OC220756

14 September 2022

Harry Peterson
[FYI request #19806 email]

Tēnā koe Harry

I refer to your request, transferred to Te Manatū Waka Ministry of Transport on
24 August 2022, requesting the following under the Official Information Act 1982 (the Act):

“Al  documents and Cabinet Papers mentioning Whangārei in relation to
infrastructure and health funding decisions from the date beginning October 2017”
Five documents have been identified as within scope of your request. One of these
documents is being released to you in full. Two documents have been refused under section
18(d) of the Act because they are already publicly available. Two are being released to you
with some information withheld under the following sections of the Act:

9(2)(a)
to protect the privacy of natural persons
9(2)(i)
to enable a Minister of the Crown or any public service agency or
organisation holding the information to carry out, without prejudice or
disadvantage, commercial activities
9(2)(j)
to enable a Minister of the Crown or any public service agency or
organisation holding the information to carry on, without prejudice or
disadvantage, negotiations (including commercial and industrial
negotiations)

With regard to the information that has been withheld under Section 9 of the Act, I am
satisfied that the reasons for withholding the information at this time are not outweighed by
public interest considerations that would make it desirable to make the information available.

More details about these documents and decisions we have taken on their release are
outlined in Annex 1. This also includes weblinks to the publicly available documents
mentioned above.

Finally, one additional document has been identified as within scope of your request. Work
on this document, however, was led by the Ministry of Business, Innovation and
Employment (MBIE). As such, it is our understanding that MBIE wil  be providing you with a
decision on the release of this document as part of its response to your request. This paper
is:
  •  Provincial Growth Fund: Upper North Island Supply Chain Strategy and Northland
Rail Investment

You have the right to seek an investigation and review of this response by the Ombudsman,
in accordance with section 28(3) of the Act. The relevant details can be found on the
Ombudsman’s website www.ombudsman.parliament.nz

The Ministry publishes our Of icial Information Act responses and the information contained
in our reply to you may be published on the Ministry website. Before publishing we wil
remove any personal or identifiable information.

Nāku noa, nā

Hilary Penman
Manager, Ministerial Services

Annex 1 - Document Schedule
# Document
Decision on release
1
New Zealand Upgrade
Refused under Section 18(d).
Programme: An update on

Transport Projects: CAB-21-SUB- The document can be found here:
0192
www.nzta.govt.nz/assets/Roads-and-Rail/20-
011/oc200406-update-on-the-transport-aspects-
of-the-nz-upgrade-programme-briefing-paper-
20200525.pdf
2
Northland Shipyard and Floating
Released with some information withheld under
Dry Dock
Sections 9(2)(a), 9(2)(i) and 9(2)(j).
3
Options for Supporting Regional
Refused under Section 18(d).
Air Connectivity

The document can be found here:
www.transport.govt.nz/assets/Uploads/OIA-
response/OIARequestReRegionalAirConnectivit
yAirwaysNZStructureAndIncentivesAndAirNavig
ationServices.pdf
4
Briefing: Joint Venture Airports:
Released with some information withheld under
Appropriation Issues
Sections 9(2)(a).
5
Speaking points: Joint Venture
Released in full.
Airports: Appropriation Issues

