Net Worth Attributable to the Crown
|
Year ended 30 June $ million |
Actual 2008 |
Actual 2009 |
Actual 2010 |
Actual 2011 |
Actual 2012 |
Forecast 30 June 2012 |
|
|---|---|---|---|---|---|---|---|
| Budget 11 | Budget 12 | ||||||
| Opening net worth | 96,458 | 105,132 | 99,068 | 94,586 | 80,579 | 85,519 | 80,579 |
| Operating balance | 2,384 | (10,505) | (4,509) | (13,360) | (14,897) | (7,293) | (10,642) |
| Property, plant and equipment revaluations | 6,214 | 4,235 | 196 | (443) | (6,461) | - | (47) |
| Other movements in reserves | 76 | 206 | (169) | (204) | 127 | (356) | 105 |
| Closing net worth | 105,132 | 99,068 | 94,586 | 80,579 | 59,348 | 77,870 | 69,995 |
- Figure 14 - Net worth attributable to the Crown
- Source: The Treasury
Net worth attributable to the Crown was $59.3 billion as at 30 June 2012, a decrease of $21.2 billion from a year earlier. Making up this change was a decrease in assets of $4.9 billion and a $16.2 billion increase in liabilities.
The decrease in assets was primarily due to a fall in value of the Crown's property, plant and equipment (PPE) of $6.4 billion. Slightly offsetting the fall in PPE, financial assets increased by $0.8 billion from 2011 (table 21).
|
Year ended 30 June $ million |
Actual 2008 |
Actual 2009 |
Actual 2010 |
Actual 2011 |
Actual 2012 |
Forecast 30 June 2012 |
|
|---|---|---|---|---|---|---|---|
| Budget 11 | Budget 12 | ||||||
| Property, plant and equipment | 103,329 | 110,135 | 113,330 | 114,854 | 108,584 | 121,186 | 118,008 |
| Financial assets | 85,063 | 93,359 | 95,971 | 115,362 | 116,178 | 107,157 | 115,847 |
| Other assets | 12,443 | 13,657 | 14,054 | 14,999 | 15,556 | 15,241 | 15,328 |
| Total assets | 200,835 | 217,151 | 223,355 | 245,215 | 240,318 | 243,584 | 249,183 |
| Borrowings | 46,110 | 61,953 | 69,733 | 90,245 | 100,534 | 101,383 | 101,466 |
| Other liabilities | 49,211 | 55,683 | 58,634 | 74,083 | 80,004 | 63,929 | 77,414 |
| Total liabilities | 95,321 | 117,636 | 128,367 | 164,328 | 180,538 | 165,312 | 178,880 |
| Net worth | 105,514 | 99,515 | 94,988 | 80,887 | 59,780 | 78,272 | 70,303 |
| Minority interests | (382) | (447) | (402) | (308) | (432) | (402) | (308) |
| Net worth attributable to the Crown | 105,132 | 99,068 | 94,586 | 80,579 | 59,348 | 77,870 | 69,995 |
While asset values decreased over the year, liabilities were 10% more than the same time last year, mainly a result of increased borrowings as well as increases in the long-term obligations for ACC insurance and the GSF retirement plan.
Overall, while there have been some significant changes to the balance sheet, its composition remains similar to the previous year; PPE and borrowings make up 45% of assets and 56% of liabilities respectively (47% and 55% last year).
Assets
Total Crown assets were $240.3 billion as at 30 June 2012 (figure 15), a $4.9 billion decrease.
- Figure 15 - Total Crown assets
- Source: The Treasury
PPE fell by $6.4 billion this year, the decrease in rail-related assets (page 9) was the most significant contributor to that decrease. The total impact KiwiRail restructuring was an $8.6 billion reduction in asset values; $7.2 billion being absorbed by their asset revaluation reserves, and $1.4 billion being expensed in the operating statement.
The remainder of the change in PPE values was largely due to asset purchases of $6.5 billion (detailed below) exceeding the depreciation of assets $3.8 billion and asset disposals of $0.3 billion (table 22).
|
Year ending 30 June $billion |
2012 Actual |
2011 Actual |
|---|---|---|
| Opening net book value | 114.9 | 113.5 |
| Additions | 6.5 | 6.6 |
| Disposals | (0.3) | (0.6) |
| Net revaluations | (6.4) | (0.6) |
| Impairment losses1 | (1.9) | - |
| Depreciation | (3.8) | (3.7) |
| Other | (0.4) | (0.3) |
| Closing net book value | 108.6 | 114.9 |
1. Including KiwiRail
Asset purchases were similar to last year, significant asset purchases by sector were:
- $2.3 billion of transport related assets, including state highways
- $2.0 billion of economic assets, mostly the energy SOE's
- $0.6 billion of health assets, and
- $0.5 billion of education assets.
While PPE fell, financial assets increased from 2011 by $0.8 billion, or 0.7%.
While marketable securities continue to make up the bulk of the Crown's financial assets (figure 16), the largest contributor to the increase in assets from last year was that Kiwibank's mortgages increased by $1.0 billion.
- Figure 16 - Breakdown of financial assets
- Source: The Treasury
The Crown's other assets (including intangible assets, equity accounted investments and inventory) increased by $0.6 billion over the year. The largest increase was to goodwill andwas a result of New Zealand Post's acquisitions of Gareth Morgan Investments Limited, Express Couriers Limited and Couriers Please Holding Limited.
