12 FEBRUARY 2008 NEW ZEALAND GAZETTE, No. 20

443

Network Tasman Limited

Line Business Financial Statements

Notes to and forming part of the financial statements

For the year ended 31 March 2007

12. Operating expenditure

(a) Payment for transmission charges
(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 124 92
(viii) Total transfer payment to the "Other" business 124 92

(c) Expense to entities that are not related parties for:
(i) Asset maintenance 2,963 2,860
(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 to non-related parties 0 0
(vi) Total of specified expenses to non-related parties 2,963 2,860

(d) Employee salaries, wages and redundancies 1,645 1,607

(e) Consumer billing and information system expense 0 229

(f) Depreciation on:
(i) System fixed assets 4,479 4,318
(ii) Other assets not listed in (i) 396 390
(iii) Total depreciation 4,875 4,708

(g) Amortisation of:
(i) Goodwill 0 0
(ii) Other intangibles 0 0
(iii) Total amortisation of intangibles 0 0

(h) Corporate and administration
(i) Human resource expenses 57 49
(j) Marketing/advertising 76 84
(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 509 146

(o) Donations 2 2

(p) Directors' fees 150 150

(q) Auditors' fees:
(i) Audit fees paid to principal auditors 57 28
(ii) Audit fees paid to other auditors 0 0
(iii) Fees paid for other services provided by principal and other auditors 7 4
(iv) Total auditors' fees 64 32

(r) Costs of offering credit:
(i) Bad debts written off 9 4
(ii) Increase in estimated doubtful debts 1 0
(iii) Total cost of offering credit 10 4

(s) Local authority rates expense 16 14

(t) AC loss-rentals rebates expense 448 566

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

(v) Subvention payments 0 0

(w) Unusual expenses

(x) Other expenditure not listed in (a) to (w) 283 253

13. Total operating expenditure 20,307 19,818