10. Provisions
In this section...
- Annual Report 2008/09 homepage
- Chief Executive's overview
- Strategic context 2008/2009
- LINZ's performance 2008/2009
- Financial statements
- LINZ information
- Appendix
| Actual 2008 $000 |
Actual 2009 $000 |
|
|---|---|---|
| 420 | Provision for onerous leases | 456 |
| 1,123 | Huntly east provision | 708 |
| 1,622 | Other | 1,193 |
| 3,165 | Total current portion | 2,357 |
| 6,610 | Provision for onerous leases | 9,075 |
| 12,996 | Huntly east provision | 15,628 |
| 19,606 | Total non-current portion | 24,703 |
| 22,771 | Total provision | 27,060 |
| Provision for onerous leases $000 |
Huntly east provision $000 |
Other provisions | Total $000 |
|
|---|---|---|---|---|
| 2008 | ||||
| Balance as at 1 July 2007 | 7,484 | 14,119 | 2,104 | 23,707 |
| Additional provisions made during the year | – | – | 663 | 663 |
| Charge against provision for the year | (454) | – | (1,016) | (1,470) |
| Unused amounts reversed during the year | – | – | (129) | (129) |
| Balance as at 30 June 2008 | 7,030 | 14,119 | 1,622 | 22,771 |
| 2009 | ||||
| Balance as at 1 July 2008 | 7,030 | 14,119 | 1,622 | 22,771 |
| Additional provisions made during the year | – | – | 254 | 254 |
| Charge against provision for the year | (419) | – | (430) | (849) |
| Discounting changes | 2,920 | 2,218 | – | 5,137 |
| Usused amounts reversed during the year | – | (1) | (253) | (253) |
| Balance as at 30 June 2009 | 9,531 | 16,336 | 1,193 | 27,060 |
Provision for onerous leases
LINZ has onerous contract obligations where the unavoidable costs of meeting the contractual obligations exceed the economic benefits expected to be received from it. The provision relates to the lease on 3 The Terrace, Wellington, which expires in 2060.
Huntly East subsidence
The Crown has an obligation to purchase properties affected by mining in the Huntly East area (CAB (97) M 33/7A Refers). The Huntly East Subsidence Policy states that if a property is not sold on the open market within six months, the Crown will buy the property from the vendor at current market value. Until all properties have been purchased by the Crown, this policy will continue. Properties purchased by the Crown are covenanted to protect the Crown from future liability then on-sold (generally at a lower value as a result of the covenant on the title).
