ENVIRONMENTAL RISK MANAGEMENT AUTHORITY

NGA KAIWHAKATUPATO WHAKARARU TAIAO

ENVIRONMENTAL RISKMANAGEMENT AUTHORITYNGA KAIWHAKA TUPA TO WHAKARARU TAIA0

Quarterly ReportFor the period 1 October − 31 December 2007

~ TABLED

2 6 MAR 2009LOCAL GOVERNMENTAND ENVIRONMENT

Report for the Minister of the Environment

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ENVIRONMENTAl IUSK MANAGEMENT AUTHOR!TYNGS{ KAIW |[AKATOPATO WHAKARARU TA1AO

Contents

o

2.

3.

Introduction ..„.„„..........„............„.„„„„„„.....„........„.....„..........„.„.„„....„..............„.„.„...2

Summary .......„..„„...„..„.................„„.„„„..„.„„„„„„„.„.............„.......„....„..„„„.......„..„...2

Output Highlights „„„.„„„„„.....„........„„„„„„„„„„„„.„.„.„„..„......„..„„„..„.„„.„„.„„„„„..5

Output 1: New Organism Decision−making and Compliance ...............................................................5Output 2: Hazardous Substance Decision−making...„................„.....................„..„...„............................6Output 3: Hazardous Substance Compliance„.„„„......................„„.........................................................7Output 4: Public Information and Awareness...........................................................................................8Output 5: Government Policy, Legislation and International...........„..„....................„.........................9

4. Financial Performance„.„„...„..„....„„„„.„.„„........„„„„„„„...„„.„„„„„„„„„„„........„„„„.11

5. Appendix 1 − Work Programme from Output Agreement...„......„......„„„„„.........„..„..„.13

6 Appendix 2 − Financial Statements for the period ended 31 December 2007 „„„..„..„„„„29

7. Appendix 3 − Government questions answered for the Quarter „„„.....„„„„„„„„...„„.„„34

ENV~RONMENTALUSK MANAGEMENT AUT110RH'Y

1. IntroductionThis report is provided in accordance with our Output Agreement for the 2007/08 financial year.

2. Summary

Financial overview

Our financial position is better than expected at this stage of the year with a $96,000 deficit. Revenueis higher than budgeted due to an unbudgeted windfall from fees for the 1080 application and higherthan budgeted interest earnings. Expenditure is slightly behind budget due to a slower than expected

.....start to a major capital expenditure programme.

Longer term, ERMA New Zealand's financial outlook remains difficult. In late January 2008 theAuthority will consider options to minimise significant out−year financial risks as part of the annualplanning process.

Budget bid

A budget initiative, HSNO Capability and Capacity Bid for 2008/09 and out years, has beensubmitted. This bid seeks $3.619m in new funding: $2.175m for hazardous substance complianceand enforcement (in order to deliver the Hazardous Substance Compliance and Enforcement Strategywithin the 5 year period specified by Cabinet), and $1.444m for the HSNO regulatory frameworkmainly to fund reassessments of high risk substances. The budget initiative also seeks an increase infunding for DoL for increased inspections and enforcement capability and MfE for resources toreview the test certifier regime.

Interaction with Māori

ERMA New Zealand coordinated and hosted a successful cross−government hui at Mahia inNovember 2007. Six government agencies participated in the hui, giving presentations and providinginformation about a range of biosecurity, environmental and marine management issues. The hui alsoprovided the opportunity for iwi representatives to share information about a range of kaitiakiactivities relating to the management and enhancement of waterways.

FNVlRONMENTALRESKMANAGEMENT AUTHOR)TYNGA KAIWHAKAT(}PATO WHAKARARU TA1AO

Health concerns with treated timber

Following reports that builders handling treated timber became unwell, the MP for Tauranga wrote tous asking that certain timber treatment chemicals be banned. The Department of Labour and theDepartment of Building and Housing also received letters on the matter.

The chemicals thought to be responsible for the adverse effects were tributyltin naphthenate−basedLOSP (light organic solvent preservative product). The precise nature of the health problems and thenumber of builders affected is uncertain. Only a small number of complaints have been lodged withthe DoL or are subject to claims being made to the ACC. While it is difficult to tell for sure, it ispossible that the problem arose from poor practice by those treating the timber (not properly "flashingoff" the solvent so it no longer remains in the timber).

ERMA New Zealand organised an interagency/industry meeting in December at which industry werereminded of their obligations to adhere to the best practice guidelines and flash off the solventproperly. This in itself may resolve the issue. Nevertheless, if information comes to hand thatindicates the HSNO controls on the chemicals are inadequate to protect health then we will carry outa review of the controls and/or approvals.

Children 'spaint recall

Problems with contaminated products imported from China continued through the quarter.

We undertook a small survey of imported children's water colour paints and crayons to check levelsof heavy metals and compliance with the previous requirements under the toxic substancesregulations. These requirements are being adopted in the new Group Standard for GraphicsMaterials. This survey found one non−compliant product with unsafe levels of lead and chromium.

The importer undertook a voluntary recall of the paint set involved. The recall was publicisedthrough a recall notice in the New Zealand Herald and via public notices in the retail stores involvedand no media coverage eventuated from this recall. As a result of this survey, we will prepareguidance material for importers and retailers of graphic materials.

Annual hazardous substance compliance report

Our annual report on the proposed activities of enforcement agencies in 2007/08 (the "intentionsreport") was completed during the quarter. The report highlights some encouraging signs ofimprovement in a few areas but concludes that hazardous substance compliance is a major weaknessin the HSNO regime. Compliance activity is lower than it should be and set to fall further behind inthe coming year.

For the third year in a row, we reported that there remain some fundamental weaknesses with thecompliance regime. These centre on the diminished capability of enforcement agencies and issuesaround the test certification system.

ENVIRONMENTAI RISK MANAGEMIENT AUTH tOR)TYNG~ KARITAKA'ffPATO WHAKARARU TAI,AO

Select Committee report on breast cancer

On 14 December 2007, Parliament's Select Committee on Health reported on its inquiry into thepetition of Barbara Mason and others on behalf of the Breast Cancer Network New Zealand Inc. Thereport makes comments and recommendations about how endocrine disrupting chemicals are dealtwith. Both ERMA New Zealand and MfE will need to contribute to the government response to thisreport.

Fireworks

The 2007 Guy Fawkes produced fewer incidents and call−outs than usual. Some action is howeverbeing taken to establish a Code of Practice and address minor concerns. Please see page 7 for moreinformation.

1080

In December 2007, we appointed a staff member to manage the 1080 "watch list" set up by theAuthority last year to keep an aye on areal sprays of 1080.

Equine influenza vaccine

In response to the equine influenza outbreak in Australia, Biosecurity New Zealand has sought andgained approval to use a low risk, live new organism vaccine. This is the first application received byus since the HSNO Act was amended in 2003 to allow for the release as a "qualifying organism" of alive, low risk, new organism medicine. The vaccine can only be used by MAF in the event thatequine influenza is identified in horses in New Zealand.

The vaccine still requires approval from the New Zealand Food Safety Authority under the ACVMAct.

Passenger organisms

The Court of Appeal decision on honey imports has put a focus back on legislative changes on thebest way to resolve the anomaly between the HSNO Act and the Biosecurity Act on the inadvertentintroduction of new organisms into New Zealand.

