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Notes to the Non-departmental Schedules

for the year ended 30 June

1   Cost Recovery Levies

 

2009
Main
Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Fisheries services

30,000

28,000

27,857

29,670

Conservation services

1,053

1,053

1,329

1,287

Total

31,053

29,053

29,186

30,957

 

2   Other Revenue

 

2009
Main Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Sale of quota/ACE

0

540

645

1,615

Forfeitures and redemptions

150

150

75

263

Fisheries research catch

0

0

0

16

Infringement notices

125

125

197

158

Interest

30

50

43

552

Other

20

20

98

156

Total

325

885

1,058

2,760

 

3   Major Budget Variations

The variations from the initial 2008/2009 Budget Night (Main) Estimates to Supplementary Estimates were due to:

 

$000

(a) Revenue

 

Increase in deemed value revenue to be paid by quota holders who have overfished based on current activity

(500)

Sale of quota shares and ACE

540

Interest

20

Cost Recovery General Levy

(2,000)

Total

(1,940)

(b) Non-departmental expenditure

 

Settlements

40,424

Provision for bad/doubtful debts

2,500

Deemed value debt adjustment

58

Subscriptions to international organisations

40

Total

43,022

 

4   Operating Expenditure

 

2009
Main Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Settlements

0

40,424

39,209

67,668

Increase/(decrease) in provision for bad/doubtful debts

711

3,211

1,950

2,324

Deemed value debt adjustment

0

58

15

559

Subscriptions to international organisations

260

300

309

235

Transfer of quota shares and ACE

0

0

0

140

Bad debt write-offs

0

0

0

14

Quota share/ACE administration costs

24

24

4

7

GST on expenses

0

0

1

2

Total operating expenditure

995

44,017

41,488

70,949

 

5   Cash

This comprises balances of the Crown bank accounts managed by the Ministry of Fisheries on the Crown’s behalf pursuant to section 4 of the Public Finance Act 1989.

These balances represent funds drawn down from the New Zealand Debt Management Office at the Treasury for payments to be made on behalf of the Crown but not yet paid, proceeds from asset sales, revenue receipts not yet transferred to the Crown and GST payable to the Department of Inland Revenue on revenue invoiced on behalf of the Crown.

 

2009
Main Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Infringement receipts

0

0

60

216

Receipts on behalf of the Crown

0

0

152

205

Funding for payments on behalf of the Crown

3,661

3,788

3,689

3,367

Total cash

3,661

3,788

3,901

3,788

 

6   Debtors and Other Receivables

 

2009
Main Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Trade debtors

3,425

6,034

8,751

5,465

Less:

 

 

 

 

Provision for doubtful debts

(3,370)

(5,833)

(4,572)

(2,622)

Net debtors

55

201

4,179

2,843

Accrued revenue

8,400

8,400

8,696

8,293

Total debtors and other receivables

8,455

8,601

12,875

11,136

 

Trade debtors are generally on 30 day terms. As at 30 June 2009 and 2008 all debtors have been assessed for impairment and appropriate provisions applied, as detailed below:

 

2009

2008

 

Gross
$000

Impairment
$000

Net
$000

Gross
$000

Impairment
$000

Net
$000

Not past due

8,700

0

8,700

8,293

0

8,293

Past due 0–12 months

8,668

(4,530)

4,138

5,251

(2,611)

2,640

Past due 13–24 months

26

(13)

13

45

(6)

39

Past due 25–36 months

11

(6)

5

18

(5)

13

Past due 37–48 months

0

0

0

0

0

0

Past due 49–60 months

0

0

0

0

0

0

Past due 61–72 months

0

0

0

0

0

0

Past due over 72 months

42

(23)

19

151

0

151

Total

17,447

(4,572)

12,875

13,758

(2,622)

11,136

 

The provision for doubtful debts has been calculated based on forecast losses for the Crown’s pool of debtors. Forecast losses have been determined based on a review of specific debtors.

Movements in the provision for doubtful debts are as follows:

 

2009
Actual
$000

2008
Actual
$000

Balance at 1 July

2,622

298

Additional provisions made during the year

1,950

2,338

Receivables written off during period

0

(14)

Balance at 30 June

4,572

2,622

 

7       Prepayments

 

2009
Main
Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Subscriptions to international organisations

107

128

181

128

Total prepayments

107

128

181

128

 

8   Creditors and Other Payables

 

2009
Main
Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Creditors

4,071

432

0

0

GST payable on receipts on behalf of the Crown

618

334

377

334

Accrued expenses

3

585

82

101

Total creditors and other payables

4,692

1,351

459

435

 

Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, therefore the carrying value of creditors and other payables approximates their fair value.

 

9   Over and Under-recovered Costs

 

2009
Main
Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Net over-recovery of costs

3,874

5,679

10,971

5,679

Total net over recovered costs

3,874

5,679

10,971

5,679

 

Section 265 of the Fisheries Act 1996 creates a mandatory obligation on the Minister of Fisheries to have regard to under and over-recovery of costs of any conservation service or fisheries service in a previous financial year when recommending a cost recovery levy order for a current/future year.
This provision reflects the balance of the net over and under-recovery of cost recovery levies for the period 1 October 1995 to 30 June 2009 to be applied against future cost recovery levy orders.

 

10 Term Liabilities

 

2009
Main
Estimates
$000

2009
Supplementary Estimates
$000

2009
Actual

$000

2008
Actual

$000

Commercial aquaculture

70,000

70,000

107,609

70,000

Transfer of quota

140

140

140

140

Total term liabilities

70,140

70,140

107,749

70,140

 

The Māori Commercial Aquaculture Claims Act 2004 provides a full and final settlement of Māori contemporary claims to commercial aquaculture space created since 21 September 1992.

The Act establishes the Crown’s obligation to provide iwi with the equivalent of 20 percent of the aquaculture space created between 21 September 1992 and 31 December 2004 (“pre-commencement space”) plus an additional obligation to provide 20 percent of all new space created. If the settlement cannot be achieved through a transfer of “space,” then it must be resolved through a financial transfer to iwi.

During 2008/09, the Crown reached a settlement with iwi of the South Island and Coromandel of the Crown’s pre-commencement aquaculture space obligations to these iwi.

On behalf of the Crown, the Ministry of Fisheries engaged Mr Lex Hayward to provide a valuation of the remaining pre-commencement space obligations (ie excluding that already settled) as at 30 June 2009.

The valuation provided by Mr Hayward is dated 30 June 2009. The valuation had a confidence interval of +/- 30 percent. An assumption has been made in the report that all remaining sites are productive, but with varying degrees of probability that they will be sufficiently productive to be profitable.

The valuation adjusts the assessment of the future value of the sites to present value terms by applying a “discount rate” of 10 percent.

 

Updated : 4 November 2009