Forecast of Memorandum Account Balance for the year ending 30 June 2008
In this section...
- Statement of Intent Homepage 2007/08
- Minister's foreword
- Chief Executive's overview
- Statement of responsibility
- Strategic direction
- Forecast financial statements
- Forecast Financial Statements
- Forecast Financial Performance
- Forecast Financial Position
- Forecast Cash Flows
- Forecast Net Surplus
- Forecast Movements
- Forecast Details of Fixed Assets
- Forecast of Memorandum Account
- Departmental Capital Expenditure
- Notes to and Forming Part of the Forecast Financial Statements
- Statement of Forecast Service Performance
- LINZ's Output Plan 2007/2008
- LINZ as an agent of the Crown
- Forecast Financial Statements
- Appendices
- Contact details
The Memorandum Account is a notional account to record the accumulated balance of surpluses and deficits incurred for outputs operating on a full cost recovery basis. It is intended to provide a long-run perspective to the pricing of outputs.
Landonline (Land Titles and Survey Automation)
| $000 | |
|---|---|
| Opening balance 1 July 2006 | 45,462 |
| Estimated actual during 2006/07 | (21,117) |
| Projected movement during 2007/08 | (13,563) |
| Forecast closing balance 30 June 2008 | 10,782 |
Action taken to address surpluses in the Memorandum Account
This account was set up to record surpluses and deficits arising from the sale of land titles and survey products to third parties, with the intention of facilitating a medium-term cost recovery mechanism. The account initially accumulated surpluses resulting from a levy put in place between 1999 and 2003 during the development of Landonline. Fee reductions have been in place from 1 July 2003 to coincide with the rollout of the e-dealing and e-survey facilities. Fees have been set at a level to under-recover costs, thereby drawing down balances in the account to gradually reduce it to zero. However, with the higher than expected volumes and more manual (more expensive) transactions, the planned reduction will take longer than originally expected to be realised.
