Annual Report 2002/2003

1 Overview

2 Statement of Service Performance for the Year Ended 30 June 2003

3 Financial Statements and Schedules: Non-Departmental

4 Financial Statements

5 Triple Bottom Line Progress

6 Management of the Ministry

7 Contact Information

Vote: Environment: Output Class 1: Environmental Policy Advice

Output Class 1 covers the provisions of advice to the Minister on environmental policies and issues, and includes:

• administering the RMA, monitoring of practice under it, and providing information and advice on best practice that supports excellence in RMA implementation
• completing legislative amendments to the RMA through the parliamentary process and providing advice in support of implementation
• establishing and implementing a national State of the Environment reporting system for measuring and reporting on environmental outcomes and policy performance
• participating in a "whole of government" climate change work programme to enable New Zealand to ratify the Kyoto Protocol, to develop and implement domestic policies and to meet other obligations and commitments under the United Nations Framework Convention on Climate Change
• implementing the New Zealand Waste Strategy
• implementing the Government's decision on the recommendations from the Royal Commission on Genetic Modification
• monitoring ERMA implementation of the HSNO Act and advising on regulations for the transfer of hazardous substances into the HSNO framework
• providing advice on the environmental implications of transport reforms
• providing advice on fisheries and marine issues, including sustainability issues under the amended Fisheries Act 1996 and also participating in Oceans Policy development
• providing advice on issues associated with biodiversity, and input towards developing a biodiversity strategy for New Zealand, as well as the developing of a National Policy Statement on Biodiversity
• providing advice to develop a New Zealand position for negotiations at the World Trade Organization, including multilateral environment agreements and environmental labelling
• developing legislative proposals to address liability for the clean-up of historic contaminated sites
• providing advice related to the settling of Treaty of Waitangi claims to natural resources
• administering the orphan site clean up fund, including advising on the clean-up of the Mapua and Tui Mine contaminated sites
• statutory responsibilities under environmental statutes
• representing the Minister in environmental legal proceedings.

Performance measures

Outputs in this class were provided within the appropriated sum and within the timeframes specified (unless otherwise stated). Performance measures were specified for each output as appropriate.

Resources employed

Actual 30/06/2002 $000		Actual 30/06/2003 $000	Main estimates 30/06/2003 $000	Supplementary estimates 30/06/2003 $000
	Revenue:
22,041	Crown	28,107	24,977	28,107
19	Departmental	0	5	0
76	Other	7	20	10
22,136	Total revenue	28,114	25,002	28,117
21,526	Total expenses	25,977	25,002	28,117
610	Net surplus	2,137	-	-

 

Service performance

The 2002/2003 Estimates and the Output Statement contain the following outputs in Output Class 1: Environmental Policy Advice.

Quality

Outputs were delivered to the Minister's specifications.

Orders in Council and regulations were intra vires and in accordance with principal statutes.

Timeframe

Outputs were produced within agreed timeframes as specified in the Estimates, except where amended by agreement with the Minister.

Drafting instructions were completed subject to timeframes set in the Government's Legislative Programme.

Costs

Outputs were provided within the appropriated sum.

Review of output achievements

Output 1.1: Resource Management Act Administration

Maintain, support and develop the Quality Planning Website to share best practice information

Achieved. We completed all the core guidance on the Quality Planning website, using all the funds allocated by the Sustainable Management Fund.

Ensure that the sustainable management of the environment is recognised in any legislation or reviews that may affect the environment

Achieved. The Ministry, with the Climate Change Office, had discussions with local government on changes to the Resource Management Act (RMA) that would aid recognition of the national benefits of renewable energy and energy efficiency. Amendments to the RMA were developed and introductory speeches completed. Outstanding matters, however, relating to the definition of 'renewable energy' and the implications for any future standards on landfill emissions, meant that changes to the Bill were required. A paper identifying necessary changes was prepared.

A report, commissioned to assess whether regional and district RMA plans were 'friendly' towards energy efficiency measures and renewable energy proposals, did not provide conclusive evidence on the need for directive measures (e.g. for a national policy statement). Discussions occurred with EECA on the need for updated non-statutory guidance for councils on the renewable energy sources. Due to higher priority work around the time of the power situation, the report to Cabinet was held back.

Administer the Environmental Legal Assistance Scheme and Grants for Environment Centres, and produce a progress report

Achieved. The Environmental Legal Assistance scheme received 77 applications in 2002/2003, of which 33 (43%) were approved funding to a total $516,687. Of the $1,000,000 available for this scheme, $775,685 was allocated to enable community groups to participate in environmental action through the legal system.

A total of 12 out of 25 applications for environment centre funding were approved in the March 2003 round with the $300,000 available being totally allocated. Two new centres were funded with a contribution to 10 existing centres being approved to assist with running costs. These centres exist to promote environmental awareness.

Six applications were received for the Resource Management Act Education and Advisory scheme and five were approved funding of $297,000. This scheme funds projects that provide community-based legal advice on resource management processes and increase information and education opportunities to enable the community to participate more effectively in resource management processes.

Complete nine best-practice projects with Local Government New Zealand in response to the Business Cost Compliance Panel's recommendations

Amended. Four contracts were let for projects relating to Business Compliance Costs and the projects are progressing well.

