Service Performance
This section describes the groups of outputs that MAF is funded to deliver and reports how we performed in delivering them
Key to indicators
Vote Agriculture & Forestry
The output expenses within Vote Agriculture and Forestry contribute to MAF achieving the following intermediate outcomes:
- Policies and interventions to foster innovation and growth in the sector.
- Effective and efficient regulatory regimes for the sectors.
- Enhanced prosperity for Maori engaged 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.
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 covers analysis and decision-making support underpinning policy advice to Ministers and the Government in relation to the sector. It includes analysis and advice on legislation, institutional arrangements, and on policy and operational initiatives in relation to the sector, rural communities and other stakeholders. The focus is on sustaining and enhancing the economic contribution of this sector to New Zealand, and on the economic, environmental and cultural sustainability of the sector, of their land, water and genetic resources, and of the communities dependent 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 formed the basis for the Policy peer review system which applied to all ministerial correspondence and policy advice drafted by the group. Feedback from Ministers also reflected whether policy advice conformed to the criteria - no concerns or issues with the policy advice were raised. Although the Minister of Agriculture and Forestry generally prefers to note performance comments on ministerial correspondence, this year his comments were mainly verbal and were discussed with the Policy Leadership Team as appropriate.
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 2006/07 Output Plan.
We completed the work in the prioritised work programme as agreed, reporting weekly on achievements and pressing issues. 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. Priority issues were discussed with Ministers as part of the regular officials' meetings.
Our Policy group has worked on greater programme alignment with the refinement of an internal prioritisation and resource allocation process. The group also reviewed the 2007/08 Output Plan to improve the alignment between the Statement of Intent, Policy Strategic Plan and Output Plan. This review contributes to improved planning and resource allocation within MAF Policy.
Financial Performance
| Actual June 2006 $(000) |
Main Estimates June 2007 $(000) |
Supp Estimates June 2007 $(000) |
Actual June 2007 $(000) |
|
|---|---|---|---|---|
| 19,432 | Revenue Crown | 24,647 | 23,853 | 22,089 |
| 294 | Revenue Other | 161 | 278 | 171 |
| 19,726 | Total Revenue | 24,808 | 24,131 | 22,260 |
| 19,530 | Total Expenses | 24,808 | 24,131 | 22,220 |
| 196 | Surplus/(Deficit) | - | - | 40 |
Animal Welfare
This involves setting standards for animal welfare complying with the Animal Welfare Act 1999 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 1999 and are in accordance with priorities set out in conjunction with NAEAC and NAWAC.
100 percent of standards prepared complied with the Animal Welfare Act 1999. Relevant information relating to animal welfare standards was documented in the operational plans of both NAEAC and NAWAC and recorded in the committees' meeting minutes. The Code of Welfare for Companion Cats was issued on 1 March 2007, the Code of Welfare for Deer on 17 May 2007 and the Draft Code of Welfare for Dairy Cattle was publicly consulted on from 4 November to 19 December 2006.
Performance Measure and results:
100 percent of complaints received are recorded and where requested acknowledged.
100 percent of animal welfare complaints received was recorded in the Compliance and Enforcement Investigation Database. A total of 686 animal welfare complaints were received or referred to the MAF Compliance and Enforcement Group over the year. Where a complaint was not received directly by the animal welfare complaints co-ordinator a complaint acknowledgement form was forwarded to the complainant with the reference number. Each complainant was also notified of the result of MAF's response. Where the person making the complaint wished to remain anonymous this fact was recorded on the particular complaint file when the matter was inactivated.
Performance Measure and results:
Complaints investigated in priority order in accordance with the MAF Compliance and Enforcement priority grading framework.
With the exception of one grade 1 complaint, all of the 686 animal welfare complaints received were investigated in priority order in accordance with the MAF Compliance and Enforcement priority grading framework. One grade 1 complaint could not be responded to due to the volume of other matters the Inspector was dealing with at the time.
