3. Revenues and expenses

About us

	Group	Group	Parent	Parent
	2008 ($m)	2007 ($m)	2008 ($m)	2007 ($m)
(a) Crown appropriation income
Appropriation income received for provision of policy advice, research and ministerial support to the Crown	2	3	2	3
Appropriation income received for various housing initiatives	29	16	29	16
Appropriation income received for Low Deposit Rural Lending courses	1	1	1	1
Total Crown appropriation income	32	20	32	20
(b) Other income
Dividends from subsidiaries	0	0	22	13
Management fees from subsidiaries	0	0	106	92
Recognised insurance premium on Mortgage Insurance Scheme Refer note 3(i)	1	2	1	2
Other income	0	2	0	2
Gain on disposal of property, plant and equipment	0	0	0	0
Total other income	1	4	129	109
(c) Depreciation and amortisation
Depreciation - rental properties	170	159	6	6
Depreciation - management assets	6	6	0	0
Amortisation of intangible assets	3	2	0	0
Total depreciation and amortisation	179	167	6	6
(d) Employee benefits expense Wages and salaries	57	53	56	52
Workers' compensation costs	12	11	12	12
Total employee benefits expense	69	64	68	64
(e) Interest expense and (income)
Interest income	(12)	(11)	(15)	(18)
Net interest on interest rate swaps and cross-currency interest rate swaps	(25)	(7)	(2)	(1)
Realised loss/(gain) on cross-currency interest rate swaps	(1)	31	0	0
Realised loss/(gain) on medium term notes	1	(31)	0	0
Interest expense Crown	152	115	26	23
Other borrowings	4	18	0	0
Interest income	(38)	(49)	(17)	(19)
Interest expense	157	164	26	23
(f) Realised (gain)/loss
Crown loans - fixed	1	(1)	0	0
Bonds fair value movement	0	(2)	0	0
Euro medium term notes	8	(8)	0	0
Interest rate swaps	1	(3)	0	0
Cross currency interest rate swaps	(8)	8	0	0
Total gain	(8)	(14)	0	0
Total loss	10	8	0	0
(g) Other expenses
Tenancy debts written off during the period	2.2	2.2	0.0	0.0
Change in the tenancy debt provision	(0.0)	0.0	(0.0)	0.1
Mortgage bad debts recovered during the period	(0.4)	(0.5)	(0.4)	(1.0)
Change in the mortgage advances provision	0.2	0.0	0.2	0.0
Permanent diminution in asset values	10.5	10.2	0.6	0.0
Members' fees	0.4	0.4	0.2	0.3
Amounts paid to external auditors, refer note 3(h)	0.7	0.7	0.7	0.7
Other	69.8	82.3	60.1	51.4
Total other direct expenses	83.4	95.3	61.4	51.5
(h) Amounts paid to external auditors
Amounts received or due and receivable by Ernst & Young (acting on behalf of the Auditor-General) for:	0.5	0.5	0.5	0.5
- auditing the financial report of the entity and any other entity in the Group entity	0.5	0.5	0.5	0.5
- other services in relation to the entity and any other entity in the Group entity	0.2	0.2	0.2	0.2
Total amounts paid to external auditors	0.7	0.7	0.7	0.7
(i) Mortgage Insurance Scheme premiums less claim cost	3	5	3	5
Premium expense	(2)	(3)	(2)	(3)
Claim expense	0	0	0	0
Net underwriting position	1	2	1	2