Vector Limited & Subsidiaries

Gas Distribution Activities

Notes to the Financial Statements

For the year ended 30 June 2006

12. PAYABLES AND ACCRUALS

| | Note | 2006
$000 | 2005
$000 |
|------------------------|------|----------------|----------------|
| Current | | | |
| Trade payables and other creditors | | 8,572 | 5,437 |
| Interest payable | | 3,482 | 2,441 |
| Mark to market adjustment | | 121 | 294 |
| Provisions | 13 | - | 1,069 |
| Provision for employee entitlements | | 532 | 494 |
| | | 12,707 | 9,735 |

| Non-current | | | |
| Mark to market adjustment | | 39 | 183 |
| Other payables and accruals | | 54 | - |
| | | 93 | 183 |

13. PROVISIONS

| | 2006
$000 | 2005
$000 |
|--------------------------------|----------------|----------------|
| Balance at beginning of the year | 1,069 | - |
| Arising on acquisition of NGC gas distribution business | - | 4,383 |
| Additions | - | 500 |
| Utilised | (1,069) | (3,814) |
| Balance at end of the year | - | 1,069 |

Provisions include provisions for various commercial matters expected to be settled during the next two financial years but which could require settlement at any time.

14. BORROWINGS

As at 30 June 2006

| | Weighted
average
interest rate | 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
$000 |
|------------------------------------|----------------------------|-------------|-------------------------------|-----------------------------------|-----------------------------------|-------------------------------|
| Bank loans | 7.77% | 69,704 | - | - | 69,704 | - |
| Working capital loan | 7.50% | 5,156 | 5,156 | - | - | - |
| Medium term notes - fixed rate NZ$| 6.50% | 25,486 | 25,486 | - | - | - |
| Medium term notes - floating rate A$ | 6.15% | 72,691 | - | 40,754 | 31,937 | - |
| Capital bonds | 8.25% | 39,245 | - | 39,245 | - | - |
| Fixed interest rate bonds | 6.81% | 25,363 | - | - | 25,363 | - |
| Private placement senior notes | 5.65% | 53,439 | - | - | 53,439 | - |
| NZ floating rate notes | 7.86% | 119,623 | - | - | - | 119,623 |
| Total | | 410,707 | 30,642 | 79,999 | 127,004 | 173,062 |