Vote Lands

Vote Lands

Overview of the Vote

The Minister for Land Information is responsible for appropriations in Vote Landsfor the 2016/17 financial year covering the following:

approximately $143 million on the management and protection of Crown land, making geographic information usable and accessible and protecting NewZealand's property rights

a total of $3 million on expenses to assistgovernment decision making around foreign ownership

approximately $1 million for capital expenditure for the purchase or development of departmental assets

a total of $2 million for managing contaminated sites and forestry operations on Crown land

a total of $108 million on other expenses, the majority of which relates to proceeds from sale of NewZealand Transport Agency properties being distributed back to NZTA, and

just over $1 million to acquire land on behalf of the Crown

a total of $480 million on multi-year capital expenses, to be used for land tenure reform acquisitions.

The Minister for Land Information is also responsible for Crown revenue and receipts in the Vote for the 2015/16 financial year covering the following:

a total forecast of $78 million in departmental third party revenue, the majority of which relates to the survey and title system

a total forecast of $115 million for non-tax revenue, the majority of which relates to proceeds from the sale of NewZealand Transport Agency properties, and

a total of $105 million in capital receipts relating to Land Tenure review and property sales.

The Minister for Treaty of Waitangi Negotiations is responsible for one appropriation in the Vote of $10million for purchase of assets for possible use in future Treaty of Waitangi settlements.

The Minister supporting Greater Christchurch Regeneration is responsible for one appropriation in the Vote of $59 million for the purchase, clearance, maintenance and management of land affected by the Canterbury earthquakes.

