Annual Report 2003/2004

1 Overview

2 Statement of Service Performance for the Year Ended 30 June 2004

3 Financial Statements for the Ministry for the Environment

4 Financial Statements and Schedules: Non-Departmental

5 Triple Bottom Line Progress

6 Management of the Ministry

7 Contact Information

Vote: Environment - Output Class: Environmental Policy Advice

Output 1.6: Sustainable Industry

Establish and utilise ongoing relationships with waste producers and providers of potential alternative technologies

Achieved. We worked in partnership with several national companies on identifying and acting on opportunities for incorporating sustainable business practice and innovative waste management into business practice. Examples include: alternatives to landfill disposal of general manufacturing waste; organic sludges; coal ash; and the food production sector.

We were also active participants in the implementation of the first year of the Dairying and Clean Streams Accord, designed to minimise the environmental impacts of dairying.

Work with key stakeholders to develop an agreed system for the sustainable management of end of life tyres

Achieved. We worked with tyre companies and other stakeholders to develop a new national tyre collection system, to be operational from 1 July 2004. The voluntary scheme aims to reduce illegal dumping of tyres, and provide a better co-ordinated supply route for would-be users of end-of-life tyres. We also worked with potential recyclers of tyres, to identify and reduce barriers to tyre recycling, reuse and recovery.

Negotiate a comprehensive new Packaged Goods Accord

Achieved. The Accord was negotiated with the New Zealand Packaging Council (which represented brand owners), retailers/importers, packaging manufacturers, local and central government, and the Recycling Operators of New Zealand. The new Accord, to be signed in August 2004, requires a much greater level of commitment from industry than its predecessor. It is a significant advance on a high profile waste issue.

Strengthen the Used Oil Recovery Programme

Achieved. We met with large and medium sized oil companies and key retailers of oil to discuss their contribution to used oil recovery, and to identify areas where improvement is still required. Overall, New Zealand's used oil recovery rate was found to be very good by international standards.

Broker relationships to collectively resolve environmental problems

Achieved. The Ministry intervened in a number of areas to help broker relationships and foster solutions to a number of problems, including:

• facilitating a cross-departmental programme, including the Ministry for the Environment, the Department of Conservation, and Land Information New Zealand, to eradicate the wilding pines at Mid-Dome, Southland. This included aerial spray operations over the summer
• facilitating a cross-departmental research programme to remove barriers to the beneficial use of biosolids
• developing a close relationship with the New Zealand Water and Wastes Association through staff secondment.

We also worked co-operatively with the Maritime Safety Authority and other government departments to facilitate consultation with OMV Ltd, an oil company interested in the development of the Maui Oil Field.

Develop a model suitable for helping small to medium sized enterprises (SMEs) adopt sustainable business practices

Achieved. We worked with Enterprise Waitakere and the Sustainable Business Network to pilot a model for helping SMEs adopt sustainable business practices. The project started with a workshop which was attended by 35 business owners. This was followed by five in-depth workshops with ten SMEs, which explored ways of managing businesses from social, environmental and economic perspectives.

Support a sustainability training package for business

Achieved. The Ministry sponsored and provided input into an Auckland Business Care Enviro-mark project. This is a joint project being developed by the North Shore City Council, with support from local authorities in the Auckland Region, Landcare, and the Ministry for the Environment. The project involves research supporting up to 72 businesses over two years, with 36 signed up for the programme by 30 June 2004.

Ensure development of a Liquid and Hazardous Waste Code of Practice

Achieved. The Liquid and Hazardous Waste Code of Practice was developed and published by the New Zealand Water and Wastes Association with support from the Ministry. By June 2004, the Code of Practice had been purchased by 80 percent of members of the liquid and hazardous waste industry.

Review the targets in the 2002 New Zealand Waste Strategy

Achieved. The main conclusions of this review were as follows:

• targets are providing a useful focus for action by central and local government and a good basis for measuring progress
• good progress is being made by councils in setting local targets and adopting policies to achieve these
• some targets will be readily achieved. There are a few that will be difficult, maybe even impossible, for councils. These are mainly relating to organic wastes.

No change was proposed to the targets, but the need for further review in 2006 was noted.

Review waste management contracts in place throughout New Zealand

Achieved. The review was a first step towards developing guidelines on good practice for councils as a way of encouraging greater resource recovery in the solid waste stream.

