by 30 November 2016 (construction at least)

· Design of the Victoria Square to Avon Loop elements have - - 60% been completed (completion at least)

The Frame (mix of operating and capital expenditure) This category is intended to achieve a successful development of a new green space, a public realm and central park adjacent to the eastern and southern borders of a new compact central business district. Included in the eastern frame a new residential community will be developed in the park environment with distinctively landscaped public areas, large enough for the wider community to share, but small enough to feel safe and comfortable.

· Residential developer to construct a mix of housing options - - 80% boarding the public realm has been selected (completion at least)

· Development plans submitted by recovery partners within - - 80% the Innovation Precinct in the southern frame have been approved (completion at least)

· Construction of the proposed developments being delivered - - 20% by recovery partners within the Innovation Precinct in the southern frame are completed (construction at least)

· Construction of the public realm elements within the eastern - - 30% frame are completed (construction at least)

· Design elements of the public realm within the southern - - 50% frame are agreed (completion at least)

· Construction of the public realm elements within the - - 10% southern frame are completed (construction at least)

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End of Year Performance Reporting

The Department of the Prime Minister and Cabinet will report the performance information for this appropriation as an annex to its Annual Report.

Service Providers

The Canterbury Earthquake Recovery Authority (CERA) is in the process of developing a number of significant Anchor Projects to support the recovery in Christchurch, these include the Christchurch Bus Interchange and associated Transport Infrastructure, Christchurch Convention Centre and associated precinct, the Christchurch Metro Sports Facility and Te Papa Ōtākaro / Avon River precinct.

At present only one contract has been issued for the construction of an Anchor Project, this was issued to the Thiess / Southbase Joint Venture for the development of the Christchurch Bus Interchange. A large number of contracts will be issued in the next year following a rigorous procurement process for the construction of the projects. Confidentiality agreements do not permit the disclosure of bidders and bids for any contracts being negotiated.

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 Funding for Development Costs of Christchurch 2014/15 8,000 - - - - Convention Centre Implementation of the Christchurch Central Recovery 2014/15 8,000 2,000 - - - Plan - Earthquake Memorial Business case development for the Christchurch 2014/15 4,000 - - - - Stadium Delivery of the Christchurch Bus Interchange 2013/14 41,962 6,170 - - -

Implementation of Christchurch Central Recovery 2013/14 4,801 39,603 30,600 - - Plan - Accessible City Christchurch Central Recovery Plan Anchor Projects - 2012/13 38,474 65,709 - - - Avon River Christchurch Central Recovery Plan: Final Decisions by 2012/13 13,333 43,828 - - - Group of Ministers with Power to Act - The Frame Christchurch Central Recovery Plan: Final Decisions by 2012/13 6,981 - - - - Group of Ministers with Power to Act - Convention Centre Christchurch Central Recovery Plan: Final Decisions by 2012/13 3,346 5,000 - - - Group of Ministers with Power to Act - Metro Sports

Reasons for Change in Appropriation

The overall increase in this appropriation is due to new and the continuation of activities associated with the delivery of Anchor Projects for the Christchurch Central Recovery Plan.

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Ownership and Divestment of Anchor Projects (M85)

Overarching Purpose Statement

The single overarching purpose of this appropriation is the management of Anchor Projects and the divestment of land and anchor projects that form part of the Christchurch Central Recovery Plan.

Scope of Appropriation

Non-Departmental Other Expenses

Christchurch Bus Interchange and associated Transport Infrastructure This category is limited to the maintenance, operation, ownership and divestment of the Christchurch Bus Interchange and associated Transport Infrastructure.

Leasing Anchor Project Land This category is limited to the financial impact of granting concessionary leases over anchor project land.

Metro Sports Facility This category is limited to the maintenance, operation, ownership and divestment of the Metro Sports Facility.

Public Space This category is limited to the maintenance, operation, ownership and divestment of the public space owned by the Crown in Christchurch City.

Sale of Land This category is limited to the financial impact from the divestment of land and transaction costs incurred in the preparation for sale and the sale of land.