Work with local authorities to help improve resource management practice and to convey the Ministry's policies

Achieved. Regulations and processes requiring authority applications related to Project Aqua were completed in March 2003. A study on delays on major roading projects was also published.

Ensure that the Resource Management Act (RMA) is an effective piece of legislation that reflects current resource management practice and environmental priorities

Achieved. The Resource Management Amendment Bill was redrafted as the RM Bill No. 2. It successfully went through the parliamentary process and was given royal assent on 19 May and commenced on 1 August 2003.

Report back on the Biennial Local Government Survey

Achieved. The Biennial Local Government Survey was released in June 2003.

Review key environmental management institutions and legislation and develop options to improve or alter arrangements.

Ongoing. A background research report and a Cabinet paper outlining the proposed new RMA process for major projects (those of significance to the Government) have been prepared. The cabinet paper is yet to be considered by Cabinet.

We have also been working closely with the Department for Courts all year and have regular meetings with Environment Unit staff and the judiciary. As a result the backlog at the Court has reduced significantly and we continue to monitor progress.

Output 1.2: Waste and Hazards Management

Create a multi-year programme to implement the New Zealand Waste Strategy that clarifies responsibilities for all levels of government and other affected parties and achieves the targets set out in the New Zealand Waste Strategy

Ongoing. Thirteen regional workshops were held throughout New Zealand during July to November 2002 to disseminate information about the New Zealand Waste Strategy to 295 local recycling industry participants. Evaluation from workshops indicated participants came away with a better understanding of the Waste Strategy, how it can impact on their business practice, and the role they could play in achieving the targets (often in partnership with other industry or local authorities). These successful workshops established the need for a national database of the tools and resources available for recycling operators.

We reviewed waste management aspects in most territorial local authority Annual Plans and Annual Reports and created a database of work being carried out throughout the country. We found that:

• 37 local authorities had either formally adopted the Strategy or were using it as the basis of their programmes and projects
• 16 were in the process of adoption
• only 21 had made little or no reference to the New Zealand Waste Strategy.

Develop and implement tools and techniques to reduce waste generation and maximise re-use, recycling and recovery by all sectors

Achieved. The Ministry produced three sets of guidelines: Guide to Managing Cleanfills outlines the regulatory framework for cleanfills in New Zealand, provides a definition of clean fill for use throughout New Zealand and outlines siting, design and operation considerations for cleanfill sites. It also defines cleanfill material and presents three lists of acceptable, conditionally acceptable and unacceptable materials to assist in the assessment process.

Guidelines for the Safe Application of Biosolids to Land in New Zealand were completed in June 2003 and will be published by New Zealand Water and Wastes Association by September 2003. The Guidelines describe best practice for the application of biosolids to land. They provide a framework for biosolids management that enables land application in a way that maximizes the benefits and minimises the risk of adverse effects on human health, the environment and the economy.

The Wastewater Monitoring Guidelines present a risk analysis methodology to assist in developing a monitoring programme for wastewater discharges appropriate to the environmental and public health risks presented by the discharge.

The Community Sewerage Information New Zealand (CoSINZ) Report was completed and is available to Ministry staff as a background information report on the state of wastewater treatment plants throughout the country. It will not be published.

Enhance community understanding of waste generation issues and management and encourage individuals to minimise waste

Achieved. The two-month Reduce Your Rubbish public awareness campaign was designed to raise awareness of New Zealand's growing waste problem and to provide householders with simple actions they can take to reduce their rubbish. The campaign was developed in partnership with regional councils and employed a range of advertising tools, such as television, print, radio, and the internet, between April and June 2003.

Independent research shows that 28% of New Zealanders were influenced in a positive way by the campaign. Figures collected from kerbside recycling operators also suggest that there was a 10% increase in materials collected during the months of May and June. This would equate to a diversion of 6000 tonnes of material per month from our landfills.

The success of the campaign has shown that the Ministry can work together with local government, in a cost-effective way, to promote environmental awareness and action in the community.

Work with those responsible for waste treatment and disposal to achieve consistently high environmental performance standards

Achieved. The Landfill Review and Audit 2002 report was published. It records that most substandard landfills will be upgraded or closed by 2010. The number of landfills in New Zealand has reduced by two-thirds since 1995, dropping from over 300 in 1995 to 116 in 2002. Numbers are expected to drop further to 78 in 2005 and 43 in 2010.

We have also instituted a Solid Waste Analysis Protocol (SWAP) baseline programme to provide solid waste composition information at four indicator sites from around New Zealand. Surveys began in December and are scheduled over two years at:

• Silverstream Landfill - Hutt City Council
• Green Island Landfill - Dunedin City Council
• Matamata Transfer Station - Matamata Piako District Council
• Kaikoura Landfill - Innovative Waste Kaikoura/Kaikoura District Council.

We are also working with local authorities and the waste management industry in the Waikato and Bay of Plenty to develop some practical tools and systems for collecting and using waste data.

The Waste Data Pilot group has compiled an inventory of waste data in the Waikato and Bay of Plenty Regions, agreed on a working draft for standardised monitoring methodologies, and started to share waste data for the purposes of testing the methodologies.

The New Zealand Waste List was developed to provide guidance on identifying wastes in a consistent manner. It was adapted from international lists, and has been modified to reflect typical waste streams in New Zealand. It is available on the Ministry's website.

