Service Performance
Vote Agriculture and Forestry
Within Vote Agriculture and Forestry the output classes contribute to the following MAF intermediate outcomes:
- Policies and interventions to foster innovation and growth in the sectors.
- Effective and efficient regulatory regimes for the sectors.
- Enhanced prosperity for Maori engaged with, or participating in, the sectors.
- Enhanced business environment for rural communities.
- Maintained and enhanced market access for agricultural, food and forestry products and reduced market distortions resulting from trade rules and market interventions.
- Sustainability of agricultural, food and forestry-related land, biological and water resource use.
Additionally, the output class Contract, Grant and Asset Management contributes to MAF's forestry responsibilities in respect of the work of Crown Forestry.
Agriculture and Forestry Policy Advice
This class of outputs covers analysis and decision support underpinning policy advice to Ministers and the Government in relation to the sectors.
It includes analysis and advice on legislation, institutional arrangements, and on policy and operational initiatives in relation to the sectors, rural communities and other stakeholders.
The focus is on sustaining and enhancing the economic contribution of these sectors to New Zealand, and on the economic, environmental and cultural sustainability of the sectors, of their land, water and genetic resources, and of the communities dependent on them.
Performance Measures and results
- All policy advice will conform to the criteria set out in Schedule A of the 2004/05 Statement of Intent (SOI).
Ministerial evaluations recorded overall ratings of "very good" and "good".
Further Ministerial comment included:
"Good professional, straightforward style indicates a generally highly experienced workforce that is well across its material and cares about what it does."
Performance Measures and results
- Priority work is completed as agreed, or as subsequently amended by agreement, between the Minister and the Director-General via the 2004/05 Output Plan.
During the year the Policy group carried out a strategic planning exercise and organisational redesign. This resulted in development of a group strategic plan and an internal realignment of resources. The plan's key focus is on sustainable development with MAF Policy assuming a lead role by integrating the elements of sustainability into a framework and translating this into active policy development and implementation.
Relevant Ministers were consulted in the development of this document to ensure Policy group priorities were contributing to government goals and ministerial expectations. Ministerial feedback was received on the document.
Ministerial services were provided in accordance with agreed ministerial process and Cabinet Office guidelines, and all correspondence, parliamentary questions, Official Information Act requests, Ombudsmen Act enquiries, and Cabinet Papers were produced in accordance with the requirements of the Vote Agriculture and Forestry Output Plan.
This Plan outlines the outputs the Vote Minister requires MAF to deliver and the anticipated cost of these, and is jointly signed by the Minister and the Director-General of MAF. Quarterly reports have been made against the Plan. Output Plan reports are available from MAF on request.
Financial Performance of Agriculture and Forestry Policy Advice
| Main | Supp | |||
|---|---|---|---|---|
| Actual | Estimates | Estimates | Actual | |
| June 2004 | June 2005 | June 2005 | June 2005 | |
| $(000) | $(000) | $(000) | $(000) | |
| 16,573 | Revenue Crown | 16,516 | 18,838 | 18,363 |
| 32 | Revenue Other | 45 | 96 | 102 |
| 16,605 | Total Revenue | 16,561 | 18,934 | 18,465 |
| 16,572 | Total Expenses | 16,561 | 18,962 | 18,377 |
| 33 | Surplus/(Deficit) | - | (28) | 88 |
Administration of Indigenous Forestry Provisions
This output class involves the administration of Part IIIA of the Forests Act 1949 which relates to the management of privately owned indigenous forest. Principally this involves the administration of sustainable forest management plans and permits, controls on sawmills processing indigenous logs and the export of indigenous forest produce, and breaches of Part IIIA of the Forests Act.
Performance Measures and results
- All requirements of Part IIIA of the Forests Act are complied with.
The forest area covered by approved sustainable management plans and permits increased by 22 percent to 113,382 hectares. The recruitment of new indigenous forest under sustainable forest management plans and permits was lower than anticipated possibly reflecting a more buoyant traditional pastoral economy. There are now 592 approved plans and permits.
In May 2004, following on from the introduction of the protection measures for permits through the Forests Amendment Act 2004, there was a substantive increase in the number of conditions placed in approved permits for the maintenance of forest health and to achieve the desired sustainable management outcomes.
The development of Standard Operating Procedures (SOPs) during the year saw considerable efficiency gains with a general reduction in the time taken for processing draft plans and permit applications, and an increase in the number of post-harvest forest audits and sawmill inspections to monitor compliance with the Forests Act.
The number of sawmills registered to mill indigenous timber reached a similar level to that of the previous year, however, the volume of timber received for milling (21,127 cubic metres) is down by around 30 percent. The volume milled represents about 33 percent of the 86,000 cubic metres available from sustainable forest management plans and permits forests.
The Māori Trustee, acting for a group of SILNA forest owners, has been investigating the options introduced through the Forests Amendment Act 2004 for an agreement to allow for the development of sustainable forest management plan(s). A primary concern expressed by SILNA owners was the requirement for a 50-year term for sustainable forest management plans which they felt would impact on the choices available to future generations.