Document 2
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BRIEFING
10 March 2021
OC210115
Hon Michael Wood
Action required at your earliest convenience
Minister of Transport
NORTHLAND SHIPYARD AND FLOATING DRY DOCK
Purpose
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To update you on the Northland shipyard development and dry dock proposals.
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Key points
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•
The Provincial Development Unit (PDU), a branch within MBIE which manages the
Provincial Growth Fund (PGF), has led work on a proposal to construct a floating dry
dock at Northport since 2017. The Ministry of Transport has had minimal involvement
in this project.
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•
In 2018 and 2019 the PDU were considering two proposals:
s 9(2)(i)
;
o
a PGF application from Northport Ltd to fund a business case to understand the
type of infrastructure required to accommodate a floating dry dock and shipyard.
•
INFORMATION
The Northport Ltd application was approved for $1.3m in mid-2019, and Northport
delivered an interim report to the PDU in October 2019. Despite high uncertainty for
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Crown funding, Northport have been continuing with their consenting process to
enable them to expand and develop their site. This expansion would have the
flexibility to accommodate a dry dock, shipyard facilities and general port operations.
•
The New Zealand Defence Force (NZDF) are supportive of having a larger dry dock
in New Zealand, particularly if it could dock all their vessels and reduce their reliance
on foreign dry docks for ship maintenance.
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•
MBIE officials have not provided Ministers with any formal advice on these projects
since July 2019, effectively halting the projects until future decisions are taken.
•
A key roadblock to progress has been the availability of funding, whether Crown or
private. If this project interests you, we could work further with the relevant agencies
to support progress. A Government-led business case process would likely need to
be undertaken to get a view on the public benefits of a dry dock and how it might align
with broader Government objectives.
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Background
Timeline of key events
1.
Over the Christmas break, you read the $1.3m PGF funded interim report on the
Northland Shipyard and Floating dry dock, and subsequently commissioned the
Ministry to provide an update on the projects. These projects have been led by the
Provincial Development Unit (PDU), and have had very limited involvement from the
Ministry of Transport despite their transport implications.
2.
PDU informed us that various reports since 2012 have suggested building a modern
dry dock at various alternate locations to the existing Devonport dry dock, such as
Northport, Port Taranaki in New Plymouth, Shakespeare Bay near Picton, and Port
Chalmers near Dunedin.
3.
We understand from Northport that the New Zealand Shipping Federation (NZSF)
and KiwiRail approached Northport about the concept of a New Zealand owned and
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operated dry dock in Northland at least 6 years ago. Around this time in 2015, the dry
dock idea was included in Northport’s ‘Vision for Growth’ 30-40 year port expansion
strategy. Northport’s position is that they are happy to be the landlord of a dry dock
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but not the operator.
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4.
Shortly after the 2017 Election, Northport presented its strategy to Hon Shane Jones
(former Minister of Regional Economic Development, Associate Transport) and Rt.
Hon Winston Peters (Deputy Prime Minister). At the time, the dry dock proposal in
particular gained political support as a way to enhance Northland’s regional economy
and support job growth in the region. The National Party have also publicly stated its
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support for the proposal.
5.
In April 2018,
s 9(2)(i)
s 9(2)(i)
and NZDF Chief Joint Defence Services
met with Northport to discuss the potential for a shipyard and dry dock facility at the
Northport. The concept was discussed with Northport directors and it was agreed that
Northport would provide as much assistance to this project as possible
6.
In July 2019, Regional Economic Development Delegated Ministers (RED Ministers)2
were briefed on two proposals relating to a dry dock in Northland. s 9(2)(i)
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7.
The second proposal came from Northport, seeking PGF funding for a business case
and engineering design study to understand what type of infrastructure would be
required to accommodate the installation and ongoing operation of a float dry dock as
part of its wider growth strategy. RED Ministers approved this application for $1.3
million in mid-2019, and an interim report delivered by Northport to the PDU in
October 2019.
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8.
In April 2020, Northport submitted an application for funding its shipyard works to the
Crown Infrastructure Partners as part of the Government’s economic response to
COVID-19. The project cost for the shipyard development was estimated to be s 9(2)(i)
s 9(2)(i) and would enable a dry dock to be acquired at a future date. The Ministry
understands it never made it to the Crown Infrastructure Partners shortlist of projects.

s 9 s 9(2)(i)

