Vote Foreign Affairs and Trade

Vote Foreign Affairs and Trade

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2016/17
Titles and Scopes of Appropriations by Appropriation Type / Estimates
Budget
$000 / Supplementary
Estimates
Budget
$000 / Total
Budget
$000
Departmental Output Expenses
Administration of Diplomatic Privileges and Immunities (M34)
This appropriation is limited to the administration of diplomatic and consular privileges and immunities under the Diplomatic Privileges and Immunities Act 1968 and the Consular Privileges and Immunities Act 1971. / 2,000 / (1,030) / 970
Consular Services (M34)
The purchase of consular policy advice, consular services for NewZealanders abroad and notarial services. / 18,581 / 1,566 / 20,147
Pacific Security Fund (M34)
This appropriation is limited to the purchase of goods and services to support the security of Pacific Island countries. / 2,759 / (127) / 2,632
Policy Advice and Representation - International Institutions (M34)
The purchase of policy advice and representation activities related to the management of NewZealand's membership of, and foreign and trade interests in, international institutions. / 74,923 / (13,728) / 61,195
Policy Advice and Representation - Other Countries (M34)
This appropriation is limited to the purchase of policy advice and representation directed to the management of NewZealand's foreign relations and trade with other countries, bilaterally and in regional organisations, including using NewZealand's international connections to facilitate the flow of trade, investment, skills, and technology and improving the competitiveness of NewZealand business. / 244,812 / (9,087) / 235,725
Policy Advice and Representation - Other Countries PLA (M34)
This appropriation is limited to meeting the costs, as set out in section 11 of the Foreign Affairs Act 1988, of superannuation for local staff employed by overseas posts to help with the management of NewZealand's foreign and trade relations with other countries. / 20 / - / 20
Promotional Activities - Other Countries (M34)
The purchase of promoting NewZealand to other countries as an attractive market for trade and investment. / 175 / (99) / 76
Services for Other NewZealand Agencies Overseas (M34)
The purchase of accommodation and support services by other NewZealand agencies. / 7,703 / 73 / 7,776
Total Departmental Output Expenses / 350,973 / (22,432) / 328,541
Departmental Capital Expenditure
Ministry of Foreign Affairs and Trade - Capital Expenditure PLA (M34)
This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Foreign Affairs and Trade, as authorised by section 24(1) of the Public Finance Act 1989. / 87,787 / (15,874) / 71,913
Total Departmental Capital Expenditure / 87,787 / (15,874) / 71,913
Non-Departmental Output Expenses
Antarctic Research and Support (M34)
Provision of management and logistic support for NewZealand activities in the Antarctic. The provider is the NewZealand Antarctic Institute. / 18,315 / 2,504 / 20,819
Pacific Broadcasting Services (M34)
This appropriation is limited to the provision of NewZealand-sourced television content and other media services and related technical support to countries in the Pacific. / 941 / - / 941
Pacific Cooperation Foundation (M34)
The promotion of mutual understanding and constructive linkages between NewZealanders and the other countries and people of the Pacific. The provider is the Pacific Cooperation Foundation of NewZealand. / 1,400 / - / 1,400
Promotion of Asian Skills and Relationships (M34)
This appropriation is limited to the provision of services that build and sustain NewZealanders' knowledge and understanding of and relationships with Asia. / 4,000 / - / 4,000
Total Non-Departmental Output Expenses / 24,656 / 2,504 / 27,160
Non-Departmental Other Expenses
Disbursements Made and Exemptions from Taxation PLA (M34)
Refund of NewZealand local body rates for offices and residential premises of overseas diplomatic missions and consular posts pursuant to section 21 of the Diplomatic Privileges and Immunities Act 1968. / 1,600 / 200 / 1,800
Subscriptions to International Organisations (M34)
This appropriation is limited to non-discretionary payments required as formal obligations arising from NewZealand's membership of international organisations, and as a signatory to international treaties and conventions. / 57,233 / (200) / 57,033
Total Non-Departmental Other Expenses / 58,833 / - / 58,833
Total Annual and Permanent Appropriations / 522,249 / (35,802) / 486,447