The output classes within Vote Biosecurity (Agriculture and Forestry) contribute to the following MAF intermediate outcomes:
- Maintained and enhanced market access for agricultural, food and forestry products and reduced market distortions resulting from trade rules and market interventions.
- Credible and trusted animal and plant product assurance.
- Balanced export and import regime covering the safety and suitability aspects of trade in animal and plant products.
- Protection of land-based and aquatic environments, primary production systems, trade, and human health and wellness from biosecurity pests.
- Reduced impacts on human health and wellness from biosecurity pests and pest management activities.
- Protection from biosecurity pests of the economic, environmental, recreational and cultural values and benefits associated with land, biological and water environments.
- Protection of Maori biologically-based economic resources.
- Protection of Maori biologically-based cultural resources.
Financial Performance of Administration of Indigenous Forestry Provisions
| Main | Supp | |||
|---|---|---|---|---|
| Actual | Estimates | Estimates | Actual | |
| June 2004 | June 2005 | June 2005 | June 2005 | |
| $(000) | $(000) | $(000) | $(000) | |
| 1,851 | Revenue Crown | 2,634 | 1,912 | 1,796 |
| 34 | Revenue Other | 40 | 45 | 38 |
| 1,885 | Total Revenue | 2,674 | 1,957 | 1,834 |
| 1,829 | Total Expenses | 2,674 | 1,957 | 1,556 |
| 56 | Surplus/(Deficit) | - | - | 278 |
Contract, Grant and Asset Management
Performance Measures and results
- Compliance of all physical and financial activity with the Crown Forestry quality management system.
All operations met quality parameters as specified in internal standards. This was verified by independent audit of operations carried out in a sample of forests.
Performance Measures and results
- Compliance of all asset sales and lease variations with policy and approvals.
During 2004/05, following clear felling, Crown Forestry surrendered 2,700 hectares of land from six leases. The land was leased by the Crown from Māori and the surrenders returned the land to various Trusts and Incorporations which will invest in a second forest rotation on behalf of the beneficial landowners. This divestment is in accordance with individual lease variations previously approved by the Ministers of Forestry and Finance, and Cabinet. Also during the year, Crown Forestry completed the sale of the Crown's shares in Tarawera Forests Ltd in conjunction with the Treasury. Cabinet approval was obtained for the sale.
Performance Measures and results
- The management of the East Coast Forestry Project complies with all of the requirements of the Forestry (East Coast) Grants Regulations 2000 and subsequent amendments.
New forestry grant certificates have been issued for 18 programmes covering 668 hectares where landholding requirements have been met. The total area approved to be completed under the East Coast Forestry Project has increased to 36,800 hectares covered by 255 approved forestry grant certificates. There has been one variation and one transfer of grant approval to reflect changed circumstances or sale of grant areas to new owners.
The area planted as forestry, wide spaced poplar and willow treatments or established as indigenous reversion blocks under East Coast Forestry Project grants increased by 1258 hectares through 17 payments in 2004/05 to 31,283 hectares. The 1258 hectares includes 91 hectares of late claims for planting and indigenous reversion blocks established in 1993 and earlier years. A further 414 hectares established in 2004 is expected to receive East Coast Forestry Project grants in 2005/06 due to delays in covenants and remedial work to raise low tree survivals. This would raise 2004 planting and establishment to about 1580 hectares. Three covenants have been registered against relevant land titles to secure grant payments for scrub retirement treatments.
The area tended under East Coast Forestry Project grants was 10,377 hectares through 95 payments. Grantees have received $3,371,531 in grant payments for planting and establishment or tending programmes completed to an acceptable standard.
A more proactive approach has been undertaken to try and offset the reduction in interest in the project due to continued low forestry returns and high farming returns. This included participation at the Gisborne A&P Show, advertising, articles for local media and ratepayer publications, and through a one to one on-site approach with landowners affected by erosion problems.
The owners of one Māori land block have been helped to obtain short term bridging finance from the Māori Trustee to offset the difficulty in carrying out the required work before receiving a grant payment. In this instance the owners have also been helped to obtain an Nga Whenua Rahui covenant. Depending on the level of funding available from the Māori Trustee, this option will be very useful in situations where there is insufficient source of income to undertake necessary erosion control works before the grant payment is made.
Performance Measures and results
- The Crown's obligations under the irrigation sale agreements are met.
The Crown's obligations stemming from the sale of irrigation assets in the early 1990's have been progressively resolved. Matters relating to the assets and obligations in the Burn Cottage and Earnscleugh Irrigation Schemes have been fully resolved and these files are now closed.
