Service Performance

This section includes our statement of objectives and describes our service performance against these objectives.

Vote Agriculture and Forestry

Within Vote Agriculture and Forestry the output expenses 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 Māori engaged with, or participating in, the sectors.
Enhanced business environment for rural communities.
Maintained and enhanced market access for agricultural, horticultural, food and forestry products and reduced market distortions resulting from trade rules and market interventions.
Sustainability of agricultural, horticultural, food and forestry-related land, biological and water resource use.

Additionally, the output expense 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 output expense 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 – their land, water and genetic resources – and the communities that depend on them.

Performance Measure and results:
All policy advice will conform to the criteria set out in Schedule A of the SOI.

The criteria contained in Schedule A (page 69) forms the basis for the Policy peer review system which applies to all ministerial correspondence drafted by the group. Feedback from Ministers also reflects whether policy advice conforms with the criteria. In May 2006, the Minister of Agriculture and of Forestry indicated his preference for noting performance comments on Ministerial correspondence. We are working with his office to ensure these comments are captured. Verbal feedback from the Minister of Rural Affairs has indicated MAF is performing to a satisfactory to very good level. Three monthly meetings have been arranged with the Minister which will also help indicate whether the criteria for policy advice is being met.

Performance Measure and results:
Priority work is completed as agreed, or as subsequently amended by agreement, between the Minister and the Director-General via the 2005/06 Output Plan.

The work in our prioritised Work Programme was completed as agreed, with achievements and pressing issues reported on monthly. We consulted relevant Ministers in the development of the Statement of Intent and Output Plan to ensure the priorities contribute to Government goals and Ministerial requirements. Following the 2005 election, our Policy group worked with the Ministers and their offices to identify priority areas within the Ministerial portfolios – increasing clarification of the Ministers’ requirements for priority work.

Our Policy group prepared to implement its new organisational design near the end of the reporting year, to align with the Policy Strategic Plan and MAF Statement of Intent. The group has also worked on greater programme alignment with the introduction of an internal prioritisation and resource allocation process. The group is also planning a review of our 2007/08 Output Plan to improve the alignment between the Statement of Intent, Policy Strategic Plan and Output Plan. This review aims to contribute to improved planning and resource allocation within MAF Policy.

Financial Performance of Agriculture and Forestry Policy Advice

Actual June 2005 $(000)		Main Estimates June 2006 $(000)	Supp Estimates June 2006 $(000)	Actual June 2006 $(000)
18,563	Revenue Crown	24,060	21,989	19,432
108	Revenue Other	193	281	294
18,671	Total Revenue	24,253	22,270	19,726
18,552	Total Expenses	24,253	22,270	19,530
119	Surplus/(Deficit)	-	-	196

Animal Welfare

This output expense involves setting standards for animal welfare which comply with the Animal Welfare Act and covers investigation and where appropriate, prosecution of individuals and organisations who breach animal welfare legislation.

Performance Measure and results:
100 percent of animal welfare standards prepared comply with the Animal Welfare Act and in accordance with priorities set out in conjunction with NAEAC and NAWAC.

All standards prepared complied with the Animal Welfare Act 1999, the most significant being the Animal Welfare (Painful Husbandry Procedures) Code of Welfare 2005. This was issued under the Act to meet statutory deadlines for the expiry of related regulations and involved consultation between our Legal and Policy groups.

Standards complied with the strategic priorities defined in the National Animal Welfare Advisory Committee’s (NAWAC’s) and the National Animal Ethics Advisory Committee’s (NAEAC’s) Strategic and Operational Plans. Developing new codes of welfare is a priority set out by NAWAC. They approved new codes of welfare for cats and deer, to be recommended to the Minister for issue under the Act. Reviewing codes of ethical conduct and reviews of animal ethics committees by accredited reviewers are NAEAC priorities. Accordingly, one code of ethical conduct was reviewed by NAEAC and recommended for approval by MAF’s Director-General. Two special reviews of codes of ethical conduct and animal ethics committees were also carried out by accredited reviewers under the Animal Welfare Act 1999.

Performance Measure and results:
100 percent of complaints received are recorded and where requested acknowledged.