AgResearch applications

Steps have been taken to convert the misinformation in press articles about a possible AgResearchapplication to move GM cattle around New Zealand. Any such applications would be subject topublic hearings. Please see page 5 for more information.

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ENVIRONMENTA! USK MANAGEMENT AUTHORITY

NGA KAtW||AKATOPATO WHAKARARU TA1AO

3. Output Highlights

New Organism decision making

Minor amendment to AgResearch GM−cow approval

This quarter we approved an application from AgResearch to amend their outdoor developmentapproval for GM−cows. The amendment was under section 67A of the Act (minor or technicalamendments) and allows the use of commercially available genetic tools.

There has been some public interest in section 67A amendments and criticism that they are not openfor public submissions. In order to be transparent and open about these types of applications weposted information on our website prior to the approval being granted.

Following publicity by an anti−GM group just before Christmas, The Press in Christchurch ran a storyclaiming that AgResearch was planning to make an application for another section 67 A amendmentthat would have allowed it to move the GM−cows around the country. The story highlighted the factthat a section 67A application would have meant that public consultation was avoided.

The story, which was widely repeated in the print media, was incorrect. Any application to move thecows around the country would definitely be open for public consultation.

To help undo the damage, our communications staff contacted The Press reporter who wrote the storyto inform him about the error. A media advisory was circulated to let journalists know about theerroneous story. All media were encouraged to contact ERMA New Zealand in future in order to getproper background information about GM applications and approvals.

Regulation to prescribe bridal creeper rust as not a "new organism"

There is strong evidence that bridal creeper rust (a fungus) established naturally in New Zealand sometime after 2000 when it was released in Australia as a biological control agent for bridal creeper.Because bridal creeper rust became established in NZ through natural 'colonisation' after 1998 (andthus has no HSNO approval) it is still legally a "new organism".

Landcare Research is interested in assisting the spread of the rust to control bridal creeper in NewZealand. Consequently, they recently approached us about authorising bridal creeper rust byprescribing it "not a new organism" through an Order in Council.

The authorisation would apply only to the strain that is present in New Zealand. All other strains ofbridal creeper rust will remain new organisms.

Forthcoming applications

In the second half of the 2007/08 year we expect applications for:• an insect biological control agent for the invasive weed tradescantia, commonly known as

Wandering Jew or Wandering Willie;

ENVIRONMENTALRISK MANAGEMENT AUTHOR3TY

• a field test / outdoor development of GM−cows and goats from AgResearch. This applicationwould update AgResearch's current approval for GM cows and would allow AgResearch tocarry out additional research, field testing and commercial activities and;

• a field test for GM−onions, leeks and garlic from Crop and Food.

New Organism compliance

GMOfield testsDespite the approval being the subject of a current appeal, Crop and Food Research have begun theirfirst season of field testing GM−brassica (GMF06001) with the planting of GM−broccoli, GM−cauliflower and GM−forage kale at the end of November, and GM−cabbage in mid December 2007.

Crop and Food Research have told us that they will not be carrying out any further field testing ofGM−onions (GMF03001). However, this approval will continue to operate for at least one more yearwhile post−harvest monitoring is completed. The monitoring period starts from when the last cropwas removed in March 2007.

The annual reports on the progress of the Scion GM−pine and AgResearch GM−cattle field tests andafinal report recording post−trial monitoring of the GM−canola field test sites (pre the HSNO Act) werereceived in December.

Incidents

We have registered one incident this quarter. The incident involved three sitatunga (swamp dwellingantelope from Central Africa) escaping from their enclosure at Hamilton Zoo on the evening of3 December 2007. The animals were able to escape through an insecure section of their enclosurefence that was being worked on as part of a fence replacement programme.

The escape was discovered the following morning. Two of the animals were found within the zooperimeter and the remaining animal was found on neighbouring land. They were quickly recapturedand the Zoo has amended their procedures for carrying out structural changes.

Part V and VIA decision−making

Graphics materials

We are consulting on a new Group Standard for graphics materials (crayons, finger paints andchildren's water colour paints) during this quarter. The new Group Standard is required becauselimits on potentially toxic metals under the now repealed Toxic Substance Regulations, were notcarried into the new legislation. The Group Standard proposes tighter metal limits for finger paintsthan for other graphics materials.

Ant bait

The Authority agreed to modify a control on "Distance" and "Engage" ant baits for Biosecurity NewZealand to aerially apply the baits in order to control invasions of foreign ants within New Zealand.

ENVIRONMENTAI RISK MANAGEMENT AUTHORITY

NGA KAIW||AKATRPATO WtlAKARARU' TA1AO

Databases

During December, the New ZealandInventory of Chemicals database and the HSNO ChemicalClassification Information database were made publicly available on our website.

The New ZealandInventory of Chemicals is a database of chemicals present in productsapproved under Group Standards. Listing on the inventory indicates that a chemical is acomponent of an approved substance but does not indicate that the chemical has an approvalin its own right.The HSNO Chemical Classification Information Database is a database of chemicalsclassified in accordance with the HSNO regulations. The purpose of the database is to helpindustry in the classification of formulated products, including the formulation of lesshazardous products, by providing classification information on potential alternativecomponents. Information found within this database may also be useful for the preparation oflabels and safety data sheets.

Fireworks

Once again ERMA ran ajoint fireworks safety campaign during Guy Fawkes season with MfE, thePolice and the Fire Service. We set up and maintained a website publicising the new restrictions onthe sale of fireworks and displays open to the public. Media releases promoted the initiative andgenerated a fair amount of media coverage, including numerous radio interviews. The websitegenerated more than 65,000 hits by 9 November 2007.

The quantity of retail fireworks imported was 1,300 tonnes, a 25% reduction on the quantity importedin 2006. How much this reduction is due to the recent regulatory amendments (including a reducedsales period) is unknown.

This year also saw the lowest number of emergency callouts since records began in 1996. The totalnumber of fire calls taken during the four day sales period was down 60% on the number of callstaken over the ten day sales period in 2006. Despite this improvement, the Police and Fire Servicehave continued their calls for a ban on public sales. Following Guy Fawkes, a major supermarketchain indicated they would no longer sell fireworks.

We will progress a number of regulatory changes to address the noisiness of retail fireworks withMfE during 2008, to be in place for next fireworks season. A public discussion document to thiseffect was released at the end of this quarter. In addition, a tender document requesting consultancyservices for the development of a code of practice for public fireworks displays was released in lateDecember. This code will be in place for the 2008 fireworks season.

Our annual debriefing session with fireworks importers and others in the industry was held inDecember

ENVIRONMENTALRISK MANAGIMENT AUTHORfftNGā{ KAi~1|AKATOPATO WHAKARARU TAIAO

Codes of practice

Four codes were approved during the second quarter:• Retail Fireworks (revision to reflect regulation changes)

• Design of Rotomoulded Plastic Tanks to AS/NZS 4766:2002 standard• Design of Gas Cylinders to ISO 11119−1 standard• Design of Tank Wagons for Flammable Liquids

Bulk tank certification

Industry has been concerned that there were insufficient test certifiers who could certify large bulkstorage tanks subject to alteration and/or repair. To resolve this issue we have worked with theindustry to provide additional training to suitably experienced test certifiers. This training hasresulted in a further 15 test certifiers who are now qualified to certify altered/repaired tanks.

Gas cylinder testing

The gas cylinder testing industry has had problems interpreting the HSNO Compressed GasesRegulations. We met with the industry and worked through the issues they have encountered in theregulations. To resolve the problems, two codes of practice will be produced to clarify therequirements of the regulations and assist the industry to operate legally.

