15 JUNE NEW ZEALAND GAZETTE 1995

4. Effective Date 1.7.89
5. Date of Purchase 29.10.90
6. Date of Financial Settlement 3.8.91

Amount of Settlement ($)
7. Purchase price paid for the assets 550,000
8. Water rates revenue refunded 565,914
9. Other payments by the Crown 0
10. Net Settlement by Purchaser 131,784
11. Debtors transferred to Purchaser ($) 0

Assets & Liabilities of the Crown before Settlement ($)
12. Historic Capital Cost 2,805,389
13. Accumulated Liabilities 4,09,469
14. Liabilities Retained by the Crown Nil

RANGITATA DIVERSION RACE

1. Description
   The Race presently supplies water to three irrigation schemes with a gross command area of 68,000 ha water for hydro generation at two power stations, stockwater race system and two private irrigators. Recreational activities are also provided for.

Construction was approved in 1936 under the Finance Act (No 4) 1931 as a special labour employment scheme. The Race was commissioned in 1945. The Race is an earth channel 67 km long. It passes under eight rivers via inverted syphons before discharging through the Highbank Power Station into the Rakaia River. The capacity of the Race is 31 cumec at Klondyke on the Rangitata River and 28 cumec at Highbank. Water is used for irrigation in summer and power generation in winter. Water management plans exist for the facility in conjunction with both the Rangitata and the Ashburton Rivers.

The assets sold include two residential properties.

2. Previous Gazette References
   No Gazette reference

3. Purchaser
   Rangitata Diversion Race Management Limited

4. Effective Date 1.7.89

5. Date of Purchase 29.10.90

6. Date of Financial Settlement 14.8.91

Amount of Settlement ($)
7. Purchase price paid for the assets 1
8. Water rates revenue refunded 257,358
9. Other payments by the Crown 0
10. Net Settlement by Crown 105,210
11. Debtors transferred to Purchaser ($) 626,728

Assets & Liabilities of the Crown before Settlement ($)
12. Historic Capital Cost 1,540,847
13. Accumulated Liabilities 2,085,738
14. Liabilities Retained by the Crown Nil

TEBBUTTS ROAD IRRIGATION SCHEME

1. Description
   The Scheme draws water from the Wairoa River south-west of Tauranga to supply an area of 87 ha involving 12 properties. Water is pumped to a header reservoir then reticulated by gravity to orchards.

The Scheme has the potential to supply 90 ha with approximately 45 ha already planted in kiwifruit. Supply commenced in December 1983. The Scheme was constructed by the Crown and subsequently operated by the Tauranga County Council (now Western Bay of Plenty District Council) on behalf of the Crown in terms of an agency agreement.

2. Previous Gazette References
   4 August 1983, NZ Gazette, No 117, page 2486

3. Purchaser
   Tebbutts Road Irrigation Scheme Limited

4. Effective Date 15.9.89

5. Date of Purchase 12.11.90

6. Date of Financial Settlement 29.5.91

Amount of Settlement ($)
7. Purchase price paid for the assets 1
8. Water rates revenue refunded 43,191
9. Establishment Grant 8,000
10. Net Settlement by Crown 42,056
11. Debtors transferred to Purchaser ($) 0

Assets & Liabilities of the Crown before Settlement ($)
12. Historic Capital Cost 632,942
13. Accumulated Liabilities 6,958
14. Liabilities Retained by the Crown Nil

SOURCE OF FINANCIAL INFORMATION

The financial information in this report has been prepared by the Ministry of Agriculture and Fisheries (MAF) from the best historical information available to the Ministry when it took over responsibility for Community Irrigation Schemes owned by the Crown on 1 April 1988. The approach taken by MAF was determined and assessed by Touche Ross, Accountants, and found to be valid. The Audit Office reviewed the accounts prepared by MAF for presentation and reasonableness of the accounting treatment.

Accounting by the Crown

The Crown's irrigation assets and liabilities were not recorded in the Crown Accounts during the management of the assets by the Ministry of Works prior to 1 April 1988. After the assets were transferred to MAF on 1 April 1988, expenditure from that date was recorded in the accounts of MAF Technology until 30 June 1990. From 1 July 1990, all expenditure on the operation and maintenance of the schemes, and the costs and revenue from their sales have been recorded in the Crown accounts.

The full balance sheets for the Crown Accounts were established on 1 July 1991. The values of the assets and liabilities were based on the estimated amounts due to be received by and paid by the Crown after 1 July 1991 under the terms of the Sale and Purchase Agreements.

Settlement Payments to or by the Purchasers

The financial settlements with the Purchasers were carried out by MAF. The final outcomes of the settlements were reviewed by Deloitte Ross Tohmatsu. The sources of the information were not audited, nor were they reviewed in terms of the New Zealand Society of Accountants Statement of Review Engagement Standards. The financial information has, however, been accepted by the Irrigation Companies concerned as full and final settlement of their Agreements for purchase of the assets.

Prior to making payment, the settlements were referred to Treasury to confirm that they reflected the intentions of the Sale and Purchase Agreements.

GST Liability

These financial statements do not include GST although the settlement payments by the Crown cover the Purchasers liability for GST. The Purchasers paid GST on work carried out by the Crown after the effective date, but were not required to pay GST on the price paid for the assets.