NEW ZEALAND GAZETTE

No. 63

Network Tasman Limited

Line Business Financial Statements

Notes to and forming part of the financial statements

For the year ended 31 March 2003

12. Operating expenditure

(a) Payment for transmission charges

| | 8,019 | 7,507 |

(b) Transfer payments to the "other" business for:

(i) Asset maintenance
| | 0 | 0 |

(ii) Consumer disconnections/reconnection services
| | 0 | 0 |

(iii) Meter data
| | 0 | 0 |

(iv) Consumer-based load control services
| | 0 | 0 |

(v) Royalty and patent expenses
| | 0 | 0 |

(vi) Avoided transmission charges on account of own generation
| | 0 | 0 |

(vii) Other goods and services not listed in (i) to (vi) above
| | 56 | 53 |

(viii) Total transfer payment to the "Other" business
| | 56 | 53 |

(c) Expense to entities that are not related parties for:

(i) Asset maintenance
| | 2,572 | 1,878 |

(ii) Consumer disconnections/reconnection services
| | 4 | 5 |

(iii) Meter data
| | 0 | 0 |

(iv) Consumer-based load control services
| | 0 | 1 |

(v) Royalty and patent expenses
| | 0 | 0 |

(vi) Total of specified expenses to non-related parties
| | 2,576 | 1,884 |

(d) Employee salaries, wages and redundancies
| | 1,365 | 1,213 |

(e) Consumer billing and information system expense
| | 128 | 96 |

(f) Depreciation on:

(i) System fixed assets
| | 2,641 | 2,552 |

(ii) Other assets not listed in (i)
| | 349 | 389 |

(iii) Total depreciation
| | 2,990 | 2,941 |

(g) Amortisation of:

(i) Goodwill
| | 0 | 0 |

(ii) Other intangibles
| | 0 | 0 |

(iii) Total amortisation of intangibles
| | 0 | 0 |

(h) Corporate and administration
| | 396 | 355 |

(i) Human resource expenses
| | 65 | 40 |

(j) Marketing/advertising
| | 86 | 77 |

(k) Merger and acquisition expenses
| | 0 | 0 |

(l) Takeover defence expenses
| | 0 | 0 |

(m) Research and development expenses
| | 0 | 0 |

(n) Consultancy and legal expenses
| | 280 | 132 |

(o) Donations
| | 1 | 1 |

(p) Directors' fees
| | 129 | 129 |

(q) Auditors' fees:

(i) Audit fees paid to principal auditors
| | 24 | 26 |

(ii) Audit fees paid to other auditors
| | 0 | 0 |

(iii) Fees paid for other services provided by principal and other auditors
| | 0 | 0 |

(iv) Total auditors' fees
| | 24 | 26 |

(r) Costs of offering credit:

(i) Bad debts written off
| | 3 | 1 |

(ii) Increase in estimated doubtful debts
| | 3 | 2 |

(iii) Total cost of offering credit
| | 6 | 3 |

(s) Local authority rates expense
| | 6 | 6 |

(t) AC loss-rentals rebates expense
| | 338 | 728 |

(u) Rebates to consumers due to ownership interest
| | 0 | 0 |

(v) Subvention payments
| | 0 | 0 |

(w) Unusual expenses
| | 0 | 0 |

(x) Other expenditure not listed in (a) to (w)
| | 110 | 96 |

13. Total operating expenditure

| | 16,575| 15,287|