Assisting enforcement agencies

Fifty−three enforcement agencies now have access to the test certificate database, including DoL,MoH, eight Regional Councils and 43 territorial authorities.

Interaction with the community

Community and Environmental Group (CEG) meetings were held in Hamilton and Wellington inNovember. The Hamilton meeting, which was a first for that region, was promoted through theWaikato Times and involved staff running an introductory session to explain our role and answerquestions. The Wellington meeting covered a number of issues, including aerial spraying ofForay48B in Auckland, 1080, post−release monitoring of biological control agents, destruction of GMorganisms, atrazine and the approval of aerial application of pindone.

Media coverage

Media releases issued during the quarter covered the following:Two releases updating 1080 developments, including the appointment of a Co−ordinator forthe 1080 watch list;Two releases about the fireworks safety campaign and the new rules for sales;Approval of aerial dropping of ant baits;Receipt of an application for a biological control agent to control Tradescantia; andTwo releases about the equine flu vaccine, announcing receipt of the application and thedecision.

ENV!RONMENTAL RISK MANAGEMENT AUTRO|HTY

NGA KAIWHAKATOPATO WHAKARARU TAIAO

An article was also written for Farmers Weekly in response to an item from GE Free Northlandclaiming that local councils would be liable for damage caused by GM organisms.Issues highlighted by the media during the quarter were:

• Fireworks incidents;• Equine flu vaccine;• GM cattle approvals and public consultation; and• Tributyltin and LOSP (light organic solvent preservatives products).

Māoriparticipation

The focus of much of this quarter was on the preparations and coordination of people and materialsfor the wānanga−ā Tangaroa held at Kaiuku Marae in Mahia in November 2007. However KaupapaKura Taiao staff were able to continue interactions with a number of iwi and applicant groupsregarding a range of issues including:

• Te Rünanga ō Ngāi Tahu and the development of their iwi HSNO policy statement;• Ngāti Wairere / Te Kōtuku Whenua regarding lessons and improvements to decision making

involving genetic modification at the field test and outdoor development stage;• Türanganui−ā−Kiwa in preparation for the February 2008 meeting with their kaumātua council;• Scion in the joint development of a suite of tools to assist applicants engage with iwi/Māori on

controversial technologies;• Allan Wilson Centre and GNS Science in the planning and preparation of a jointly hosted hui

in 2008 on new and emerging technologies; and• AgResearch, providing advice and support to their upcoming consultation with iwi/Māori over

proposed new applications involving genetically modified ruminants.

Beekeepers appeal on "passenger " organisms in honey

The Court of Appeal overturned a High Court decision which had ruled Biosecurity New Zealandcould to allow "passenger" new organisms into the country without ERMA New Zealand having toissue a HSNO Act approval. The National Beekeepers Association argued that because Australianhoney is likely to contain a new organism (P alvei), imports should not take place until ERMA NewZealand has approved the organism.

The Minister of Agriculture has indicated that a law change will be brought in to resolve the problemscreated by this decision. The court case generated some coverage among specialist media.

Cartagena liability and redress

MFAT held a stakeholders' meeting to discuss liability issues arising from the Cartagena Protocol onBiosafety. It is within the Protocols mandate to address the issue of liability from damage arisingfrom the trans−boundary movement of GMOs.

The parties to the Protocol set up an ad−hoc Working Group of Technical and Legal Experts onLiability and Redress to examine possible rules and procedures. A meeting of the Working Groupoccurred during 22−26 October 2007. MFAT used the stakeholders' meeting to develop a brief for

ENV]RONMENTAL :RISK MANAGFMI'NT AUTHORITVNCA KAIWifAKATOP*ATO WHAKARARU TAIAO

the New Zealand representatives. Presenters included AgCarm (New Zealand Association for AnimalHealth and Crop Protection), the Sustainability Council, and Greenpeace.

Genetic use restriction technology (GUR Ts)

Simon Terry of The Sustainability Council provided the Ministry of Foreign Affairs and Trade with areport claiming that the GM−pine field test in Rotorua (approved by the Authority in 2000) usesGenetic Use Restriction Technology (GURT). He recommended that the GM−pines should be movedinto glasshouse containment. Our view is that the Scion field test does not involve GURT and thusglasshouse containment is unnecessary.

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ENVIRONMENTAL RISK MANAGEMENT AUTHOR~TY

NGA KAIWHAKATOPATO WHAKARARU TA1AO

4. Financial PerformanceThe financial statements in Appendix 2 show the results of the first half of this financial year.

The first half year operating results show a deficit of $96,000 (table 2) in comparison to a budgeteddeficit of $585,000. Revenue is considerably higher than budget due to the additional 1080reassessment application fees and the higher interest income due to higher bank interest rates.Expenditure is tracking slightly below budget due to staff vacancies, lower consultancy fees and alower depreciation charge.

The planned office accommodation improvement project has been deferred as a prudent measure toretain some financial flexibility. Expenses related to the judicial review of the approval given for theGM brassica field test are not yet known and the resulting impact on the financial position of ERMANew Zealand cannot be reliably estimated at this stage.

Financial Management Issues

The operating result for the first half year of 2007/08 year is a deficit of $96,000, compared with aforecast budget deficit of $585,000. The main variances are shown below:

Main contributors Budget Actual VarianceV _ariance

$000 $000 $000Total revenue − primarily due to the recognition 4,422 4,689 267Total revenue − primarily due to the recognitionof the remaining 1080 application fees (decisionnotified in August 2007) and higher interestearning.Total expenditure − mainly due to:

• staff vacancies,• lower consultancy fees, and• lower depreciation charge (the major

capital expenditure is now expected to becompleted in June 2008).

Surplus/ (Deficit)

5,007

(585)

4,785

(96)

222

489

The statement of output in Appendix 2 shows that the Hazardous Substances Decision−making andthe Hazardous Substances Compliance outputs exceeded budget by more than $30,000.

OutputHazardous SubstancesDecision−makingHazardous SubstancesCompliance

V ariance

$136,000)

$32,000)

CommentMainly due to the additional costs to process the1080 reassessment application.Due to the additional costs related to theimplementation of the 1080 decision.

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ENVIRONMENTAL USK MANAGEMENT AUTHORITY

Overall Operating Performance

Our financial position remains comfortable as at 31 December 2007, due to the surplus carriedforward from last fmancial year and the re−scheduling of our capital expenditure project (expected tobe completed by June 2008). The outreach for 2008/09 and out−years is however problematic.

The working capital ratio is now 1:2.9, although this will decrease significantly over the next fewmonths as the major IT capital expenditure projects begin.

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ENVIRONMENTAL RISK MANAGEMENT AUTHORITy

NG,~ KAIWifAKATI~!PATO WHAKARARU TAIAO

5. Appendix 1 − Work Programme from Output Agreement

1. 1 The application process for new organisms is as efficient as possible for stakeholders. __)

i Initiatives_ _____

Outcome measures_

_~ Quarterly update~ ~

|

| • Provide clear instructions : Information is available on On target − One new information |

as well as technical and i ERMA New Zealand's website sheet was produced this quarter |

user guides, policy : and in its publications. ~ (From the Lab to the Marketplace |

protocols and information ~ ! − A Strategic Approach for j

sheets to assist Scientists Making HSNO 1

stakeholders. Applications). Policy documentsrelating to the New Organisms'were reviewed and revised.

of the accuracy of

information and | Customer surveys show no less The next customer satisfactionusefulness of content in

~than 75% satisfaction. survey will be undertaken in

2008.