All animal welfare complaints received were graded based on the information gathered from the person providing the information or making the complaint. An assessment as to the seriousness of the breach was then made and the matter prioritised as either:
- Priority 1 - response required within 12 hours (20 in 2006/07)
- Priority 2 - response required with seven days (415 in 2006/07)
- Priority 3 - response when able to attend post the seven days (251 in 2006/07)
Because of the high number of responses required and the limited resources the group has to call on, priorities graded 2 and 3 are further prioritised within the Compliance and Enforcement Group subset of priorities.
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.
100 percent of completed prosecution actions was successful. Nine defendants were prosecuted under the provisions of the Animal Welfare Act 1999. A further 20 defendants are currently before the courts awaiting hearing and will be reported in next year's Annual Report. Our Compliance and Enforcement Group tracked all prosecutions prepared and progressed through the courts and recorded them in the Group's operational database.
Performance Measure and results:
All enforcement activity carried out within the parameters of a compliance and enforcement “best practice” environment.
We carried out all our enforcement activity within the parameters of a compliance and enforcement “best practice” environment. Our Compliance and Enforcement Group developed an operational workflow programme ensuring process consistency for all the compliance and enforcement areas it administers; an audit system is incorporated within the workflow to provide proof that “best practice” processes are being followed. The workflow is linked directly to a comprehensive legal and practice manual allowing enforcement officers and investigators to access this support both via their home base and when operating remotely. Each month we electronically update the manual, along with its legal content (statutes, rules and legal precedents), to ensure parties operating within the enforcement environment have access to the latest legal provisions and “best practice” processes.
Financial Performance
| Actual June 2006 $(000) |
Main Estimates June 2007 $(000) |
Supp Estimates June 2007 $(000) |
Actual June 2007 $(000) |
|
|---|---|---|---|---|
| 2,567 | Revenue Crown | 2,536 | 2,887 | 2,887 |
| 24 | Revenue Other | 20 | 25 | 25 |
| 2,591 | Total Revenue | 2,556 | 2,912 | 2,912 |
| 2,587 | Total Expenses | 2,556 | 2,912 | 2,908 |
| 4 | Surplus/(Deficit) | - | - | 4 |
Administration of Indigenous Forestry Provisions
This 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 Forest Act. The administration of the Crown's undertakings with respect to the preparation and funding of Sustainable Forest Management Plans on South Island Landless Natives Act land is also a function of this purpose.
Performance Measure and results:
All requirements of Part IIIA of the Forests Act are complied with.
The purpose of Part lllA of the Forests Act is to promote the sustainable forest management of indigenous forest land. MAF's activities complied with all administrative requirements of this Part of the Act including enforcement in instances of non-compliance. The administrative functions carried out by our Indigenous Forestry Unit (IFU) fall under the headings below:
SUSTAINABLE FOREST MANAGEMENT (SFM) PLANS AND PERMITS: No plans were approved for the year but we approved 29 permits, with the total number of approvals (plans and permits) now at 613. This brings the total area of the privately-owned indigenous forest estate under plans and permits to 122,529 hectares, taking into account the 6,150 hectares previously subject to permits since expired. We approved 46 annual logging plans for registered plans and permits along with 182 minor milling statements and 18 personal use harvesting and milling approvals for timber from other areas. The depressed state of the industry continued to negatively impact recruitment of forests under plans and permits and the volume harvested. 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 that landowners are benefiting from a generally buoyant pastoral economy. We reviewed the Standards and Guidelines for SFM and
Performance Measure and results:
All requirements of Part IIIA of the Forests Act are complied with.
published the third edition, incorporating changes to requirements for permits and sawmill controls from the 2004 amendments to the Forests Act and findings from our indigenous forest operational research project into the updated Standards and Guidelines.
SOUTH ISLAND LANDLESS NATIVES ACT 1906 (SILNA) PACKAGE: Nine draft sustainable forest management plans (involving nine sections) were prepared for the Office of the Māori Trustee through the SILNA voluntary package. One section has since been partially harvested. The remaining plans are currently being considered by the trustees on behalf of the owners. The Office of the Māori Trustee has contracted the IFU to draft an additional seven plans relating to about 1,000 hectares which demonstrates further interest by a number of SILNA owners in potential opportunities provided by sustainable forest management. The plans all relate to predominantly silver beech forest in Western Southland.
