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How the Crown's Investment has been Funded

This section complements the commentary in Section 2 for the period from 2007 to 2010.[20]

Sources of funds 2007 to 2010

Over the period, total assets increased by $43.1 billion from $180.3 billion to $223.4 billion, including revaluations of existing assets.

As explained in Section 2, these investments were funded by a variety of sources - including borrowing, taxation, the existing asset base, cash generated by SOEs and third-party revenues.

Year-by-year analysis 2007 to 2010

This section analyses the sources of funds and their application on a year-by-year basis beginning in 2007.

As in Section 2, it breaks total investments into broad PPE and non-PPE and other categories. It then seeks to examine how those investments have been funded.

Table 4.1 shows investments over time, and gives an indication of how these have been funded.[21] Tables 4.2 to 4.4 then provide more details for different asset classes.

Table 4.1 - Summary of investments and sources of funding, 2007 to 2010
$million 2007 2008 2009 2010 Total

Investments:

PPE additions 5,266 5,284 7,258 6,555 24,363
Non-PPE investments

Student loans additions

1,176 1,201 1,350 1,525 5,252

CFI asset investment growth

6,189 2,137 433 5,733 14,492

Kiwibank mortgages

1,028 1,944 2,911 1,927 7,810
Total investments 13,659 10,566 11,952 15,740 51,917

Funding sources for investments

Funding sourced from core Crown activity:

Used to purchase PPE 1,308 1,414 2,019 1,559 6,300
Used for past budget capital allowances 1,236 864 1,504 1,234 4,838
Used for contributions to the NZS Fund 2,048 2,104 2,243 250 6,645
Used for issuing student loans 621 572 640 771 2,604
5,213 4,954 6,406 3,814 20,387

Other funding sources:

Student loan repayments 555 629 710 754 2,648
Proceeds from asset disposals 292 244 405 252 1,193
Hypothecated revenue for roading 888 1,034 1,232 1,267 4,421
Financial and operating returns from CFIs 2,497 1,737 2,215 2,951 9,400
Valuation gains/(losses) on CFI  investments 1,644 (1,704) (4,025) 2,532 (1,553)
Borrowing by SOEs 389 529 321 814 2,053
Operating surpluses generated by SOEs 1,153 1,199 1,777 1,429 5,558
Kiwibank deposits 1,028 1,944 2,911 1,927 7,810
8,446 5,612 5,546 11,926 31,530
Total funding 13,659 10,566 11,952 15,740 51,917

Source: The Treasury

Notes

  • [20]New Zealand International Financial Reporting Standards (NZ IFRS) figures are available from the 2007 year, meaning that data are comparable across years.
  • [21]Additions differ from net movements in PPE as, for any given year, net movements will also include disposals, revaluations and depreciation.
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