2 RED Ministers were Hon Shane Jones (Regional Economic Development), Hon Grant Roberston (Finance),
Hon Phil Twyford (Transport) and Hon David Parker (Economic Development).
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9.
Northport have been provided a cost estimate that a new floating dry dock would cost
approximately s 9(2)(i)
, which would be required to
enable and support the operation of a new dry dock.
10.
The content of this briefing summarises advice provided to us from the PDU, the
NZDF and our conversations with Northport.
What is a dry dock?
11.
A dry dock is a narrow basin or vessel that can be flooded to allow a ship to be
floated in, then drained to allow a ship to come to rest on a dry platform. Dry docks
are used for the construction, maintenance, and repair of ships, boats, and other
watercraft. Floating dry docks can be located away from the port and are not fixed to
the harbour, unlike graving docks which are fixed in place along the harbour.
12.
A shipyard (also called a dockyard) is a place where ships are built and repaired.
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Larger shipyards contain many specialised cranes, dry docks, warehouses and
painting facilities.
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13.
As per SOLAS3 requirements, all merchant vessels require a complete survey of the
hull in a dry dock twice within 5-year period and an intermediate survey within not
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more than 36 months.
Example of a floating dry dock in use
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INFORMATION
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Drivers for supporting a new dry dock facility in New Zealand
14.
New Zealand’s largest dry dock, Calliope graving dock, is situated at Devonport Naval
Base, and is operated by Babcock under contract to the Royal New Zealand Navy
(RNZN). At the time of its construction in 1888, it was the largest dry dock in the
Southern Hemisphere.
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3 The SOLAS Convention – International Convention for the Safety of Life at Sea. It is administered by the
International Maritime Organisation (IMO) and is generally regarded as the most important of all international
treaties concerning the safety of merchant ships. The first version was adopted in 1914, in response to the Titanic
disaster.
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The Royal New Zealand Navy and many domestic operators cannot service their vessels
locally
15.
The New Zealand Defence Force (NZDF) has no plans to significantly invest in
Devonport dry dock within the next 10 years. While it remains fit for purpose to
service most of its fleet, our RNZN vessels are increasingly too big to fit into the dry
dock and have to travel abroad for maintenance.
16.
For example, Devonport’s Calliope graving dock is not be able to service the HMNZS
Canterbury, HMNZS Manawanui, and the RNZN’s new vessel, the HMNZS Aotearoa.
Ships that cannot be serviced in Devonport must be serviced elsewhere, typically
Singapore or Australia. This presents a strategic risk to key assets being deployed
outside of New Zealand and also presents a burden on transit time, productivity, and
financial cost to the Navy.
17.
The NZDF have indicated to us that they are supportive of New Zealand having a
larger dry dock which can service its assets. At this time, they are not willing to
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financially support a new dry dock as it is not a core priority and arrangements to go
offshore are considered to be sufficient. However, the outbreak of COVID-19 has
made going offshore less desirable and more complicated.
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18.
These issues apply to the five Cook ferries operated by KiwiRail, Bluebridge, and
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other large commercial ships (fuel tankers, cement carriers etc).
Availability and security of overseas docks
19.
The nearest dry docks are located in both Australia (Sydney) and Singapore. The
Sydney dry dock is operated by the Royal Australian Navy, and New Zealand
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commercial ship operators often struggle to secure bookings due to preference given
to Australian Navy vessels.
20.
The alternative option is a month long return trip to Singapore (plus time in dock),
which has been estimated to cost operators between $500,000 and $850,000 for the
fuel costs alone. This does not include labour costs, steaming time and opportunity
cost of foregone revenue. There are also downstream impacts on the New Zealand
economy as shipping downtime impacts overall freight movements.
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Environmental impacts of the state quo
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21.
Devonport is constrained by its location in a residential area and the graving dock is a
listed heritage site. This puts limits on its operating hours and the noise it can This
puts limits on its operating hours and the noise it can generate. Expanding the site
into Auckland Harbour would require significant consenting and would likely be met
with resistance by locals and heritage authorities.
22.
The Climate Change Commission’s report on reducing emissions4 within the transport
sector noted the significance of New Zealand not having a large enough dry dock
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facility for many of its vessels. This limits the opportunity for retrofit technologies on
coastal ships, including relatively simple emission reduction activities such as hull
cleaning and application of hull coatings, requires vessels to make a voyage to
suitable facilities in Singapore or Sydney. They note that there is additional expense,
vessel downtime and emissions from fuel consumption for the international voyage.
4 Climate Change Commission, “Chapter 4b: Reducing emissions - opportunities and challenges across sectors”,
Transport, buildings and urban form, p.20
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s 9(2)(i)

