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Note 6:  Personnel Expenses

The Statement of Segments shows the personnel expenses as a total for each area of total Crown (ie, total personnel expenses for core Crown, Crown entities and SOEs).

Forecast Actual
Original Budget $m Estimated Actual $m 30 June 2005 $m 30 June 2004 $m
1,042 1,034 GSF pension costs 1,032 975
90 108 Other pension expenses 108 90
11,895 12,344 Other personnel expenses 12,422 11,436
13,027 13,486 Total Personnel Expenses 13,562 12,501

Personnel expenses include salaries and allowances to Ministers of the Crown totalling $6 million (30 June 2004: $5.7 million). In addition, Ministers are provided with ministerial accommodation in Wellington and receive allowances when travelling in New Zealand.

Note 7:  Operating Expenses

Operating expenses relate to those expenses incurred in the course of undertaking the functions and activities of entities included in the Crown financial statements, excluding those expenses separately identified in the Statement of Financial Performance and other notes. Items disclosed separately below are those required by accounting standards.

Other operating costs is the large residual item. Most of these costs represent payments made for services provided by third parties (roading maintenance for example) or for raw materials (fuel, medicines or inventory for example). They also include other day-to-day operating costs.

Forecast Actual
Original Budget $m Estimated Actual $m 30 June 2005 $m 30 June 2004 $m
Depreciation Expenses
803 788 Buildings 793 749
113 116 Electricity distribution networks 106 103
183 181 Electricity generation assets 166 146
188 189 Specialist military equipment (SME) 189 180
237 233 State highways 225 219
120 184 Aircraft (excluding SME) 101 91
799 774 Other plant and equipment 850 789
92 65 Other assets 98 70
2,535 2,530 Total Depreciation Costs 2,528 2,347
Other Operating Expenses
679 720 Rental and leasing costs 789 775
74 1,002 Change in provision for doubtful debts 984 459
198 70 Write-off of bad debts 93 84
47 96 Goodwill amortised 97 78
19 19 Audit fees 25 21
3 12 Fees paid to auditors for other services 5 7
- - Asset impairment losses 74 61
310 348 Grants paid[1] 1,267 309
314 337 Lottery prize payments 350 347
- - Loss/(gain) on sale of assets 2 (15)
- - Net revaluation losses 53 137
20,132 20,106 Other operating costs 19,047 18,052
24,311 25,240 Total Operating Expenses 25,314 22,662
  • [1] Additional information on the classification of grants has been collected for 30 June 2005. The forecasts and previous actuals have not been restated, this would be a reclassification between grants paid and other operating costs.
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