Output 1.7: Treaty Claims and the Environment

Work with iwi to assist them to work with local authorities under the Resource Management Act (RMA)

Achieved and ongoing. Much of this work has been subsumed by broader policy development across government this year, including the Foreshore and Seabed issue, the RMA Review, aquaculture reform, and the Water Programme of Action. Each of those areas has significant implications for Maori and their relationship with local authorities and their ability to participate in the management and use of natural resources. We have worked to ensure those implications are clearly identified and a clear way forward progressed as a result of those policies.

The Ministry has also been working with iwi in a number of regions to support them in achieving their environmental goals, including supporting their relationships with local authorities. This has included:

• work with iwi in Te Tai Tokerau to establish a co-ordinated approach across a number of iwi and hapu to respond to environmental issues
• work with Ngati Tuwharetoa on the water quality issues in Lake Taupo
• regular meetings with Ngai Tahu in progressing our obligations under their Deed of Settlement
• ongoing engagement with iwi environmental groups
• establishment of a Maori Reference Group to support the development of the Water Programme of Action
• support for the implementation of the Kaimoana Survey Guidelines for Hapu and Iwi
• ongoing support for the Ministry's Maori Environmental Indicators Programme.

In addition to this, a significant amount of work has been undertaken in developing a proposed package of initiatives to be rolled out through upcoming policy implementation for the RMA Review, Foreshore and Seabed, and aquaculture policies. This is likely to be the main vehicle for delivering improved outcomes to Maori over the coming year.

Provide technical input on environmental issues to assist with the settlement of claims under the Treaty of Waitangi

Ongoing. The Ministry had a significant role in the Te Arawa lakes negotiations that resulted in Te Arawa accepting an offer from the Crown in December 2003. Throughout 2004 we have been actively involved in the negotiation of the deed of settlement, in particular provisions to provide for Te Arawa's involvement in the strategic management of the lakes, and a protocol to be issued by the Minister for the Environment concerning RMA processes. The Crown intends to initial a deed of settlement in August 2004.

We also had a representative on the Crown negotiating team for the Whanganui River claim, where we have effectively led the management of these negotiations. In addition to negotiations focused on waterways, we have provided advice on the comprehensive settlement negotiations for Ngati Mutunga and Nga Rauru, and the legislation for the Ngati Tuwharetoa and Ngati Awa settlements.

A key achievement has been the setting up of a work programme to meet the Ministry's obligations under Treaty settlements. Substantive implementation work completed includes running a workshop to help local authorities that have to give effect to statutory acknowledgements under the Ngati Tama settlement, and regular meetings with Ngai Tahu to progress work to meet obligations under their settlement.

The Ministry also continues to have a role in the development of settlements policy. As well as providing key advice about the settlement of claims to rivers and lakes, we have participated in the project to streamline the provision of Treaty settlement redress (ongoing).

Output 1.8: State of the Environment Reporting and Indicators

Develop a reporting framework

Achieved and ongoing. The reporting measures (indicators) have been narrowed down to focus on measuring the performance of national policies. Key areas for initial focus include freshwater, atmosphere (including ambient air quality) and indigenous biodiversity.

Lead the review of the Fiordland Marine Conservation Strategy, prepared by the Guardians of Fiordland, and prepare options and recommendations to Cabinet on the means to implement the strategy

Ongoing. The Ministry led the formation and operation of an Investigative Group in November 2003 to review the Fiordland Marine Conservation Strategy prepared by the Guardians of Fiordland. The Investigative Group consisted of representatives from the Guardians, Environment Southland, Ngai Tahu, Ministry of Fisheries and Department of Conservation.

The Investigative Group reported back to the Minister in June 2004. Their preferred approach (a consensus view) is to develop special legislation to implement the package of measures necessary, so as to have an integrated and consistent approach, and to have it ready for the Minister's announcement deadline of September 2005.

Work with others to co-ordinate national environmental reporting

Indigenous Biodiversity

Achieved. Information to inform decisions for the National Policy Statement on Indigenous Biodiversity was collected and published in A snapshot of council effort to address biodiversity on private land, a report back to councils. The snapshot provided a summary of council expenditure on indigenous biodiversity conservation and management, current provisions in regional policy statements and district plans and an overview of council capacity in working on biodiversity issues, such as the financial and human resources which must be spread at times over considerable geographical areas and often a broad range of functions. The snapshot also provided the first Geographic Information System (GIS) analysis of the extent of biodiversity protection nationally using the completed environmental classification system, Land Environments New Zealand, with the Land Cover Database. This analysis showed that the full range of New Zealand's remaining natural habitats and ecosystems is not fully represented on public conservation land.