•

technical and user guides. :_

2008.

The quality of information A preliminary (6 month) reviewI e Engage with stakeholders

provided by applicants of time and cost efficiency will be |in the development of

improves (as measured by a available in March 2008. |

reduction in the cost and time !

needed for processing iapplications). I

each year to improve the

Feedback is reported after anyAchieved − Wānanga−ā−information from Māori

wananga. Tangaroa was held over threefor decision−making.

days from 1−3 November 2007.| The Wānanga achieved its major

objectives and received positivefeedback from Māori NationalNetwork members, local

i e Carry out a consultationcommunity participants and |

cross−government agency|

.....................................................................representatives.

.........._....__ _..We are working with Scion andiits Māori Advisory Group, TeiAroturuki to develop a suite of!tools for applicants to assist in |

their engagement with iwi/Māori.|The project will be completed by |

i the end Of April 2008. jNo consultation was required. /

|• Carry out a consultation

_pr°cess when appli_cable.__ j

Carry out regular reviewsof the accuracy ofinformation andusefulness of content intechnical and user guides.Engage with stakeholdersin the development ofprocesses.Hold one wānangarelating to new organismseach year to improve theprovision of valuableinformation from Māorifor decision−making.Provide resources andsupport to enablestakeholders to engageeffectively with Māori.Carry out a consultationprocess when applicable.

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ENVLR{}NMENTALRISK MANAGEMENT AUTHOR! TY

NG~ KAIWtfAKATI.}PATO WHAKARARU TAIAO

.........................................................................................

1.2 All new organism applications are processed within the statutory timeframe, and decisions aremade in accordance with the HSNO Act. !(nitiatives ] Outcome measures

e Log and monitor allapplications to ensurethey are processed withinthe statutory timeframe.

• Have in place internalquality assuranceprocesses, including peerreview, before significantreports are distributed.

• Complete an annual auditof the risk assessmentand application process.

All applications are processedwithin the total statutorytimeframe, and processingtimes are reported quarterly tothe Minister.

Quarterly updatei

On target − in quarter two, allapplications have been processedwithin the statutory timeframes,

or with appropriate waivers, asallowed under the Act.

[ .......................................

No successful appeals orjudicial reviews of decisionson the decision−makingprocess occur.

On target − the High Court hasset aside 31 March and 1 April2008 for the appeal of thedecision to approve the GM−Brassica field test.

No significant issues are The audit of the risk assessmentidentified in the annual audit. and application process to be

commenced in the third quarter.

Issues identified in the audit No issues to resolve.are resolved to the ChiefExecutive's satisfaction andreported to the Authority.

1.3 Decisions made under delegated authorities for Institutional Biological Safety Committees andthe Chief Executive are managed within the timeframes and audited for correctness.

Initiatives | Outcome measures

• Issue new InstitutionalBiological SafetyCommittee delegationscorrectly after receivingrequest.

• Issue new InstitutionalBiological SafetyCommittee delegationscorrectly after receivingrequest.

• Undertake at least threeaudits of InstitutionalBiological SafetyCommittees in 2007/08.

• Audit at least threedecisions made by theChief Executive eachyear.

New Institutional BiologicalSafety Committee delegationsare issued within 20 days ofreceiving a completed request.

Quarterly update

Ongoing − no new delegationsrequested this quarter.

New Institutional BiologicalSafety Committee delegationsare issued within 20 days ofreceiving a completed request.

No significant problems areidentified in the audits.

Ongoing − no new delegationsrequested this quarter.

Ongoing− on site audits arecomplete, reports are beingdrafted. Please note that we areonly intending to do 2 audits thisfinancial year as some IBSCs nolonger operate.

Issues identified in the audits Audit of the Chief Executive Jare resolved to the Chief decisions will be commenced in iExecutive's satisfaction. the third quarter. I

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ENV]RONMENTAL RlSK MANAGEMENT AUTHOR1TY

NG~ KAIW|[AKATOPATO WHAXARARU TA1AO

A report is provided to theAuthority (GeneticallyModified Organisms StandingCommittee) providing thefindings of all audits and issuesto be resolved.

This will be provided later in thefinancial year after thecompletion of the audit.

L4 Controls on new organism approvals are complied with to ensure the Ministry of Agriculture |

and Forestry operates the overall new organism compliance and enforcement regime effectively. i

i .....................................................................................................................................................................................................................................................................................................................................................................

e Work with the Ministry A report is provided to the i Achieved − report provided on |

of Agriculture and Minister on the Ministry of 29 September 2007. |Work with the Ministryof Agriculture andForestry to develop anannual enforcement plan.

Agriculture and Forestry'sannual enforcement planwithin three months ofreceiving the information fromthe ministry.

A report is provided to theAuthority within three monthsof receiving all informationrequired to undertake aninvestigation into an incident.

Ongoing − one incidentregistered this quarter:

• Sitatunga escape,Hamilton Zoo

No investigations have takenplace into any incident.

Assist the relevantagencies to investigateincidents andenforcement matters asrequired under the HSNOAct.

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[,NV~RONMENTAL RISK MANAGEMENT AUTHORITYNGA KAIWHAKAT(iPATO WHAKARARU TAIAO

Table 1: New Organism Applications accepted and decided for the three monthsto 31 December 2007

INon−GMO release and containmentNotified (full release)Notified (conditional release)Notified (containment)Non−notified ( containment)

GMO development in containmentNotifiedNon−notified

GMO import into containmentNotifiedNon−notified

;GMO field test and outdoor develop mentsGMO releases

Notified (full release)Notified ( conditional release)

Rapid assessmentsNon−GMO release and containmentGMO development in containmentGMO import into containmentGMO releases

ReassessmentsExternally generatedChief Executive initiated

Imp ortor release of a new org anism in emerg encyTranship mentStatutory determinations

Determination on an organismGrounds for reassessment

Minor or technical amendmentsAmendment to a rapid assessment applicationAmendment to all application types other than those listed below

TOTAL

:2007/08Rec ived

YTD

1

11

11

100

131

102

002

2

231122109

250

11

l

[3

00

ooo

0o

15

003

235

259

3102

126109

Non−statutory advicePresent in New Zealand

E I29 l i

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ENVRONMENTAL RISK MANAGEMENT AUTHORlTYNG~ KAIWtTAKATOPATO WHAKARARU TAIAO

2. ! The application process for hazardous substances is as efficient as possible for stakeholders, iInitiatives I Outcome measures (Quarterly update

•Provide clear instructions Information is available on | On target −the New Zealand

as well as technical anduser guides, policyprotocols and informationsheets to assiststakeholders.

•Carry out regular reviewsof the accuracy ofinformation and usefulnessof content in technical anduser guides.

•Engage with stakeholdersin the development ofprocesses.

•Hold one wānanga relatingto hazardous substanceseach year to improve theprovision of valuableinformation from Māori fordecision−making.

•Provide resources andsupport to enablestakeholders to engageeffectively with Māori.

ERMA New Zealand's Inventory of Chemicals and the |

website and in its ~ HSNO Chemical Classification |

publications. ~ Information Database were made |

publicly available on our websitein December 2007.