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

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2015/16 / 2016/17
Titles and Scopes of Appropriations by Appropriation Type / Final
Budgeted
$000 / Estimated
Actual
$000 / Budget
$000
Departmental Output Expenses
Administering the Overseas Investment Regime (M44)
This appropriation is limited to the assessment of applications for consent to acquire sensitive NewZealand assets, monitoring and enforcement. / 3,605 / 3,448 / 3,355
Total Departmental Output Expenses / 3,605 / 3,448 / 3,355
Departmental Capital Expenditure
Land Information NewZealand - Capital Expenditure PLA (M44)
This appropriation is limited to the purchase or development of assets by and for the use of the Land Information NewZealand, as authorised by section 24(1) of the Public Finance Act 1989. / 2,461 / 2,461 / 750
Total Departmental Capital Expenditure / 2,461 / 2,461 / 750
Non-Departmental Output Expenses
Contaminated Sites (M44)
This appropriation is limited to the analysis, investigation and, where necessary, appropriate remedial action on contaminated sites for which the Crown has accepted responsibility. / 350 / 99 / 400
Forestry Plantation Activity (M44)
This appropriation is limited to forestry operations on Crown land. / 905 / 846 / 1,326
Total Non-Departmental Output Expenses / 1,255 / 945 / 1,726
Non-Departmental Other Expenses
Bad and Doubtful Debts (M44)
This appropriation is limited to the provision for writing off bad and doubtful debts. / 25 / 19 / 145
Crown Forest Management (M44)
This appropriation is limited to the management of Crown forest properties and licences, including settling reviews, interest liability and GST on refunded fees. / 450 / 252 / 400
Depreciation (M44)
This appropriation is limited to depreciation of buildings on surplus Crown land. / 393 / 363 / 3,993
Land Liabilities (M44)
This appropriation is limited to the investigation and resolution, including legal costs and settlement, of land-related liabilities administered by the department. / 1,033 / 551 / 843
Proceeds from Sale of NewZealand Transport Agency Properties (M44)
This appropriation is limited to payments to the NewZealand Transport Agency equivalent to the proceeds received from the sales of Crown land no longer required for NewZealand Transport Agency purposes. / 100,000 / 54,000 / 100,000
Rates on Crown Land (M44)
This appropriation is limited to the rate expense on Crown land and surplus government properties managed by the department on behalf of the Crown. / 1,307 / 1,307 / 1,157
Residual Crown Leasehold Rents (M44)
This appropriation is limited to the leasehold expenses and liabilities incurred on residual surplus government accommodation managed by the department on behalf of the Crown. / 700 / 692 / 700
Non-Departmental Other Expenses - cont’d
Soil Conservation Reserve Management (M44)
This appropriation is limited to expenses incurred in the management of soil conservation reserves in accordance with the Soil Conservation and Rivers Control Act 1941. / 380 / 212 / 380
Tangoio Catchment Management Fund (M44)
This appropriation is limited to soil conservation and management of environmental effects related to the Tangoio Catchment Area. / 120 / 100 / 120
Impairment of the value of Crown Property (M44)
This appropriation is limited to the impairment in value of Crown property where a covenant is imposed on that property. / 445 / 445 / -
Total Non-Departmental Other Expenses / 104,853 / 57,941 / 107,738
Non-Departmental Capital Expenditure
Crown Acquisitions - Huntly East (M44)
This appropriation is limited to the acquisition of properties falling within Cabinet's approved policy area for Huntly East subsidence zone. / - / - / 1,245
Crown Purchases- Land Exchanges (M44)
This appropriation is limited to the acquisition of land from Territorial Authorities and other Crown agencies to effect boundary adjustments for works such as roading and rail service improvements. / 100 / - / 100
Purchase of Assets for Possible Use in future Treaty of Waitangi settlements (M74)
This appropriation is limited to the purchase of assets for possible use in future Treaty of Waitangi settlements. / - / - / 10,000
Total Non-Departmental Capital Expenditure / 100 / - / 11,345
Multi-Category Expenses and Capital Expenditure
Canterbury Earthquake Recovery Land Ownership and Management MCA (M85)
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. / 50,789 / 38,123 / 59,005
Departmental Output Expenses
Acquisition and Disposal Expenses
This category is limited to the Crown's costs incurred in acquiring and disposing of land and buildings in Canterbury. / 926 / 926 / -
Managing the Recovery
This category is limited to managing properties and associated issues relating to the Canterbury earthquakes. / 1,650 / 2,471 / 2,400
Non-Departmental Other Expenses
Clearance of built structures and associated works
This category is limited to the clearance of built structures and other works deemed necessary on land affected by the Canterbury earthquakes. / 15,803 / 8,051 / 9,391
Initial write-down in the value of Land
This category is limited to the write-down to fair value on the acquisition of land and improvements in Canterbury. / 1 / - / -
Management and Clearance of Land
This category is limited to costs arising from the management of properties affected by the Canterbury earthquakes and anchor projects. / 10,468 / 5,115 / 47,214
Management and Clearance of Land - anchor projects
This category is limited to costs arising from the management of properties held for anchor projects. / 457 / 457 / -
Mass Movement of Land
This category is limited to assisting the Christchurch City Council response to the landslide hazards in the Port Hills exacerbated by the Canterbury earthquakes. / 8,380 / 8,000 / -
Purchase of Land and Improvements - Operational
This category is limited to the purchase of land and improvements and other associated operating costs relating to properties affected by the Canterbury earthquakes. / 1 / - / -
Vendor Legal Fees
This category is limited to contributions towards vendor legal fees when buying or selling land and improvements affected by the Canterbury earthquakes. / 1,719 / 1,719 / -
Non-Departmental Capital Expenditure
Purchase of Land and Improvements - Capital
This category is limited to the purchase of land and improvements and other capital costs relating to properties affected by the Canterbury earthquakes. / 11,384 / 11,384 / -
Crown Land MCA (M44)
The overarching purpose of this appropriation is to enable the best economic, environmental and recreational uses of Crown-owned and Crown-used land. / 25,340 / 22,150 / 39,437
Departmental Output Expenses
Centralised clearance service for acquisitions and disposals
This category is limited to statutory decision making on land acquisitions and disposals by the Crown and road legislation actions for local authorities and related work. / 1,200 / 1,113 / 1,200
Land disposal services for other agencies
This category is limited to costs associated with the disposal of land and improvements that have been assigned to Land Information NewZealand for disposal. / 5,000 / 2,320 / 7,621
Land Information NewZealand Biosecurity Programme
This category is limited to the delivery of the Land Information NewZealand Biosecurity Programme. / 3,673 / 3,610 / 2,738
Management of Crown land
This category is limited to the management of the Crown's interest in land, including disposals, related liabilities, and establishing standards relating to Crown land. / 15,467 / 15,107 / 27,878
Multi-Category Expenses and Capital Expenditure - cont’d
Location Based Information MCA (M44)
The overarching purpose of this appropriation is to enable location information to be widely available, easily accessible and readily used. / 30,165 / 28,537 / 25,559
Departmental Output Expenses
Administration of the NewZealand Geographic Board Ngā Pou Taunaha O Aotearoa
This category is limited to the official geographic naming activities of the NewZealand Geographic Board Ngā Pou Taunaha O Aotearoa. / 795 / 777 / 785
Land Information NewZealand Location Based Information Infrastructure
This category is limited to costs associated with the collection, authorisation, maintenance and dissemination of location based information. / 21,884 / 20,290 / 21,275
Leading the NewZealand Geospatial Strategy
This category is limited to the delivery and ongoing support of Spatial Data Infrastructure. / 7,486 / 7,470 / 3,499
Policy Advice and Related Services MCA (M44)
The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities. / 4,229 / 4,130 / 3,484
Departmental Output Expenses
Ministerial Services, Appointments, Implementation and Operational Policy
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio responsibilities, including appointments to boards, the implementation of policy decisions and development of operational policy. / 1,177 / 1,151 / 1,177
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to land, property and geospatial information. / 3,052 / 2,979 / 2,307
Property Rights MCA (M44)
The overarching purpose of this appropriation is to ensure that property rights and information are clear, certain, easily tradable and accessible. / 72,957 / 58,524 / 74,607
Departmental Output Expenses
Regulating Valuation
This category is limited to the certification of rating revaluations and the administration of the Valuers Registration Board. / 2,518 / 1,279 / 2,518
The Survey and Title system
This category is limited to the provision of the system for providing information, transacting and recording land property rights including establishing standards. / 70,439 / 57,245 / 72,089
Total Multi-Category Expenses and Capital Expenditure / 183,480 / 151,464 / 202,092
Total Annual and Permanent Appropriations / 295,754 / 216,259 / 327,006

