For the year ended 30 June 2018

The appropriations reported in this section are:

Multi-category Expenses and Capital Expenditure:

  • Policy advice and related outputs (Departmental output expenses)
    • Policy advice
    • Ministerial servicing
    • Governance and Performance Advice on Crown Agencies.
  • Policy advice and related outputs – Civil Aviation (Non-departmental output expenses)
    • International Relations and international Civil Aviation Organisation obligations
    • Ministerial Servicing - Civil Aviation
    • Policy advice - Civil Aviation.
  • Policy advice and related outputs – Maritime (Non-departmental output expenses)
    • Maritime incident response
    • Maritime safety and marine protection services
    • Policy advice - Maritime.
  • Reinstatement of South Island transport corridor (Non-departmental output expense
    and capital expenditure)
    • Restoration of SH1 between Picton and Christchurch
    • Rebuild of SH1 between Picton and Christchurch.

Departmental Output Expenses:

  • Fuel excise duty refund administration
  • Milford Sound/Piopiotahi Aerodrome operation and administration
  • Search and Rescue activity coordination Permanent Legislative Authority (PLA)

Departmental Capital Expenditure:

  • Ministry of Transport capital expenditure PLA

Non-departmental Capital Expenditure:

  • Joint venture airports

 

 

Multi-category Expenses and Capital Expenditure

POLICY ADVICE AND RELATED OUTPUTS 

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.

There are three output classes in this appropriation:

  • Policy advice
  • Ministerial servicing
  • Governance and performance advice on Crown agencies

Financial performance

Actual
2016/17
$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

 31,870 

Revenue Crown

35,282

 33,233 

 34,220 

 19 

Other revenue

 64 

 - 

 1,062 

 31,889 

Total revenue

35,346

 33,233 

 35,282 

 31,928 

Expenses

 32,398 

 33,233 

 35,282 

(39)

Net surplus/(deficit)

2,948

 - 

 - 

 

Policy advice

This output class is for the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to transport.

It is intended to achieve a transport system that maximises economic and social benefits for
all New Zealanders, and minimises harm.

Financial performance

Actual
2016/17
$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

 28,370 

 Revenue Crown 

30,282 

 29,733 

 29,220 

 19 

 Other revenue 

 64 

 - 

 1,062 

 28,389 

 Total revenue 

 30,346 

 29,733 

 30,282 

 28,543 

 Total expenses 

 27,717 

 29,733 

 30,282 

(154)

 Net surplus/(deficit) 

2,629

 - 

 - 

 


 

Assessment of performance against medium-term measures for this output class

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ 

Targets

2017/18

New measure

Transport network congestion in the three largest metropolitan areas will decrease over the medium term

On track for 2 out of 3 centres*

On track

On track

New Zealand trends in port productivity will increase over the medium term

On track**

On track

Not on track

Fewer deaths and serious injuries within the New Zealand transport system
over the medium term

Not on track ***

On track

Not on track

There is a reduction in the rate of growth of carbon dioxide emissions from domestic transport per capita in the medium term 

Not on track ****

On track



* Transport network congestion in the three largest metropolitan areas will decrease over the medium term

**New Zealand trends in port productivity will increase over the medium term

*** Fewer deaths and serious injuries within the New Zealand transport system over the medium term





**** There is a reduction in the rate of growth of carbon dioxide emissions from domestic transport per capita in the medium term

Note that there has not been significant change in the rate of growth (either up or down) over the last five years. Growth spiked in 2004 and began to decline. However since 2010, growth has fluctuated between 28 percent and 24 percent.

 

 

Assessment of performance against other measures for this output class

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ 

Targets

2017/18

83%

Milestones contained in the output plan are completed as agreed, or as subsequently amended by the agreement between the Minister and the Chief Executive

85%*

95%

100%

Percentage of policy advice papers that meet the Advice Quality Characteristics (refer conditions on use of Appropriation)

100%

100%

7.2

The average assessment of the quality of Ministry policy advice is that it meets the quality criteria sufficiently for papers assessed through an annual external review of policy advice

Achieved
NZIER rating
of 7.2**

Achieved

Achieved

At least twice yearly revenue forecasting provided for use in Crown accounts and Budget forecasts

Achieved

Achieved

Achieved

The agreed rules programme, including variations, is delivered

Achieved

Achieved

55%

Satisfaction of the Minister of Transport with the policy advice service, as per the satisfaction survey

71%***

75%

$158

The total cost per hour of producing outputs (excluding outsourced costs)

$173****

$175

Achieved

The agreed Funding Review programme, including variations, is delivered

Achieved

Achieved

 

* 2017/18 was a busy year for the Ministry; we received many new requests for advice, along with an increase in other information requests. This figure reflects the pressure of delivering multiple streams
of information.