s 9(2)(i)

23.
s 9(2)(i)
24.
s 9(2)(i)
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25.
s 9(2)(i)
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26.
s 9(2)(i)
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27.
s 9(2)(i)
INFORMATION
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s 9(2)(i)

s 9(2)(i)

28.
s 9(2)(i)
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29.
s 9(2)(i)
. As far as we are aware, little work
has been done to date on identifying and quantifying the wider benefits of such an
investment.
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30.
s 9(2)(j)
Next steps with the project
31.
We understand that the next step would have been for the PDU to prepare a Cabinet
paper to progress the work, but this was never undertaken due to the emergence of
Covid-19 and the subsequent reprioritisation of PGF managed funds, effectively
meaning this project is on hold.
32.
While Northport are still progressing with their consenting process to ensure this can
become possible, they do not want to be the owner or operator of a dry dock. A key
roadblock has therefore been securing funding for this project, through either Crown
or private means.
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33.
We suggest that if you are interested in progressing this project, you talk with Minister
for Infrastructure Hon Grant Robertson, Minister for Economic and Regional
Development Hon Stuart Nash, and Minister of Defence Hon. Peeni Henare, about
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how the PDU could restart discussions with Northport s 9(2)(j)
. You could consider also sharing this briefing with them.
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34.
The Ministry could also work further with the NZDF and PDU to continue progress.
Depending on this, a Government-led business case process would need to be
undertaken to get a view on the wider benefits of a dry dock for and how it might align
with broader Government objectives. We suggest you discuss this with the Minister
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for Infrastructure to ascertain his level of comfort of funding this type of project, and to
discuss which agency is best to lead this work.
35.
It is possible that the new coastal shipping activity class in the Government Policy
Statement 2021 could fund a business case of this nature. However, Waka Kotahi is
still working through the nature and scope of the activity class with assistance from
the Ministry.
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Document 4
BRIEFING
Joint Venture Airports - Appropriation issues
Reason for this
This briefing advises you of an oversubscription of the 2017/18 Joint
briefing
Venture Airport Appropriation and the implications of this.
Action required
Sign the attached Cabinet paper seeking agreement to incur unappropriated
expenditure and to convert the annual Joint Venture appropriation to a multi-
year appropriation from 2018/19 onwards.
Deadline
13 June 2018.
Reason for
Al  unappropriated expenditure must be considered by Cabinet before
deadline
30 June 2018. In order to meet this deadline this paper needs to be lodged
with the Cabinet Of ice by 10am on 14 June 2018 in order to be considered
at the Cabinet Economic Development Commit ee on 20 June 2018.
Contact for telephone discussion (if required)
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Telephone
First
Name
Position
contact
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Amanda Wilson
Graduate Adviser
s 9(2)(a)

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Ngaire Best
Manager, Governance and Commercial
s 9(2)(a)


Paul Laplanche
Chief Financial Of icer
s 9(2)(a)

MINISTER’S COMMENTS:
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Date:
31 May 2018
Briefing number:  OC180347
Attention:
Hon Phil Twyford, Minister of  Security level:
In-Confidence
Transport
Copy to:
Hon Grant Robertson,
Minister of Finance
INFORMATION
Hon Julie-Anne Genter,
Associate Minister of
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Transport
Minister of Transport’s office actions
 Noted
 Seen
 Approved
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 Needs change
 Referred to
 Withdrawn
 Not seen by Minister
 Overtaken by events