Multi-Year Appropriations

Type, Title, Scope and Period of Appropriations / Appropriations, Adjustments and Use / $000
Non-Departmental Capital Expenditure
Land Tenure Reform Acquisitions (M44)
This appropriation is limited to the acquisition of the lessees' interest in pastoral lease land and purchase of any land and/or assets required to complete the acquisition of lessee interest in order to achieve Tenure Review outcomes under the Crown Pastoral Land Act 1998, or to achieve Government high country objectives.
Commences: 01 July 2014
Expires: 30 June 2019 / Original Appropriation / 480,570
Adjustments to 2014/15 / -
Adjustments for 2015/16 / -
Adjusted Appropriation / 480,570
Actual to 2014/15 Year End / 35,569
Estimated Actual for 2015/16 / 51,263
Estimated Actual for 2016/17 / 131,246
Estimated Appropriation Remaining / 262,492

Total Annual, Permanent and Multi-Year Appropriations

2015/16 / 2016/17
Final
Budgeted
$000 / Estimated
Actual
$000 / Budget
$000
Total Annual and Permanent Appropriations / 295,754 / 216,259 / 327,006
Total MYA Non-Departmental Capital Expenditure Forecasts / 51,263 / 51,263 / 131,246
Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts / 347,017 / 267,522 / 458,252

Capital Injection Authorisations

2015/16 / 2016/17
Final Budgeted
$000 / Estimated Actual
$000 / Budget
$000
Land Information NewZealand - Capital Injection (M44) / 650 / 650 / -

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy Initiative / Appropriation / 2015/16
Final Budgeted
$000 / 2016/17
Budget
$000 / 2017/18
Estimated
$000 / 2018/19
Estimated
$000 / 2019/20
Estimated
$000
Share of costs for Budget 2015 whole-of-government initiatives / Crown Land MCA:
Management of Crown Land
Departmental Output Expense
Location Based Information MCA:
Land Information NewZealand Location Based Information Infrastructure
Departmental Output Expense / (38)
(38) / (38)
(38) / (38)
(38) / (38)
(38) / (38)
(38)
Crown Property Disposal Fund / Crown Land MCA:
Land Disposal Services for Other Agencies
Departmental Output Expense / - / 621 / 1,242 / 2,085 / 2,383
Total Initiatives / (76) / 545 / 1,166 / 2,009 / 2,307