The resource consent status of the old Central Otago irrigation schemes where historic mining privileges required replacement with resource consents has been clarified. While the Crown was not directly involved in the resource consent process there is potential for legal claim arising from the reduction in the term of the rights to water. While the risk of claim cannot be quantified inventory work has been completed to clearly delineate the situation for each scheme - in the event of any claim this work will expedite the Crown's consideration and response. Crown mining privileges apply to a further small group of schemes - these assets remained with the Crown after the sale of the physical assets to the irrigators. The nature of these assets, and the historic agreements associated with them, preclude negotiations with other than the current users. For five of these schemes terms of negotiations have been agreed with users and the transfer process is well in hand. In the case of the Beggs Scheme any agreement of terms is unlikely in the medium term.
Sound progress has also been achieved in advancing arrangements for the sale and transfer of the Crown's interests in the land under and surrounding Lakes Manuwai and Waingaro that provide reservoir storage for the Kerikeri Irrigation Company. Arrangements for their sale and transfer had been progressed on the presumption marginal strips would be required. However Crown Law Office has provided advice that this sale and transfer would not lead to the reservation of marginal strips under the provisions of Section 24 of the Conservation Act 1987. While this decision has required additional work, negotiations with the Kerikeri Irrigation Company and the Far North District Council are nearing completion.
Performance Measures and results
- Government-approved programmes for the relief of natural disasters and adverse events are delivered in accordance with agreed work programmes.
MAF was involved in administering on-farm Agricultural Recovery Programmes (ARPs) in both the lower North Island, as a consequence of severe flooding in February 2004, and in the eastern Bay of Plenty after flooding in July 2004.
For the lower North Island event, MAF received 756 applications for assistance totalling $42 million. In the eastern Bay of Plenty as at 30 April, 171 applications were received totalling $2.24 million.
Administration costs in managing both ARPs this financial year was $1.333 million. Total administrative costs for the eastern Bay of Plenty flood were $201,000 - this includes the costs of the Agricultural Recovery Facilitators and the Assessment Committee.
MAF has also reported and advised on other larger events including two hail storms and localised flooding in coastal Wairarapa and the western Bay of Plenty.
Performance Measures and results
- Approved projects under the Sustainable Farming Fund are successfully administered by MAF.
A further 60 projects were approved for grants during the fifth funding round of the Sustainable Farming Fund. These approvals bring the total number of projects funded in the life of the Fund to date to 330.
All projects operating during the year were monitored for progress against the agreed work programmes and budgets. This monitoring involved a combination of regular progress and financial reporting required in terms of contract conditions and contact and supervision from Sustainable Farming Fund Project Advisers.
Grant payments are subject to satisfactory performance.
A further level of scrutiny and review was provided by a third party Performance Validation Programme that reviewed a sample of projects. The main purpose of the Performance Validation Programme relates to Assurance and Accountability in the use of grant funds. Incidental to this main purpose the Performance Validation process also identifies opportunities for new partnerships and extension activity. These opportunities will add value to SFF and maximise benefits to the rural community.
An external evaluation of the Fund's progress was also completed during the year.
The reviewers concluded:
- The benefits within individual projects are multi-dimensional with economic, environment and social benefits in many cases being generated.
- Potential economic return to GDP (or farm-gate production) from a selected group of projects is in the range of NZ$330 million to NZ$530 million per annum, if all potential developments proceed.
- The project groups have also contributed actual and potential environmental benefits. Many of these can be quantified, though not necessarily monetised.
- The realisation of these benefits will require further investments and other resources to enable or facilitate post project adoption.
These conclusions are directing the development of a programme to ensure technologies and results from individual projects are used for wider benefit.
Financial Performance of Contract, Grant and Asset Management
| Main | Supp | |||
|---|---|---|---|---|
| Actual | Estimates | Estimates | Actual | |
| June 2004 | June 2005 | June 2005 | June 2005 | |
| $(000) | $(000) | $(000) | $(000) | |
| 3,082 | Revenue Crown | 3,168 | 4,852 | 4,674 |
| 21 | Revenue Other | 20 | 28 | 20 |
| 3,103 | Total Revenue | 3,188 | 4,880 | 4,694 |
| 2,890 | Total Expenses | 3,188 | 4,880 | 4,278 |
| 213 | Surplus/(Deficit) | - | - | 416 |
Contestable Services
This output class covers the subleasing of surplus accommodation owned or leased by the Ministry and the cost recovery of associated shared or in-house services.
Financial Performance of Contestable Services
| Main | Supp | |||
|---|---|---|---|---|
| Actual | Estimates | Estimates | Actual | |
| June 2004 | June 2005 | June 2005 | June 2005 | |
| $(000) | $(000) | $(000) | $(000) | |
| - | Revenue Crown | - | 2,037 | 2,037 |
| 1,567 | Revenue Other | 1,058 | 1,924 | 1,837 |
| 1,567 | Total Revenue | 1,058 | 3,961 | 3,874 |
| 559 | Total Expenses | 1,058 | 4,339 | 3,233 |
| 1,008 | Surplus/(Deficit) | - | (378) | 641 |
Contact for Enquiries
Strategy and Performance Group
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0738
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