Purpose of report
1.
This briefing:
1.1.  advises you of expected claims totalling $1.122 mil ion against the 2017/18 Joint
Venture (JV) Airport appropriation of $0.500 mil ion
1.2.  seeks your agreement to take a paper to Cabinet to endorse incurring unappropriated
expenditure of up to $0.700 mil ion in 2017/18
1.3.  seeks your agreement to seek a conversion of the annual JV appropriation to a multi-
year appropriation from 2018/19 onwards.
Background
2.
The Ministry of Transport (the Ministry) administers the Crown’s interest in five regional
airports (Whangarei, Whakatāne, Taupō, Whanganui and Westport) which are operated as
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joint ventures (JV) between the Crown and local councils. This arrangement is set out in the
deeds agreed to between 1957 and 1973 with individual councils and the Crown.
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3.
Under the JV agreements the Crown is liable for 50 percent of any operating losses and
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capital expenditure subject to pre-approval.
4.
As per a delegation signed in 1985, the Secretary of Transport has the authority to approve
work and provide the Crown’s share (50 percent) of capital expenditure and operating losses
at the Airports. The limit on this delegated authority is $0.300 mil ion for any individual
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transaction.
5.
The three types of claims that a JV airport can make under the various deeds the Crown has
with local councils are:
5.1.  operating losses – as joint owners, if the airport makes a year-end operating loss the
Crown is responsible for half of the loss
5.2.  capital expenditure – capital expenditure over $0.010 mil ion requires pre-approval
before any work can commence. The time between approving work and the airport
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completing the work/invoicing can be quite large and can move the payment of
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capital expenditure into future financial years, creating pressure on future
appropriations
5.3.  small capital expenditure – capital expenditure under $0.010 mil ion in value does not
need to be pre-approved.
6.
In 2015/16 the appropriation moved from a multi-year appropriation to an annual
appropriation of $0.500 mil ion, with the scope of the appropriation being limited to
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“enhancements to JVs terminals and runways and the Crown’s share of operating losses”.
7.
Historically, $0.500 mil ion has been enough to cover capital expenditure and/or losses for
the JVs. However, a delay in receiving audited financial statements resulted in a number of
historic operating losses and capital expenditure being claimed this year. This was
unforeseen and as a result the 2016/17 unclaimed Joint Venture Airport accumulated
balance of $0.955 mil ion was not carried forward to 2017/18.
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this work wil  fall into the 2018/19 financial year.  At this stage, without Cabinet
approval to move to a multi-year appropriation, the Ministry is unable to approve the
RESA or the additional funding for runway lighting.
16.2.  Whanganui Airport has started work on the demolition of two buildings and
construction of a new garage and security system. This capital expenditure was pre-
approved in September 2017 however, the project was delayed and the work wil  not
be completed in the 2017/18 financial year. This means that approximately $0.028
mil ion of this work wil  fall into the 2018/19 appropriation.
16.3.  Westport Airport has suffered erosion and storm damage and has indicated that
significant work wil  be required to repair its seawall. The seawall protects the runway
and is required to ensure that the airport remains in operation. This is an ongoing
issue and the Crown has already funded half of the existing seawall. Initial estimates
show that this work could cost approximately $1.000 mil ion and should this occur the
Ministry will be looking to either submit a bid to Cabinet or increase the JV airport
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appropriation to fund this work.
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17.
In addition, Taupō Airport is also seeking funding for a feasibility study to assess the options
for renewing its terminal. This wil  not impact on the appropriation as it aims to fund this
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through its reserves.
Risks
18.
Prior to the Wellington International Airport Limited ruling, Whakatāne Airport was flying
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larger planes at peak times. This practice has now stopped as a consequence of the Director
of Civil Aviation’s directive following the Supreme Court’s decision regarding Wellington
International Airport Limited. Without approval and funding to complete the RESA,
Whakatāne Airport wil  continue to be unable to fly larger planes during peak times. Air
Chathams currently has a larger plane ready for use and Whakatāne Airport is concerned
that given the negotiations that Air Chathams is carrying out at other airports they may take
this plane away to use for other routes, reducing future business for Whakatāne Airport.
19.
Whakatāne Airport has advised that the additional funding of $0.069 mil ion for a runway
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lighting project is to meet civil aviation certification requirements and is required to be
completed by the end of July 2018.
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Next steps
20.
The Ministry recommends incurring the additional $0.700 mil ion through Imprest Supply.
This is to allow for a contingency should any other liabilities present. This wil  need to be
included in the Appropriation (2017/18 Confirmation and Validation) Bil  for validation by
Parliament and reported in the Ministry’s annual report for 2017/18. This is required under
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section 26C of the Public Finance Act.
21.
The Ministry wil  provide you with a letter to send to the Minister of Finance requesting the
inclusion of the JV airport appropriation in the Appropriation Bil . This wil  likely occur in
September 2018.
22.
To mitigate the risk of exceeding the 2018/19 annual appropriation, we are also seeking
approval from Cabinet to re-establish the previous multi-year appropriation (MYA) and
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transfer funding from the annual JV appropriation to the newly established MYA for the years
2018/19 to 2022/23.
23.
To mitigate the risk of an oversubscription happening again, the Ministry wil  work with the JV
airports to have greater oversight of their future capital plans and operating losses to assist
in the planning of the JV airport appropriation. The Ministry wil  also be reissuing
expectations to the JV Airport’s to ensure that all key documents, including audited
financials, are produced in a timely fashion.
Recommendations
24.
The recommendations are that you:
(a)
sign the attached Cabinet paper seeking agreement to incur unappropriated
Yes/No
expenditure of up to $0.700 mil ion and to re-establish a multi-year
appropriation from 2018/19
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(b)
lodge the attached Cabinet paper with the Cabinet office by 10am on 14
Yes/No
June 2018 in order to be considered at the Cabinet Economic Development
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Commit ee on 20 June 2018
(c)
note the potential for the 2018/19 Joint Venture Airport appropriation to
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exceed the annual appropriation
(d)
note that unappropriated expenditure wil  need to be validated by Parliament