THE ESTIMATES OF APPROPRIATIONS 2016/17 - PRIMARY SECTOR B.5 Vol.9  1

1.2 - Trends in the Vote

Summary of Financial Activity
2011/12 / 2012/13 / 2013/14 / 2014/15 / 2015/16 / 2016/17 / 2017/18 / 2018/19 / 2019/20
Actual
$000 / Actual
$000 / Actual
$000 / Actual
$000 / Final Budgeted
$000 / Estimated
Actual
$000 / Departmental
Transactions
Budget
$000 / Non-
Departmental
Transactions
Budget
$000 / Total
Budget
$000 / Estimated
$000 / Estimated
$000 / Estimated
$000
Appropriations
Output Expenses / 6,831 / 5,189 / 4,807 / 4,136 / 4,860 / 4,393 / 3,355 / 1,726 / 5,081 / 3,755 / 3,755 / 3,755
Benefits or Related Expenses / - / - / - / - / - / - / N/A / - / - / - / - / -
Borrowing Expenses / - / - / - / - / - / - / - / - / - / - / - / -
Other Expenses / 27,093 / 58,127 / 91,265 / 76,610 / 141,682 / 81,283 / - / 107,738 / 107,738 / 107,738 / 107,738 / 107,738
Capital Expenditure / 9,473 / 27,227 / 74,656 / 35,705 / 65,208 / 65,208 / 750 / 142,591 / 143,341 / 142,596 / 142,596 / 107,464
Intelligence and Security Department Expenses and Capital Expenditure / - / - / - / - / - / - / - / N/A / - / - / - / -
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses / 90,580 / 89,742 / 97,933 / 101,545 / 123,883 / 105,354 / 145,487 / - / 145,487 / 137,615 / 137,757 / 137,325
Other Expenses / - / - / - / - / - / - / - / 56,605 / 56,605 / - / - / -
Capital Expenditure / - / - / - / - / 11,384 / 11,384 / N/A / - / - / - / - / -
Total Appropriations / 133,977 / 180,285 / 268,661 / 217,996 / 347,017 / 267,622 / 149,592 / 308,660 / 458,252 / 391,704 / 391,846 / 356,282
Crown Revenue and Capital Receipts
Tax Revenue / - / - / - / - / - / - / N/A / - / - / - / - / -
Non-Tax Revenue / 30,442 / 67,311 / 100,539 / 82,860 / 114,594 / 71,281 / N/A / 115,455 / 115,455 / 113,700 / 113,700 / 113,700
Capital Receipts / 26,906 / 58,478 / 76,723 / 87,398 / 144,547 / 73,219 / N/A / 105,547 / 105,547 / 91,547 / 91,547 / 91,547
Total Crown Revenue and Capital Receipts / 57,348 / 125,789 / 177,262 / 170,258 / 259,141 / 144,500 / N/A / 221,002 / 221,002 / 205,247 / 205,247 / 205,247

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 Lands

1.3 - Analysis of Significant Trends

The decrease in output expenses over time is due to LINZ now only having one appropriation, Administering the Overseas Investment Regime, which is not a multi-year or multi category appropriation.Many of the output expenses that LINZ had previously havebeen incorporated into multi category appropriations.Upuntil 2013/14, LINZ also had an appropriation for Administering Ocean Survey 20/20.

A change in the methodology in the calculation of Land Tenure review settlement values has resulted in an increase to the Capital Expenditure, this is matched by a corresponding increase in Capital Receipts.

Themovement in Other Expenses is due tofluctuations inthe NewZealandTransport Agency land disposals work programme, of which Land Information NewZealandacts as an agent betweenthe NewZealand Transport Agencyand the Crown.

