Output class 6 - Crown Property Management & Disposal Services (Includes Pastoral)

In this section...

The acquisition, management and disposal of land and property administered by the Department on behalf of the Crown.

There are two outputs in this output class:

Output 610 – Crown Property Management & Disposal Services

Mostly Crown funded

This output involves providing services necessary for the efficient management of Crown land and land-related liabilities. The services include:

  • Crown property management; (Note: LINZ administers approximately 4,500 properties on behalf of the Crown; of these, approximately 2,500 properties are in two property management contracts. The minimum criterion for a property to be included in a property management contract is that rates are levied against that property)
  • Crown property disposal
  • Crown property acquisition
  • Crown pastoral lease land tenure reform
  • Crown forest management
  • Management of land-related liabilities, and
  • Treaty of Waitangi settlement obligations.
PERFORMANCE MEASURE PERFORMANCE
Quantity
(1) Properties leased or licensed.

Standard: 775
(Range 700–850)		 755 were currently leased/licensed as at 30 June 2009.

Standard: Achieved
(2) Revenue sales target from properties available for disposal.

Standard: $6 million (± 10%)		 $2.550 million in revenue sales for properties were attained.

Standard: Not achieved

Comment: Lack of demand lead to a fall in property values due to the global economic recession. In addition, revenue of $236.405 million has been achieved through Treaty of Waitangi settlements.
(3) Properties purchased.

Standard: Undertaken on an 'as required' basis.		 Three properties purchased at a total value of $452,798.

Standard: Achieved
(4) Substantive tenure review proposals put to leaseholders.

Standard: 6
(Range 4–10)		 Four substantive proposals were put as at the end of June 2009.

Standard: Achieved

Comment: The requirement under the governments Lakeside policy introduced in November 2007 meant that fewer tenure agreements were achieved than anticipated.
(5) Crown forestry licences managed.

Standard: 71
(Range 65–75)		 72 Crown forestry licences were managed.

Standard: Achieved

Comment: 23 Crown forestry licences will vest with the Central North Island iwi collective on 1 July 2009, reducing the number of Crown forestry licences managed to 49.
(6) Land-related liabilities managed.

Standard: 350
(Range 300–500)		 353 land-related liabilities were managed for the year ended 30 June 2009.

Standard: Achieved
(7) Properties included in Treaty of Waitangi settlement redress.

Standard: 29
(Range 10–50 properties to become unconditional)		 41 LINZ properties became unconditional for Treaty of Waitangi settlement redress.

Standard: Achieved
Quality
Standards to which the above services will be provided.

Standards:
In accordance with:		 Standard: Achieved (see achievement results below)
  • the specifications in the property management contracts (1)
 Services have been delivered within the specifications of the property management contracts.
  • Statutory requirements (2 and 3)
 All disposals were completed in terms of the LINZ standards and guidelines including statutory and government directed requirements.
  • LINZ Crown Pastoral Land Standards (4)
 Services have been delivered according to requirements.
  • the specifications in Part 2 of the Crown Forest Licence Management Agreement (5)
 Crown forest licences were managed according to requirements.
  • the requirements in the LINZ 'Operating framework for the Investigation and Management of Land Related Crown Liabilities' (6), and
 The management of contingent liabilities has been in accordance with the requirements and processes recorded in the operating framework dated June 2007.
  • LINZ Treaty settlement contractual and legislative compliance plans (7).
 Compliance plans are being drafted as required for every settlement.
Timeliness
Standards to which services will be managed.

Standards:
In accordance with:		 Standard: Achieved (see achievement results below)
  • the timeframes in the property management contracts (1)
 All services have been delivered within property management contract timeframes.
  • Statutory requirements (2 and 3)
 All property disposal processes including statutory requirements were undertaken in a timely manner in terms of LINZ standards and guidelines and instructions to LINZ disposal contractors.
  • the timeframes in Part 2 of the Crown Forest Licence Management Agreement (5)
 All services have been delivered within timeframes.
  • the timeframes in the LINZ 'Operating framework for the Investigation and Management of Land Related Crown Liabilities' (6).
 The management of contingent liabilities is in accordance with the requirements and processes in the operating framework.
Time by which tenure review substantive proposals will be put to the leaseholder.

Standard: Within 10 working days of being signed on behalf of the Crown (4).		 All five substantive proposals were put within 10 working days of being signed on behalf of the Crown.

Standard: Achieved
Deadline to achieve revenue target.

Standard: 30 June 2009.		 Comment: This hasn't been a measure for some years and will be removed from 2009/10.

Output 620 – Delivery of Crown Property Clearance Service

Third party funded

This output is the provision of a property clearance service for work undertaken by accredited suppliers. This work involves ensuring that all relevant information has been researched and assessed for relevance to the specific property, that the conclusions reached are in line with the facts and the legislative provisions, and that the recommendation is consistent with those conclusions.

PERFORMANCE MEASURE PERFORMANCE
Quantity
Property reports cleared and a statutory decision made.

Standard: 3,000 (est)
(Range 2,500–3,500)
  • For the year end 30 June 2009 2,771 property reports and statutory decisions were made.
  • Standard: Achieved
  • Comment: The standard has been met in regards to the target range figures. The figure is at the lower end of the target spread.
Quality
Standard to which the service will be provided.

Standard: In accordance with the Crown property standards as assessed by quality assurance audit.
  • During the 2008/09 year services were provided in accordance with the Crown property standards for the year ended 30 June 2009.
  • Comment: In November 2008 LINZ internal assurance programme audited the service standard. Their comments were "... reasonable assurance can be provided that there are adequate processes and controls in place to ensure good decision making by the clearances team".
Timeliness
Statutory reports and recommendations cleared or responded to.

Standard: 95% within five working days.		 86.3% statutory reports and recommendations were cleared within five working days.

This indicated that the standard was not achieved for the 2008/09 year. The reason for this is that the requirement of peer review under s40 Public Works Act (PWA) has affected the timeliness measure.

Standards: Partly achieved

Comment: For 2009/10 this target has been changed to 95% within 10 working days to reflect the need for peer review of s40 PWA decisions and quality assurance of compulsory acquisitions – which impacts adversely on the current target.

Financial performance

Output Class 6 – Crown Property Management & Disposal Services

Actual
2008
$000		   Actual
2009
$000		 Voted
2009
$000
(366) Net surplus/(deficit) 66 786
16,546 Revenue Crown 17,632 18,737
558 Revenue other 446 541
17,104 Total revenue 18,078 19,278
17,470 Total expenses 18,012 18,492
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