in accordance with section 26C of the Public Finance Act
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(e)
note that the Ministry of Transport wil  provide you with a letter to send to the

Minister of Finance requesting that the Joint Venture Airport unappropriation
be included in the Appropriation (2017/18 Confirmation and Validation) Bill.

INFORMATION
Ngaire Best

Manager, Governance and Commercial

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MINISTER’S SIGNATURE:

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DATE:

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Document 5
Office of Hon Phil Twyford
Member of Parliament for Te Atatu
Minister of Housing and Urban Development
Minister of Transport
C a b i n e t C o m m i t t e e B a c k g r o u n d I n f o r m a t i o n a n d T a l k i n g P o i n t s
Cabinet Committee: Cabinet Economic Development Committee
Paper Title: Joint Venture Airports - Appropriation issues
Portfolio: Transport
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Officials Attending:
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• Peter Mersi, Chief Executive, Ministry of Transport
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Background Information:
• This paper seeks approval to incur unappropriated expenditure of up to $700 million in 2017/18
in the Joint Venture Airport annual appropriation which will require subsequent validation by
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Parliament under Section 26C of the Public Finance Act 1989.
• This paper also seeks approval to convert the annual Joint Venture Airport appropriation to a
multi-year appropriation from 2018/19 onwards.
• I have consulted with the Minister of Finance, the New Zealand First Party, the Green Party of
Aotearoa and my caucus colleagues about my proposal.
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Joint Venture airport’s background:
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• The Ministry of Transport (the Ministry) administers the Crown’s interest in five regional
airports (Whangarei, Whakatāne, Taupō, Whanganui and Westport) which are operated as
joint ventures (JV) between the Crown and local councils. This arrangement is set out in the
deeds agreed to between 1957 and 1973 with individual councils and the Crown.
• Under the JV agreements the Crown is liable for 50 percent of any operating losses and capital
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expenditure (subject to pre-approval). Operation of the airports remains the responsibility of
the individual councils.
• In 2015/16 the appropriation moved from a multi-year appropriation to an annual
appropriation of $0.500 million per annum with the scope of the appropriation being limited to
“enhancements to JVs terminals and runways and the Crown’s share of operating losses.”

