Vector Limited & Subsidiaries

Gas Distribution Activities

Notes to the Financial Statements

For the year ended 30 June 2005

14. PAYABLES AND ACCRUALS

| | Note | 2005
$000 | 2004
$000 |
|------------------------|------|--------------|
| Current | | |
| Trade payables and other creditors | | 5,437 | 5,948 |
| Interest payable | | 2,441 | 2,013 |
| Mark to market adjustment | | 294 | - |
| Provisions | 15 | 1,069 | - |
| Provision for employee entitlements | | 494 | 534 |
| Total | | 9,735 | 8,495 |

15. PROVISIONS

| | 2005
$000 | 2004
$000 |
|------------------------|--------------|
| Balance at beginning of the year | - | - |
| Arising on acquisition of NGC gas distribution business | 4,383 | - |
| Additions | 500 | - |
| Utilised | (3,814) | - |
| Balance at end of the year | 1,069 | - |

The amounts utilised in 2005 all related to matters provided for in prior periods. The balance includes provisions for various commercial matters expected to be settled during the next two financial periods but which could be settled at any time.

16. BORROWINGS

| As at 30 June 2005 | Weighted average interest rates | Total
$000 | Payable within 1 year
$000 | Payable between 1 and 2 years
$000 | Payable between 2 and 5 years
$000 | Payable after 5 years
$000 |
|---------------------------------------|-------------------------------|-------------|-------------------------------|------------------------------------|-----------------------------|
| Bank loans | 7.30% | 132,676 | 67,202 | 32,898 | 32,576 | - |
| Working capital loan | 6.95% | 5,876 | 5,876 | - | - | - |
| Medium term notes | | | | | |
| Fixed rate NZ$ | 6.50% | 25,486 | - | 25,486 | - | - |
| Floating rate A$ | 6.24% | 72,691 | - | - | 40,754 | 31,937 |
| Capital bonds | 9.75% | 39,245 | - | 39,245 | - | - |
| Fixed interest rate bonds | 6.81% | 25,363 | - | - | 25,363 | - |
| Private placement senior notes | 5.65% | 53,439 | - | - | - | 53,439 |
| Pre-IPO equity securities | 8.51% | 45,274 | 45,274 | - | - | - |
| Total | | 400,050 | 118,352 | 97,629 | 98,693 | 85,376 |