** This measure was previously “the average assessment of the quality of Ministry policy advice is within the range of 7.2–7.5 for papers assessed through an annual external review of policy advice by NZIER”. The measure was changed so that the Ministry is not limited in its selection of an appropriate external party to perform the review.

*** The Ministry is continuously seeking to improve the quality of our advice and its timeliness
to the Minister.

**** For 2017/18 the Ministry has had to estimate the cost per hour for policy advice. Following the November 2016 Kaikōura earthquake the Ministry had a number of system changes and we no longer have access to the same information that we used to calculate the cost per hour in previous years. For 2017/18, the policy costs are the costs as reported in this Annual Report, adjusted to remove outsourced costs. The Ministry’s data shows that it employed policy staff for a similar number of hours in 2016/17 and 2017/18. We have therefore applied the total staff policy hours for 2016/17 and the 2016/17 policy staff utilisation rate to estimate the 2017/18 cost of policy advice per hour.

 

 

Ministerial servicing

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

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

 2,600 

 Revenue Crown 

 2,300 

 2,600 

 2,300 

 2,594 

 Total expenses 

 2,568 

 2,600 

 2,300 

 6 

 Net surplus/(deficit) 

 (268) 

 - 

 - 

 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ 

Targets

2017/18

78%

Percentage of draft replies to Ministerial correspondence completed within
10 working days

38%*

80%

87%

Percentage of Official Information Act requests to the Ministry replied to
within statutory timeframes

93% **

100%

100%

Percentage of Ministerial servicing items that meet quality characteristics
(refer conditions on use of Appropriation)

100%

100%


* In 2017/18 the Ministry drafted 847 responses to Ministerial correspondence, in contrast to 2016/17 where we drafted 759 responses. The increase in the quantity of Ministerial correspondence does not fully explain the difficulty in delivering these responses on time. To address these delays the Ministry has allocated more resource into Ministers’ offices, and is also working on systems improvements.

** Although the Ministry’s timeliness in responding to Official Information Act requests has improved since the previous year, we are still not delivering to our standard of 100 percent. As part of our work on systems improvements, we are looking to address our timeliness in responding to Official Information Act requests.

 

 

Governance and Performance Advice on Crown Agencies

This output class is intended to achieve high performing transport Crown agencies, the activities of which are transparent and well aligned to Government policy priorities.

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

 900 

 Revenue Crown 

 2,700 

 900 

 2,700 

 791 

 Total expenses 

 2,113 

 900 

 2,700 

 109 

 Net surplus 

587

 - 

 - 

 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ 

Targets

2017/18

Achieved

Advice on transport Crown entity board appointments provided to agreed timeframes

Achieved

Achieved

Achieved

Twice yearly Ministry strategic discussions with each Crown entity
Chair/Board

Achieved

Achieved

7.7

The average assessment of the quality of Ministry policy advice is that it meets the quality criteria sufficiently for papers assessed through an annual external review of policy advice

Achieved NZIER rating of 7.4*

Achieved


* This measure was previously “the average assessment of the quality of Ministry policy advice is within the range of 7.2 – 7.5 for papers assessed through an annual external review of policy advice by NZIER”. The measure was changed so that the Ministry is not limited in its selection of an appropriate external party to perform the review.

 

 

POLICY ADVICE AND RELATED OUTPUTS – CIVIL AVIATION

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

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

The Ministry reports this appropriation in its annual report because it is a multi-category appropriation and as such, the Ministry is the administrator of the appropriation. All of the expenses are non-departmental.

This appropriation includes:

  • International Relations and International Civil Aviation Organization Obligations.
  • Ministerial Servicing
  • Policy Advice

Financial performance

Actual 2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

 3,389 

Policy advice and related outputs - Civil Aviation MCA non-departmental output expenses 

 2,079 

 1,779 

 2,079 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

No impact
to the perception or confidence

The 2016/17 survey results indicate an improvement over the 2014 survey results
in relation to the perceptions and confidence of the travelling public and other stakeholders in the safety and security of air transport. 