SAWMILL CONTROLS: This year 197 sawmills registered to mill indigenous timber (compared with 250 the previous year). The volume milled was 14,000 cubic metres of logs (provisional).
EXPORT CONTROLS: 57 consignments of indigenous forest produce (sawn timber and salvaged stumps and roots) were exported. This was comparable with the previous year.
AUDIT AND COMPLIANCE: We appointed a Senior Investigations Officer to the IFU to lead investigations and prepare and collate evidence for prosecution (cases managed by MAF's Compliance and Enforcement Prosecution Team). 19 matters were referred for investigation. We successfully completed one prosecution under the Forests Act in relation to illegal milling and other investigations resulted in 24 charges against six people and four companies (currently before the court). We referred 15 recommended charges to MAF's prosecution team. About $300,000 is held in trust from proceeds of seized timber sales, pending the outcome of matters. Substantial costs have been assessed for current prosecutions and will be applied for. These charges mainly relate to substantial over-harvest of existing approvals and illegal milling. However, we issued formal warnings in a number of investigations where the breaches were minor.
Financial Performance
| Actual June 2006 $(000) |
Main Estimates June 2007 $(000) |
Supp Estimates June 2007 $(000) |
Actual June 2007 $(000) |
|
|---|---|---|---|---|
| 1,882 | Revenue Crown | 2,712 | 1,995 | 1,824 |
| 53 | Revenue Other | 44 | 62 | 42 |
| 1,935 | Total Revenue | 2,756 | 2,057 | 1,866 |
| 1,922 | Total Expenses | 2,756 | 2,057 | 1,855 |
| 13 | Surplus/(Deficit) | - | - | 11 |
Contract, Grant and Asset Management
This covers the management of certain Crown forest and land assets, and the Crown's participation in contracts and agreements with others in forestry and agriculture, including 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 the quality parameters specified in internal Crown Forestry standards. This was verified by an 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.
There were no assets sales this year. However, we surrendered 2,665 hectares from the following leases in accordance with individual lease variations previously approved by the Ministers of Finance, Forestry and Cabinet:
| Mangahauini | 42.05 |
| Parengarenga A | 1447.60 |
| Lake Taupo | 628.20 |
| Lake Rotoaira | 546.46 |
| Total | 2664.31 |
We finalised negotiations with the Pouto 2F Trust and the Te Whaiti-Nui-A-Toi Trust over respective lease variations to shorten the leases in line with Government policy. We continued to work with the Office of Treaty Settlements to prepare for the transfer of the Waipoua Forest assets to the Te Roroa Mana Whenua Trust. A formal offer was made to the Māori Trustee (representing the beneficial owners) for sale of the Crown's interest in Kahotea Y. The Lake Taupo and Rotoaira Trusts have advised they wish to make a bid for the Crown's interest in these forests in response to the Minister of Forestry's December 2006 invitation.
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.
Our management of the East Coast Forestry Project (the Project) complied with all of the requirements of the Grants Regulations and amendments, as the parameters for Project management. The area tended under Project grants was 3,864 hectares through 66 payments. Grantees received $1,710,338 in grant payments for planting and establishment or tending programmes completed to an acceptable standard. The area tended (pruned and thinned) dropped by 53 percent continuing to reflect the smaller forestry establishment programmes following the 2000 Project review, reducing the type of land qualifying for grants and the impact of cashflow constraints on a major participant in the Project.
We issued new forestry grant certificates for 20 programmes covering 950 hectares where landholding requirements were met. The total area under the Project has increased to 38,940 hectares covered by 287 grant certificates. The establishment area approved in new programmes in 2006 to be completed over the next three years decreased by 20 percent compared to 2005 primarily due to one of the Project's major participants not being able to progress forestry rights on the back of delays in implementing the Permanent Forest Sink Initiative.