2017/18 Joint Venture airport claims:
•  Late in the 2017/18 financial year the Ministry was made aware of a liability totalling $1.122
million, which is $0.622 million over the current annual appropriation. This additional
expenditure will result in unappropriated expenditure of $0.700 million, including a
contingency of approximately $0.078 million.
•  The 2017/18 claims are made up of $0.703 million from Whakatāne Airport, $0.357 million
from Whanganui Airport and $0.063 million from Westport Airport. Included in these amounts
are a number of historic operating losses and capital expenditure.
•  Of this $1.122 million, $0.226 million was made up of claims that either did not receive pre-
approval or were over the pre-approval limit. As this amount was unapproved the Ministry
does not necessarily have a legal obligation to pay this portion of the claims.
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•  The Ministry has assessed these claims and is comfortable that they represent legitimate
capital expenditure and would have been pre-approved if a business case had been submitted
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prior to commencement of work.
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•  As a moral obligation to support the Joint Venture airports, the Ministry has advised me that
they recommend incurring this amount as part of the total incurred expenditure and I am
seeking your agreement on this approach.
•  I have been assured by the Ministry that it will be setting clear expectations with the Joint
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Venture airports and have greater oversight of future capital plans and operating losses of the
Joint Venture airport’s to ensure that this does not happen again.
•  To date no funding has yet been paid from the 2017/18 Joint Venture Airports annual
appropriation. As a result I am seeking an additional amount of up to $0.700 million to be
incurred against the appropriation. If this additional expenditure is approved, it will flow
through to net debt and will need to be included in the Appropriation (2017/18 Confirmation
and Validation) Bill for validation by Parliament. The Ministry will also report this in its annual
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report for 2017/18. This is required under section 26C of the Public Finance Act.
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•  Other appropriations in Vote Transport are expected to not be fully utilised and will be
returning to the centre, and this amount will be more than the $0.700 million.
2018/19 Joint Venture airport claims:
•  Based on estimated operating losses and known pre-approved capital works, it is likely that
the 2018/19 Joint Venture Airport appropriation of $0.500 million will also be stretched and, as
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a result, the Ministry is unable to approve any further work at this stage.
•  To mitigate the risk of exceeding the 2018/19 annual appropriation and to provide flexibility in
out years, I am requesting the current annual appropriation be converted into a multi-year
appropriation and to transfer funding from the non-departmental capital Joint Venture Airport
– Crown contribution appropriation to the newly established multi-year appropriation for the
years 2018/19 to 2022/23.
•  The Ministry will also be working with the Treasury to determine whether the current level of
funding for the Joint Venture airports is adequate.

Financial implications:
•  The $0.700 million unappropriated capital expenditure will flow through to net debt for
2017/18 and will be met by imprest supply.
•  Other appropriations in Vote Transport are expected to not be fully utilised and will be
returning to the centre, and this amount will be more than the $0.700 million.
•  The proposed changes to establish a multi-year appropriation and transfer funding from the
Joint Venture Airport annual appropriation will be fiscally neutral.

1982
THE
ACT
UNDER
INFORMATION
RELEASED
OFFICIAL

Document Outline

OC220756 - redacted docs.pdf
- Speaking_points - Joint_Venture_Airports_-_Appropriation_issues.pdf