I The New Zealand Inventory of i

Chemicals is a database ofchemicals present in productsapproved under GroupStandards.

The HSNO ChemicalClassification InformationDatabase is a database ofchemicals classified by ERMANew Zealand in accordance withthe HSNO regulations.

Preparations are underway for aj wānanga in May 2008 focussing| on new and emerging

technologies.

i Ongoing support is also providedI to a number of applicants

needing to engage with Māori in |

; relation to a range of |

.......app!_!~at!0ns−

............................................................................................Feedback from Customer The next customer satisfactionSurveys with no less than I

survey will be undertaken in75% satisfaction.

−2008.

Consultation is undertaken Ongoing.

where applicable or needed. |

17

FNYtRO)NMENTAL RISK MANAGEMENT AUTI1ORtfYNGK KAIWHAKATOPATO WHAKARARU TAIAO

r ........'

This data will be available later| The quality of informationin the financial year.provided by the applicant in the financial year.

i improves, which will beI measured through ai reduction in the cost and| time for processing

applications.

2.2 All Part V and Part 6A hazardous substance applications are processed within the statutory :itimeframe, and decisions are made in accordance with the HSNO Act.

| Initiatives l Outcome measures | Quarterly update

j All applications are| On target − in quarter two, all

• Log and monitor all All applications areapplications to ensure processed within the total | applications have been processedapplications to ensure

~ statutory timeframe, and | within the statutory timeframes,the y

are processed within

processing times are reported i or with appropriate waivers, as ...

•

the statutory timeframe.

quarterly to the Minister. | allowedunder the Act.i e Have in place internal

quality assurance | No successful appeals or| On target − there have been noquality assurance

processes, including peer | judicial reviews of decisions i appeals or reviews of decisions.

I on the decision−making | All decisions are peer reviewedreview, before significant on the decision−making| process occur.

~

| before approval.

~reports are distributed. process occur, before approval.

..............................................

• Undertake an external I No significant problems are | Annual audits are not scheduled iaudit on a sample of I identified in the annual audit. | until the third quarter.evaluation and reviewreports and the Issues identified in the audit Annual audits are not scheduledreports and the

| are resolved to the Chief | until the third quarter.associated written

decisions. j Executive's satisfaction and |decisions.

2 •eportedto the Authority− __L______

2.3 All Part VI hazardous substance applications are processed within a reasonable timeframe,and decisions are made in accordance with the HSNO Act.

Initiatives~ _~~_ _

I Outc_ome measures

~Quarterly update

• Process applications for | All test certifier applications I Ongoing − all test certifierapproval of test certifiers | are processed within 20 applications in the quarter havewithin 20 working days | working days or as agreed been processed within 20of receipt. | with the applicant. working days.

~Ontarget− see table 6.~~ ~

• Have in place internal Processing times are reported On target − see table 6.quality assurance quarterly to the Minister.processes, and have each on target − there have been nosignificant report No successful appeals orsignificant report

judicial reviews of decisions appeals or reviews of decisionsjudicial reviews of decisionsapproved before it is

this quarter. All decisions are$ on the decision−making

peer reviewed before approval.| process occur.e Have in place a system To commence in the fourthNo significant problems areof internal and external

audits to mj quarter.identified in the audits. quarter,audits to monitor the

18

ENVIRONMENTAL RISK MANAGFMENT AUTHORITY

NG~ KAIWifAKATOPATO WHAKARARU TAlAO

timeframes and decision− 1 Any issues identified in the | Ongoing − issues identified inmaking processes.

l audits are resolved to the i last year's audits have beenI Chief Executive's i addressed and will be reported to

satisfaction and reported to | the Authority in the third quarter.

−−−− ____the Authority.

____G__

_____ __j

2.4 The reassessmentprogramme is efficiently and effectively progressed to maintain public iconfidence in the hazardous substances regime. iInitiatives Outcome measures Quarterly update i.Initiatives Outcome measures

(Quarterly update

Progress no fewer thantwo hazardous substancereassessments to the stageof public notificationeach year.Ensure all decisions onreassessments are madeconsistent with theHSNO Act andHazardous Substancesand New Organisms(Methodology) Order1998.Process applicationswithin the statutorytimeframes.

e Have in place internalquality assuranceprocesses.

• Review the existingapproach to reassessmentto enable reassessmentsto be more rapidly andefficiently progressed.

• Undertake publicconsultation on policiesand processes beforeimplementation.

All applications areprocessed within statutorytime frames.

Reassessments aresuccessfully completed, asrecorded by notification ofdecisions.

No successful appeals orjudicial reviews of decisionsor adverse judicial commenton the conduct of thedecision−making processOccur.

At least two processes arereviewed each year, andpolicies are changed whenefficiencies are identified.

On target −there has been oneexternally generated, modifiedreassessment this quarter.HRE07001 (Distance & EngageAnt bait by Biosecurity NewZealand) was notified on 19November 2007, with onewaiver, and within the statutorytimeframes in accordance withthe HSNO Act.On target− See above.

On target − there have been noappeals or reviews of decisions.All decisions are peer reviewedbefore approval.

To commence later in thefinancial year.

The review of the approach To commence in third quarter.to reassessment is completed,and a report is provided tothe Authority by June 2008.

19

ENVIRONMENTALR~SK MANAGEMENT AUTHORITY

NGK KAtW|JAKATOPATO WHAKARARU TAIAO

3.1 The areas for which ERMA New Zealand is responsible in the Government's Compliance andEnforcement Strategy are implemented.

Initiatives Outcome measures | Quarterly updateInitiatives

• Develop, then ~ The Authority approves the iDelayanpaper outĪNe e

e Develop, then :progressively execute ~

implementation plan by 30 | implementation of ERMA Newprogressively execute

December 2007. | Zealand's component of thethroughout the year, a| Compliance and Enforcementplan for implementing| Strategy will be considered by thethe Government's| Authority at its February planning

Enforcement Strategy. meeting.

3.2 ERMA New Zealand works with enforcement agencies to ensure the HSNO Act is compliedwith. i

Initiatives Outcome measures | Quarterly update

• Develop and maintain ~ Evidence of joint planning | _Ongoing − during the quarter, werelationships withenforcement agencies toenhance the effectivenessof the compliance andenforcement regime.Strengthen, prioritise andtarget HSNO Actenforcement activities onthe basis of risk.Provide a report to theMinister describing andevaluating enforcementagency intentions for2007/08 by 30 September2007.

processes for comparablecompliance strategiesbetween ERMA NewZealand and other agencies(in particular, theDepartment of Labour) isreported in the quarterlyreport to the Minister for theEnvironment within threemonths of receiving theinformation from agencies.

Advice is given to theappropriate enforcementagency on situations of non−compliance with controls andconditions.

held seven meetings withenforcement agencies (DoL andMoll), participated in a weeklong training workshop for HSNOenforcement officers and metwith Customs to addressapplication of Tariff Codes tospecific hazardous substances.

Achieved − our report describingenforcement agency intentions for2007/08 was provided on 9October 2007.

ongoing − reportedor

provided" ~advice to the relevantenforcement agency six instancesof non−compliance.

20

ENViRONMENTAl RISK MANAGI:MENT AUTI!OR)TYNG~ KAIWHAKATOPATO WHAKARARU TAIAO

i ........................

3.3 Decisions, including those under delegated authorities, are audited for correctness. |

Initiatives~ ~~ TOutcome−m~easures ~ ~

j Quarterly update~−−−−,

Undertake at least threeaudits of non−delegateddecisions by 30 June2008.

