✨ Financial Provisions
17. Provisions
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
| $000 | Total | ||||
|---|---|---|---|---|---|
| Balance at 1 July 2007 | |||||
| Provisions made during the period | 5,205 | 20,000 | 716 | - | 25,921 |
| Provisions reversed during the period | (5,939) | (1,051) | 346 | - | (7,753) |
| 4,740 | 18,949 | 1,111 | - | 24,800 | |
| Balance at 30 June 2008 | (8,000) | ||||
| 1,854 | |||||
| 1,854 | |||||
| Legal | $000 | 25,664 |
Employee Benefits
The Lines Business has a constructive obligation with regard to certain employee benefits. This provision is expected to be used within one year.
Restructuring
Staff redundancy provision. This provision is expected to be used within one year.
Dismantling
In September 2007, Transpower stood down the HVDC Pole 1 (Pole 1) due to the low probability, high consequence risks that the continued operation of the aging technology posed. Pole 1 contains mercury and Transpower has estimated the decommissioning cost based on engineering advice. The decommissioning timeframe is uncertain, with management’s best estimate being within the next five years. Actual decommissioning costs and timeframe may vary from the figures indicated.
Legal
Transpower has reached a draft settlement regarding a legal dispute. This settlement is expected to become final within one year. Directors believe that further disclosure of the details of these costs could adversely influence Transpower’s position relating to finalising this settlement. As a result, disclosures are limited in accordance with paragraph 92, NZ IAS 37.
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NZ Gazette 2008, No 186
✨ LLM interpretation of page content
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Transpower New Zealand Limited Lines Business Provisions
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🏭 Trade, Customs & IndustryProvisions, Employee Benefits, Restructuring, Dismantling, Legal