N/A – survey is carried out every two years.

No impact
to the perception
or confidence

76%

Percentage of resident travellers that felt extremely or very safe and secure
(2014 result - 75%)

N/A – survey is carried out every two years.

75% or greater

90%

Percentage of overseas travellers that felt extremely or very safe and secure
(2014 result - 92%)

N/A – survey is carried out every two years.

92% or greater

Not available

Percentage of key stakeholders satisfied with the safety and security performance
of the New Zealand civil aviation system (2014 result - 40%)

N/A – survey is carried out every two years.

40% or greater

 


 

International Relations and International Civil Aviation
Organization Obligations

This output class is intended to achieve administration of New Zealand’s international civil aviation obligations and interests within the delegations of the Minister of Transport.

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

New measure

International engagement is undertaken that meets New Zealand’s role and obligations as a member state of the International Civil Aviation Organization (ICAO)
by participation on ICAO regional and global fora and initiatives with demonstrated contribution to outcomes of those fora

Achieved

Achieved

 

Ministerial Servicing – Civil Aviation

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

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

Met expectations

Reports, correspondence and Parliamentary questions acceptable to the Minister (assessed by biannual survey) based on a scale of “exceeded expectations”, “met expectations” or “requires improvement”

Met
expectations

Met or exceeded
expectations

95%

Percentage of reports and responses that are delivered in accordance with prescribed standards and timeframes established by the Ministry of Transport in their correspondence tracking system

100%

100%

 

Policy Advice – Civil Aviation

This output class is intended to achieve a high level of safety and security standards within the New Zealand civil aviation system.

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

New measure

Percentage of policy advice provided to other government departments and agencies that is consistent with the scope guidance set out in section 3.2 of “Reorganisation of Appropriations for Policy Advice - Guide for Department (Treasury 2011)”

100%

100%

New measure

All policy advice provided to other government departments and agencies is delivered within the timeframes requested by those departments and agencies

100%

100%

 

 

 

POLICY ADVICE AND RELATED OUTPUTS – MARITIME

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

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

The Ministry reports this appropriation in its annual report because it is a multi category appropriation and as such, the Ministry is the administrator of the appropriation. All of
the expenses are non-departmental.

This appropriation includes:

  • Maritime incident response
  • Maritime safety and marine protection services
  • Policy advice - maritime 

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

9,144 

Policy advice and related outputs – Maritime 

MCA non-departmental output expenses 

 6,196 

 6,191 

 6,270 

 

Maritime Incident Response

This category is intended to achieve an increase in the efficiency and effectiveness of Maritime New Zealand’s maritime incident response capability.

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

New measure

The number of Maritime Incident Response Team (MIRT) exercises completed

Achieved
4

4

New measure

An annual readiness and response training plan is developed and all planned training completed

Achieved

Achieved

 

Maritime Safety and Marine Protection Services

This category is intended to achieve the provision of reliable maritime navigation aids.

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

New measure

The percentage of time lighthouses are operational

Achieved
99.99%

99.8%
or greater

New measure

The percentage of time a 24-hour Distress and Safety Radio Service is provided

Achieved
99.99%

99.8%
or greater

 

 

Policy Advice – Maritime

This category is intended to achieve the development of fit for purpose policy in relation
to maritime safety, security and environmental protection; and the provision of services
to Ministers to enable them to discharge their portfolio accountabilities.

Assessment of overall performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

New measure

All written advice to the Minister of Transport and the Ministry of Transport meet Maritime New Zealand’s quality criteria (content, form, analysis and completion by the due date)

100%

Achieved

 

REINSTATEMENT OF THE SOUTH ISLAND TRANSPORT CORRIDOR (M72)

The overarching purpose of this appropriation is to deliver reinstated transport corridors between
Picton and Christchurch following the 2016 earthquakes. 

The non-departmental output expenses are limited to restoration of State Highway 1 between
Picton and Christchurch.

The non-departmental capital expenditure is limited to the rebuild and improvement of State
Highway 1 between Picton and Christchurch.

This appropriation is new in 2017/18.

