Financial Highlights for the Year Ended 30 June 2006
| |
2006
Actual
$000 |
2005
Actual
$000 |
| Revenue Crown |
60,398 |
54,612 |
| Revenue Other |
46,907 |
44,595 |
| Output Expenses |
113,078 |
104,289 |
| Net Surplus/(Deficit) |
(5,773) |
(5,082) |
| Taxpayers' Funds |
19,878 |
14,578 |
The following explains the most significant movements in actual results between 2005/06 and 2004/05 for departmental activities:
Revenue Crown ($5.786 Million)
Revenue Crown earned for departmental outputs has increased by $5.786 million, mainly due to additional funding being provided for:
- the full year impact of transferring the Growth and Innovation Advisory Board secretariat functions from the Ministry of Research, Science and Technology (MORST);
- the full year impact of implementing a regional statistics programme;
- increasing the Ministry's presence in Auckland to allow the Ministry to more effectively engage with Auckland stakeholders;
- increasing the Ministry's capacity and capability needs to contribute to infrastructure policy beyond energy and ICT sectors;
- additional funding to develop mechanisms to give national guidance on network infrastructure under the Resource Management Act 1991;
- additional funding to run the tender process and contributing to the policy and legislative process around Kiwisaver;
- additional funding to meet costs associated with an increase in the number and complexity of forfeiture orders and in the value of assets being managed by the Official Assignee;
- additional funding to strengthen the capability for the provision of business and competition policy advice, and for Tourism policy and research work;
- increased funding provided in 2005/06 to administer the development of initiatives that will improve capability and skills to use ICT, and develop community-driven requirements for digital content;
- increased funding provided in 2005/06 for the development and registration functions under the Kyoto Protocol;
- activities directly associated with attracting investment into New Zealand petroleum and gas exploration;
- increased funding transferred from 2004/05 to 2005/06 to cover costs associated with Tourism Research, Māori Tourism, Cultural Tourism and Labour Market Research projects;
- one-off funding provided in 2005/06 for the Tourism Offshore Marketing Baseline Review; and
- funding transferred from 2004/05 to 2005/06 to complete the Central Online Management and Export Trade Project (Project COMET).
Offset in part by reductions for:
- one-off funding provided in 2004/05 for research to develop a blueprint enabling Small and Medium Enterprises (SME) to enter export markets using e-commerce, and for growing and sustaining SME in NZ policy work;
- one-off funding provided in 2004/05 for undertaking a Regional Development Conference in March 2005;
- winding down of work associated with the Credit Contracts and Consumer Finance Act (CCCFA) work programme;
- establishment costs associated with the new Charities Commission, where responsibility for its administration was transferred to the Department of Internal Affairs from 1 July 2005;
- the transfer of policy responsibilities for building policy to the Department of Building and Housing;
- one-off funding provided in 2004/05 to establish a Steering Group on the Regulation of Financial Intermediaries; and
- one-off funding provided in 2004/05 for the development policy phase of the Local Authority Tourism Infrastructure Grant Scheme.
Revenue Other ($2.312 Million)
Revenue Other earned for departmental outputs has increased by $2.312 million, mainly due to:
- demand driven increases in activity associated with electrical workers fees and other energy safety work;
- increases in petroleum and minerals/mining levy fees; and
- one-off increase in forecast revenue associated with holding the 2006 New Zealand Petroleum Conference.
Offset in part by a reduction for:
- one-off funding provided in 2004/05 for hosting a seminar on "The Use of Timber in Construction".
Output Expenses ($8.789 Million)
Output expenses have increased by $8.789 million, mainly due to the corresponding expenses associated with the changes referred to above.
Net Surplus/(Deficit)
This mainly reflects the forecast impact of a long-term strategy to reduce memorandum account balances administered by the Ministry, and a one-off deficit incurred to operate a tender for IEA oil stockholding obligations.
Memorandum accounts are operated in Registration and Provision of Statutory Information, Registration and Granting of Intellectual Property Rights (both in Vote: Commerce), Management and Enforcement of the Radiocommunications Act 1989 (Vote: Communications), Motor Vehicle Traders Registration activities (Vote: Commerce and Vote: Consumer Affairs), and Administration of Gas and Electricity Regulations (Vote: Energy).
Further information on how the Ministry is working towards reducing surpluses further are outlined in the Memorandum Accounts Balances statement that forms part of these financial statements.
Equity ($5.300 Million)
Taxpayers' Funds have increased by $5.300 million, reflecting additional funding for the development and implementation of a national unit register under the Climate Change Response Act 2002 ($1.300 million), and providing additional equity for the Ministry of Economic Development to provide it with a sustainable long-term equity base ($4.000 million).
In addition, while there is an increase to the equity position, additional capital was provided, totalling $9.164 million to fund the forecast deficits noted above in the memorandum accounts operated in Registration and Provision of Statutory Information, and the Administration of the Radiocommunications Act 1989 (Vote: Communications).
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