The area under Project grants planted as forestry, wide spaced poplar and willow treatments or established as indigenous species reversion blocks increased by 965 hectares through 34 payments in 2006/07 to 32,631 hectares. Of this, 370 hectares was for planting or establishment in earlier years and 595 hectares in 2006. A further 314 hectares established in 2004 and 2006 is expected to receive Project grants in 2007/08 due to delays in covenants and remedial work to improve low tree survivals, taking planting and establishment in 2006 to 726 hectares. Six covenants were registered against relevant land titles to secure grant payments for indigenous species reversion treatments. The area established in 2006 rose by 35 percent compared to 2005 but continues to reflect continuing low forestry returns, high farming returns and a shortage of poplar and willow plant material.
The Project has now changed from a tendered grant to a published grant rate following the notification by the Gisborne District Council of a land use rule to require land owners to treat severely eroding hill country. The closing dates for applications were extended to 30 July 2007 to allow sufficient time to implement changes to the Project agreed by Government.
We continued to take 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. We have been receiving strong interest in the Project, reflecting the notification of the Gisborne District Council land use rule and the Permanent Forest Sink Initiative which can be used on land receiving Project grants. This signals a future lift in establishment from 2008 onwards.
Performance Measure and results:
The Crown's obligations under the irrigation sale agreements are met.
Obligations stemming from the sale of irrigation assets in the early-1990s have been progressively resolved as the opportunities arise. We continued to work toward reducing the Crown's long-term liabilities relating to post irrigation activities. Progress on this work is strongly influenced by the pace of negotiation, which is largely reliant on the parties the Crown is negotiating with, many of whom do not have strong incentives to complete arrangements. The Crown interests in the land under and surrounding Lakes Monuwai and Waingara, which provide reservoir storage for the Kerikeri Irrigation Company, have been concluded.
We have also concluded negotiations of the sale of five Crown Mining Privileges. Agreements have been signed by both Crown and individuals and settlement of individual agreements will start. We began preliminary negotiations with the current users of the Begg Scheme - this Crown Mining Privilege is the last remaining irrigation scheme. Negotiation of this historic agreement can only occur with the current water users.
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 four government-approved programmes were all delivered in accordance with their agreed work programmes. These programmes were:
LOWER NORTH ISLAND AGRICULTURAL RECOVERY PROGRAMME. The last forestry claims were accepted in September 2006. We have now settled all claims and completed the recovery programme on 30 June 2007.
THE 2006 CANTERBURY SNOW RECOVERY PROGRAMME was completed in March 2007 following a debrief on the scheme.
ASSISTANCE FOR FLOODING IN THE LOWER NORTH ISLAND in July 2006 (Wairarapa and South Taranaki) was finalised following a debrief in May 2007.
ASSISTANCE FOR FLOODING IN NORTHLAND (March 2007) was completed in June 2007.
In May 2007, we began a programme of assistance for farmers affected by the drought on the East Coast of the North Island. We carried out a public consultation programme on Government assistance policy following an adverse event or natural disaster in October 2006 and Cabinet signed off a new assistance policy in March 2007.
Performance Measure and results:
Approved projects under the Sustainable Farming Fund are effectively administered by MAF.
To ensure effective administration of approved projects, our Sustainable Farming Fund worked with the project teams before contracting to ensure realistic work programmes, milestones and budgets were in place. We also sought written confirmation of co-funding prior to contracting. Four project advisers maintained on-going contact with individual project teams. An independent validation programme provided an evaluation of ten percent of individual projects annually. This process has predominantly resulted in positive reports. It has also provided useful insights, at a detailed level, resulting in constructive recommendations for change to specific project components.
We administered $9.5 million of grant funding spread across about 250 live projects at any one time. Projects were reported on every four months, at which time requests for payments were considered and, where appropriate, approved by our Project Adviser and Fund Manager. Payments were usually made in arrears and upon evidence of completion of contracted milestones.
Financial Performance
| Actual June 2006 $(000) |
Main Estimates June 2007 $(000) |
Supp Estimates June 2007 $(000) |
Actual June 2007 $(000) |
|
|---|---|---|---|---|
| 4,131 | Revenue Crown | 3,419 | 3,625 | |
| 29 | Revenue Other | 33 | 83 | 72 |
| 4,160 | Total Revenue | 3,452 | 3,708 | 3,691 |
| 3,810 | Total Expenses | 3,452 | 3,708 | 3,383 |
| 350 | Surplus/(Deficit) | - | - | 308 |
Contestable Services
This covers the subleasing of surplus accommodation owned or leased by the Ministry and the cost recovery of shared or in-house services.