Financial performance

Actual

2016/17

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

-

Non-departmental output expense: Restoration of State Highway 1 between Picton and Christchurch

82,714 

 - 

 90,000 

-

Non-departmental capital expenditure: Rebuild of State Highway 1 between Picton and Christchurch

350,017 

 - 

 355,000 

 

Assessment of overall performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

New measure

State Highway 1 between Picton and Christchurch open with restrictions by 31 December 2017

Achieved

Achieved

New measure

State Highway 1 between Picton and Christchurch reopened and fully functional with no traffic management by 30 June 2018.

Not achieved *

Achieved


*In progress to be fully achieved by 30 June 2019.

 

 

Departmental Output Expenses

FUEL EXCISE DUTY REFUND ADMINISTRATION

Through this appropriation, the Secretary for Transport (Chief Executive) delegates to, and contracts with, the NZ Transport Agency to provide an administrative and accounting service
for the refund of fuel excise duty (FED). The appropriation is intended to achieve accurate
and timely refunds of fuel excise duty to eligible applicants.

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

 1,103 

 Revenue Crown 

 703 

 703 

 703 

 111 

 Other revenue 

 116 

 120 

 120 

 1,214 

 Total revenue 

 819 

 823 

 823 

 1,145 

 Total expenses 

 819 

 823 

 823 

 69 

 Net surplus 

 - 

 - 

 - 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

Data was unavailable

Average number of days taken to receive all FED claims, audit, process and pay FED refunds

Not achieved 23.4 days

Within 20 working days

 

MILFORD SOUND/PIOPIOTAHI AERODROME OPERATION
AND ADMINISTRATION


This appropriation covers the operation of the Milford Sound/Piopiotahi Aerodrome.

It is intended to achieve the safe and efficient operation of the Milford Sound/Piopiotahi Aerodrome.

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

329

Other revenue

 351 

 230 

 385 

267

Expenses

 335 

 230 

 385 

62

Net surplus/(deficit)

 16 

 - 

 - 

 

 

 

 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

100%

The aerodrome operation will conform with appropriate Civil Aviation Authority safety requirements

100%

100%

Achieved

Operating costs within third-party revenue

Achieved

Achieved

 

SEARCH AND RESCUE ACTIVITY COORDINATION PLA 

In this appropriation, the Ministry houses the Secretariat function of the New Zealand Search and Rescue (NZSAR) Council which administers the search and rescue (SAR) sector in New Zealand.

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

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

1,201

Revenue Crown

 2,425 

 2,575 

 2,425 

1,196

Expenses

 2,069 

 2,575 

 2,425 

5

Net surplus 

 356 

 - 

 - 

 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

100%

Survey results show that the New Zealand Search and Rescue Council is satisfied with the provision of effective support services and policy advice for the New Zealand search and rescue sector

100%

95% or higher

100%

Survey results show that the New Zealand search and rescue sector is at least 95 percent satisfied with the delivery of effective leadership and strategic coordination

100%

95% or higher

 


 

Departmental Capital Expenditure

MINISTRY OF TRANSPORT – CAPITAL EXPENDITURE PLA

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

It is intended to achieve the renewal of assets in support of the delivery of the Ministry of
Transport’s services.

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

442

 Ministry of Transport - capital expenditure PLA 

455

1,522 

 

Assessment of performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/ Targets
2017/18

100%

Expenditure is in accordance with the Ministry’s capital expenditure plan and asset management plan

100%*

100%


*See note 18 (page 42). Expected accounting treatment of intangible assets changed after the Supplementary Estimates were confirmed.


 

Non-departmental Capital Expenditure

JOINT VENTURE AIRPORTS 

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

The Crown has a 50 percent stake in the following five airports, with the other 50 percent held
by the local councils:

  • Taupō
  • Westport
  • Whakatāne
  • Whanganui 
  • Whangarei

New Plymouth airport was sold on 1 July 2017.

Financial performance

Actual

2016/17

$000

 

Actual

2017/18

$000

Budget

2017/18

$000

Forecast

2017/18

$000

-

Disposal of New Plymouth airport

(3,250)

-

-

(1,518)

Gains/(losses) generated by the other airports

(14)

-

-

(1,518)

Share of net asset increase/(decrease) in joint venture airports

(3,264)

-

-

-

Capital payments made during the year

1,097

500

500

(1,518)

Total change in investment value

(2,167)

500

500

 

Assessment of overall performance

Actual

2016/17

Performance measures

Actual

2017/18

Standards/
Targets
2017/18

100%

Percentage of compliance with the joint venture agreements with the airports

100%

100%

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