Capital Injection Authorisations

2016/17
Estimates Budget
$000 / Supplementary
Estimates Budget
$000 / Total Budget
$000
Ministry of Foreign Affairs and Trade - Capital Injection (M34) / 6,708 / (6,708) / -

Supporting Information

Part 1 - Vote as a Whole

1.2 - Trends in the Vote

Summary of Financial Activity
2016/17
Supplementary Estimates
Estimates
$000 / Departmental
Transactions
$000 / Non-Departmental
Transactions
$000 / Total
Transactions
$000 / Total
$000
Appropriations
Output Expenses / 375,629 / (22,432) / 2,504 / (19,928) / 355,701
Benefits or Related Expenses / - / N/A / - / - / -
Borrowing Expenses / - / - / - / - / -
Other Expenses / 58,833 / - / - / - / 58,833
Capital Expenditure / 87,787 / (15,874) / - / (15,874) / 71,913
Intelligence and Security Department Expenses and Capital Expenditure / - / - / N/A / - / -
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses / - / - / - / - / -
Other Expenses / - / - / - / - / -
Capital Expenditure / - / N/A / - / - / -
Total Appropriations / 522,249 / (38,306) / 2,504 / (35,802) / 486,447
Crown Revenue and Capital Receipts
Tax Revenue / - / N/A / - / - / -
Non-Tax Revenue / - / N/A / - / - / -
Capital Receipts / - / N/A / - / - / -
Total Crown Revenue and Capital Receipts / - / N/A / - / - / -

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Administration of Diplomatic Privileges and Immunities (M34)
Scope of Appropriation

This appropriation is limited to the administration of diplomatic and consular privileges and immunities under the Diplomatic Privileges and Immunities Act 1968 and the Consular Privileges and Immunities Act 1971.

Reasons for Change in Appropriation

The appropriation decreased by $1.030 million to $970,000 for 2016/17due to:

a decrease of $1.023 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses, and

a decrease of $7,000 resulting from a reduction in the capital charge rate from 8% to 6%.

Consular Services (M34)
Scope of Appropriation

The purchase of consular policy advice, consular services for NewZealanders abroad and notarial services.

Expenses and Revenue
2016/17
Estimates
$000 / Supplementary
Estimates
$000 / Total
$000
Total Appropriation / 18,581 / 1,566 / 20,147
Revenue from the Crown / 18,066 / 1,566 / 19,632
Revenue from Others / 515 / - / 515
Reasons for Change in Appropriation

The appropriation increased by $1.566 million to $20.147 million for 2016/17 due to:

an increase of $2.523 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses.

This increase is partially offset by:

a decrease of $644,000 resulting from a reduction in the capital charge rate from 8% to 6%

a decrease of $213,000 resulting from foreign exchange rate and overseas inflation movements, and

an expense transfer of $100,000 from 2016/17 for the establishment of a new post in Bogota, Columbia.

Pacific Security Fund (M34)
Scope of Appropriation

This appropriation is limited to the purchase of goods and services to support the security of Pacific Island countries.

Reasons for Change in Appropriation

Theappropriation decreased by $127,000 to $2.632 million for 2016/17 due to a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses.

Policy Advice and Representation - International Institutions (M34)
Scope of Appropriation

The purchase of policy advice and representation activities related to the management of NewZealand's membership of, and foreign and trade interests in, international institutions.