This is essentially a financial (cost recovery) transaction and the key performance measure is the financial performance summarised below.
Financial Performance
| Actual June 2006 $(000) |
Main Estimates June 2007 $(000) |
Supp Estimates June 2007 $(000) |
Actual June 2007 $(000) |
|
|---|---|---|---|---|
| - | Revenue Crown | - | - | - |
| 2,162 | Revenue Other | 2,000 | 2,200 | 2,141 |
| 2,162 | Total Revenue | 2,000 | 2,200 | 2,141 |
| 2,155 | Total Expenses | 2,000 | 2,200 | 2,140 |
| 7 | Surplus/(Deficit) | - | - | 1 |
Climate Change
This covers analysis and advice on sustainable land management and climate change including advice on managing deforestation, encouraging afforestation and reducing agriculture greenhouse gas emissions. This work will also link with other sustainable land management initiatives and Government's wider climate change work. This will include advice on possible legislation and operational initiatives and partnerships with the land-based sectors.
Performance Measure and results:
Undertake a consultation process with stakeholders and Māori on Sustainable Land Management and Climate Change: Options for a Plan of Action.
We consulted the public, including Māori, on Sustainable Land Management and Climate Change: Options for a Plan of Action from 18 December 2006 until 30 March 2007. This consultation consisted of 16 public meetings, 14 local government meetings, 13 hui and a range of one-on-one meetings with stakeholders and iwi. We analysed and reviewed the 1,233 submissions received and drafted a final report on the consultation. We also prepared interim reports for our lead policy analysts on key issues, ensuring that feedback from consultation was fed into analysis for developing the final policy package.
Performance Measure and results:
Develop policy options on a plan of action for the agriculture and forestry sectors to address climate change issues.
We developed a full set of voluntary, regulatory and priced based options for addressing climate change in the land management sectors. These were considered by Cabinet in October 2006 and included long term and shorter term measures to encourage the reduction of agriculture greenhouse gases, encourage afforestation and manage deforestation. These measures formed the basis of the discussion document on Sustainable Land Management and Climate Change: Options for a Plan of Action. This document also included options for addressing adaptation and business opportunities and how Government and the sectors could work together on climate change issues.
In parallel with the consultation process we also carried out policy work in the following areas:
- A joint policy document with MfE exploring the potential for measures under the Resource Management Act to control emissions and enhance carbon sinks;
- An in-depth feasibility study and business case on a Voluntary Greenhouse Gas Reporting System;
- A review of the effectiveness of nitrification inhibitors and their potential recognition in the New Zealand Greenhouse Gas Inventory;
- Further development on a forestry element of a potential New Zealand emission trading regime; and
- A report to Cabinet on forestry on Crown owned land for climate change mitigation.
The results of this work fed into the development of design options for a potential New Zealand Emissions Trading Regime and recommendations for a preferred policy package for sustainable land management and climate change.
Performance Measure and results:
Report back to Cabinet with the outcomes of consultation and preferred policy options.
We reported back to Cabinet on the feedback from consultation meetings and on the initial analysis of the submissions (as part of the document Climate Change Policy Options: Overview of Public Consultation) in May 2007. We were also due to report back on preferred policy options by the first Cabinet meeting post Budget 2007, however this was delayed to follow Cabinet consideration of core design issues for a possible New Zealand emissions trading regime to better align and sequence decisions. Implementing a New Zealand Emissions Trading Scheme will require additional sector-specific measures to address greenhouse gas mitigation.
Financial Performance
| Actual June 2006 $(000) |
Main Estimates June 2007 $(000) |
Supp Estimates June 2007 $(000) |
Actual June 2007 $(000) |
|
|---|---|---|---|---|
| - | Revenue Crown | - | 3,131 | 2,127 |
| - | Revenue Other | - | - | 3 |
| - | Total Revenue | - | 3,131 | 2,130 |
| - | Total Expenses | - | 3,131 | 2,124 |
| - | Surplus/(Deficit) | - | - | 6 |
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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