Financial Statement: Statement of Commitments

As at 30 June 2006

The Department has long-term leases on premises at many locations throughout New Zealand. The annual lease rentals are subject to regular reviews, usually ranging from two years to three years. The amounts disclosed below as future commitments are based on current rental rates.

Operating leases include lease payments for premises, computer equipment, telephone exchange systems and photocopiers.

30/06/05 Actual $000		30/06/06 Actual $000
	Non-cancellable accommodation leases
7,091	Less than one year	8365
6,276	One to two years	6437
13,702	Two to five years	11992
5,781	More than five years	5009
32,850		31,803
	Commitments arising from other contracts
20,876	Less than one year	21,300
15,850	One to two years	17,449
22,255	Two to five years	19,511
—	More than five years	—
58,981		58,260
	Capital commitments
136,272	Less than one year	169,467
1,370	One to two years	7,140
—	Two to five years	—
—	More than five years	—
137,642		176,607
229,473	Total commitments	266,670

The increase in capital commitments is largely due to the contracts entered into for the construction of Otago Region Corrections Facility, Spring Hill Corrections Facility, deferred maintenance and the building of additional beds at existing sites to meet increase prisoner demand.

The accompanying accounting policies and notes form part of these financial statements.