New Zealand Gazette – 1994 – No. 94

Page 2886

✨ Irrigation Scheme Financial Terms



2886 NEW ZEALAND GAZETTE No. 94

  1. Historic Capital Costs

These are the costs incurred by the Crown on the construction of the irrigation scheme and are reported in the dollars of the day. These costs include refurbishment of the old Central Otago schemes. The historic costs also include on-farm development for schemes approved between 1975 and 1983 plus any amounts unpaid by participating farmers for their 50% share of the cost.

Historic costs, in the main, represent the cost of the off-farm works prior to the commencement of the water supply as given in the description for each scheme.

13 Accumulated Liabilities

These comprise both operating losses and non-operating losses over the life of the scheme up to the effective date. The sums shown are in dollars of the day.

Operating losses are those day to day costs incurred in the operating and maintenance of the scheme. They include unpaid water rates levied on the users for payment of those activities.

Non-operating losses are those costs arising from the accumulation of capital charges. These apply only to schemes constructed after 1975 where the users were required to pay a portion of the capital spent on the construction of the scheme as a loan. The non-operating losses also include interest on a portion of the capital spent by the Crown and applies to all schemes but in different portions. Penalties on water rates are also included under this heading.

  1. Liabilities Retained by the Crown

The Crown retained liabilities where the cost is uncertain and likely to be significant. These largely relate to unsettled compensation claims arising from scheme construction and possible liabilities pertaining to the irrigation dams.



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✨ LLM interpretation of page content

🌾 Glossary of Terms for Irrigation Schemes Sale (continued from previous page)

🌾 Primary Industries & Resources
Irrigation Schemes, Sale Terms, Glossary, Asset Transfer, Legal Definitions, Historic Capital Costs, Accumulated Liabilities, Liabilities Retained by the Crown