Transport

Achieved. The Monitoring and Data Management Protocol provides clear methodology for how to collect and report data at a local level for the following indicators:

• vehicle fleet composition
• travel activity
• travel time
• mode of journey to work.

The methodology can be used by local government, environmental managers and road controlling authority managers. The indicators were developed with help from regional councils, central government agencies, and private sector consultants.

Environmental Classification Systems

Achieved and ongoing. The complete GIS classifications, user guides and supporting material for Land Environments New Zealand and River Environments New Zealand were launched and delivered to end users. The broad scale Marine Environments New Zealand development ran to schedule and has been finalised for packaging to end users in the 2004/05 financial year.

Maori Environment Indicators (Tohu)

Achieved and ongoing. The Kaimoana Survey Guidelines for Hapu and Iwi, developed in partnership with Otaraua Hapu, Shell and the Ministry were published and distributed to end users. The interim report on trialling the Cultural Health Index for freshwaters was also completed.

Complete the development of Landcover Database stage 2 to map land use and land use change across New Zealand

Achieved. The Land Cover Database 2 was a project to comprehensively identify and map land use across the whole country using satellite imagery. It was developed and completed during the year in partnership with the Department of Conservation and the Ministry of Agriculture and Forestry. The database will allow us to view land cover change over time and identifies 40 different types of cover categories from urban to tussock grasslands.

Output 1.9: Sustainable Land and Water Management

Lead and support work to fix contamination at Mapua and Tui Mine

Ongoing. The information and technology necessary to progress the remediation of the former Fruitgrowers Chemical Site near Mapua is now in place. Proof of performance tests on the technology to be used on the site have shown it to be effective. In May 2004 we completed funding arrangements with Tasman District Council to allow the remediation to get underway. The Crown is sharing the cost of remediating this orphan contaminated site 70/30 with Tasman District Council.

The Ministry investigated methods for the remediation of the orphan contaminated site at Tui Mine, Te Aroha, which would involve participation of the mining industry and local government to be part of the solution.

Establish a programme to remove unwanted agricultural chemicals

Achieved. The Ministry worked with key regional councils to collect and dispose of unwanted hazardous agrichemicals. We supported campaigns in eight regions including Northland, Bay of Plenty, Hawke's Bay, Taranaki, Tasman, Marlborough, West Coast and Canterbury. This resulted in the collection of 77 tonnes of agrichemical for safe disposal. Fifty-five tonnes of the chemicals collected were identified as needing to be taken offshore for appropriate disposal.

Take an active position on key environmental issues, such as water quality in Lake Taupo and dairying impacts on waterways

Lake Taupo

Partly Achieved. Lake Taupo water quality is threatened primarily by nitrogen inputs from farms in the catchment. The Ministry is leading central government's involvement to work with Environment Waikato, Taupo District Council and Ngati Tuwharetoa to develop a package to reduce the nitrogen levels flowing into the lake from land within the catchment by 20%. The estimated cost of the programme is $81 million over 15 years. The Government is contributing $36.7 million, the balance is coming from local government. The Ministry for the Environment has a number of roles including the co-ordination of central government agencies, facilitation of meetings and negotiations as well as organising further research and developing mechanisms to reduce nutrient flows into the lake. Progress has been slower than expected due to the complexity of issues and the number of affected stakeholders.

Lakes Rotorua and Rotoiti

Achieved. In late 2003 the Ministry for the Environment investigated public concerns about Rotorua lake problems. Following this, the Ministry engaged a water and catchment management expert from Western Australia, Dr Bruce Hamilton, to provide advice to the Ministry and Environment Bay of Plenty on management of Lakes Rotorua and Rotoiti. The Ministry is now working with Environment Bay of Plenty and Rotorua District Council to address water quality issues in the lakes.

Output 1.10: General Ministerial and Environmental Advice

Develop whole of government positions on environmental issues, eg, through interdepartmental working groups, and develop advice and recommendations to the Government on issues such as genetic modification

Achieved and ongoing. Advice was provided on four water conservation orders and two requiring authority applications. One regulation was passed to make Project Aqua a network utility operation. Advice was provided to the Minister on a range of resource management issues, including limited notification. An ongoing role was provided on regional and district plan changes and variations in respect of the Minister's clause 3, First Schedule consultation requirements.