A report is provided to theAuthority summarising thefindings of the audits andissues to be resolved.

Issues are resolved in thefollowing year and arereported to the Authority.

Undertake at least threeaudits of delegateddecisions by 30 June2008.

Ongoing − we progressedimplementation of the auditprogramme for 2007/08 by:• Developing a draft

performance standard foremergency management;

• Undertaking two audits ofNew Zealand UnderwaterAssociation facilities.

Ongoing −we

reportedto the

Authority on 6 December 2007the findings of the 2006/07 auditof test certifiers issuing approvedhandler test certificates forpyrotechnicians and testcertificates for pyrotechnicdisplays. A draft paper on thefindings of audits of agrichemical

.....................................................................................................................................approved_handlers_~ w_as_ prepared._~

3.4 All incidents involving hazardous substances are monitored, i

Initiatives~ −__ _ ~ Outcome measures

_ I Quarterly update !

A new incidents database tocollect relevant data isimplemented successfully.

• Maintain informationthroughout the year on theoccurrence and severity ofincidents involvinghazardous substances.

Regular reports are providedto the Authority and theMinister.

Complete and report aninquiry to the Authoritywithin three months ofreceiving all relevantinformation for allincidents where an inquiryis deemed necessary.

Achieved − the incidents databasesigned off in the last quarter, wassuccessfully implemented forrecording hazardous substanceincidents.Ongoing − during the quarter,we:• recorded 68 hazardous

substances incidents (refertable 5); and

• reported information onhazardous substance incidentsto the Authority (via theHazardous SubstancesCommittee) at its meeting of8 November 2007.

No incidents occurred thatrequired reporting to the Minister.equ!re(_

_~,

_~g

21

Table 3: Hazardous Substance Applications accepted and decided for the threemonths to 31 December 2007

lImport or manufacture for releaseNotified Category A

Notified Category A − meets risk reduction discounted fee

Notified Category B

Notified Category B − meets risk reduction discounted feeNotified Category CNotified Category C − meets risk reduction discounted feeMajor IssueExternally generated group standardInternally generated group standardAmendments to transfer noticesImport or manufacture in containmentImport into containment (field trial)Export onlyPOPsOther p urp osesRapid assessment to import or manufactureLeast degree of hazardReduced hazard

Similar comp osition and hazardous p rop ertiesReassessmentsExternally generated (full)Externally generated (modified)Chief Executive initiated (full)

Chief Executive initiated (modified)Import or manufacture for release in an emergency (rapidassessment)Transhipment

StandardUrg ent (p rocessing req uested in less than one day)

Statutory determinationsDetermination on a substanceGrounds for reassessmentUr~l ent (p rocessin0 req uested in less than one day)

Minor or technical amendmentsAmendment to a category A risk reduction, rapid assessment,containment or transhipment application