Reasons for Change in Appropriation

The appropriation decreasedby $13.728 million to $61.195 million for 2016/17 due to:

a decrease of $11.593 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses

a decrease of $685,000 resulting from a reduction in the capital charge rate from 8% to 6%

an expense transfer of $682,000 from 2016/17 to progress the Agricultural Cooperation Fund initiative in the 2017/18 financial year

an expense transfer of $546,000 from 2016/17 to progress Korea-NewZealand Free Trade Agreement cooperation activities in the 2017/18 financial year

a decrease of $77,000 resulting from foreign exchange rate and overseas inflation movements

an expense transfer of $72,000 from 2016/17 to progress the removal of asbestos from post buildings, particularly in the Pacific

an expense transfer of $58,000 from 2016/17 to enable planning for the Dubai Expo initiative, and

an expense transfer of $15,000 from 2016/17 for the establishment of a new post in Bogota, Colombia.

Policy Advice and Representation - Other Countries (M34)
Scope of Appropriation

This appropriation is limited to the purchase of policy advice and representation directed to the management of NewZealand's foreign relations and trade with other countries, bilaterally and in regional organisations, including using NewZealand's international connections to facilitate the flow of trade, investment, skills, and technology and improving the competitiveness of NewZealand business.

Expenses and Revenue
2016/17
Estimates
$000 / Supplementary
Estimates
$000 / Total
$000
Total Appropriation / 244,812 / (9,087) / 235,725
Revenue from the Crown / 244,662 / (9,087) / 235,575
Revenue from Others / 150 / - / 150
Reasons for Change in Appropriation

The appropriationdecreased by $9.087 million to $235.725 million for 2016/17 due to:

a decrease of $6.564 million resulting from a reduction in the capital charge rate from 8% to 6%

a retention of underspends of $5 million to progress a number of internal initiatives in the 2017/18 financial year, including scoping requirements and planning for APEC 2021, implementing the Health and Safety initiatives work programme, and continuing the protective security programme of work

a one-off fiscally neutral transfer of $3 million tothe NewZealand Antarctic Institute for logistic support activities

a decrease of $2.257 million resulting from foreign exchange rate and overseas inflation movements

an expense transfer of $1.068 million from 2016/17 to progress the Agricultural Cooperation Fund initiative in the 2017/18 financial year

an expense transfer of $1 million from 2016/17 to continue the Ministry's programme of system enhancement initiatives in the 2017/18 financial year

a decrease of $982,000 resulting from lower capital charges deriving from unrealised losses in the 2015/16 financial year

an expense transfer of $928,000 from 2016/17 to progress the removal of asbestos from post buildings, particularly in the Pacific

an expense transfer of $885,000 from 2016/17 for the establishment of a new post in Bogota, Colombia

an expense transfer of $854,000 from 2016/17 to progress Korea-NewZealand Free Trade Agreement cooperation activities in the 2017/18 financial year

an expense transfer of $742,000 from 2016/17 to enable planning for the Dubai Expo initiative, and

an expense transfer of $700,000 from 2016/17 to progress the China Capable Public Service programme in the 2017/18 financial year.

These decreases are partially offset by:

an increase of $10.319 million resulting from a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses, and

a retention of underspends of $4.574 million from 2015/16 to enable the implementation of a number of internal initiatives in 2016/17.

Promotional Activities - Other Countries (M34)
Scope of Appropriation

The purchase of promoting NewZealand to other countries as an attractive market for trade and investment.

Reasons for Change in Appropriation

The appropriationdecreased by $99,000 to $76,000 for 2016/17 due to a fiscally neutral adjustment to reflect the reprioritisation of resources across the Ministry's output expenses.

Services for Other NewZealand Agencies Overseas (M34)
Scope of Appropriation

The purchase of accommodation and support services by other NewZealand agencies.

Reasons for Change in Appropriation

The appropriationincreased by $73,000 to $7.776 million for 2016/17 due to an increase in demand for services provided to NewZealand government departments and agencies co-located with the Ministry at overseas posts ($145,000), partially offset by a decrease of $72,000 resulting from foreign exchange rate and overseas inflation movements.