Respond to the Royal Commission on Genetic Modification

Achieved. The Government's response to the Royal Commission on Genetic Modification was to agree to various work programmes, to be undertaken by a range of agencies led by the Ministry.

Contribute to the Cartagena Protocol on Biosafety

Achieved and ongoing. Officials continued working with other agencies, primarily the Ministry of Foreign Affairs and Trade (MFAT), the Ministry of Agriculture and Forestry (MAF), and the Environmental Risk Management Authority (ERMA) to clarify options for ratification and compliance.

Initially we were working to enable ratification before the first meeting of the parties which was scheduled for May 2004. The meeting of the parties was rescheduled to February 2004. New Zealand was unable to before this meeting and had to attend as an observer rather than a full party.

A Ministry official attended the first meeting of the parties (along with officials from MFAT, MAF and ERMA) following provisional designation of the Ministry as focal point for Protocol Secretariat Liaison. A public discussion document was prepared and approved for release by Cabinet in mid-May.

The public consultation period extended from 4 June 2004, and included public meetings in Wellington, Hamilton, Auckland, Christchurch and Dunedin. These meetings were attended by Ministry and MFAT officials.

The Ministry for the Environment's Ministerial and Parliamentary Performance for 2003/04

	Ministerial Correspondence			Parliamentary Questions
	Expected performance for 2003/04	Actual performance		Expected performance for 2003/04	Actual performance
		2002/03	2003/04		2002/03	2003/04
Quantity	1100	1268	1658	200	184	233
Timeliness	Within 20 working days	78% were completed within 20 working days	82% were completed within 20 working days	Within five working days of being placed in the Notice Paper	91% of the answers were provided by the stipulated deadline	92.3% of the answers were provided by the stipulated deadline
Quality	95% of first drafts accepted by Ministers	95% of first drafts were accepted by Ministers	95.8% of first drafts were accepted by Ministers	95% of first drafts accepted by Ministers	100% of first drafts were accepted by Ministers	100% of first drafts were accepted by Ministers

Output 1.11: Other Departments' Review

Control of genetically modified organisms by local authorities

Achieved. The Ministry has responded to a number of queries from councils in Auckland, Northland and the Hawke's Bay on the concept of local council control of genetically modified organisms. A Crown Law opinion was sought on the interface between the Hazardous Substances and New Organisms Act (1996), the Resource Management Act (1991), and the Local Government Act (2002) as they relate to controlling genetically modified organisms. This information has been made available to the public through the Ministry's website and has been communicated with a number of councils directly.

Provide input into the Ministry of Agriculture and Forestry's (MAF) Import Health Standards

Achieved. The Ministry commented on draft Ministry of Agriculture and Forestry Import Health Standards to ensure consistency with the Hazardous Substances and New Organisms Act and maintain compliance with international standards and obligations.

Contribute to information on the Environment Court decision on Genesis Tongariro Power Development Scheme

Achieved. The Ministry led preparation of an interdepartmental briefing for Ministers and Cabinet on the decision of the Environment Court that limited Genesis' Tongariro consents to 10 years.

Facilitate sustainable development policies into the Building Bill

Achieved. Following a late request from the Minister of Energy, the Ministry worked to further the achievement of sustainable development by promoting the inclusion of sustainable development into the purpose of the Building Bill. Input was also provided around water and energy conservation and efficiency, and renewable energy generation, and provision for the reduction of waste created during construction and the use of materials that can be reused or recycled at the end of a building's life.

Output 1.12: Crown Entity Monitoring

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

Achieved. Ministry governance and partnership roles were clarified and separated to better support effective interactions with ERMA.

The development of a consistent and integrated system was further progressed to ensure the key relationship between ERMA, the Ministry for the Environment and the Minister are effective and helpful to all parties, and that monitoring processes managed by the Ministry are rigorous, transparent, timely and meet all state sector monitoring standards.

Work on the level of Authority members' fees began with the State Services Commission. Shortlisting for nominations for new Authority members was also finalised and work began for appointing new members.

An agreement was reached with ERMA on a process for progressing revision of the Methodology. The Ministry provided input to the revision and associated operating protocols.

The Ministry assisted with ERMA's public roadshow (4-21 November 2003) on ramifications of the 2003 Hazardous Substances and New Organisms Act (HSNO) amendments, and helped develop operational procedures for conditional release and new organisms enforcement.