The Multi Category Appropriation Output Expenses have increased significantlyfrom the2015/16 year onwards as LINZ has inherited some of the functions of the Canterbury Earthquake Recovery Authority, includingdemolition recoveries,management andclearance of land andremoval of structures or making structures safe.This is asa result ofthatagency being wound up in April 2016. This has led to a corresponding increase in Crownfunding.

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Administering the Overseas Investment Regime (M44)
Scope of Appropriation

This appropriation is limited to the assessment of applications for consent to acquire sensitive NewZealand assets, monitoring and enforcement.

Expenses and Revenue
2015/16 / 2016/17
Final Budgeted
$000 / Estimated Actual
$000 / Budget
$000
Total Appropriation / 3,605 / 3,448 / 3,355
Revenue from the Crown / - / - / -
Revenue from Others / 3,605 / 2,746 / 3,355
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective administration of NewZealand's overseas investment regime.

How Performance will be Assessed and End of Year Reporting Requirements
2015/16 / 2016/17
Assessment of Performance / Final Budgeted
Standard / Estimated Actual / Budget
Standard
The percentage of applications screened for registration within 5 working days of receipt. / 90% / 86% / 90%
The percentage of accepted applications under active consideration by the Overseas Investment Office that are processed within the timeline specified for each of the following categories (Note 1):
Category 1 Applications - 30 working days or less. / 90% / 100% / 90%
Category 2 Applications - 50 working days or less. / 90% / 49% / 90%
Category 3 Applications - 70 working days or less. / 90% / 67% / 90%
The satisfaction score given by the Minister for Land Information for the quality of advice on overseas investment matters. / 7 out of 10 or better / 7 out of 10 / 7/10
The percentage of monitoring reports assessed within 40 working days of receipt. / 90% / 98% / 90%
The percentage of public alerts about potential breaches assessed for possible investigation within 10 working days of receipt. / 90% / 100% / 90%
The percentage of initial investigation reports completed within 60 working days of the investigation beginning. / 90% / 100% / 90%

Note 1 - In all timeliness measures for the Overseas Investment Office, the reference to working days means those days where the relevant matter is under active consideration by the Overseas Investment Office. It excludes any time that the matter is under active consideration by a third party (for example, with Ministers pending a decision, or pending receipt of further information from the applicant).

The Overseas Investment Office categorises applications into one of three categories according to the time required to assess them.

Category 1 applications include:

applications to vary a condition of an existing significant business assets or sensitive land consent to extend the time for compliance.

Category 2 applications include:

applications for consent to purchase significant business assets

applications for consent to purchase sensitive land

applications for consent to purchase significant business assets and sensitive land

applications for an exemption for significant business assets or sensitive land

applications where the overseas person is intending to reside in NewZealand indefinitely, and

applications to vary a consent or exemption, or a condition of a consent (other than to extend the time for compliance) or exemption for significant business assets or sensitive land.

Category 3 applications include:

applications to acquire an interest in fishing quota

applications for an exemption for an interest in fishing quota

applications to vary a consent or exemption, or a condition of a consent or exemption for an interest in fishing quota

applications where the vendor is required to offer special land (being land that includes foreshore or the bed of a river or lake)

applications in respect of which a third party submission has been received by the Ministers or the Overseas Investment Office, and

applications where the Ministers or the Overseas Investment Office have decided that consultation with third parties is appropriate in considering whether or not to grant consent.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Land Information NewZealand in the 2016/17 Annual Report.

Reasons for Change in Appropriation

This appropriation has decreasedby $250,000to $3.355millionin 2016/17. This is due to the 2015/16 appropriation being higher than normal based on increased volumes.

Memorandum Account
2015/16 / 2016/17
Final Budgeted
$000 / Estimated Actual
$000 / Budget
$000
Overseas Investment Office (OIO)
Opening Balance at 1 July / (936) / (936) / (1,638)
Revenue / 2,610 / 2,746 / 4,800
Expenses / 3,497 / 3,448 / 3,500
Transfers and Adjustments / - / - / -
Closing Balance at 30 June / (1,823) / (1,638) / (338)

2.3 - Departmental Capital Expenditure and Capital Injections

Land Information NewZealand - Capital Expenditure PLA (M44)
Scope of Appropriation

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