Amendment to all application types other than those listed above

TOTAL

20

20

33

15

9

010

0

13

0

04

00110

15

131

123

50

030

1

0TOTAL |84

Non−statutory advice 389Status of substance 366

_Labelling_of substance containers

~~~23

30270101100O0

2114142

313

201 8

32100

15

50

0000

2

2

093 0

421417

4

i

22

ENVIRONMENTAf IUSK MA*NAGEMENT AUTHO10TT

NCA KAIWHAKATOPATO WHAKARMtU TA1AO

Table 4: Applications Accepted and Decided for Statutory Instruments(Approvals and Waivers) to 31 December 2007

Test Certifier applicationsTest Certificate waiversPermissionsApprovalsLicences and CertificatesWaivers and variationsCodes of Practice and Practice Guides

TOTAL 602

Table 5: Summary of Incidents in the Second Quarter

Explosion l5 3 |0 ~0

Fire 6 1) |0 0Sp)ills/leakage 22 2 (0 0Other 28 1 |0 0

Table 6: Test Certifier timeliness data for the Second Quarter.

!ApplicationType

Test CertifierAp plicationsStandardRenewals

116

05/06

58

74

3341

20 9 148Actual Statutory Working Days − YTD

8 I 14 22 I

4

23

ENV~RONMENTAL RlSK MANAGEMENT AUTHOR0fYNG~ KA|WHAKATCPATO WHAKARARU TAIAO

4.1 The public knows about the HSNO Act.

Initiatives | Outcome measures i Quarterly updatei On target − in relation to the

e Co−ordinate the delivery of ( A quarterly report, includingStrategy, we achieved thethe 2007/2008 ERMA New | progress against thefollowing during this quarter:Zealand communications communications strategy, is

,| e held two Community andstrategy.

) provided to the Minister. •| Environmental Group

* Develop a project plan for•meetings− in Hamilton, 6

November and Wellington, 28 ......November 2007;

series• e published Issue 33 of• Improve the navigation Perspective;

tools for the ERMA New | • continued to produce theZealand website to | Bulletin each month; andincrease its user− | • repeated last year's jointfriendliness. | fireworks safety campaign

| with MfE, Fire Service and| Police, including setting up aI website, issuing media |

releases and arranging mediainterviews.

The content of at least two I On target− aprojeetplan for the |The content of at least two

| publications review is being~ publications is revised by 30

i drafted, focusing on identifying the ....i publications that need to be| reviewed and the issues that will |

| need to be addressed.

Co−ordinate the delivery ofthe 2007/2008 ERMA NewZealand communicationsstrategy.Develop a project plan forthe progressive revision ofcontent in the publicationsseries.

More than 50% of websiteusers surveyed classifyfinding information on theERMA New Zealand websiteas very easy or quite easy.

The next customer satisfactionsurvey will be undertaken in 2008.

4.2 The level of knowledge and participation ofMaori is increased |

Initiatives ~ ~ TOĒomemeasures

~ : Quarterly update i:

• Develop and implement a | Three issues of Te Pütara are j On target − Issue 12 publishedMāori communications | published. ~

during the quarter._plan (including the ERMA An annual hui is held and a Delayed −now scheduled to be |

New Zealand Māori− report is provided for the held in July 2008 due to budget i

specific newsletter Te [ Authority. constraints and iwi availability. i

24

f NVIRONMENTAL 1115K MANAGEMENT AUT }tORITYNGE KAJW|[AKATI[}PATO WHAKARARU TA1AO

Pütara).• Manage the Māori

National Networkeffectively.

• Continue to maintain andenhance iwi−basedrelationships.

• Continue the ParticipationAssistance Fund.

At least 75% of NationalNetwork members surveyedfeel there is a Māori voice inthe development andprocessing of applications.

Activity relating to Māoriparticipation is reported tothe Minister quarterly.An annual audit of activitiesrelating to the participationof Māori is undertaken and areport is provided to the

The next customer satisfactionsurvey will be undertaken in 2008. |Evaluation forms completed |following the wānanga−ā−Tangaroajindicate high levels of satisfaction. |

On target. [

_____−_ ~ ~___}Authorit b y 30 June 2008. _E_____

___ j

4.3 The level of knowledge regarding hazardous substances is increased, with particular emphasis t

on industry. I

Initiatives | Outcome measures | Quarterly update |

Implement a hazardoussubstance communicationsprogramme throughout theyear.Publish a range ofpublications, includingguidance and informationmaterial and forms,consistent with thecommunicationsprogramme.Provide user−friendlyinformation tostakeholders, especiallysmall to medium−sizedbusinesses, on HSNO Actrequirements, particularlyin relation to compliancematters.

A report is provided to theAuthority regarding theachievement of thecommunication planelements and milestones by30 June 2008.

On target − communicationsprogramme implemented by wayof industry meetings, presentationsand workshops, hazardoussubstances publications and theprovision of advice via the toll freecompliance line and other directenquiries.

The report will be provided inJune 2008.

| The following publications werei issued:

| • Guidelines for paintball| cylinders (web only);i • Compliance Guide for retail

fireworks.

Three test certifier updates werepublished, and in November weheld a test certifier training sessionand a test certifier workshop.

1,272 responses were providedduring the quarter to enquiriesreceived on the HS ComplianceLine.

25

ENVtRONMENTA1. RlSK MANAGEMENT AUTHORITYNGE K Al%1fAKAT(}PATO WHAKARARU TAIAO

At least 75% of stakeholdersfeel publications areinformative, as evidenced bythe responses to the two−yearly customer satisfactionsurvey.

Ongoing − a survey of callers tothe HS compliance linedetermined a high level ofsatisfaction with the serviceprovided. From a sample of 120callers, 37.5% described theservice as excellent, 50.8% asgood and 11.6% as average.

| | The next customer satisfaction

........................................ survey wil!be undertaken_ in 2008.....4.4 The level of knowledge about making an application for a new organism is increased, with

particular emphasis on improving the understanding of participants in the decision−making.process.

_................. 1

Initiatives~_

[ Outcome measures | Quarterly updateOn target − the report to the

e Develop and implement a | A report is provided to the | On target − the report to the

communication plan i Authority regarding the i Authority will be provided in thetargeted at the research i achievement of the

| fourth quarter. A communication i

community.| communication plan | strategy is in place and under

Ī e Update information in| elements and milestones by I action.

publicationsas necessary to (30 June 2008._

__ − − ___−____−−_−__−ensure the correct ,l At least 75% of stakeholders i The next customer satisfactioninformation is provided to | feel publications are | survey will be undertaken in I

applicants. ( informative, as evidenced by | 2008.

| the responses to the two− |

| yearly customer satisfaction |

____________isurvey. _.____ ___J

______________ _

Develop and implement acommunication plantargeted at the researchcommunity.Update information inpublications as necessary toensure the correctinformation is provided toapplicants.

26

ENVIRONMENTAL RISK MANAGEMENT AUTHOR]TY

NGA KAWI[AKATOPATO W[~AKARARU TA1AO

5.1 Ministerial services − High−quality ministerial responses are provided within the required |

[ timeframes. °−i

Initiatives Outcome measures Quarterly update| • Reply to all ministerial | A log of correspondence, | On target − a total of 5

_

|

correspondence within 15days (or as otherwiseagreed) at a quality suchthat none is returned forreworking.Respond to allparliamentary questionswithin the specifictimeframes requested bythe Minister or adepartment (where acontribution is sought).Respond to all requests forinformation fromparliamentary selectcommittees to supportinquiries and considerationof petitions within the

questions and informationrequests is kept, which alsonotes those documentsreturned for reworking. Thisinformation is included inthe quarterly report.

All responses are providedwithin the requiredtimeframe.

Less than 5% of responsesneed to be reworked.

ministerial briefs and cabinetpapers have been answered forthe quarter. See Appendix 3 for alog of Government questionsanswered for the quarter.

Ongoing − input was given to atotal of five parliamentaryquestions. One oral question andfour written questions.

Ongoing − all current information |has been supplied to agencies |within the timeframes. |

timeframes specified. Ii

.timeframesspecified. ] j_ _ _

5.2 Input is provided into the development of government policies and legislation, including~regulations.

[ Initiatives Outcome measures Quarterly update ~~ ~

• Continue to foster The range of activities and | On target − in addition torelationships with other ERMA New Zealand's input i providing input to a number of i

government agencies. are reported to the Minister | Cabinet papers, input has been |

l• Monitor media and in the quarterly report. | made to the report on the |

| Hazardous Substancesrelevant publications for I

i Compliance and Enforcementareas relevant to ERMA I

| Strategy, the funding bid, theNew Zealand.

response to the Court of Appealrelating to the interface of theHSNO and Biosecurity Act andto the Workplace Health andSafety Strategy.