A draft guide on landfill waste acceptance criteria and classification was released on our website in July 2003. A risk-based model has been developed to determine the actual limits. The Guidelines also include details of a proposed landfill classification system, as well as a list of prohibited wastes. Class A landfills have higher levels of environmental protection, while Class B landfills would be subject to stricter controls on the materials that can be disposed of.

The Ministry has also prepared a draft Contaminated Site Management Guideline Risk Screening System. This guideline provides a rapid screening system of assessing the risk at sites contaminated with hazardous substances. It comprises an MS Excel template and manual on template use. This guideline has been field tested by councils and consultants. A final version will be published and distributed in October 2003.

Advise the Government on policy responses to the Royal Commission on Genetic Modification

Achieved. 'Coexistence' decisions were made by Ministers and announced in April 2003. The Government's working assumption is that effective coexistence of GM and non-GM production can be achieved by proceeding carefully and rigorously examining each use of GMO on a case-by-case basis within the context of New Zealand's comprehensive regulatory framework. Follow up working is progressing, scheduled for report back in October 2004.

Economic Risks and Opportunities from the Release of Genetically Modified Organisms in New Zealand was released on 17 May 2003. The Ministry and Treasury commissioned this research, carried out by Business and Economic Research Limited. Three release scenarios, and one no-release scenario, were tested using two economic models. A survey of international consumers, including visitors to New Zealand, was also undertaken as part of the research. The research tested the hypothetical impact of various GMO releases on New Zealand's clean green image and international trade.

Advise on and implement any institutional changes required from the Government's decision on the report of the Royal Commission on Genetic Modification, including the Bioethics Council - Toi Te Taiao

Achieved. The Ministry helped establish the Bioethics Council (December 2002) and supported it in getting its programme underway. The Council advises, guides and promotes dialogue on cultural, ethical and spiritual issues associated with biotechnology.

Ensure that the HSNO Act is fully in force for hazardous substances, including the balance of regulations not required for commencement

Achieved. The Hazardous Substances Strategy was formally announced by the Minister for the Environment on 25 June 2003. It was very well received, particularly from industry. The strategy includes short term and long term actions that will significantly improve how the hazardous substances part of HSNO works.

Good progress has been made to complete the HSNO Regulations, with the low risk regulations for new organisms coming into force on 31 July 2003. Tank wagon, stationary container and compressed gas regulations are still outstanding but will be completed during the 2003/2004 year.

Amendments to improve the operation of the Act for hazardous substances form part of the Hazardous Substances Strategy and Government's response to the Royal Commission on Genetic Modification. Nine policy cabinet papers were written providing policy advice to Cabinet. In April 2003, the Ministry provided Parliamentary Council Office with drafting instructions for an omnibus amendment bill - the New Organisms and Other Matters Bill. It was introduced to the House of Representatives on 29 April 2003. This Bill amends the HSNO, Medicines, Agricultural Compounds and Veterinary Medicines and Biosecurity Acts.

Release the National Environmental Standard (NES) on dioxins to air and provide councils with guidance on the NES

Amended. This work was exited due to the changed priorities of the Ministry. Instead of an NES specific to the discharge of dioxin to air, we intend to develop NESs that ban certain activities that otherwise give rise to dioxin emissions. The policy objective of reducing dioxin emissions is then achieved through bans that have as their primary effect the improvement of ambient air quality.

Develop further National Environmental Standards and guidance on organochlorines including discharges to land, clean-up criteria for soil contamination and ambient air guidelines

Ongoing. Preparatory work on soil clean-up criteria for organochlorines (which encompasses discharge to land) was undertaken this year; the work will be completed in 2003/2004.

Develop and implement Resource Management Act amendments to address liability and council functions for contaminated sites

Achieved. A guideline on classification and information management protocols for contaminated sites was completed in June 2003. This guideline has a number of legal issues to resolve before it can be circulated for comment. These legal issues are around public access to information on private (and contaminated) land which local government has classified and recorded. We expect the legal issues will be clarified in August and a final draft circulated for comment in September.

Work continues on cleaning up the Mapua contaminated site. The Tasman District Council was funded by the Government to undertake preparatory work up to the point where resource consents are granted for the clean-up of the Mapua site. Although contracts were not finalised by 30 June 2003, significant progress was made during the year:

• site characterisation work completed and remedial action plan drafted
• clean-up technology test work completed, affected parties consulted, and technology assembly underway
• RMA consents application lodged for works and hearing date set
• a draft contract prepared between the Principal and Tasman District Council.

Complete Tui Mine investigations and clean-up costings

Achieved. A report on the options, feasibility and costings for the remediation of Tui Mine was prepared by Environment Waikato and peer reviewed by the Ministry.

Output 1.3: Biodiversity (including Fisheries and Marine Management), Biosecurity and Biotechnology

Complete the development of a proposed National Policy Statement (NPS) on Indigenous Biodiversity, managing and supporting the statutory Board of Inquiry process and produce ongoing best practice guidance tools

Ongoing. Appointment of a Board of Inquiry for the National Policy Statement on Biodiversity was held back pending notification of the National Policy Statement, but preparatory work was completed, including, briefing the Minister for the Environment on a shortlist of candidates, nominations from government departments and external organisations. Once the preferred appointments have been chosen, a paper will be prepared for the Cabinet Appointments and Honours Committee.