All complaints received were recorded in the Animal Welfare database and complainants were responded to other than in matters reported under “wishing to remain anonymous” category. 810 animal welfare complaints were received over the year. The volume of these complaints varies annually according to the climatic conditions experienced over the year – often high in volume throughout severe winters and during drought conditions. The majority of complaints received are directed through a designated animal welfare 0800 hotline managed by MAF. We grade all calls on confirmation of the complaint and plan an appropriate response. We also redirect a number of complaints to SPCA branches (and vice versa) for their attention, predominately due to the nature of the complaint.

Performance Measure and results:
Complaints investigated in priority order in accordance with the MAF Compliance and Enforcement priority grading framework.

All complaints were prioritised into a response category which best fitted the circumstances known at the time the complaint was received in accordance with the Compliance and Enforcement Group grading framework. Investigations were then carried out by MAF personnel in this priority order, although some complaints are passed on to other authorities (SPCA, NZ Police, local councils). Where seasonal demands exceed available capability, external animal welfare contractors are brought in to help manage the increased workload.

Performance Measure and results:
99 percent of prosecution actions lead to successful prosecutions (i.e. the courts finding in MAF’s favour); one percent allowed for Courts’ discretion to discharge without conviction in minor matters.

Sixty-seven percent of completed prosecution actions were successful. Of the 15 prosecution files under the Animal Welfare Act 1999, two were completed successfully, one was dismissed, seven are currently before court and four are currently being prepared by the Compliance and Enforcement Investigation Team. One application for an Enforcement Order was processed and was successful.
A priority system has been developed to help identify and differentiate between matters needing to be progressed through the courts and those which could be dealt with in other ways. The priority system considers factors such as the seriousness of event, willingness by parties to mitigate any wrongdoing, community principles, etc. If in doubt the matter is usually placed before the Court based on the requirements set out within the Solicitor General’s Guidelines 1992.

Financial Performance of Animal Welfare

Actual June 2005 $(000)		Main Estimates June 2006 $(000)	Supp Estimates June 2006 $(000)	Actual June 2006 $(000)
2,374	Revenue Crown	2,940	2,567	2,567
1	Revenue Other	-	20	24
2,375	Total Revenue	2,940	2,587	2,591
2,362	Total Expenses	2,940	2,587	2,587
13	Surplus/(Deficit)	-	-	4

Administration of Indigenous Forestry Provisions

This output expense involves the administration of Part IIIA of the Forests Act 1949 relating 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.

The administration of the Crown’s undertakings with respect to the preparation and funding of sustainable forest management plans on SILNA lands is also a function of this output expense.

Performance Measure and results:
All requirements of Part IIIA of the Forests Act are complied with.

The requirements of Part lllA of the Forests Act aim to promote the sustainable forest management of indigenous forest land. While recognising there was some non-compliance by the public which resulted in prosecutions, MAF’s activities complied with all requirements of this Part of the Act. The requirements fall under the headings below:

Sustainable Forest Management Plans

Three sustainable forest management plans (one was subsequently cancelled) and 18 sustainable forest management permits were approved bringing the total number of approvals to 607. This brings the total area under plans and permits to 119,679 hectares – an increase of 5.75 percent in the total area at the end of the previous year and 14 percent of the total privately-owned indigenous forest estate. This takes account of 1,555 hectares previously subject to permits that have since expired. Thirty-seven annual logging plans were approved for registered plans and permits along with 183 minor milling statements for indigenous timber from other forest areas. The recruitment of indigenous forest under plans and permits and the volume of timber harvested under annual logging plans were lower than anticipated as a result of a continuing depressed state of the industry. This reflects reduced demand for indigenous timber due to competition from cheaper imported timber and furniture, much of which is not sourced from sustainably managed forests, and landowners benefiting from a relatively buoyant pastoral economy.

The Standards and Guidelines for sustainable management are being reviewed as a result of changes to requirements for sustainable forest management permits and annual logging plans, brought about by the 2004 Forests Act Amendments. Findings from (MAF) indigenous forest operational research projects will also be incorporated into the updated Standards and Guidelines.

