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The following explains the most significant movements in actual results between 2004/2005 and 2003/2004 for departmental activities:

Revenue

Revenue Crown earned for departmental outputs has increased by $3.279 million, mainly due to additional funding being provided for:

• development of a national policy statement for network infrastructure under the Resource Management Act 1991;
• enhancing modelling of the impacts of policy choices in an energy system facing a high degree of uncertainty (e.g. with the rundown of Maui gas);
• activities directly associated with attracting investment into New Zealand petroleum and gas exploration;
• working with local government and other stakeholders to develop a Water and Sewerage Infrastructure for Local Authorities scheme;
• new responsibilities part way through the year for the Growth and Innovation Advisory Board secretariat functions;
• establishment of a presence in Canberra in 2004/2005 reflecting resource investment in pursuing a Single Economic Market with Australia;
• supporting WTO negotiations and bilateral CEP/FTAs;
• establishing and operating a steering group on the regulation of financial intermediaries;
• increasing the capability for business and competition related policy advice; enhancing policy advice, research and monitoring capability of the Ministry of Consumer Affairs; and enhancing the policy and research capability for the tourism sector;
• new areas of work including the Regional Development Conference, and a regional economic statistics exercise;
• new responsibilities for secretariat costs associated with the Government's major events strategy;
• establishing the new Crown entity, the Charities Commission; and
• increasing monitoring and surveillance and increasing access by business and consumers to Ministry of Consumer Affairs services in relation to measurement and product safety infrastructure.

These changes are partly offset by the following decreased activity between 2004/2005 and 2003/2004 resulting from:

• the running of a series of Small Business Day meetings, which was a one-off project undertaken in 2003/2004;
• the transfer of building policy functions to Vote: Housing part way through 2004/2005;
• one-off funding in 2003/2004 for establishing the Electricity Commission;
• one-off funding in 2003/2004 to enhance security of the electricity supply for 2004;
• one-off funding in 2003/2004 for policy work on the purchase of a reserve electricity generation plant; and
• costs incurred in 2003/2004 associated with the economic impact of Team New Zealand's 2007 America's Cup Challenge in 2003/2004.

Revenue Other earned for departmental outputs has decreased by $9.473 million, mainly due to:

• the impact of a 10-year fee-setting strategy for the Companies Office uploaded to baseline for that year resulting in a fees review being implemented on 1 July 2004, partially offset by volumes continuing to increase beyond previous years (e.g. annual return fees have reduced by 70% compared to 2003/2004);
• a reduction in radio spectrum resource fees in 2004/2005 reflecting the introduction on 1 July 2004 of a revised fees schedule implemented following a fees review;
• the Official Assignee managing fewer company liquidations and less money in bankrupt estates resulting in lower than forecast commissions; and
• one-off revenue associated with the Crown Minerals Petroleum Conference held in 2003/2004.

These changes are partly offset, mainly due to the following increased activity between 2004/2005 and 2003/2004 in:

• processing an increase in volumes of trade mark applications;
• establishing an arbitration service to settle disputes between tree and line owners under Electricity (Hazards From Trees) Regulations; and
• the continuation in 2004/2005 of the Powerswitch website and associated work programme.

Output Expenses

Output expenses have increased by $5.614 million, mainly due to the corresponding expenses associated with the changes referred to above.

Net Surplus/(Deficit)

This mainly reflects the impact of a long-term strategy to reduce memorandum account balances administered by the Ministry.

Memorandum accounts are operated in Registration and Provision of Statutory Information, the Administration of Licensed Building Practitioners (both in Vote: Commerce), Administration of the Radiocommunications Act 1989 (Vote: Communications), and the Motor Vehicle Traders Registration activities (Vote: Commerce and Vote: Consumer Affairs).

More information on how the Ministry is working towards further reducing the memorandum account balances is outlined in the Forecast of Memorandum Accounts Balances statement that forms part of the Ministry's financial statements.

Equity

Taxpayers' Funds have increased by $10.000 million, reflecting a capital contribution in 2004/2005 to fund capital expenditure projects, provide working capital and to provide additional equity for a sustainable long-term equity base.

In addition, while there is an increase to the equity position, additional capital is forecast to be provided, totalling $7.626 million to fund the forecast deficits noted above in the memorandum accounts operated in Registration and Provision of Statutory Information, the Administration of Licensed Building Practitioners (both in Vote: Commerce), Administration of the Radiocommunications Act 1989 (Vote: Communications), and the Motor Vehicle Traders Registration activities (Vote: Commerce and Vote: Consumer Affairs).