Notification of the National Policy Statement was held back, but text of the National Policy Statement has been substantially drafted. Most of the analysis for the Section 32 report has been completed. The draft of the report is being refined so that it can be published at the same time as the notification of the National Policy Statement.

Support local councils to address the sustainable management of South Island Landless Natives Act (1906) forests in district plans and related processes

Achieved. The Ministry has outlined the new policy to council staff and councillors from Clutha and Southland Districts. The discussions covered the role of the RMA in addressing sustainable management and improving the sharing of information and assessments between RMA and Forests Act processes.

Southland and Clutha are working on a project to collate and improve information on significant natural areas in their districts, to improve decision making on consents and to provide a basis for a review of parts of their District Plans. We are assisting with this project by providing advice and some financial assistance.

We also keep in contact with councils, the Department of Conservation and Ministry of Agriculture and Forestry so that we are alerted to any actions that may require enforcement proceedings under the Resource Management Act.

Contribute to the development of a New Zealand Biosecurity Strategy

Achieved. The Biotechnology Strategy for New Zealand was launched on 26 May 2003. The Ministry of Research Science and Technology led this work.

Contribute to inter-departmental work on aquaculture reform and provide ongoing implementation support and guidance to regional councils

Achieved. The Ministry held 13 roadshow meetings at regional councils around the country in October and November 2002. The meetings gave good background on the aquaculture reforms and clarified the coastal planning task facing councils. A number of councils, including Northland, Marlborough, Canterbury and Southland used part of the roadshow meeting in their region to inform their public and stakeholders of the reform and the planning exercises flowing from it.

We contributed to departmental processes to develop the Aquaculture Reform Bill. This included drafting Cabinet Papers and providing input into the Crown's position on the WAI 953 claim and to subsequent policy papers. We also participated during March and April 2003 in 13 regional hui on the reform and issues around it following the Waitangi Tribunals report on WAI 953.

Draft legislation for aquaculture reform is currently in the advanced stages of drafting. Timing has been affected by Waitangi Tribunal Claims and related issues.

Contribute to Stage Two of the Oceans Policy process in accordance with roles and responsibilities of the Oceans Policy Secretariat

Achieved. We completed a stocktake report on current management of the oceans and 11 issues papers exploring the issues in different areas of oceans management. We also completed a report on economic opportunities in the oceans and on local government issues. These reports were done in partnership with the Centre for Advanced Engineering and Business Groups, and with local government practitioners. In both cases they added materially to the policy and were seen positively by the respective sector groups.

In total we held 35 meetings, including two national hui, on the issues and options for the Oceans Policy. The policy development was assisted by very productive partnerships with local government and a Māori Working Group.

Stakeholders (business, especially maritime business groups, environmental NGOs, local government and Māori) welcomed the opportunity to participate in an open process of policy formation, and provided valuable assistance to the Secretariat. As a result there is a high level of buy-in from all different groups of stakeholders, including Māori.

A discussion document and Cabinet paper were prepared and will be delivered to the Ad Hoc Ministerial Group on Oceans Policy by the end of July 2003. The policy as proposed is a significant one with total agreement from all 25 government agencies consulted. The practice of developing the policy proposals using staff from other agencies as part of the policy team was most successful and efficient. This, together with the programme being overseen by an interdepartmental Steering Group where big issues were debated and buy-in was confirmed, resulted in an efficient and thorough process.

We employed a strategic communications advisor and initial preparation for consultation has been completed.

Output 1.4: Promoting Environmental Awareness and Action

Provide a scoping report on effective long-term options to promote community awareness and action, develop a programme and set it in motion.

Achieved. A scoping report on options to promote community awareness and action was drafted, but further work was put on hold during the restructuring of the Ministry. The draft report indicated that a joint programme with regional councils would be a cost-effective option. The Reduce Your Rubbish campaign in April-July 2003 implemented this suggestion.

Support and contribute to the Auckland Regional Council's public education campaign, including assessing its usefulness as a pilot for other regions

Achieved. The Ministry contributed $200,000 in sponsorship funding during 2002/2003 to the Auckland Regional Council's public education campaign, The Big Clean Up. This campaign was evaluated in preparing the scoping report on community awareness and action. The Big Clean Up provided the starting point for the national Reduce Your Rubbish campaign, which was evaluated as a pilot for joint Ministry-regional council campaigns.

Assist sectoral groups and regional networks involved in environmental education to come together to develop co-operative programmes and partnerships

Ongoing. Substantial background work has been done to develop the process, focus and project plan for the Youth Environment Forum.

Four issues of the environz newsletter were published, with each edition distributed to over 8000 stakeholders, providing information on the development of environmental policy and Ministry activities.

Administer, further develop and promote the Green Ribbon environmental awards

Achieved. The 2003 Green Ribbon Awards saw a record number of entries and increased media coverage. Close co-operation with councils, media releases and advertising assisted promotion of the awards. A highly successful event was held at Parliament on World Environment Day and extensive coverage of the winners resulted.

Further develop the public information on the Ministry's website, including simple information on environmental issues and practical action for small businesses, young people and the public

Achieved. A revamp of the Ministry's main website was undertaken during 2002/2003 and the revised site was launched in December 2002. A major part of the revamp was to reflect the change in our direction following the Transformation Project and to comply with the New Zealand Government Web Guidelines. Since its launch, we have received very positive feedback on our new-look website.

