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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 2006 $m 30 June 2005 $m
1,043 1,301 GSF pension costs 1,392 1,032
123 129 Other pension expenses 206 108
13,317 13,416 Other personnel expenses 13,518 12,422
14,483 14,846 Total Personnel Expenses 15,116 13,562

Personnel expenses include salaries and allowances to Ministers of the Crown totalling $6.7 million (30 June 2005: $6 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 Government financial statements, excluding those expenses separately identified in the Statement of Financial Performance and other notes. Items disclosed separately below are those required by Financial Reporting 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 2006 $m 30 June 2005 $m
Depreciation Expenses
857 863 Buildings 880 793
111 109 Electricity distribution networks 109 106
212 204 Electricity generation assets 198 166
191 186 Specialist military equipment (SME) 187 189
265 228 State highways 252 225
187 198 Aircraft (excluding SME) 102 101
856 872 Other plant and equipment 905 850
65 55 Other assets 75 98
2,744 2,715 Total Depreciation Costs 2,708 2,528
Other Operating Expenses
754 777 Rental and leasing costs 820 789
512 246 Change in provision for doubtful debts 429 984
63 59 Write-off of bad debts 81 93
94 89 Goodwill amortised 75 97
19 19 Audit fees 28 25
13 2 Fees paid to auditors for other services 4 5
- - Asset impairment losses 90 74
350 1,073 Grants paid 1,578 1,267
337 358 Lottery prize payments 398 350
- - Loss/(gain) on sale of assets 93 2
- - Net revaluation losses (274) 53
- 1,479 Write down of existing student loans to fair value 1,415 -
- 300 Write down of new loans to fair value 328 -
22,237 22,527 Other operating costs 21,504 19,047
27,123 29,644 Total Operating Expenses (including depreciation) 29,277 25,314
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