Introduction

DOC is reviewing its fee structure for activity fees that are determined by a percentage of revenue earned through a concession. The second of three opportunities to submit feedback is about to open.

The second of three opportunities to submit feedback will be open in early June. The date is to be confirmed. We’ve posted a summary of the key themes from the first round of feedback in the Phase 1 consultation documents below.

Key indicative milestones for the Percentage of Revenue Framework Review have been updated and include:

  • Feedback on issues and options – completed 19 March
  • Evaluate feedback and select preferred option – end of May
  • Invite feedback on DOC’s preferred option – early June
  • Finalise structure of preferred option – late-July
  • Invite feedback on finalised option – August
  • Final decision – late September or early October

We are reviewing our percentage of revenue fee structure to ensure these fees are set at an appropriate market rate and are fair and transparent.

Note this is a policy review on the method used to determine the activity fees for some (but not all) concessions. We are not looking at individual concession fees as part of this review.

We have invited the concessionaires who have an activity fee that is directly or indirectly based on the percentage of revenue framework to participate in the review by email. We are also keeping concessionaires updated with regular information in the Business on the Green newsletter.

If you haven’t heard from us and you would like to participate in the review, contact us at PRFreview@doc.govt.nz.

What happens during the review

There are several phases where we will seek input during the review:

  • Phase 1 – Issues and options papers were sent in January 2021. This input will help us work through various options.
  • Phase 2 – Affected concessionaires will be provided with information on our preferred option, why we selected it and how we propose it will work. Feedback at this phase will let us know whether we are on the right track and/or help us refine how it will work.
  • Phase 3 – We’ll send out our proposed Percentage of Revenue Framework for percentage of revenue activity fees for final feedback.

We aim to complete this review by early October 2021. Any new fee setting structure will not be in place before the 2021/22 financial year, and not take effect until the following rental review date or when a concession comes up for reissue.

Consultation documents

Phase 1

Contact us

If you have any questions around the percentage of revenue fees review send them to PRFreview@doc.govt.nz.

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