Seek opportunities to promote the Ministry's connections with business.

Achieved. Among a number of initiatives that included regular industry meetings with key businesses and breakfast meetings with industry leaders to find out what they would value from us, the Ministry:

• negotiated and signed the Clean Steams Accord with Fonterra and regional councils
• partnered with the oil industry to solve used oil issues
• seconded industry personnel into the Sustainable Industry Group
• worked in partnership with the waste sector to find practical solutions to long-term waste disposal issues
• held discussions with the packaging industry sector on extended producer responsibility.

Output 1.5: Sustainable Development, Transport, Energy and Trade

Follow up on the World Summit on Sustainable Development (WSSD) in Johannesburg, and review and implement the New Zealand Sustainable Development Strategy

Achieved. The WSSD was highly significant for the Ministry. It was an opportunity for New Zealand to report on progress made toward the goals of Agenda 21 set down at the United Nations Conference on Environment and Development in Rio de Janeiro in 1992. We had a major input to this report. The conference also set a new agenda for the next 10 years, focused around sustainable development. Actions are set out in detail in the Johannesburg Plan of Implementation (JPOI).

The World Summit raised awareness of the concept of sustainable development as a coherent approach to environmental, economic and social policy. The Prime Minister and the Minister for the Environment both attended, and their active participation ensured a good profile for New Zealand.

There was progress on all areas of priority interest for New Zealand, and in particular for the Ministry on energy, oceans, sustainable patterns of production and consumption, and the use and production of chemicals. Partnerships for development were also launched.

We worked actively to go beyond the JPOI in the area of renewable energy, with the result that New Zealand joined an EU-sponsored Declaration on the way forward on renewable energy and a UK-sponsored initiative Implementing the Renewable Energy and Energy Efficiency Partnership. Final arrangements for this have now been negotiated.

We have played a major role in the follow-up to the Summit to produce the Sustainable Development for New Zealand Programme of Action (released in January 2003). We lead work on sustainable cities and have a major contribution to water and energy programmes of action. We are also working with other departments to further develop indicators of sustainable development to better enable New Zealand to report on progress toward the goals of the JPOI.

Contribute to trade and environment negotiations for the Doha Development Round

Achieved. Since the Fourth WTO Ministerial Conference at Doha in November 2001 that launched the Doha Development Round of trade negotiations, the Ministry has been actively involved in the work of the WTO Committee on Trade and Environment (CTE) where the negotiations on environmental issues take place. Our representative attended two meetings of the CTE in Geneva in 2002 and contributed to the Ministry for Foreign Affairs and Trade's work on three core trade and environment issues - the relationship between WTO rules and specific trade obligations in multilateral environmental agreements, environmental goods and services, and labelling for environmental purposes. We have also undertaken work to identify New Zealand's interests in environmental labelling including current practices and the implications of these.

We have also worked actively with MFAT and the Ministry of Agriculture and Forestry to prepare for the Fifth WTO Ministerial Conference to be held in Mexico in September 2003.

Investigate strategic environmental issues as required

Achieved. Ten case studies of small to medium enterprises of sustainable business practices have been completed jointly with Sustainable Business Network (SBN), and are available on the SBN website. They profile how 10 businesses committed to sustainability are achieving improved financial, environmental and social performance.

The Ministry ran a workshop with the Northland tourism industry association and its key stakeholders to identify sustainability issues for their sector. Over the next 12 months we will work closely with Northland tourism operators to assist them in addressing some of the issues arising.

A research paper on market-based instruments was prepared by a secondee to the Sustainable Industry Group.

Output 1.6: Climate Change

Participate in a whole of government climate change work programme to enable New Zealand to ratify the Kyoto Protocol

Achieved. The Climate Change Office was integrated into the Ministry for the Environment in late January 2003. Since then, we have concentrated on structuring the work programme and the team so that it can effectively implement government policy on climate change. We have recruited a Director and management team, as well as additional staff resources. The work programme and the administrative systems for the Office have been integrated with the wider Ministry activities.

Detailed adaptation guidance notes for local government were produced, summarising current scientific evidence of climate change effects, methods for evaluating risks, and providing guidance on when and how to undertake risk assessments and make risk management decisions. Four case studies on climate change impacts and risk assessment were also undertaken with selected local authorities, and a resource to disseminate emerging best practice to local government planners developed.

Develop and implement domestic policies to meet obligations and commitments under the United Nations Framework Convention on Climate Change

Achieved. The greenhouse gas inventory report containing data for the year 2001 was submitted to the secretariat of United Nations Framework Convention on Climate Change by the due date of 15 April 2003. This National Inventory Report provides documentation on the methods used to calculate New Zealand's greenhouse gas emissions and removals, and provides the data in the Common Reporting Format, including time-series data for 1990 to 2001.

The National Inventory Report, as submitted under the United Nations Framework Convention on Climate Change in April 2003, was prepared for publication.

Output 1.7: Treaty Claims and the Environment

Advise on HSNO Act amendments to improve the recognition and protection of Māori values

Achieved. The Māori Reference Group (MRG) was established in December 2002 to advise Ministers on how to change the Hazardous Substances and New Organisms Act to better reflect the Treaty of Waitangi relationship between Māori and the Crown. The Ministry supported their work by setting up and facilitating meetings. The MRG reported on its work in March 2003. This report informed officials developing legislative and non-legislative proposals for the regulation and decision-making process for genetically modified organisms and wider HSNO Act activities.