Expenses, Revenue and Capital Expenditure

2014/15 2015/16

Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 40,400 40,400 72,000 Non-Departmental Other Expenses Christchurch Bus Interchange and associated Transport 3,500 3,500 4,400 Infrastructure

Leasing Anchor Project Land 4,000 4,000 2,000 Metro Sports Facility 2,000 2,000 200 Public Space 26,800 26,800 65,000 Sale of Land 4,100 4,100 400

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Components of the Appropriation

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

Non-Departmental

Public Space

· Avon River 5,000 5,000 13,800

· The Frame 18,700 18,700 39,900

· Earthquake Memorial - - 10,100

· Performing Arts 3,100 3,100 1,200 Total 26,800 26,800 65,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision for the management of Anchor Projects and the divestment of land and anchor projects that form part of the Christchurch Central Recovery Plan.

How Performance will be Assessed for this Appropriation

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

Operation of completed development is fully catered for and 100% 100% 100% divestment of land and or developments are recorded appropriately for all Anchor Projects.

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 Non-Departmental Other Expenses Christchurch Bus Interchange and associated Transport Infrastructure This category is intended to achieve the orderly operation and or divestment of the Christchurch Bus Interchange and associated Transport Infrastructure. Land set aside for laneways, roads or other public amenities are 100% 100% 100% recorded at the correct value for the Bus Interchange and associated Transport Infrastructure. Agreements for the operation of the Bus Interchange are in - - 100% place for the opening of the complex. Leasing Anchor Project Land This category is intended to achieve the recognition of the decisions made in leasing land and or developments to non- Crown entities. Land and or developments are recorded at the correct value - - 100% taking into regards the impact of leases in place.

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2014/15 2015/16 Budgeted Estimated Actual Budget Assessment of Performance Standard Standard Standard Metro Sports Facility This category is intended to achieve the orderly operation and or divestment of the Metro Sports Facility. Land set aside for laneways, roads or other public amenities are 100% 100% 100% recorded at the correct value. Agreements for the operation of the Metro Sports Facility are in - - 100% place for the opening of the complex. Public Space This category is intended to achieve accurate recognition of ownership and divestment costs associated with the Public Space including the Avon River Precinct, North, South and East Frames and the Performing Arts Precinct. Costs associated with the land and or improvements in the 100% 100% 100% Public Space are recorded appropriately. Sale of Land This category is intended to achieve the recognition of the financial impact of divestment of surplus land within the central city. Land and or developments are recorded at the correct value 100% 100% 100% taking into regards the impact of divestment decisions made by the Crown.

End of Year Performance Reporting

The Department of the Prime Minister and Cabinet will report the performance information for this appropriation in an annex to its Annual Report.

Service Providers

The Canterbury Earthquake Recovery Authority (CERA) will be managing Anchor Projects and arranging the divestment of land and Anchor Projects that form part of the Christchurch Central Recovery Plan.

At present no contracts have been signed regarding the management of Anchor Projects. A large portion of the divestment of land and Anchor Projects will be arranged as Christchurch City Council (CCC) will be the recipient, according to the Cost Sharing agreement between CCC and the Crown.

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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 Financial Impact of Vesting of Completed Anchor 2015/16 - 19,500 - - - Project Developments including Earthquake Memorial, Avon River Playground and East and North Frame

Financial Impact of Vesting of Completed Anchor 2014/15 10,600 8,000 2,000 - - Project Developments including Earthquake Memorial, Avon River Playground and East and North Frame Expenses incurred while owning land and operating 2014/15 400 2,400 2,100 2,100 2,100 assets in the Christchurch central city

The disposal and divestment of Anchor Project land in 2014/15 3,900 4,100 2,100 - - the South Frame, Retail Precinct, Library and Justice Precinct

Reasons for Change in Appropriation

The increase in this appropriation is due to new and continued activities within the Christchurch Central Recovery Plan relating to the operation and potential divestment of land and or developments.

Procurement and Preparation of Land and Other Assets for the Development of Anchor Projects (M85)

Overarching Purpose Statement

The single overarching purpose of this appropriation is procurement of land and other assets for anchor projects covered by the Christchurch Central Recovery Plan, making the lands and assets safe, and the holding of that land and those assets prior to development.

Scope of Appropriation

Non-Departmental Other Expenses

Pre-Development Holding Costs - Operating This category is limited to the maintenance, operation and ownership of anchor project land and assets prior to commencement of developments.

Procurement of Land and Assets - Operating This category is limited to the purchase, acquisition and clearance of land and assets for anchor project development.

