58 NEW ZEALAND GAZETTE, No. 3 11 JANUARY 2008

                                                                                              note*
                                                                                            2007
                                                                                           $000         2006
                                                                                                        $000

(c) Payments to non-related entities for:

(i) asset maintenance - -
(ii) consumer disconnections and reconnections - -
(iii) meter data - -
(iv) consumer-based load control - -
(v) royalty and patent expenses - -

(vi) total of specified expenses to non-related parties - -

(d) Employee salaries, wages and redundancies - -

(e) Consumer billing and information system expense - -

(f) Depreciation on:

(i) system fixed assets 10,230 9,619
(ii) other assets not listed in (i) 1 1

(iii) total depreciation expense 10,231 9,620

(g) Amortisation of:

(i) goodwill - -
(ii) other intangibles - -

(iii) total amortisation of intangibles - -

(h) Corporate and administration 1,248 1,134

(i) Human resource expenses - -

(j) Marketing and advertising 37 30

(k) Merger and acquisition expenses - -

(l) Take-over defence expenses - -

(m) Research and development expenses - -

(n) Consultancy and legal expenses 155 142

(o) Donations - -

(p) Directors’ fees 135 112

(q) Auditor’s fees:

(i) audit fees to principal auditor 40 38
(ii) audit fees to other auditors 16 14
(iii) fees paid for other services provided by principal and other auditors - -

(iv) total auditor’s fees 56 52

(r) Cost of offering credit:

(i) bad debts written off 36 -
(ii) increase in estimated doubtful debts (8) -

(iii) total cost of offering credit 28 -

(s) Local Authority rates expense 494 427

(t) AC loss rental rebates paid to retailers 1,832 2,464

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

(v) Subvention payments 1,486 1,430

(w) Unusual expenses - -

(x) Other expenditure not listed in (a) to (w) - -

13 Total Operating Expenditure (sum (12)(a) to 12(x)) 44,492 42,949

• The accompanying notes form an integral part of these financial statements.