SILNA Package

Nine draft sustainable forest management plans are in preparation for the Office of the Māori Trustee through the SILNA voluntary package. This demonstrates interest by some SILNA owners to investigate the opportunities provided by sustainable forest management of SILNA land. The plans relate to 1,158 hectares of silver beech forest in Western Southland.

Sawmill Controls

Two hundred and fifty registered sawmills (compared with 268 the previous year) milled 20,000 cubic metres (provisional) of logs. The volume milled is 19 percent down on the previous year as a result of the difficulties currently facing the industry.

Export Controls

Fifty-three consignments of indigenous forest produce (sawn timber and salvaged stumps and roots) were exported. This was down 37 percent on the previous year as a result of the downturn in the industry and competition in the international market place.

Audit and Compliance

Six prosecutions for over-harvesting approved permit volumes and illegal milling were successful with four further cases pending as at the close of the year. The successful prosecutions were the result of an increased enforcement effort following the appointment of a temporary investigations officer to MAF’s Indigenous Forestry Unit. One prosecution resulted in fines and costs amounting to $56,000 and it is expected this will send a clear message to the industry as to the seriousness of offences under the Forests Act. MAF has created a full time Senior Investigator position to lead enforcement of the Forests Act. Forestry prosecutions are managed by MAF’s Biosecurity New Zealand Compliance and Enforcement Prosecution Team on behalf of the Forestry enforcement arm.

Financial Performance of Administration of Indigenous Forestry Provisions

Actual June 2005 $(000)		Main Estimates June 2006 $(000)	Supp Estimates June 2006 $(000)	Actual June 2006 $(000)
1,796	Revenue Crown	2,426	1,882	1,882
38	Revenue Other	50	44	53
1,834	Total Revenue	2,476	1,926	1,935
1,556	Total Expenses	2,476	1,926	1,922
278	Surplus/(Deficit)	-	-	13

Contract, Grant and Asset Management

This output expense covers the management of certain Crown planted forestry assets and the Crown’s participation in contracts and agreements with others in forestry and agriculture. It includes arrangements covered by legislation and regulations for which the Crown retains an ownership interest or ongoing obligation.

Performance Measure and results:
Compliance of all physical and financial activity with the Crown Forestry quality management system.

All Crown Forestry operations met quality parameters as specified in the internal Crown Forestry standards and documented in the Crown Forestry quality management system. This was verified by independent audit of operations carried out in a sample of forests.

Performance Measure and results:
Compliance of all asset sales and lease variations with policy and approvals.

All asset sales and lease variations complied with Cabinet policy and lease variation approvals as evident in the fully executed Deeds of Surrender and Partial Surrender.

Following clear felling, Crown Forestry surrendered 1748 hectares of land from two leases. Leased by the Crown from Māori, the surrenders returned the land to Trusts who 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. The 681 hectare Otakanini Topu lease was fully surrendered and negotiations with the Pouto 2F Trust continued and may lead to a variation of this lease. Other work continued on areas of Crown Forest Land in preparation of their eventual sale or transfer under a Treaty of Waitangi settlement (Waipoua, Te Manawa O Tuhoe, Lake Taupo, Wanagnui, Manutahi, Horohoro and Whakatu).

Performance Measure 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.

The management of the East Coast Forestry Project complied with the requirements of the Grants Regulations and amendments. The regulations set out the parameters under which the Project was managed during 2005/06. The area tended under Project grants was 8,195 hectares through 68 payments. Grantees have received $2,050,375 in grant payments for planting and establishment or tending programmes completed to an acceptable standard. The area tended (pruned and thinned) dropped by 21 percent reflecting the smaller forestry establishment programmes following the 2000 East Coast Forestry Project review which reduced the type of land qualifying for grants.

New forestry grant certificates were issued for 12 programmes covering 1190 hectares where landholding requirements were met. The total area under the East Coast Forestry Project has increased to 37,990 hectares covered by 267 grant certificates. There were five grant approval transfers reflecting the sale of grant areas to new owners. The establishment area approved in new programmes to be completed over the next three years increased by 78 percent compared to 2004/05 in spite of continuing low forestry returns and high farming returns. This was due to greater effort in promotion and advocacy, and increasing interest in the indigenous species reversion for erosion control. MAF took a more proactive approach to offset the potential reduction in interest in the Project, including advertising, articles for local media and ratepayer publications, and through a one to one on-site approach with landowners affected by erosion problems.