Non-Departmental Capital Expenditure

Land and Asset Acquisition - Capital This category is limited to the cost of land and assets acquired for anchor project development.

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Expenses, Revenue and Capital Expenditure

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Total Appropriation 241,913 241,913 83,170 Non-Departmental Other Expenses Pre-Development Holding Costs - Operating 2,509 2,509 6,000 Procurement of Land and Assets - Operating 53,057 53,057 54,400 Non-Departmental Capital Expenditure Land and Asset Acquisition - Capital 186,347 186,347 22,770

Components of the Appropriation

2014/15 2015/16 Budgeted Estimated Actual Budget $000 $000 $000 Non-Departmental Other Expenses Procurement of Land and Assets - Operating · Building Impairment and Demolition 43,400 43,400 21,100 · Procurement transaction fees 7,357 7,357 9,700 · Land contamination treatment 2,300 2,300 23,600 Total 53,057 53,057 54,400 Non-Departmental Capital Expenditure Land and Asset Acquisition - Capital · The Frame (North, South and East) 176,347 176,347 22,770 · Stadium 10,000 10,000 - Total 186,347 186,347 22,770

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the successful procurement of land and other assets for anchor projects covered by the Christchurch Central Recovery Plan and making the lands and assets safe, and the holding of that land and those assets prior to development or a divestment decision is made on the land.

How Performance will be Assessed for this Appropriation

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

Anchor project developments can commence as all the land 100% 100% 100% necessary for the development of projects has been acquired through agreement or taken by proclamation by 30 June 2016.

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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 Non-Departmental Other Expenses Pre-Development Holding Costs - Operating

This category is intended to achieve the comprehensive management of land and improvements held by the Crown pending future ownership decisions.

Management of land and improvement held by the Crown in - - 100% accordance with the best practice. Procurement of Land and Assets - Operating

This category is intended to achieve the successful purchase of land and assets and the clearance and making ready of land for development or sale.

Transaction costs associated with the acquisition land and 100% 100% 100% improvements have been incurred in line with the scope of the appropriation. New Measures Percentage of improvements cleared from Anchor Project sites. - - 100% Non-Departmental Capital Expenditure

Land and Asset Acquisition - Capital

This category is intended to achieve the timely and comprehensive acquisition of land and assets necessary to start the development of Anchor Projects. Land is purchased or taken in time to allow the development of 100% 80% 90% Anchor Projects. (completion at least)

End of Year Performance Reporting

The Department of the Prime Minister and Cabinet will report the performance information for this appropriation in an annex to its Annual Report.

Service Providers

The Canterbury Earthquake Recovery Authority (CERA) is in the process of procuring and preparing land and other assets for a number of significant Anchor Projects to support the recovery in Christchurch, these include the Christchurch Bus Interchange and associated Transport Infrastructure, Christchurch Convention Centre and associated precinct, the Christchurch Metro Sports Facility and Te Papa Ōtākaro / Avon River precinct.

Land and other assets are acquired from individuals, companies and other organisations or entities in the area designated for projects.

$3 million is estimated to be paid to Christchurch City Council for rates in 2015/16 for holding the land prior to the development of Anchor Projects.

CERA will engage various contractors to make the lands and assets safe including demolition of buildings ($21.100 million) and land contamination treatment ($23.600 million) in 2015/16.

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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 Expenses incurred in the purchase, preparation for 2014/15 9,500 40,900 - - - development and holding of Anchor Project land before the start of a physical development To recognise that the Crown is demolishing buildings to 2014/15 43,400 13,500 - - - allow for the redevelopment of the land for Anchor Projects Implementation of the Christchurch Central City Plan - 2013/14 11,225 - - - - Impairment Christchurch Central Recovery Plan: Final Decisions by 2013/14 16,769 - - - - Group of Ministers with Power to Act - Holding Cost Christchurch Central Recovery Plan: Final Decisions by 2012/13 150,000 - - - - Group of Ministers with Power to Act

Reasons for Change in Appropriation

The decrease in this appropriation is in line with the decline in activities in the acquisition and clearance of properties necessary for the development of Anchor Projects.

188 ÷ THE ESTIMATES OF APPROPRIATIONS 2015/16 - ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR B.5 Vol.1