✨ Financial Statements
1766
NEW ZEALAND GAZETTE
No. 94
TELECOM CENTRAL LIMITED AND SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
12 COMMITMENTS
OPERATING LEASES
Operating lease commitments are mainly in respect of leases of land and buildings. Minimum rental commitments as at 31 March 1993 for all non-cancellable operating leases (excluding amount provided for in respect of restructuring) are (in millions):
Payable within 1 year 0.3
Payable within 1-2 years 0.3
Payable within 2-3 years 0.2
Payable within 3-4 years 0.1
Payable within 4-5 years 0.1
Payable thereafter -
$1.0
CAPITAL COMMITMENTS
As at 31 March 1993 capital expenditure amounting to $7.1 million (1992: $9.6 million) has been committed under contractual arrangements.
13 CONTINGENT LIABILITIES
LAND CLAIMS
As stated in Note 7, interests in land included in assets purchased from the Crown may be subject to claims to the Waitangi Tribunal or may be deemed to be Wahi Tapu and, in either case, may be resumed by the Crown. Certain claims have been brought or are pending against the Crown under the Treaty of Waitangi Act 1975. Some of these claims may affect land transferred to Telecom by the Crown and/or by Telecom to its subsidiary companies.
In the event that land is resumed by the Crown, there is provision for compensation to Telecom.
LAWSUITS AND OTHER CLAIMS
As previously disclosed, a competitor had filed proceedings against Telecom, in connection with a request for a local service interconnection arrangement. The basis of claim was that Telecom, in offering certain terms and conditions of service including a proposed access levy to be paid by the competing operator, was in breach of Section 36 of the Commerce Act 1986. Substantive hearings in the suit were completed in October 1992 and judgement was given in December 1992. The High Court of New Zealand held that Telecom is entitled to charge an access levy, and recover from competing operators, a contribution to the residential cross-subsidy. The High Court also accepted that the cost of operating the residential telecommunications service in New Zealand is currently being subsidised by revenue from national calls and business customers. Finally, while the High Court found Telecom to be in breach of Section 36 of the Commerce Act in respect of some aspects of its offer to the competing operator, damages were not quantified. The Court suggested that Telecom and the competing operator should address the question of damages as part of continuing negotiations. On 5th February 1993 the competing operator filed with the Court of Appeal an appeal against the decision of the High Court, with the date for hearing of the appeal set for August 1993. In the light of the competing operator's appeal, Telecom is also cross-appealing the finding of breach of Section 36 of the Commerce Act. Telecom is unable to assess the likely outcome of these appeals.
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VUW Te Waharoa —
NZ Gazette 1993, No 94
NZLII —
NZ Gazette 1993, No 94
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Financial Statements under Telecommunications (Disclosure) Regulations 1990
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🏭 Trade, Customs & IndustryTelecommunications, Financial Statements, Operating Leases, Capital Commitments, Contingent Liabilities