Provide guidance to assist councils incorporate iwi management plans into their plans/policy development and consent processes

Achieved. Whakamau Ki Nga Kaupapa - Making the Best of Iwi Management Plans under the RMA 1991 was released in June 2003. This guide provides a practical summary of ideas to help local authorities make the most of iwi management plans and other iwi planning documents.

Implement a Treaty policy framework so the Ministry can assess and provide advice on Treaty issues across all policy areas

Ongoing. A Treaty policy for the Ministry was developed in 2001. Work started on updating this and will be completed shortly. We have continued to assess and provide advice on Treaty issues across all policy areas with the support of the Ministry's Māori policy team (Maruwhenua) and a draft Maruwhenua Strategic Plan was developed in June 2003.

Promote and facilitate Māori research projects across the Ministry work programme, local and central government and research funding agencies

Achieved. Maruwhenua has worked closely with Crown Research Institutes and research funding agencies to identify and promote Māori research projects. Maruwhenua has participated in Foundation for Research, Science and Technology reference groups, assisted Māori to develop applications to the Sustainable Management Fund and participated in Sustainable Management Fund assessment panels.

Provide advice and support to develop and implement a Māori Environmental Performance Indicator Strategy, including an integrated monitoring and reporting system and policy interventions

Ongoing. Work continues in a number of areas to support this, including publication of a kaimoana monitoring kit and supporting development of a Cultural Health Index for streams and waterways. The Ministry is also a project partner in a Cross Departmental Research Pool project - Māori Monitoring Methods and Indicators for Marine Protection - with the Department of Conservation and two hapu.

Output 1.8: State of the Environment Reporting and Indicators

Confirm outstanding core indicators and continue their development

Achieved. The website www.environment.govt.nz reports environmental performance indicators for a number of environmental issues including air quality, beach water quality, biodiversity, transport and climate change.

We also contributed to natural resource accounts for forestry, fisheries, energy and freshwater, a joint initiative between the Ministry and Statistics New Zealand (SNZ). Stock and flow accounts for forestry, fisheries and energy have been completed and published on the SNZ website.

Review core indicators against the pressure-state-response framework to identify a priority set for implementation and consider indicator requirements to report on RMA performance

Amended. This work was not undertaken due to changed Ministry priorities.

Test and produce a case study report on the application of Land Environment New Zealand and the river environments classification systems at a regional level

Target revised. The full-colour atlas Land Environments of New Zealand Nga Taiao o Aotearoa was published by Bateman Ltd, and the Ministry has published the Land Environments of New Zealand Technical Guide. All councils and relevant government departments received a complimentary copy of each of these books. Two CDs with the databases that make up the classification will be distributed by Landcare Research for use in Geographic Information Systems (GIS) by conservation and resource managers.

Complete the development of the Lakes Classification System

Amended. Due to changed Ministry priorities, this work is being undertaken by the Department of Conservation.

Develop an Information Management Strategy to support the needs of the indicators programme

Amended. This work was exited due to changed Ministry priorities.

Draft an Environmental Reporting Strategy that sets out key reporting outputs and a production timeline

Amended. This work was not undertaken due to changed Ministry priorities.

Promote the use of triple bottom line reporting in central and local government and the private sector and analysing the results of their findings

Achieved. Reports on the findings of the public sector Triple Bottom Line Report pilot groups have been published. Both pilot groups concluded that TBLR has the potential to add value to existing public sector reporting. Central and local government agency participants provided positive feedback on the pilot group process and are continuing to progress TBLR within their agencies.

Joint agencies have agreed on the way forward for triple bottom line reporting in the public sector and a report back paper is scheduled on the Cabinet Policy Committee agenda.

The Ministry (jointly with Sustainable Business Network) published guidelines on triple bottom line reporting for small to medium-sized enterprises. They were trialled by a group of small to medium-sized enterprises before publication.

We published our own first Triple Bottom Line Report to positive feedback from stakeholders. This year's results are published later in this report.

Confirm a small set of Environmental Sustainability Indicators and agree to an appropriate ongoing reporting framework

Amended. The Ecological Footprint of New Zealand and its Regions is complete and will be released in early 2003-2004. The report assesses New Zealand's sustainability performance against two criteria - the amount of land each person needs to support their consumption (ecological footprint per capita) and whether we are living within the carrying capacity of the land we have available.

Assist the Ministry of Transport's review of the effectiveness of the Vehicle Fleet Emissions Control Strategy (VFECS) initiatives and consider other options

Achieved. Although the Ministry of Transport did not undertake a review of the Vehicle Fleet Emissions Control Strategy, we did provide input to the development of vehicle emissions policies.

Initiate a strategic natural freshwater framework and strategy to help bring together and advance the work areas outlined above

Ongoing. River Environment Classification products include the user guide, the classification databases and two geographic information system (GIS) software tools, Tracer and Grouper. All products will be published on CD and made available to central and local government in 2003/2004.

A technical report on the Cultural Health Index has been released. This is a tool for assessing stream health from a cultural perspective in a way that can be incorporated into resource management processes. It has been sent to people who have registered an interest in development of Māori indicators, and is now being trialled in two sites, one in the North Island and one in the South.