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Foreign Affairs and Trade - Capital Expenditure PLA (M34)
Scope of Appropriation

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

Capital Expenditure

2016/17
Estimates
$000 / Supplementary
Estimates
$000 / Total
$000
Forests/Agricultural / - / - / -
Land / - / - / -
Property, Plant and Equipment / 74,274 / (20,219) / 54,055
Intangibles / 13,513 / 4,345 / 17,858
Other / - / - / -
Total Appropriation / 87,787 / (15,874) / 71,913

How Performance will be Assessed and End of Year Reporting Requirements

2016/17
Performance Measures / Estimates
Standard / Supplementary
Estimates
Standard / Total
Standard
Expiring measures
Critical IT system availability / 98% / Expired / Expired
Percentage of property assets assessed as fit-for-purpose / 75% / Expired / Expired
Replacement measures
Percentage of chanceries with a Fit-for-Purpose performance gap of <=2 (see Note 1) / New measure / 80% / 80%
Percentage of official residences with a Fit-for-Purpose performance gap of <=2 (see Note 1) / New measure / 85% / 85%
Percentage of time our networks are available / New measure / 99.8% / 99.8%
Percentage of time our critical services are available / New measure / 99.7% / 99.7%

Note 1 - The Ministry uses a Fit for Purpose framework that rates every Chancery (office) and Official Residence property against five asset management criteria oflocation, building and infrastructure quality, brand, functionality, and flexibility. Weighted sub-criteria are used to reflect the criticality of each asset management criteria relative to specific locations. The current performance of each property asset in the above mentioned class is scored against pre-determined business defined target scores. The target scores reflect the relative importance of each of the five asset criteria as an enabler supporting the specific objectives and business model in each location.

Reasons for Change in Appropriation

The appropriation decreased by $15.874 million to $71.913 million for 2016/17 due to delays in commencing a number of capital projects and slower than expected progress with a number of others.

Capital Injections and Movements in Departmental Net Assets

Ministry of Foreign Affairs and Trade

Details of Net Asset Schedule / 2016/17
Main Estimates Projections
$000 / 2016/17
Supplementary Estimates Projections
$000 / Explanation of Projected Movements in 2016/17
Opening Balance / 586,998 / 574,720 / Supplementary Estimates opening balance reflects the audited results as at 30 June 2016.
Capital Injections / 6,708 / -
Capital Withdrawals / - / -
Surplus to be Retained (Deficit Incurred) / - / -
Other Movements / - / -
Closing Balance / 593,706 / 574,720

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

Antarctic Research and Support (M34)

Scope of Appropriation

Provision of management and logistic support for NewZealand activities in the Antarctic. The provider is the NewZealand Antarctic Institute.

Reasons for Change in Appropriation

The appropriation increased by $2.504 million to $20.819 million for 2016/17 due to a one-off fiscally neutral transfer of $3 million from the Ministry for logistic support activities, partially offset by a decrease of $656,000 resulting from a reduction in the capital charge rate from 8% to 6%.

3.4 - Non-Departmental Other Expenses

Disbursements Made and Exemptions from Taxation PLA (M34)

Scope of Appropriation

Refund of NewZealand local body rates for offices and residential premises of overseas diplomatic missions and consular posts pursuant to section 21 of the Diplomatic Privileges and Immunities Act 1968.

Reasons for Change in Appropriation

The appropriationincreased by $200,000 to $1.800 millionreflecting the higher costs of reimbursing NewZealand local body rates for offices and residential premises of diplomatic missions and consular posts in NewZealand.

Subscriptions to International Organisations (M34)

Scope of Appropriation

This appropriation is limited to non-discretionary payments required as formal obligations arising from NewZealand's membership of international organisations, and as a signatory to international treaties and conventions.

Reasons for Change in Appropriation

The appropriation decreased by $200,000 to $57.033 million due to a change in foreign exchange and volumes in Subscriptions to International Organisations.

THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS 2016/17 B.7  1