The area under Project grants that were planted as forestry, wide spaced poplar and willow treatments or were established as indigenous species reversion blocks increased by 519 hectares through 32 payments in 2005/06 to 31,812 hectares. Of this, 95 hectares was for planting or establishment in earlier years and 424 hectares in 2005. A further 345 hectares established in 2004 and 2005 is expected to receive Project grants in 2006/07 due to delays in covenants and remedial work to improve low tree survivals, taking 2005 planting and establishment to 673 hectares. Three covenants have been registered against relevant land titles to secure grant payments for indigenous species reversion treatments. The area established in 2005 dropped by 56 percent compared to 2004 reflecting continuing low forestry returns, high farming returns and a shortage of poplar and willow plant material.

Performance Measure and results:
The Crown’s obligations under the irrigation sale agreements are met.

Work was directed towards reducing the Crown’s long-term liabilities in relation to past irrigation activities. Obligations stemming from the sale of irrigation assets in the early 1990s have been progressively resolved and are reported in the Scheme files. Progress in this work is strongly influenced by the pace of negotiation, which is largely in the hands of the parties the Crown is in negotiation with, many of whom do not have strong incentives to complete arrangements.

Negotiations leading to the sale of five Crown Mining Privileges are well advanced with settlement expected during the 2006/07 year. 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 other than with the current users. In the case of the Beggs Scheme any agreement of terms is unlikely in the medium term. The sale and transfer of the Crown’s interests in the land under and surrounding Lakes Manuwai and Waingaro, which provide reservoir storage for the Kerikeri Irrigation Company, will be completed in August 2006.

Performance Measure and results:
Government-approved programmes for the relief of natural disasters and adverse events are delivered in accordance with agreed work programmes.

The two government-approved programmes were both delivered in accordance with their work programmes, as recorded on claim files. The recovery schemes have been administered as agreed through to completion for the Bay of Plenty Agricultural Recovery Programme, and completion of the agricultural component of the lower North Island scheme.

The two programmes were:

Bay of Plenty Agricultural Recovery Programme:

Claims under this scheme finished on 16 December 2005, with the exception of seven farms around Matata who had been granted an extension through to 30 April 2006. All claims have been settled and the programme wound up as at 30 May 2006.

Lower North Island Agricultural Recovery Programme:

Agricultural claims finished on 30 September 2005. All these, including claims which went to appeal have now been settled, and all agricultural claim committees have been stood down. Forestry claims continue through to 30 September 2006.

Performance Measure and results:
Approved projects under the Sustainable Farming Fund are effectively administered by MAF.

To ensure effective administration of approved projects, the Sustainable Farming Fund works with the project teams before contracting, ensuring realistic work programmes, milestones and budgets are in place. Four project advisers maintain on-going contact with individual project teams. An independent validation programme provides an evaluation of 10 percent of individual projects annually and has predominantly resulted in positive reports. It has also provided useful insights, at a detailed level, resulting in constructive recommendations for change to components of specific projects.

MAF administers $9.5 million of grant funding spread across about 300 live projects at any one time. Project quarterly reports and requests for payments are approved by the Project Adviser and Fund Manager.

Financial Performance of Contract, Grant and Asset Management

Actual June 2005 $(000)		Estimates June 2006 $(000)	Estimates June 2006 $(000)	Actual June 2006 $(000)
4,674	Revenue Crown	4,033	4,131	4,131
20	Revenue Other	36	33	29
4,694	Total Revenue	4,069	4,164	4,160
4,278	Total Expenses	4,069	4,164	3,810
416	Surplus/(Deficit)	-	-	350

Contestable Services

This output expense 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

Actual June 2005 $(000)		Main Estimates June 2006 $(000)	Supp Estimates June 2006 $(000)	Actual June 2006 $(000)
2,037	Revenue Crown	-	-	-
1,837	Revenue Other	1,170	2,000	2,162
3,874	Total Revenue	1,170	2,000	2,162
3,233	Total Expenses	1,170	2,000	2,155
641	Surplus/(Deficit)	-	-	7

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 Contact this person