Draft technical reports on water quality, water quantity, and air quality as prelude to issue-based state of the environment reports are complete and are providing input to the Water Programme of Action and the development of national environmental standards on air quality.

Output 1.9: Sustainable Land and Water Management

Provide guidance to regional councils on water allocation planning, including implementing minimum flows, the River Environment Management Framework, managing small streams and promoting efficient water use

Achieved. The Ministry worked with Southland Regional Council and others to develop information and procedures that have been included in the work programme for the Water Plan of Action (which is part of the Government's National Strategic Sustainability Programme).

As part of our work on managing the consequences of natural hazards, the Ministry prepared a Cabinet paper setting out agreement for removal of businesses from the south bank of the Waiho River (Franz Josef). Over $800,000 in Government funding for this is secured by an agreement between the Westland District Council and the Ministry. The businesses relocation plans are now underway and we anticipate that most of these businesses will be relocated by the end of winter 2004.

Finalise the draft guidelines for the recreational use of freshwaters

Achieved. This work was completed and published.

Further develop and implement the Dairy and Water Environment Action Plan with the dairy industry, regional councils and other stakeholders

Achieved. The Ministry released the report Rules for Managing Stock Access to Waterways in March.

Cabinet considered the rationale for central government interventions to protect Lake Taupo and underpin sustainable development in its catchment in July 2003. Cabinet agreed to a joint fund that would be governed by an agreement between the Crown, Environment Waikato, Taupo District Council and Tuwharetoa. The fund will have the primary objective of reducing nitrogen inputs to Lake Taupo at the lowest cost. The Minister of Agriculture and Minister for the Environment will negotiate a policy package based on partnership with local government and Tuwharetoa, subject to final Cabinet approval.

Scope the role of a NPSs and NESs to address the impacts of agriculture on aquatic systems

Amended. This work programme was exited and is now included within the Water Programme of Action.

Promote good practice in integrated urban catchment management, such as that adopted by the Auckland Regional and City Councils

Amended. This work programme was exited because of changed priorities.

Scope the state of, and the pressures on New Zealand lakes as preparatory work for a response strategy in 2003/04

Achieved. The Ministry worked with Environment Waikato to assist with the development of a programme to deal with the impact of nitrogen in Lake Taupo.

Assist the Gisborne District Council to develop and implement its district plan and Ministry of Agriculture and Forestry implement the East Coast Forestry Project

Achieved. The Ministry continued to work with the Ministry of Agriculture and Forestry and the Gisborne District Council to develop a regulatory framework to manage erosion in the hill country.

Assist regional councils and others implement the Australian and New Zealand Environment Conservation Council Water Quality Guidelines

Achieved. The Ministry worked with Environment Canterbury to incorporate the ANZECC guidelines into regional planning processes.

Assist the implementation of the Wood Processing Strategy

Achieved. Workshops were held around the country with local authorities to facilitate the development of a better regulatory framework for the management of this industry and its environmental impacts.

Commission a review of the Landcover Database to assess its accuracy and pilot a test to improve methodology

Achieved. The review was completed and findings and recommendations incorporated into the contract and processes to finalise LCDB stage 2.

Initiate a strategic natural freshwater framework and strategy to bring together and help advance the work areas outlined above

Amended. This work was not completed and staff were moved to work on potential National Environmental Standards. The Group Leaders' meeting decided on 30 June 2003 to exit detailed work in this area while keeping a watching brief on the Australian and New Zealand Environment Conservation Council Guidelines.

Output 1.10: General Ministerial and Environmental Advice

Speech notes were provided and general advice given as required by the Minister.

A new intranet-based Ministerial Tracking System was implemented across the Ministry in July 2002. The system has been enhanced since the implementation to now track and report on Ministerials, Official Information Act Requests, Briefing Notes, Cabinet Papers and Parliamentary Questions. The introduction of this new system has helped to facilitate a marked improvement in the administration of Ministerial documentation/correspondence; as well as providing a high-quality, effective reporting framework for Ministry staff.

Ministerial correspondence
	Expected performance	Actual performance
		Environment	Energy
Quantity	1700	1110	158
Timeliness	Draft replies completed within 20 working days.	82.2% of draft replies were completed within 20 working days.	53.8% of draft replies were completed within 15 working days.
Quality	95% of first drafts accepted by the Minister.	94.1% of first drafts were accepted by the Minister.	98.7% of first drafts were accepted by the Minister.

Parliamentary questions
	Expected performance	Actual performance
		Environment	Energy
Quantity	200	181	3
Timeliness	By the stipulated deadline.	90.6% of the answers were provided by the stipulated deadline.	100% of the answers were provided by the stipulated deadline.
Quality	95% of replies to the satisfaction of the Minister.	100% of the answers were provided to the satisfaction of the Minister.	100% of the answers were provided to the satisfaction of the Minister.

Output 1.11: Other Departments' Reviews

The work programme for the year involved advising on the environmental and resource management law implications of other departments' policy and legislative reviews and reforms, including in the following areas

Treaty settlements

The Ministry had input into various Treaty of Waitangi settlement negotiations. The Ministry is represented on the Crown negotiating teams for the Whanganui River and the Te Arawa Lakes claims. Our focus in these negotiations was to develop management arrangements that provide for the claimants increased participation that are consistent with Government policy and that are within the existing regulatory regime. We also provided substantial advice on a Cabinet paper on redress for the settlement of Treaty claims in relation to rivers and lakes.

