Information in regards to 'The Crowns' Derivative losses of $28 Billion

Kieren Trass made this Official Information request to Minister of Finance

This request has been withdrawn by the person who made it. There may be an explanation in the correspondence below.

From: Kieren Trass

March 22, 2016

Minister of Finance

Dear Bill English,

In terms of the Official Information Act please explain;
1) the nature of the "Derivatives in loss" (reported by the Treasury department in the crowns financial statements).
There have been significant multi Billion dollar losses incurred every year since the year 2008.

The Treasury departments financial accounts for the crown reveal over $28 Billion of "Derivatives in loss" since you took office as the Minister of Finance in November 2008.

Also specifically in regard to these 'Derivatives' please also advise
2)
a) how are these derivative losses created.
b) why has the crown consistently budgeted derivative losses for every year since you took office?
c) Why has the National government Incurred losses significantly above its budgeted loss figures for every year since you took office?
d) How are these losses funded by the crown i.e where has the $28 Billion to cover the losses been sourced from?
e) Do you intend to forecast derivative profits, or further losses, in the next budget?

Total 'Derivatives in loss' accounted for on the crowns balance sheet since the year 2008 have totalled $28,427,000,000.

That's an average daily loss of over $10,821,000. That's an average loss of $7,515 per minute, for every single minute, 24 hours a day 7 days a week, since you took office.

Derivative losses for each year were as follows; (Sourced from Treasury department statements of the crowns financial position)

Loss 8 months 01/07/15 to 31/01/16 $5,065,000,000

Actual 2015 loss $6,261,000,000
Budgeted loss 2015 $2,582,000,000

Actual 2014 loss $2,245,000,000
Budgeted loss 2014 $1,890,000,000

Actual 2013 loss $3,188,000,000
Budgeted loss 2013 $2,035,000,000

Actual 2012 loss $2,807,000,000
Budgeted loss 2012 $2,401,000,000

Actual 2011 loss $2,767,000,000
Budgeted loss 2011 $1,777,000,000

Actual 2010 loss $2,376,000,000
Budgeted loss 2010 $1,369,000,000

Actual 2009 loss $3,718,000,000
Budgeted 2009 profit $108,000,000

Budgeted losses since 2008 totalled $11,746,000,000, however under your leadership as the minister of finance, actual losses exceeded those budgeted figures by over $16,681,000,000 (Sixteen Billion Six Hundred and Eighty One Thousand dollars).

That's an average daily loss, over budget, of over $6,350,000.
That's an average loss of $4,410 per minute, for every single minute, 24 hours a day 7 days a week, since you took office.

Thank you in anticipation of your answers.

Yours faithfully,
Kieren Trass

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From: B English (MIN)
Minister of Finance

March 22, 2016

On behalf of Hon Bill English, thank you for your email.

Please be assured that all correspondence is read and noted by this
office. Where the Minister has portfolio responsibilities for the issues
raised, a response will be sent to you in due course.

While the Minister considers all correspondence to be important, if your
email falls outside of his portfolio responsibilities, or expresses a
personal view, then your opinion will be noted and your correspondence may
be transferred to another office or there may be no further response to
you.

Thank you for taking the time to write.

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From: Kieren Trass

March 24, 2016

Dear B English (MIN),

This is to advise you I formerly withdraw my Official Information Act request of March 22 2016 titled "The Crowns Derivative losses of $28Billion." in light of additional information I have gained on this matter.

No further action on this matter is needed.

Yours sincerely,

Kieren Trass

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From: B English (MIN)
Minister of Finance

March 24, 2016

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From: B English (MIN)
Minister of Finance

March 24, 2016

Thanks Kieren - appreciate your email.

Regards

- Katy

Katy Greco-Ainslie
Private Secretary to Hon Bill English
Deputy Prime Minister, Minister of Finance and
Minister Responsible for Housing New Zealand Corporation

The information contained in this email is privileged and confidential and intended for the addressee only. If you are not the intended recipient, you are asked to respect that confidentiality and not disclose, copy or make use of its contents. If received in error you are asked to destroy this email and contact the sender immediately. Your assistance is appreciated.

-----Original Message-----
From: Kieren Trass [mailto:[OIA #3802 email]]
Sent: Thursday, 24 March 2016 9:28 a.m.
To: B English (MIN)
Subject: Re: Automated response from the office of Hon Bill English

Dear B English (MIN),

This is to advise you I formerly withdraw my Official Information Act request of March 22 2016 titled "The Crowns Derivative losses of $28Billion." in light of additional information I have gained on this matter.

No further action on this matter is needed.

Yours sincerely,

Kieren Trass

-----Original Message-----

On behalf of Hon Bill English, thank you for your email.

Please be assured that all correspondence is read and noted by this office. Where the Minister has portfolio responsibilities for the issues raised, a response will be sent to you in due course.

While the Minister considers all correspondence to be important, if your email falls outside of his portfolio responsibilities, or expresses a personal view, then your opinion will be noted and your correspondence may be transferred to another office or there may be no further response to you.

Thank you for taking the time to write.

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