| We also hosted and facilitated aI cross−government national hui

with Māori.

27

ENVIRONMENTALRISK MANAGEM~ENT AUTHORITV

NGā KAIWf|AKAT0PATO WH&KARARU TAIAO

................................................................................................................ N

5.3 The effectiveness of the HSNO Act is monitored.~_ _~_ _

1

Initiatives | Outcome measures Quarterly update

Provide information on the The report, Monitoring theTOn target− work is continuing|−Pr Īde informatiEn−on |ĪThĪrepoSĒonjioriSthe

!HSNO Act's effectiveness | Effectiveness of the HSNO | on the 2006−2007 report

to the Minister and review | Act, for 2006/07 is | Monitoring the Effectiveness of

the monitoring framework. I completed and forwarded to | the HSNO Act.| the Minister by 31 March |~| 2008. i| The monitoring framework is |−On target − work is on track for

reviewed and, where I completion by 31 March 2008.| necessary, modified and| approved by the Authority by| 31 March 2008.

5.4 A programme of engagement with relevant international and multi−lateral counterpartorganisations is implemented.

Initiatives | Outcome measures | Quarterly update

• Develop and implement TActivity and outcomes areĪ On target − during the quarter,

throughout the year a | reported to the Minister in | we have further postponed the

programme of engagement | the quarterly report. | work associated with the UNwith relevant international | | Committee of Experts on theand multi−lateral counterpart

| | Globally Harmonised System fororgamsations. | | the Classification and Labelling of |

| | Chemicals. Dr Donald Hannah| attended the UNEP 1" meeting of

| | the Ad−hoc Working Group on|

| Mercury in Bangkok, following| | on from his role as UNEP Special| | Envoy on this subject.

| In addition the Agency (withi MfE) hosted a visit by senior US |

| | Environmental Protection Agency |

| |staff.

28

ENVIRONMENTAL RISK MANAGEMENT AUT IOR]TYNG~ KAIWHAKATOPATO WHAKARARU TAIAO

6 Appendix 2 − Financial Statements for the period ended 31December 2007

Table 1

ERMA New Zealand Output Cost Report

Statement of Output Costs to 31 December 2007

Output

11 New Organisms Decision−making and Compliance

12 Hazardous Substances Decision−making

3 Hazardous Substances Compliance

4 Public Information and Awareness

5 Government Policy, Legislation and International

Total Costs

Thi Year to Date

B~9 ?t ,t~,ctuai__ Variance

$OO~ $000 $000

1,309 984 326 249%

1,875 2,010

Elli−lEEE

V 2 :'~}

44( 472 (32) (;' 45)

916 928 (127 (I 35)

468 391 77 164%

5,007 4,785 222 4.4%

Annual

Budget

$000

2,554

3,844

917

1,890

952

10,157

29

ENVIRONMENTAL RISK MANAGEMENT AUTHORITYNG~ KAtWiIAKATOPATO WHAKARARU TAAA0

Table 2

ERMA New ZealandStatement of Financial Performance to 31 December 2007

Revenue

Crown Funding

Fees

InterestTotal Revenue

Expenditure

Personnel

Authority

Consultants

Domestic Travel

International Travel

Property

External Hospitality

Budget

$ooo

4,053

3O861

4,422

3,292l

168l

198l

142

39

320

15

Year to Date

Actual

$o00

4,053

490

146

4,689

3,254l

186l

148l

127l

15l

294

2

Variance

$o0o |

182

85

267

38l

50l

15l

24l

26l

13l

%

59. 1%

139.3%

6.0%

1.2%

H 0.7%)

25.3%

10. 6%

61.5%

8. 1%

86. 7%

8.8%

0.3%

53. 1%

−4.2%

18.3%

4.4%

Computing and Telecommunication

General Administration

Public Notices

Capital Charge

DepreciationTotal Expenditure

Surplus / (Deficit)

136l

308l

32l

95l

262l

5,007j

124l

307l

15j99l

214l

4,785l

(7c)

121

1l

17l

(4)

48l

222I

489l

Annual

Budget

$000

9,012

573

122

9,707

6,574

348

434

341

79

639

20

278

675

56

189

524

10,157

(450)

30

ENVIRONMENTAL RISK MANAGEM~ENT AUTH~OR]TYNGā KAtWHAKATOPATO WHAKARARU TAIAO

Table 3

Taxpayers' fundsBalance 1 JulyNet surplus / (deficit)Balance

Represented by:

AssetsCurrent assetsCash and cash equivalentTrade and other receivablesOther financial assetsTotal current assets

Non−current assetsProperty, plant and equipmentIntangible assetsTotal non−current assets

Total assets

LiabilitiesCurrent liabilitiesTrade and other payablesEmployee benefit entitlementsBorrowingsTotal current liabilities

Non−current liabilitiesProvisionsBorrowingsTotal non−current liabilities

ERMA New ZealandStatement of Financial Position

as at 31 December 2007Unaudited YTD

Opening Actual30 June 2007 31−Dec−0731−Dec−07

$000 $000

SOI *Forecast

30 June 2008$000

2,172 2,654 2,523482 (96) (450)

2,654 2,558 2,073

2,793 2,338 1,470371 112 110555 460 215

3,719 2,910 1,795

495 363 1,094423 454 742918 817 1,836

4,637 3,727 3,631

1,012 391 628771 598 76940 30 1140 30 11

1,823 1,019 1,408

150 150 15010

160 150 150

1,983 1,169 1,558

2,654 2,558 2,073

Total Liabilities

Net assets

Working Capital ratio 2.0 2.9 1.3

Note * − SOI figures has been amended − Cabinet approval for $200,000 additional funding did not eventuate.

3]

ENV~RONMENTALRISK MANAGEMENT AUTHOR!ITYNtd~ KAIWHAKATOPATO WHAKARARU TAIAO

Table 4

ERMA New ZealandStatement of Cash Flows

for the period ending 31 December 2007YTD

Actual31−Dec−07

$o0o

Cash flows from operating activities

Fees and other third party revenueCrownInterest receivedPayments to suppliers and employeesCapital chargeGoods and Services Tax (net)

Net cash flows from operating activities

Cash flows from investing activitiesProceeds from sale of other financial assetsPurchase of property, plant and equipmentPurchase of intangible assets

Net cash flows from investing activities

Cash flows from financing activitiesRepayment of finance lease liabilities

Net cash flows from financing activities

Net increase / (decrease) in cash heldOpening total cash balances as at 1 JulyClosing total cash balances

5584,053

146(4,962)

(99)(53)

(357)

95(16)

(157)(78)

(20)(20)

(455)2,7932,338

SOIYear EndForecast

$ooo

5399,012

121(9,716)

(189)27

(206)

255(676)

(705)(1,126)

(40)(40)

(1,372)2,8421,470

32

NGā KAIWHAKATOPATO W11AKARARU TAIAO

Table 5

ERMA New ZealandStatement of Capital Expenditure

for the period ending 31 December 2007

Annual ApprovedBudget 2006−07 2007−08

$000 $000 $000

Property, Plant and EquipmentComputer hardware 166Furniture and fittings 100Leasehold improvements 400Office equipment 10

Intangible assetsComputer software 705

15

92 566

AvailableBalance

$ooo

158100400

10

139

807Total 1,381 107 574

Expenditureto Date

$ooo

16

157

173

33

ENVIRONMENTALR!SK MANAGFMENT AUTHOR~TY

NG KAIWifAKATOPATO WHAKAR:ARU TA1AO

o Appendix 3 − Government questions answered for theQuarter

DateReceived

Sep/Oct

October2007

25October2007

01November2007

07November2007

05November2007

09November2007 −from anongomgwork

Topic

Environment Domain Plan:Stats NZ in partnership withMfE, is developing a planningtool that looks out 5 to 10 yearsto determine the key topics thatneed to be informed by officialstatistics. It seeks to identify thecurrent data sources, assesswhere enduring topics are notadequately informed, andpropose initiatives to fill thosegapsRadiation Safety Bill &Emergencies

Briefing of PM on theManagement of GMO's. TheUruguayan advance party forthe visit has raised their interestin our system of themanagement of GMOs and ourexperience since lifting ourmoratorium after the RoyalCommission. They will bespeaking with our PM.Radiation Safety Bill −Consultation on the ProposedBill

Technical paper on themanagement of the Health andSafety in Employment Levy(the HSE levy).Request for a Cabinet Paperfor Consultation − Developmentof Infringement OffenceRegulations under the HSNOActRequest for consultation onCabinet paper Management ofpost−border geneticallymodified seed incidents. −Recommendation 10.

Ministerialbrief or cabpaper? Y/N

N

N

Y − Brief

N

Y − CabPaper

Y

Y

Agency

Stats NZ

MoH

MFAT

MoH

DoL

MfE

MAF andMfE

Relevanceto ERMA/

HSNOMed/Med

Med/Med

Med/Med

Med/Med

Med/ Med

High/High

High/Med

Actions and Dateof Reply

Stock take formsof ERMA datasources completedand forwarded toStats on 28/9/07.Janine attendingworkshops weekof 15th Oct fordata and gapanalysis.

Don McGregorreplied to Moll01/11/07.Libby Harrisonreplied to MfE onthe 30th October2007.

Don McGregor isin communicationwith MoH(2007.11.06).Comments due for20 November.

Commentsrequired by 20November 2007.

Comments Duefor 20 November.Don McGregor tomake comments.

34

FNV]RONMENTAf RISK MANAGEMENT AUTHORITYNGg KA~WIIAKATOPATO WHAKARARU TAIAO

DateReceived

Ongoing

BeganDec 2006

Nov 2007

Dec 2007

Topic

Biosecurity Response Policy

Breast Cancer Petition

Ministerialbrief or cabpaper? Y/N

Y

N

N

Agency

MAF − BNZ

MOH (HealthSelect

Committee)

Relevanceto ERMA/

HSNOMed/Med

Med/Med

MedMaritime documents −consultation on proposals

Cabinet paper for release ofdiscussion documents for theGas and Electricity RegulationsAmendments

N

MoT

Ministry ofEconomic

Development

Med

Actions and Dateof Reply

Consultation outtill December2007. SusanThomson has senta letter inresponse (14November).Andrea Eng re −drafted a responseto MfE. Awaitingreply (6November).SJB email to DJHto say we'dsupport proposals.Replied e−mail 6−Dee−07 BNoonan. Mayinteract withHSNO. Wish tosee discussiondocuments.

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