Our input into other negotiations was generally confined to ensuring that redress was consistent with the Resource Management Act. Such negotiations included those for the settlement of the Ngati Awa, Tuwharetoa (Bay of Plenty), Ngati Tama, Nga Rauru, and Te Rarawa claims. We also ran a workshop for local authorities affected by the Te Uri o Hau settlement to assist them meet their obligations under that settlement. Overall we have developed an effective working relationship with the Office of Treaty Settlements.

Review of the Local Government Act

We provided significant input into this. We provided advice for Department of Internal Affairs for their input into a departmental report and for their advice to select committee, including commenting on Cabinet Papers. We addressed issues relating to the central/local government relationship and the relationship between the Local Government Bill and the Resource Management Act.

Review of environmental impact assessment procedures in the Economic Exclusion Zone

The need for a standard, formal process for assessing the environmental effects of proposed new activities beyond the territorial sea (i.e. in the Exclusive Economic Zone) was considered as part of Oceans Policy development and a policy package drafted for Ministers. This included a proposal to streamline approval processes for activities in the Economic Exclusion Zone, with a focus on Assessment of Environmental Effects requirements. Further work on this will be carried out under Oceans Policy work plans for 2003/2004.

Heritage review

The Ministry continued to participate in Government Co-ordinating Group of Chief Executives. A work programme was developed for the government departments to progress.

Public Works Act and Land Act reviews

The Ministry provided input into a series of 10 Cabinet papers relating to the review of the Public Works Act and the Land Act. We continue to work with officials from Land Information New Zealand to ensure consistency with the Resource Management Act 1991 primarily with respect to designation, compulsory acquisition and subdivision and amalgamation matters.

Health (Drinking Water) Amendment Bill

The Ministry had extensive input into the draft bill to amend the Health Act 1956. The Bill seeks to provide a legislative framework for the management of drinking water sources, abstraction, storage, treatment and distribution. We have continued to work with officials. At our suggestion, the Ministry of Health has agreed to the preparation of a national environmental standard under the Resource Management Act that would specify standards for different classes of sources of water intended for drinking water purposes.

Social Development Bill

The Ministry provided input to the Social Development Bill on developing environmental indicators and the policy implications drawn from environmental indicators.

Prostitution Reform Bill

We provided advice to the Parliamentary Counsel Office on the implications of the Prostitution Reform Bill on the management of brothels by local authorities through bylaws under the Local Government Act 2002 and through resource consent processes under the Resource Management Act.

Regulatory impact statements and business compliance cost statement

The Ministry provided input into a cabinet paper from the Business Compliance Cost Unit of the Ministry of Economic Development on means of improving the statements.

Building Act review

We provided advice to the Department of Internal Affairs and the Ministry of Economic Development on issues around dam safety and the interplay between requirements for resource consents and building consents. The Ministry addressed issues of sustainable development in the new Building Bill.

Land Transport Management Bill

The Ministry worked with the Ministry of Transport on the provisions of the Land Transport Management Bill for its report back to Select Committee.

Supreme Court Judicial Matters Bill

The Ministry provided advice to the Ministry of Justice on the implications for the Environment Court functions under the Resource Management Act.

Public health review

The public health review was put on hold by Ministry of Health in their pursuit of an amendment to the Health Act to establish a regime for drinking water.

Land-on-line certification

No advice required.

Output 1.12: Crown Entity Monitoring

Provide advice on ownership and purchase funding issues for the Environmental Risk Management Authority

Achieved. The Ministry administered an independent review of ERMA's operation and assisted implementation. We provided assistance to the reviewers during the review by arranging interviews, travel, and other administrative matters. After the review report was submitted to the Minister, the Ministry developed a cabinet paper with proposals to implement the recommendations from the review [CAB Min (03) 21/3]. We also prepared publicity material related to the review, and put the review report and cabinet papers on the Ministry website. We worked with the Environmental Risk Management Authority to determine the funding requirements for implementing the review recommendations, and put forward a funding proposal to Cabinet for their consideration on 11 August 2003.

Advise Ministers on approvals of the Statement of Intent and Purchase Agreement

Achieved. The Ministry monitored ERMA's accountability documents (Purchase Agreement, Statement of Intent, Quarterly Reports, and Annual Report) and other issue-based reports to check ERMA's progress towards the performance measures specified in the 2002/2004 Purchase Agreement. We provided briefings to the Minister for the Environment on ERMA's accountability documents, highlighting key areas where further action was needed. We co-ordinated the appointments process for the re-appointment of three Authority members and two new members.

Liaise with Crown entity boards and management, and advise Ministers on Crown entity performance and related matters

Achieved. The Ministry worked closely with ERMA staff on several policy and legal issues related to the effective implementation of the HSNO Act. ERMA was closely involved in the development of the hazardous substances strategy to improve the workability of the HSNO Act for hazardous substances. Staff from the Ministry and ERMA had monthly liaison meetings to discuss various policy and legal issues. Ministry staff participated in ERMA's annual conference, and several seminars and events hosted by ERMA throughout the year. Quarterly reports were also provided to the relevant Minister on the Authority's performance.